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Product Selection & Pricing Strategy

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Planograms & Merchandising

Planograms & Merchandising

Mike Hoffmann

Vending Machine Expert

Discover how planograms and strategic merchandising can elevate your sales effortlessly.

Planograms & Merchandising: Layout That Sells

Mike opens this module with the core idea—layout quietly sells for you 24/7. Planograms are about placing every SKU where the customer naturally looks and grabs. When done right, this boosts sales without extra products or ad spend.

The Psychology of Shelf Zones

Remember this stat: 80% of sales happen between 36–60 inches off the floor—eye level. You only get five seconds to convert a shopper. Divide the cabinet into four zones to optimize their path.

Eye level houses high-margin profit drivers. Reach level holds everyday staples. Stretch level (top shelf) is for new products. Bottom level is for kids and bargain hunters like candy or value snacks.

Real-World Product Placement

Top shelves feature your premium water, Fairlife protein, and energy drinks. These bring the biggest margins. Middle shelves (strike zone) hold your top sellers: Coke, Sprite, and Smartwater—stock 2–3 facings per item.

Bottom shelves serve value shoppers: Shin ramen, chip multi-packs. Place candy where kids will see it. Keep all labels facing forward, three items deep for a professional look.

Keep Variety Tight & Testing Efficient

Too much variety hurts sales. Stick to the “rule of threes”—no more than three flavors of a single brand at once. Test new SKUs on the top shelf for two weeks: 5+ units/week earns it a spot. Less than 3? Remove it.

Group products visually—by color or function (e.g. hydration or protein). Audit your planogram weekly: full facings, oldest items in front, flag dead SKUs. Five-minute checks bring long-term returns.

Mike’s Planogram Template

Here's Mike’s go-to machine layout.

Row 1 (60”+): Smartwater, Celsius, protein drinks.

Row 2 (48–60”): Coke, Sprite, top 2 Gatorade flavors.

Row 3 (36–48”): Reese’s, frozen Uncrustables, Shin ramen.

Row 4 (24–36”): Variety chips, trail mix.

Row 5 (<24”): Cup noodles, value candy bags.

Trigger for restocking: any row under 25% full. Mike does a 1–2 minute forward-facing pass daily so the machine always looks fresh.

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Complete the following exercises:

1. Reflect on a recent shopping experience. Consider how the placement of items influenced your purchase decisions. Identify which products were at eye level and discuss whether this affected your choices.

2. Create a simple planogram for a fictional product category. Decide which products are high-margin and which are staples. Assign them to the appropriate zones, ensuring you follow the 'rule of threes' for variety.

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QUIZ

1. Which shelf level is ideal for placing new trial items?

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Leave your comments and questions below.

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Join Vendingpreneurs

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Join Vendingpreneurs

Join live weekly calls with me & coaches with $1M+/mo vending experience. We'll handhold you through your first vending business.

Join Vendingpreneurs

Join live weekly calls with me & coaches with $1M+/mo vending experience. We'll handhold you through your first vending business.