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TIPS ON HOW TO START A VENDING MACHINE BUSINESS
Tips On How To Start A Vending Machine Business
Are you thinking of starting a vending machine business? What are the things you need to know if you want to start a vending machine business? Personally, I’ve always wanted to start one but never really took the time to study how. But recently, I saw some ads on used vending machines for sale in a local newspaper and I thought I should finally do some research on how to start a vending machine business. So far, here’s what I’ve learned:
Advantages of a Vending Machine Business
- It is an all cash business. All sales transactions are immediately paid in cash.
- It is recession proof. In fact, people tend to buy more retail when times are hard.
- Vending machines, in general, require only minimal maintenance.
- There’s no need to hire sales employees, and your business is potentially open 24 hours a day.
- Because there is minimal overhead costs, you can sell your products at very competitive prices.
The Most Important Factor For Vending Machine Business Success
The success of a vending machine business primarily relies on its location. Choose the business right location and you’ll enjoy optimum profits. So how do you know if a location is a good place to put up a vending machine?
- First, the area should have constant foot traffic.
- Second, the area should be secure and safe from vandals.
- And third, your products should compliment the market profile of the area.
The third tip is actually the most important. Have you ever wondered why you see toilet paper vending machines inside restrooms, coffee vending machines near offices, soda vending machines in parking lots and candy or gumball vending machines in places where there are lots of children? It’s because people buy from vending machines usually for two reasons – out of need and out of impulse. Thus, toilet papers exactly where we need them, coffee to awaken sleepy employees, sodas for the waiting drivers or to accompany us while driving and candies to tempt the sweet tooth of children.
Things To Consider When Starting A Vending Machine Business
- Find a suitable location and decide what products would do well in the area.
- Inquire to the establishment or building administrator and ask the requirements and terms for putting up a vending machine in the area.
- Consult the local government to know the legal process of getting business permits for your venture.
- Look for vending machine suppliers or find sellers of second hand or used vending machines.
- Depending on the supplier, vending machines can either be bought or leased. Most of the time, they are franchised.
- Monitor your inventory. Know your fast moving items to ensure that your vending machine will never run out of stock.
- Regularly visit your location. Doing so will give you more insight on the quality of foot traffic and customers that you get.
- Ensure that your vending machine is always clean, working well, attractive and readily visible. A dusty or faulty equipment will make people think that your products are old and of poor quality.
- Before buying, leasing or franchising a vending machine business, always make sure that you are dealing with a reputable dealer or supplier. Ask for their terms and conditions when it comes to warranty, inventory, service and maintenance of the equipment.