The ongoing opportunity for operators that exists from point of use water system and ice machine rentals is no secret to experienced operators. Equipment innovation is further enhancing the revenue potential.

In this episode of Automatic Merchandiser’s Vending & OCS Nation, the podcast for the convenience services industry – produced by Endeavor Business Media, a Division of EndeavorB2B, host Bob Tullio talked to several industry experts about at wonderful aspect of the OCS business – water, ice and filtration. This podcast is based on an article Tullio wrote for Vending Today – available on Vending Market Watch. Com and the newest issue of Automatic Merchandiser Magazine. This podcast takes a deeper dive.

Tullio shares with listeners about how he discovered the water and ice business.

"As an operator, I kind of stumbled into the point of use water, ice and filtration business – once considered to be a very ancillary part of the OCS industry. It reminded me of the days when I rented pool tables and juke boxes (the kind with 45’s and CD’s) not the internet versions we see today. As an operator, you would pick up $35 every week from the bar owner, change a few records to the delight of the daytime bar patrons, and be on your way. A slow drip of revenue - $1800 or so, for a juke box that cost about $1000 to begin with. Year after year – a steady return on investment," he explained.

"Much like the point of use water business. Steady revenue, it’s like a annuity. It may be the best thing going in the OCS business. But early on in my ocs sales career, I saw the power of filtered water when I convinced E Entertainment Television to switch from $6000 a month in bottled water to $600 a month in point of use water and they rewarded my brilliant idea by giving us the OCS business – quite an account for our growing company."

Eight industry experts who were interviewed on the podcast:

Orrin Huebner - Consultant

David Henchel - Corporate Coffee Systems

Joanna Choi - Bevi

Davin Wickstrom - Vivreau

Matt Dudley - Marco Beverage Systems

Steve Silha - F&B Innovation Group

Brian Zekesky - Follett Products

Gary Arwin - Gator Refresh

The numbers are impressive. Naturals2Go has helped 2500 new operators get started since 2009, placing 40,000 machines and according to the company, they have a 14% market share. Vending is a hot business and from all indications, it is now a meaningful part of the gig economy.

In this episode of Automatic Merchandiser’s Vending & OCS Nation, the podcast for the convenience services industry – produced by Endeavor Business Media, a Division of EndeavorB2B, host Bob Tullio talked to Natali Pupovac-Peters, senior VP of fulfillment at Naturals2Go – a company that appears to be taking an extremely responsible approach to introducing the convenience services business to people who are attracted to the business opportunity.

She takes us behind the scenes and pulls back the curtain on their fast growing operation - talking about their role as an operator, a seller of business opportunity, an equipment manufacturer and a company that is doing all they can to support new operators while keeping their expectations in check - making sure they understand that convenience services is not some magical "passive income" business.

As Tullio notes on the podcast intro,

"As a long-time operator myself, I had plenty of experience meeting people who had entered the vending business – ushered in by entities that did not have good intentions and were certainly not concerned about whether or not the operator was successful. No reflection on Naurals2Go by any means, but I started the interview – pulling no punches – it was not a surprise to Pupovac-Peters."

Industry observers, including Automatic Merchandiser’s Vending & OCS Nation Podcast host Bob Tullio, are wondering aloud what next year’s State of the Industry Report will reveal. Sales jumped 30% in the vending and micro market segment and smart markets were not even part of the equation. Next year’s numbers could be off the charts!

In Part II of Automatic Merchandiser's Vending & OCS Nation Podcast, on the State of the Vending & Micro Market Industry - the conversation turns to what seems to be an inevitable subject these days - smart markets and their impact on the industry. It was a lively conversation full of outstanding insights taken from two webinars in July. Both webinars are available on demand. Some notable quotes from our guests: "There is a new wave of operators who are no longer looking at vending and micro markets – they are going straight to smart stores." Ben Thomas - Nayax "We need to change our mindset on pricing. We need to step out of that boomer bucket." Josh Rosenberg - Forward Thinkers "We’ve been installing smart stores like crazy in Fed Ex locations and to say they are doing well in sales is probably the biggest understatement I can make." Tony Danna - Cantaloupe Inc "If we have an empty cooler, that is basically a coffin with our logo on it. That user experience comes with committed service." Jon Holden – All Star Services, Inc. "Anyone who is willing to put in the work, the time the energy and the money can compete if they have the right tools in place." Natali Pupovac-Peters – Naturals2Go. "Looking ahead - I think smart markets will increase in a big way, there will be plenty more industry consolidation, vending will decline and new operators will continue to appear." Orrin Huebner - Consultant.