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by skelseys
2082 days ago
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This article seems to suggest that there's lots of small players competing over marginally profitable locations. There's also a negative externality which can lead to these people destroying their whole business: as people compete over machines that don't make much, they cut costs by not refilling as often and not maintaining the machines. This means that the general level of trust in these machines goes down. After you lose your dollar a couple of times you stop using them. Aside from trusting official Coke or Pepsi machines, there's no brand loyalty (to the operator - a random name on a small sticker on the machine). So if your machines are well-stocked and in good working order, you won't do any better than anyone else. And after a while there are broken vending machines everywhere, which everyone ignores. |
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