The first thing you need to consider before investing in a vending machine business is how to secure great locations for your machines. You can read more on the topic in our blog post Choose the best vending machine locations. Once you have done your market intelligence in order to select locations the next question would be what type of vending machines you are going to get to deliver the right products to your customers there. There are various types to choose from, so take a look at some of them below and discover the pros and cons of each one, to determine which suits your needs the best.
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These machines are stocked with candies like M&Ms, gumballs, Skittles, Mike & Ike’s, or perhaps little stickers or toys in clear globe encasing. 25 cents typically yields 7 to 10 pieces of candy to the customer.
If you are new to the vending machine business, these machines might be a good option for you. The initial outlay is not too high and you can get a machine for $150 to $450, meaning if you do not have a lot of cash to invest at the beginning, you can still break into the vending machine business by choosing bulk candy vending machines. The products inside these machines offer very good profit margins. You might only be paying 2 to 5 cents on a gumball from the wholesale store, but a customer will pay 25 cents to get the same gumball out of your vending machine. You can see how you can get your initial investment back quickly if you have a number of machines and choose your locations wisely.
In many states, if you are selling a product for less than a certain amount you might not have to pay any sales tax at all. Most bulk vending machines don’t have many mechanical parts so you don’t need to be an expert to repair a broken one. Businesses are likely to let you install this type of vending machine because it does not draw on their electricity, and it doesn’t take up much space either.
It might take more time to make a significant income if you are relying on bulk vending machines unless you are operating at a number of locations. You will probably have to cluster them within a small radius to justify the costs of your time and fuel driving to the locations to restock the machines. Sometimes bulk vending machines are stolen because they do not weigh much, so ensure yours are placed in a highly visible area with plenty of foot traffic.
Even if your bulk vending machines are miles away from each other, you can still alleviate the burden from fuel costs and time wasted in the van by leveraging vending management software to get an insight into when a certain machine would need servicing and how to calculate the optimal route to them. Learn more.
These vending machines are often the first ones people think of when considering the different vending machine types because you see them pretty much everywhere - in malls, businesses, on the highway, in the park, and in the highway rest area, to name just a few locations.
The dollar value of the items in these machines is higher than that of candy vending machines. Instead of making 20 cents on each item purchased you can make a dollar or more. This leads to a better income and you do not have to have as many machines if you want to turn a reasonable profit. These machines are heavier, which is good because it makes them more difficult to steal but can be a problem when moving a machine from one location to another.
However, if you find a viable, established vending location for such a machine, your potential profits can be very good. Your route can cover a larger territory, up to 50 miles perhaps, because you are earning more per machine than if you were to operate, say, candy vending machines.
Again, vending management software can help you maximize sales turnover by carefully analyzing the product mix that you need at each location. Knowing the exact product quantities each machine needs to be replenished with will help you load delivery trucks more efficiently saving you precious time and effort.
These vending machines cost more than bulk machines, and you will need to spend anywhere from $1,500 to $8,500 per machine, depending on the age of the unit. If it has been refurbished or used, it will cost less than a brand new unit, but should still yield the same results. These machines run on electricity which can deter potential location owners from allowing you to place a unit on their premises. A way around this is to pay the owner a small commission.
Sometimes snack and soda machines are vandalized, especially those in less than ideal locations. It is better to have the unit in a visible location inside a building, so it is not exposed to vandals. Additionally, when a machine is outside it is possible that bad weather can damage the internal components. These large machines have more parts than a bulk vending machine, so you should need to learn how to make minor repairs and also know who to call to repair the machine if you have a major issue with it. The longer it is out of service the less money your vending machine business will turn over.
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There are more types of vending machine business than bulk candy vending and snacks and soda vending, but because those are the most popular options we have covered them in more detail here. There are too many different vending machine business options to cover them all, but some alternatives include coffee and hot drinks machines, change machines, toiletries and medical supply vending machines, and office supplies machines. Although snack and soda vending machines are often the first to come to mind, there are a number of different options for people who are looking for specific products in different situations and environments.
A business owner might start out with one or two machines and expand as they start to turn a good profit, or they might prefer several types of the same vending machine, or even different types of vending machines, in a variety of settings and for different target audiences. If you are brand new to this type of business you might wish to consider one of the above options, carefully considering the pros and cons of each, and conducting other research, before making your final decision.
The variety of products that can be stocked in a vending machine is one of the greatest benefits of these devices. A single vending machine can contain a wide range of items, allowing that small bit of floor space to serve many different people and their varied tastes.
Determining what to put in a vending machine can be a bit tricky. You want your machines to be used as much as possible, but what do your people want to buy? To solve that puzzle, work with the team at InReach to find the best office snacks and more. We’ll help you at each step along the way, starting with a logical product mix and refining it as data rolls in to make it even better. Let’s connect today!
Putting the right things in a vending machine starts with understanding as much as possible about the people who are going to be using that machine. Will you be serving an office building full of busy professionals? Or will this machine be placed on a college campus? InReach will design an offering tailored to your target audience so the machine can be as useful as possible.
In an office vending machine, efficiency is going to be a priority, with snacks that are quick to eat being a popular choice. These professionals might be willing and able to pay a slightly higher price for their purchases, but they want convenience in return. On the other hand, college students are notoriously low on funds and will likely be prioritizing low prices above all else.
With a general understanding of your target audience in place, the next step is to strike a balance within the machine for a nice blend of options. This could mean having some items that are considered healthy snacks, while others are a bit more indulgent. Finding a good mix helps make each machine appealing to as many people as possible, as there can be something for everyone within the same unit.
Also, don’t forget to consider dietary restrictions when stocking up. For example, including some gluten-free and vegan choices will help people who follow those kinds of diets locate something they can enjoy.
The preferences of the people using your vending machines are likely to evolve throughout the year. What is popular during the hot summer months might not be so appealing when winter settles in and the holidays arrive. In general, people tend to lean toward lighter fare in the summer and will go for more comforting, filling options during the colder season. Most likely, you’ll want to have some items that remain stocked in the machine for all 12 months, while a bit of the mix comes and goes based on the time of year.
One of the best ways to get things right with your vending machine is to respond to the usage data that is collected from actual transactions. Basically, you’ll start with a somewhat general product mix that makes sense for your target audience, then dial it in after the machine goes into use and you can see what people are purchasing. Leaning on data is a surefire way to get outstanding results from your vending program.
Take the stress out of stocking your vending machine by putting the knowledge and experience of InReach on your side. We’ll