A vending machine business is relatively easy to start and the profit from the machines can be significant. Many people use their spare change to purchase products from vending machines and this spare change can quickly add up. There are a few key steps that you should follow before starting a vending machine business, and we are going to look at some helpful tips to help you get your new business off the ground.
Before you start thinking about the actual vending machine, you need to determine where you will place the vending machine. Start by looking at some high-traffic areas that do not have competing vending machines. Ideally, you should have three to five locations to choose from once this exercise is done. Also, check which types of vending machines are located in each high-traffic area as this will help you avoid the same types of vending machines when you eventually get one.
To determine what to sell, you need to check which types of people frequent the locations you are thinking about. If there are a lot of people jogging, you might want to sell water, while snacks and coffee would be a good idea for those going into offices. Check that there is enough space to accommodate the type of vending machine you would like to sell. Ensure the final site you choose is away from businesses that would cannibalize your sales. For example, you do not want to place a vending machine with soft drinks or snacks close to a fast-food restaurant.
Now it is time to negotiate the price for where you will place the vending machine. The two most common options include leasing the space or paying a percentage of your sales. In many cases, the percentage works best because it is tied to your sales. When you decide to lease some space, you have to pay for the space no matter how much money you have made in the previous period. Many vending machine merchants advise 15-33% of your sales, so try to negotiate within this range.
You can now lease or purchase a vending machine from a reputable dealer. Reputable dealers will often have a huge selection of the best vending machines to choose from so you can find one that fits your business and the types of products you would like to sell. Check that the vendor offers machine servicing and stock if you are leasing or renting the vending machine. If you are buying the vending machine, you will be responsible for stocking it as well as setting the prices for the items in it. This is something that some business owners consider because it improves their profits.
Also, ask the dealer whether they can transport the vending machine to the target location. Once everything is set, ask if you can get a stand-alone bill changer. A bill changer ensures change is always available for those who choose to use coins.
If you would like to accept other payment options such as credit and debit card, talk to the vendor to see if additional opinions can be added.
The final steps to getting ready to start the business include stocking the machine and testing it out. Check that the machine works as expected and that nothing jams before you open to the larger public. If anything does, get the machine repaired and test it until it works as expected.
Starting a vending machine business is a great way to boost your income. Some preparation will be required but if you do everything right and find the right machines, you should be in business shortly.