Jennifer Heebner

Thinking Outside the Jewelry Box: A New Luxury Revenue Stream for Jewelers
November 14, 2006

Here’s a revenue stream I bet you haven’t thought of: luxury vending machines. Expand your store’s reach, sales, and customer base with this type of automated sales tool. I came up with this idea while kidding around with my husband, but the joke became a reality months later when I learned that a high-end vending machine maker actually existed. Ha! I read about the maker, Zoom Systems, in an article in a recent issue of my favorite magazine, Entrepreneur. Here's an excerpt:

“The founder of Zoom Systems in San Francisco has developed automated robotic stores—or high-end vending machines—which are now in more than 100 U.S. locations, including airports, grocery stores and hotels. The machines dispense everything from cell phones to ink cartridges, raking in between $1,000 to $15,000 per square foot per year, with an average store measuring approximately 30 to 40 square feet.”

Currently, it’s using its luxury vending for the sale of electronics such as iPods. But the machines could easily be adapted for jewelry sales. Think about it:

1)Place branded jewelry (David Yurman and Hearts on Fire) in specially made vending machines.

2)Outfit the machines with short videos of each designer explaining the jewelry that’s for sale.

3)Place the machines in high-traffic areas—airports, casinos, country clubs, luxury car dealers, hotels—where potential well-heeled, on-the-go buyers can easily buy the gifts.

4)The jewelry in machines is already gift wrapped. The brands make buyers confident about purchases. These are 24-hour-a-day automated sales tools with shatter-proof glass and take credit cards.

I see lux vending as a great way to capture new business and spread your store’s name (which the designer mentions in his video—ie, “for a bigger selection of my jewelry visit XYZ Jeweler”—and is imprinted on the machine).

Here are some potential store scenarios: The husband impulsively decides to buy himself a new Porsche, but what about her? Ah, lux vending at the dealer enables him to bring home a pair of HOF diamond studs to help break the news. Or, he’s been traveling for two weeks and forgets to pick up something for her while away. Airport lux vending to the rescue! He buys a new Yurman ring for her while visiting the airline’s frequent flyer private lounge.

How clever is this idea?! Investors are welcome to use it, just send me a TY note when you get rich. :)

Posted by Jennifer Heebner on November 14, 2006 | Comments (0)