The vending machine business attracts many because it is a business that may not require as much time and effort as a daycare or catering business while allowing for immediate cash flow. It is a cash-only business so there are no worries of receivables, bad checks or credit card chargebacks. This business can relatively be started with a small investment with no personal selling required.
1. Select the right product – Choose a product that offers a healthy return for your money but not too labor intensive. Consider how much revenue you can receive per location for your chosen products and how much time would be involved in replenishing your items including drive time. Study the profit margins of the product, cost of purchasing the items, capacities of the vending machines and the efficiency of servicing the machine.
2. Choose the right machine – In choosing the machine, you need to consider your product, what’s available in the market, and how you will maximize your location. Also make sure that your machine will stand out from other vending machines in the location. It must impress your client.
3. Location, location and location – This is a business where the location of the machines is absolutely critical to the success of the business. The location must attract significant foot traffic. You can look for a location yourself or you can hire a professional location company.
Here are associations on the vending machine business where you can find more information about the business:
- National Automatic Merchandising Association http://www.vending.org/
- Automatic Vending Association http://www.ava-vending.org/
- Directory of Vending Business Associations
You may also want to read some articles on the business and check out other resources
For detailed information, check out the following books:
- Vending Business-In-A-Box: A step-by-step guide to starting a profitable vending business without getting burned by Bryon Krug
- Start Your Own Vending Business (Entrepreneur Magazine’s Start Up) byAnne Rawland Gab
- Vending Success Secrets – How Anyone Can Grow Rich In America’s Best Cash Business! by Bill Way
- Cash Locations: A step-by-step guide to securing the best money-making locations for your vending machines by Ronnie Talent