How To Start A Vending Machine Business, Pt. 1
Already read Part I? Be sure to follow up with Part II of How To Start A Vending Business.
If you’re considering the idea of starting a vending machine business, there’s a lot to factor in before you can take any major steps forward. Fortunately, this two-part guide from All Vend Management is here to help! Read on to learn more about the best practices involved in building your vending machine business and how your entrepreneurial approach can be tailored to drive optimal profits and long-term value.
For further industry insight and professional tips that can help you get the ball rolling in the right direction, please contact one of our vending machine management specialists today. You can also explore our other areas of expertise and services by visiting our site, where you’ll find additional information on the business benefits and commercial solutions we provide within various sectors of the vending machine market, as well as other spheres of the food and beverage industries.
The primary stages of establishing a vending machine business can be broken down into the following processes:
- Research various types of vending machines and how they may relate to specific business models or desired commercial applications, such as bulk vending, office coffee, and more
- Decide the locations or sites where your vending machines will be placed
- Find your selected vending machine and purchase it from a preferred retailer (wholesale as well as secondary and resale products are generally available)
- Source and stock the inventory you’d like to vend to customers
- Look into financing options or loans for related business expenses such as inventory and contract ownership of equipment
- Build your business with supplementary investments in specialized vending machines and vending equipment tools
Phase 1: Research Different Types of Vending Machines
The first phase in starting your vending machine business should involve a reasonable amount of research. But if you’re already reading this resource, then you’re probably already well aware of that! The vending machine market isn’t simply limited to the traditional models you may be thinking of, which usually offer chips, snacks, bottled sodas, and other quick and convenient foods and drinks. While this class of machine — usually referred to as full-line vending equipment — is certainly capable of generating profits, there’s no need to limit yourself if you think that a different type or design of vending machine may be better suited to your intended business model or commercial applications.
Bulk vending, for example, is another viable option for how to fill the slots of your future fleet of vending machines. This type of vending business offers low-cost inventory and uses low-maintenance equipment, which are most often purchased in large quantities due to their minimal expense margins. A bulk vending business usually consists of candy dispensers, gumball machines, and coin-operated vending models stocked with toys, small “amusement” goodies, bouncy balls, and more.
If you’re leaning towards luxury more than simplicity, then you may consider specialty vending, which may be more in line with your entrepreneurial style or ROI objectives. Specialty vending businesses often set up shop in larger venues that get a lot of foot traffic or ticket sales, such as sports arenas, college campuses, or shopping malls. They may sell a wide variety of commodities, including self-selected hot beverages (think Keurig-meets-convenience store), laundry detergent, essential toiletries, small retail items, and even tobacco or cannabis products.
There’s no right or wrong answer to what your vending machine business should offer, or what types of equipment you should opt into acquiring. So do your best to have fun with the research, explore what interests you, and go from there!
Phase 2: Hone In On Optimal Vending Machine Locations
Once you’ve found the type of vending machine or equipment class that speaks to your business interests and company needs, it’s a good time to think about where your newly acquired vendor assets should be placed. The location of a vending machine has a big influence on how much profit it can potentially generate. To put it another way: a specialty vending machine that offers fabric softener and laundry products is suited for a laundromat, a college dormitory, or a hotel; but it’s probably not going to see much success at a football stadium or a shopping mall.
Other potential properties and sites that may be viable for your vending business include:
- Museums and cultural centers
- Residential apartment complexes
- Hospital cafeterias
- Airports and public transit centers
- Employee break rooms
- Sports venues and event centers
- And more!
Once you know of a few places you might like to set up your vending machines, you’ll need to secure the location before business can start booming. This requires contacting the owner of the commercial property where you’re interested in adding one or more pieces of vending equipment. Cold calling business owners can be a bit intimidating, but working with All Vend Management can resolve that issue — and help you get higher commission rates as well. If you want to set up your vending machine business and start seeing major benefits sooner, be sure to contact us for a no-obligation, free consultation to learn more!
Phase 3: Purchase Equipment From A Vending Machine Retailer
So far, we’ve covered the initial research and location investigation that goes into setting up the ideal foundations for your future vending machine business. Now comes the fun part — acquiring the equipment that will allow you to start seeing sales! There are three primary options when it comes to purchasing pretty much any type of vending machine:
- Wholesale: Allows you to buy directly from the manufacturer or primary point of product sales
- Secondary Sellers: May offer multiple brands or specialized vending equipment; usually costs slightly more than buying directly from wholesale suppliers
- Consumer-To-Consumer or Used Vending Sellers: Often based on e-commerce or website platforms, this option for buying vending equipment allows for the lowest costs, more budget flexibility, and an extensive scope of vending equipment options
Learn More About How To Start A Successful Vending Business
Want to learn more about how industry professionals have seen long-term success in from their vending machine businesses? Contact All Vend Management to learn more about our full-service management solutions for vending machines, office coffee and breakroom snacks, vendor negotiations, equipment repairs and maintenance, and much more.
Be sure to read Part II of this vending machine business guide — take advantage of all the value-boosting insights here!