6 Tips on How to Start a Vending Machine Business
Every workplace or business has customers who often look for drinks or snacks that are within reach, whether they are waiting for someone or managing tasks and hunger in between quick breaks. Thus, having a vending machine is important not only to maximise profit but also to increase customer or employee satisfaction.
Here, we have gathered some tips if you want to start a great side income idea worthy of your consideration nowadays.
- Establish the main reason why you want to start the business.
“Knowing the primary reason why you want a vending machine in the first place will give you the direction of your research to help you increase your understanding,” says Bruce Davey, owner of Sydney-based Your Choice Vending.
It will also help you determine the selection you would like to offer, whether you want to focus in offering a combination of drinks and snacks or probably a healthier selection, adds Bruce. Here’s also a checklist from IVMOA, the largest independent vending association in Australia, for you to determine if this business is for you.
- Personally scout the target location.
Like retail, vending machine business is all about the location. If you want to succeed, you should find time to study the location where you are planning to put your vending machine. First, think of a place where there is a high employee or pedestrian traffic and where people are looking to buy food and drink.
According to Bruce, gas stations, laundry facilities, factories, schools, call centers, hospitals are great places to start, as well as businesses located at least a few blocks away from coffee shops, grocery stores and bakeshops.
However, stay away from areas with high crime rate so as to avoid your worries of having your machines vandalised or bulgarised.
- Decide what kind of vending machine you are going to get.
Depending on the number of people you want to serve, you need to decide what kind of machine you’re going to get. For example, a small snack and drink vending machine can let you serve around 50+ people with 33 selection of drinks and snacks.
It is also perfect for a site with limited space. But if you want to serve 80+ employees, a large vending machine will be more suitable. Lastly, you will also need to decide if you are going to buy (new or refurbished), lease or franchise your machines.
- Look for a reliable vending machine provider.
It’s important that you transact with someone who is reliable as it will also determine the success of your business. To help you out, here’s another checklist of the qualities you must look for in a vending operator.
- Make necessary connections.
Be prepared to answer questions from business owners if in case you do not own the location where you are planning to set up the vending machine. Emphasise the benefits of having one on their location, like providing their staff an easy access to drinks and snacks minus the long walks during short breaks.
You should also discuss a commission structure that is beneficial for both of you. While some business owners will put high emphasis on it, some might even turn down receiving any commissions from you if they believe that the convenience you offer is far more important than it.
It’s also important that you make communication with other vending machine business owners in order to share tips and information about the business.
We hope that the tips above will help you start a business that has a lot of potential to bring not only additional income but also success to you as a businessman.