Vending machine business is one of the fastest-growing business in the world today. The reasons why you should choose to own your vending machine business is:
Part time or full time
You can do this business part-time or full time. You must have your regular job right now and want to start part-time job to support your financial, then vending business is the right answer. Start investing small and you can expand as it grows.
Low start-up cost
You just need little investment for vending machine business. Unlike most of the business that requires space for an office, the vending business doesn’t need it. It only requires quality and impressive vending machines, top-notch locations, vending products, and vending operators. Those will not cost you too much money to start.
No advertising cost
Let the product manufacturer do the advertising and for you. If you are vending M&M’s, the manufacturer will spend costs on advertising, while all you have to do is to place your vending machine in a potential location and wait for the money. ? A vending machine is an all-cash business. You don’t have to worry about credit collection problem (bad debt), check problems and credit risks. Customers pay cash to get your product, so all you’d receive is cash!
Selling when you are sleeping
All you have to do is make sure that your vending machines work properly, and they will do the rest for you. Vending machines are available 24 hours to vend things people want to buy.
Time and costs saving
Cut all the salary that is needed to employ a clerk or cashier. But sometimes you will have to hire someone to do the promotion next to your vending machine in case there is a tight competition.
Variety of choices
There are many choices of what to vend out there: newspaper, cigarette, alcohol, beverage, gumball, candy and many others.
Get the tax advantages
Tax deductions can include a percentage of home mortgage interest, property taxes, insurance, utilities, car expenses, meal expenses, travel expenses and much more.
Choosing to Vending machine Locations
The most important and crucial issue in vending business is location, location and always location. Currently, the US market has been fairly saturated with these vending machines. Wherever a location allows the machines, there you find the machines and wherever a location doesn’t allow the machines, you’ll never find them.
So, what is considered as the best location when it comes to the placement of your vending machine or how to choose your vending machine location?
Consider the locations which are easy to access and offer high visibility.
Easy to access locations may offer high volume with plenty of repeat business, such as inside or outside a grocery or convenience store.
Some possibilities and potential places for your machines such as:
- Next to the entrance
- Near to the exit
- Next to the water fountain
- In front of the restroom
- In the break room
- By the coffee maker
- Next to the other vending machines
- By the receptionist
- Next to the cash register
- Next to the listening station at a music store
- Next to the change machine
- In the waiting area (e.g. at oil change places).
If your targeted location, said a grocery store, already offers the same product you are going to vend on its shelf, in some cases, not only the addition of your vending machine will not ‘hurt’ the store shelf sales, it will tend to make them go up significantly.
Consider whether you want to place the machine outdoor or indoor
You should consider the advantages and disadvantages of placing your vending machine outdoor and indoor. Surely, if you put your machine outdoor, the customer will access it all the times, 24 hours, no limit, but how about the safety? There will always be advantages and disadvantages of an option you choose, but the winner will always the location which has more advantages or where the advantages can eliminate the disadvantages so that it will turn your business into profit.
But remember that some vending machines may be sensitive to temperature changes, for example vending machines that vend hot beverage or cold beverage. Therefore, you should have complete knowledge of your vending machines to decide its suitable place.
Check local and state regulations for restrictions on the placement of the machine
Several states prohibit placing vending machines outdoor, while some require the vending machine to meet the standard of National Automatic Merchandising Association (NAMA). Therefore, it would be better for you to check the local regulations in order to have a good understanding of the placement procedures.