Tips For Running A Successful Vending Machine Business

New vending equipment and machines can average thousands of dollars apiece

. Look at online "going out of business" sales and auctions to try and buy used vending equipment. Make sure to have a working knowledge of how to service the equipment. This will cut down on upfront costs during the start up period.

Buy machines with the largest profit margin. Gumball machines have a large profit margin and are often small enough to be placed in most locations. Older and younger individuals will both purchase gumballs.

Purchase products in bulk to save on costs. Most bulk products are cheaper to purchase than a smaller order of the same product. Make certain if buying perishable items in bulk that these items will be sold before the expiration date. Look for sales at local grocery chains on sodas and snack items. Purchasing items on sale can add to your profit margin.

How Much Will a Vending Machine Business Make?

Profits on vending machine businesses will vary. The main factor in a successful vending machine business is always location. Offering a store owner or manager a percentage of your sales will help ensure they allow you to place vending in their establishment. Typically, the percentage offered is between 15% to 33%.

The best places for vending includes bowling alleys, shopping malls, banks, apartment complexes, break room areas, colleges, high schools, airports, casinos, Laundromats and automotive centers.

Considerations Regarding Vending

Always check with the local licensing agency in the area to find out if a business license or insurance is necessary to operate a vending machine business.

Decide how often vending machines will need to be serviced and refilled. Use caution if placing vending machines in a questionable location. Theft and vandalism may occur. Most machines placed in high traffic areas do not often have problems. Always secure machines with a chain to store fixtures to ensure machines are not stolen.

Type of Vending Machines to Install

Vending will depend on the type of customers who frequent the establishment. Choosing appropriate vending machines for the clientele will ensure a more profitable business. For example, if installing vending in an employee breakroom, choose vending machines such as soda and snack machines. If there are a large number of children who pass through an establishment, think about installing gumball and toy capsules type vending machines.

Determine the potential for profit before installing the machine. Things to take into account before placing a vending machine are the cost of the vending equipment, the cost of the vending products for the individual machines, and the cost of transportation to manage the machines. The profit margin will need to be determined in order to price the vending products appropriately.

Products for teens and kids include vending machines with temporary tattoos, toy capsules, stickers, candy and gumballs. Products for older people are generally snack and soda type machines.

by: Navdeep Tuteja

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