Market Urbanism

Liberalizing cities | From the bottom up

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Vending Machine Economics in Japan

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Tyler Cowen of Marginal Revolution is in Japan, and is fascinated by the number of vending machines. He takes a minute to ponder on the economics of vending machines in Tokyo.

First we must look to the shortage of storage space in homes. I suspect few Japanese want to buy big piles of stuff at Costco. So buy smaller “portions” and in the meantime the inventories are stored in the vending machines, where they are more or less at your disposal.

I would also look at the storage space for humans in stores. Shops require expensive ground floor space. If you can eliminate the space the human takes up to manage the store and space shoppers use to enter and browse, you can store more compactly. It’s seems a little counterintuitive to think that the storage space could be more valuable than a human occupant…

Bill’s comment led me to add this link to an automat in NYC: BAMN!

Comments

  1. Japanese vending machines have little to do with storage space in homes; I would think that they’re part of a culture that seems to prefer avoiding human contact or human labor. That’s why their vending machines sell items that have nothing to do with storage space — like prepaid restaurant meals, museum tickets, etc.

    Tokyo’s residential density is about 13,000 people per square mile. That’s about the density of Bayside, Queens.

    What I don’t understand is why there aren’t more vending machines in NYC. You would think that, say, a typical Dunkin Donuts could be replaced by a bunch of machines in a storefront. (In Japan, there are staff-less convenience stores — unless you count the machines as “staff”…)

  2. Japanese vending machines have little to do with storage space in homes; I would think that they’re part of a culture that seems to prefer avoiding human contact or human labor. That’s why their vending machines sell items that have nothing to do with storage space — like prepaid restaurant meals, museum tickets, etc.

    Tokyo’s residential density is about 13,000 people per square mile. That’s about the density of Bayside, Queens.

    What I don’t understand is why there aren’t more vending machines in NYC. You would think that, say, a typical Dunkin Donuts could be replaced by a bunch of machines in a storefront. (In Japan, there are staff-less convenience stores — unless you count the machines as “staff”…)

  3. I think you are on to a good business idea there. I wonder if there are regulations that prevent them. Although, there are a lot of street vendors.

  4. I think you are on to a good business idea there. I wonder if there are regulations that prevent them. Although, there are a lot of street vendors.

  9. Actually, I was using square miles, but was probably using a dubious source for my data.

    In any event, 35000 / mi^2 is a little more dense than Bay Ridge, or about the same as some parts of Los Angeles. It’s not a crazy high density. Also, my own observations of Japanese cities sort of reminded me of Queens and Los Angeles.

    Thank you for the link to BAMN! If banks and airlines can automate, then why not restaurants? Or for that matter, how about drug stores and groceries?

    BAMN looks like they took the idea from Horn & Hardart.At the risk of coming across as a Boring Old-Timer, I will say that I recall many unremarkable (though fun) meals at the Horn & Hardart Automats in Manhattan and Brooklyn. Unlike BAMN, they had lots of seating — of the type one might find in a cafeteria.

    Also unlike BAMN, they did not cater to the cool kids wearing backwards-facing baseball caps (a breed which of course did not exist then), but were instead mostly for office workers by day, and (from what I remember), many loners in the evening. Eventually, the restaurants became kind of drab, and Horn & Hardart converted their Automats to Burger King franchises.

    It will be interesting to see what happens to BAMN in 25years. (Or in 25 months…?)

  10. Actually, I was using square miles, but was probably using a dubious source for my data.

    In any event, 35000 / mi^2 is a little more dense than Bay Ridge, or about the same as some parts of Los Angeles. It’s not a crazy high density. Also, my own observations of Japanese cities sort of reminded me of Queens and Los Angeles.

    Thank you for the link to BAMN! If banks and airlines can automate, then why not restaurants? Or for that matter, how about drug stores and groceries?

    BAMN looks like they took the idea from Horn & Hardart.At the risk of coming across as a Boring Old-Timer, I will say that I recall many unremarkable (though fun) meals at the Horn & Hardart Automats in Manhattan and Brooklyn. Unlike BAMN, they had lots of seating — of the type one might find in a cafeteria.

    Also unlike BAMN, they did not cater to the cool kids wearing backwards-facing baseball caps (a breed which of course did not exist then), but were instead mostly for office workers by day, and (from what I remember), many loners in the evening. Eventually, the restaurants became kind of drab, and Horn & Hardart converted their Automats to Burger King franchises.

    It will be interesting to see what happens to BAMN in 25years. (Or in 25 months…?)

  11. Thanks for the link, Bill. Coincidently, I just moved to (almost as dense as Tokyo) Bay Ridge.

    I need to check out Bamn. I wonder if panhandlers and homeless will be a problem late at night.

  12. Thanks for the link, Bill. Coincidently, I just moved to (almost as dense as Tokyo) Bay Ridge.

    I need to check out Bamn. I wonder if panhandlers and homeless will be a problem late at night.

  13. I think that BAMN is take-out only, so that ought to limit the number of panhandlers.

    Bay Ridge is a pretty decent place to live, if you can deal with being tethered to the “R” Train. On the upside, I like the Great Wall Supermarket on Ft. Hamilton Pkwy & 68 St — if that counts as being in Bay Ridge.

  14. I think that BAMN is take-out only, so that ought to limit the number of panhandlers.

    Bay Ridge is a pretty decent place to live, if you can deal with being tethered to the “R” Train. On the upside, I like the Great Wall Supermarket on Ft. Hamilton Pkwy & 68 St — if that counts as being in Bay Ridge.

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