Introduction to the Vending Machine Business
The vending machine business is a 100% cash-only business with a nominal initial investment (if you are not going in for the bigger vending machines) and does not require previous selling experience of any sort. You will be the one who decides on which vending machine to buy. You will be the one who decides as to where the vending machine will be place
d. You will decide as to what your vending machine will sell. You will be the one responsible for servicing your vending machine on time. Once you start a vending machine business you are the only one on whom the entire success of the business will depend. A vending machine business will almost never go into a loss. But that does not mean that it will give you super-profits either. There are quite a few factors that will decide as to how much profit each of your vending machines will make for you. But for it to be profitable there are the decisive factors that you have to take proper care of the moment you decide to start this business. Location is the most important factor in the vending machine business. The key to success in vending is the same as in retail - location, location, location. A vending route or machine pays for itself primarily through its location. Find the right location and your machine will not only make money, it will be profitable for many years. The crucial thing in any route deal is to get locations in high-foot-traffic areas and, of course, as close to one another as possible. If your locations are spread far apart, you'll waste time and traveling expenses servicing them. You must pay the location owner a percentage based on sales. Some locations such as large corporations will allow your machines on-site free of charge because of the convenience to their employees, but most hosts will require a small percentage of your sales as rent. Your customer profile will be determined by the products in your machines and their locations. Think about where you’ll find people who’ll want your goods, then visit the site at different times over a couple of weeks to get a feel for traffic flow and customer demographics. Then approach suitable merchants or 'hosts' about placing your machines on their sites. Choose your vending machines and the merchandise being vended with great care. Do the research to find out what types of vending machines are available and the reputations of their suppliers or manufacturers. If the machines are not manufactured to a high standard you will pay the price in maintenance time and cost, and dissatisfied hosts (retailers, offices etc). You should also have enough mechanical ability to fix machines without help or to understand instructions given over the phone by the supplying company. You’ll need a few fix-it tools like screwdrivers and pliers and a car or van to take you on your rounds. Keep your administrative requirements to a minimum. This is simple with a part-time business that you are running from home. You will need a car or van to visit your locations. Prepare a simple business plan suited to the scale on which you are starting, setting out your goals as your business develops, the total cost of your investment, the working capital required, cash flow forecasts, your market position and your strategy for growing your business by adding new locations. The Growth of Vending Machines
Today, the VM or vending machine market is growing at a rapid pace. According to a report by Global Industry Analysts, Inc., these machines have completely invaded the US and Japanese markets and their sales are on the rise. Experts believe that the VM market is going to cross the $160 Billion mark by the end of 2011 and this includes coffee vending machine as well. With the advancement of technology and the availability of different types of coffee including fair trade coffee; manufacturers across the world from Australia to the US are offering some of the most advanced, low maintenance, environment friendly, highly efficient vending machines. by Joy Florendo
