June 24, 2022

Are You Losing Profits To The Ice Delivery Supply Chain?

There’s a new trend in the current direction of ice delivery supply chain services—maybe you’ve noticed. In most grocery or convenience stores, or anywhere that ice is delivered to a location and sold in a merchandiser or freezer, the standard sizes for bags of ice are getting smaller—but the cost of a large bag of ice is increasing. 

Stores now offer 7-lb and 16-lb bags, as compared to the previous standard 10-lb and 20-lb options. That means 30% less product for customers – but they’re still paying the same price as before. Or even more, depending on the ice company or location! 

This is because the largest ice manufacturers in the country are faced with increasing fuel costs in addition to labor shortages and higher wages, exacerbated by the pandemic and supply chain challenges. In order to save revenue, the manufacturers’ ice delivery solution is to offer smaller bags. This means store owners have to pay MORE money for LESS products to sell to their customers. 

People who purchase packaged ice are doing so because they want ice in large amounts. Whether it’s to fill coolers, provide for parties, or anything and everything in between, one of the biggest selling points for bagged ice is the bulk amount. 7-lb bags aren’t very large, which means your customer has to spend even more just to satisfy their needs. 

The Solution to the Ice Delivery Supply Chain Problem

With ice vending, you can offer your customers 30% MORE ice for a more affordable price, in a more convenient way, AND at a lower overhead cost to you. Everest offers the most energy-efficient machine on the market. It takes less than 20 cents including the power, water, and even the plastic bag for each 10-lb vend! That means you can offer incredibly competitive pricing while seeing high-profit margins of up to 98%! That’s something you cannot get with traditional ice delivery.

Not only that, but adding ice vending provides your customers with a higher quality product made at the spot it’s vended. There’s less likelihood of contamination since you eliminate the need for transportation, storage, and handling associated with ice delivery systems.  

Vending is increasingly popular, offering consumers safe, sanitary, affordable, and convenient options. With ice vending, you can save money while offering your customers an easy, affordable alternative that provides more product overall. 

So when it comes to the best option for your business, let’s review the facts:

  • Ice Delivery:
    • An outdated industry that is seeing overall costs rise 
    • 30% LESS ice for consumers
    • Requires transportation and storage
    • Needs labor – from manufacturing plant employees to drivers
    • Dependent on a delivery schedule
    • Handled a lot, increased risk of contamination
    • Expensive for retailers AND customers
  • Ice Vending: 
    • A multi-billion dollar industry that is rapidly expanding
    • 30% MORE ice for consumers
    • Vended directly from the ice machine to the customer
    • High-profit margins – up to 98%
    • No additional employees needed
    • No restocking is necessary – the ice maker automatically replenishes stock

The answer is pretty clear: If you want to save yourself and your customers money and time, while offering significantly more products, ice vending with an Everest VX is the way to go. It’s time to leave the model of the ice delivery system from the 19th century where it belongs – in the past.