‘Modern consumers demand convenience’, this is the constant truth within the evolving retail environment. Thus businesses are opting tobuy vending machines that aid cashless payments and provide instant gratification to their consumers.
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So much so that the global vending machine market showcases an opportunity of $6.97 billion in revenue from to . What is even more astonishing, is that with 43% of global revenue, the food and beverage industry is not the only one to have a strong hold over vending machines.
Multiple businesses including cosmetics, fashion, mobile phones, gold, medicines, etc are investing heavily in vending machines.
But acquiring the right vending machine can be a daunting task. With so many types and brands of vending machines available, it's important to weigh your options carefully to find the best option for your business needs.
Here is a comprehensive guide to help you choose the right vending machine.
Before you start looking for a vending machine, it's important to evaluate and assess your specific needs. Consider factors such as size, capacity, features, type, location, the technology used, etc.
Evaluating your requirements can help narrow down your selection to the ideal machine for your business. This must include:
Type of vending machine
Machine size and space availability
Location. Location. Location.
Ease of use and management
Technology used and features provided
Let’s discuss them in detail.
Every product has its own unique requirements to maintain its ideal condition. Hence each product demands different features from asmart vending machine.
For instance, a cashless coffee vending machine for office spaces would require a heater, while an ice cream vending machine would require a refrigerator. Likewise, for more delicate products like milk packages, you might want an elevator vending machine and not a spiral one.
Apart from these types, there are also vending machines for snacks, drinks and even combo products. All these little considerations can impact which vending machine you purchase.
Vendekin’s Expert Tip: Choose the product mix first. Identifying the products for your target audience in a particular location, will help you find the best vending machine for your business.
Another interesting consideration should be the machine size, after all this small point can make a big impact on your business.
If you have the right location selected and have fast-selling products like snacks and beverages, you would want your machine to be big enough to store a decent amount of the product to avoid frequent refilling of the inventory.
The second factor that will guide you in selecting the right machine size is the space available to you. Office spaces can only hold a mini coffee vending machine while much larger automatic vending machines can be placed in public spaces like parks, metro stations and malls.
It is important to consider the location of where the machine will be placed. As it helps to look for a machine that can handle the traffic patterns and conditions of the area.
Additionally, consider factors such as clearance space needed, access to power outlets and any additional security measures you may need to take for the vending machine unit.
Vendekin’s expert team can help your business identify more profitable locations on the basis of the analytical data collected by their smart cloud-based vending machine software vNetra.
Taking these into consideration when selecting a smart vending machine can help ensure a successful purchase!
Before you buy a vending machine, test its usability for you and future consumers.
An automatic vending machine is all about convenience and an enhanced shopping experience for end-consumers. At the same time, as a business, you want to be sure of the various nitty-gritty of the vending machines.
With Vendekin-powered vending machines, the shopping experience is cut down to 3 steps: scan >> select >> pay. All this digitally! Moreover, the machines connect with smartphones via Bluetooth making it possible to experience seamless transactions even in cases of low internet connectivity.
And with Vendekin’s onboarding process, vending machine operators are fully trained to interact with the complexities of a smart vending machine.
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Vendekin’s Expert Tip: Evaluate what services or maintenance the vending machine manufacturer provides. Will they manage and restock products? Who will handle technical issues or repairs? How often should it be serviced? And so on…
Understanding the range of payment technologies, features, services and options offered by different vending machines is important to ensure that you invest in the best machine for your business.
Consider which payment methods would apply to your customers, such as cashless payments. Also, think about additional features like flexible pricing options and product promotions.
By selecting the right technology and features, you'll be able to maximise the financial performance of your machine in the long run. With Vendekin’s smart vending machine software you can easily remotely manage your vending machines and use the analytical data for enhancing your business strategies.
These are the few considerations you must take into account before you opt to buy a vending machine.
With Vendekin’s smart vending machine software, you always have access to the data of all your automatic vending machines. How does this impact your business?
The vending business is attractive to entrepreneurs because it provides flexible hours and the ability to make the business as big or as small as meets your needs. It also offers the ability for a semi-absentee business which is attractive to many entrepreneurs.
There are nearly 1.8 million vending machines in the United States right now, generating over $13.3 billion in total annual sales according to vendingmarketwatch.com.
However, it takes work to get those vending machines generating income while you sleep. The first step in creating a profitable vending business is to choose the right location. A vending machine that no one sees cannot generate any revenue. If you are considering starting a vending machine business, this is what you need to know about selecting profitable locations.
You probably could technically place a vending machine anywhere, but it’s not quite so simple. First and foremost, you cannot legally place a machine on someone else’s property and use their utilities without their permission or a contract. Second, not every location is ideal for a vending machine. What good is a vending machine that sits idle with no passersby? When starting or expanding a vending business, it is important to find the most profitable potential locations.
In the vending business, as in the real estate market, success is all about location, location, location. A profitable business begins with choosing the right locations, which involves some research and some legwork to evaluate traffic, study your competition and secure permission from property owners.
Without people, you cannot have a profitable vending business. Foot traffic is the key ingredient to a successful vending machine. Remember, vending purchases often fall into one of two categories – impulse buys or habitual buys. People either grab something when they are in need of a quick pick-me-up and a snack catches their eye, or they get in the habit of making a purchase from a machine they see every day like in their break room at work, their school or in their apartment or condo building.
It would be ideal if you could just plug in a vending machine anywhere you found a spot and start earning money. However, you do need permission from property owners and a contract in order to place your machines.
In some cases, it will be very easy to land a contract and in other cases, you’ll have to jump through quite a few hoops. In many situations, business owners will also want a percentage of the profits of your machines to offset the cost of their utilities and generate some passive income of their own.
So, just what are some of the best locations for vending machines? Every site a vending operator considers should be evaluated individually, but these are ten of the most ideal locations to pursue.
Manufacturing facilities, industrial parks and distribution centers are all great locations for vending machines. These businesses generally employ hundreds of people over multiple shifts (typically 24 hours a day). Many facilities offer short breaks and staff doesn’t generally have time to go off-site to a restaurant. Placing vending machines in the break room gives them options – and provides the vending business with a great source of steady income.
Businesses with 50 or more employees are great locations for vending machines. Employees get hungry and thirsty throughout the day and vending machines provide options for people who don’t pack drinks, snacks or lunches for themselves, which in today’s busy world, includes most people.
Apartment complexes are a flurry of activity with people constantly coming and going 24 hours a day, seven days a week. Many complexes also have laundry rooms, common areas, playgrounds and parks, party rooms, or gyms. These are great locations for vending machines since all members of the community have access to those spaces and many residents utilize those areas on a regular basis. One or more locations on the property can be ideal spots to place vending machines with a wide selection of food and beverage products.
Hospitals never close. They are open 24/7, 365 days a year. They also offer three very distinct types of buyers. For patients, vending can offer a nice treat and break from traditional food. Caretakers and staff love the convenience and choices provided from vending machines–they also don’t have time to leave the facility to go to restaurants. Finally, guests that are visiting and caring for loved ones often turn to vending machines for a quick snack so they can spend more time with loved ones. Being open 24/7 with multiple shifts, and multiple buyers is the ideal combination for vending machine profits.
Like hospitals, nursing homes and care facilities are open 24/7, 365 days a year. Residents love the variety of snacks offered and visitors turn to vending as a quick meal or snack option to spend more time with their loved ones. Finally, most nursing home care staff work longer shifts and have short breaks. This makes vending a perfect option to keep them energized throughout their entire shift. All of these factors lead to a very profitable and high-vend location.
The average consumer will spend nearly 3 hours at a car lot/dealership when looking at vehicles. These locations also have very high foot traffic and long hours. On top of car sales, most dealerships offer complete service centers too with average wait times ranging from 1.5 to 3 hours. Not to mention the sales, technicians and service staff all turn to vending machines for convenient food and drink options. All of these factors combined make car dealerships one of the top-grossing locations for vending machines. Another benefit is that most car dealerships are part of a larger family of dealerships — giving you the perfect chance to expand your business into new locations.
Hotel and motel guests are captive audiences. Even if a hotel has a restaurant, not every guest wants a full meal or wants to pay for a full meal. Some hotels have micro-markets, but those are typically in the lobby and not every guest wants to make the trip for a quick snack – especially if they can grab one on their floor. Placing vending machines in the lobby, side entrances and ice machine areas can be a great way to generate continuous revenue.
People who go to gyms work up an appetite and post-workout they don’t necessarily want to stop at the drive-through next door, they want something healthy. Gyms and fitness centers are ideal locations for vending machines that offer healthy snacks and drinks that can help people refuel after working up a sweat. The employees who work there also appreciate a vending machine with healthy options, since they are typically hourly workers who only receive short breaks.
Students are busy – and they have healthy appetites. Schools, community colleges and universities are a flurry of activity every single day. Vending machines in the right locations on a school property can be an excellent source of revenue as hundreds of people pass by every day who are in a hurry, who are likely hungry and who want a quick snack while they do work between classes or are in a hurry to get to class. Schools are particularly ideal for vending machines that sell healthy products because parents and administrators want to ensure students have access to better options than chips, cupcakes and sodas during the day.
College dorms are also excellent spots for vending machines. Students stay up late and they don’t always want to run out for a snack while they are up working or hanging out with their friends. It’s easy to go to a vending machine – especially if the machine can be programmed to take bank cards, credit cards or even school meal plan cards.
In a retail store, there are two specific audiences for vending machines. First, the customers coming in and out of the store. People often get hungry and thirsty while they are running errands and a vending machine placed near an entrance can be a great way to capture foot traffic and leverage impulse buys. The second audience is the employee base. Retail employees usually get one or two ten-minute breaks a shift and a short meal break. They usually don’t have time to run to a restaurant to grab a meal or snack, and vending machines provide an affordable opportunity to fuel up before going back out on the floor.
Profitable vending machine locations are plentiful but identifying them and securing them can take some legwork. The vending business can generate significant income once you put in the upfront work to secure great locations. Make sure you’re continually scouting new locations and building connections in your community to open new possibilities for revenue and profits.
If you’re new to the vending business and you want help finding profitable vending machine locations, Naturals2Go is here to help. As a member of our team of entrepreneurs and an owner of our machines, you will have access to full training and ongoing support to help you secure top locations and build a profitable business.