Just like any other, starting your own vending business can be profitable, but it would greatly depend on how well you manage it. Anything involving money needs thorough planning, if you want to avoid crashing into a financial loss. Right from the get-go, you have to do your homework to ensure your venture into the vending business will yield success. Just consider the following tips that will help your vending business boom:
1. Pick a strategic location.
Where you place your vending machine is the biggest factor that will determine your success. People buy from vending machines on impulse, which means they don’t leave their homes with the plan to buy from a vending machine. Therefore you need to place it where the traffic is high. This rule of thumb also coincides a lot with the second tip since you need the right product in the right place to make the most out of impulse buying.
2. Sell the right product to the right people.
If you’re going to place a vending machine in an office area, then you are better off selling coffee, chips, and energy drinks. Similarly, when you place it in a school campus, placing sandwiches, juices, crackers, and whatnots will prove lucrative. Knowing the preferences of your target consumers will get you a long way.
3. Give your consumers a plastic payment option.
It is actually pretty surprising how so many vending machines still ask for coins. In this day and age, nobody carries a lot of cash with them, and this puts up a wall that you need to overcome, because people nowadays will need to withdraw cash before they can buy what they want. A good 80% will just drop the idea, since the strong impulse to buy has died. Thus, offering credit card payments will ensure convenience for your customers and influx of sales for you.
4. Start small; assess your financial capacity.
There is money to be had in a vending machine business, but you do not want to drop out of your regular day job right after you’ve secured one or two vending machines. Realistically, you won’t be earning that much income when you start out.
It’ll take some time for you to determine whether you are selling the right product in the right location, and it would be a disaster if you’ve quit your job just to see your vending business fail. Also remember that you won’t just be spending for the machine and the products. You’ll also be paying rent for the location and you’ll be pouring cash for the machine’s maintenance.
5. Build a strong rapport with the location owner.
One of the negligible YET fatal mistakes a person who ventures into the vending machine business is neglecting the importance of building a strong rapport with the owner of the location the machine will have to be placed at. When you’ve spotted an ideal location to set up your vending machine, you need to present a formal proposal to the location’s owner. Don’t get too pushy and give them a presentation that will show how and why the vending machine will be profitable for them as much as it will be for you.