Why are companies spending $12 billion on coffee machines? 🤯
GrowthX | Sleepy Owl Coffee brings a surprise!
‘Man, I really need coffee!’
’Ah, I just had my morning cup’
’Let kick-start the day now’
Does this happen to you?
I’m definitely guilty of this.
Coffee = energy & freshness 🧘🏻♀️
Much like Redbull, which associates itself with athletes in extreme sports.
Enter, coffee vending machines ☕️
In the past, offices were designed to maximize efficiency and productivity. Even walking to the nearby cafe for coffee was considered wasteful.
They could forbid employees from visiting cafes, right? 🥺
Companies had realised that their employees needed coffee, whether it was in office or a nearby cafe. Coffee in-house would not only make them happy but also reduce wasted time → increasing productivity.
Is productivity the only benefit? 🤔
No, there’s a lot more.
First, water cooler chat ☕️
Coffee breaks give employees the opportunity to take short breaks and engage in casual conversations. It helps them relax and talk about topics unrelated to work.
Second, casual face-time 🎙
It allows an informal setting for teams to bond with their superiors.
Third, subconscious solutions 🙇🏻♂️
Have you ever gone for a coffee break and suddenly an interesting solution to the problem you’re working on strikes you, without even actively thinking about it?
But, isn’t it a big investment?
Let's do the math for a 25-person company. The cost of the machine is typically ₹25,000 and the cost of beans per year ₹52,000. That's a total cost of ₹77,000 per year.
Now, the math for time-saved ⏱
Each employee spends approximately 30 minutes going to a cafe. With the vending machine, they save about 20 minutes per serving. Assuming a daily average of 3 cups, that's an hour saved per day. Assuming a salary rate of ₹100 per hour, that's ₹2,000 per employee per month, or ₹6,00,000 worth of time savings per year for a 25 people company. It’s like the coffee machine pays for itself.
What can you learn from this? 🎯
Ask yourself “Does my customer_”
care about productivity?
value time over money?
want to save cost or increase revenue?
Find the coffee machine feature for your business. It should help your customers either save time / generate more revenue. Voila! your product will earn the wallet share.
Plus, the interesting part ✨
Have you ever wondered why coffee/chai vending machines are sold at almost no profit by the likes of Cafe Coffee Day or Chai Point? The same logic holds true for water purifiers. That’s a topic for another newsletter issue though.
Announcing the GrowthX | Sleepy Owl giveaway 💙
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