How to Get Started. What are the Different Types of Vending Machines 6. More Tips to Help Your Vending machine business
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2 How to Get Started 3 What are the Different Types of Vending Machines 6 More Tips to Help Your Vending machine business 9 The Downside to Running a 12 The Upside to Running a 15 Where To Put A Vending Machine 18 Servicing Your Customers 20 What Products To Sell 22
3 How to Get Started // Page 3
4 A vending machine is a machine for business, which dispenses certain products to the customers after they insert currency or credit inside the machine. The first vending machines were in ancient Greece. The first modern vending machines for public use sold postcards and appeared in London during the 1880s. Vending machines products are assumed to be affordable for its patron because people use vending machines regularly with their spare coins or notes. The spare coins and notes in the machine are quickly accumulated and amounts to an excellent monthly profit for the vendor. If you are thinking about getting started in the vending machine business and making money on a part or full time basis, there are a few things to consider before going out and buying a vending machine for your business. // Page 4
5 Seek for high traffic sites for the location of a vending machine. Find two or three high traffic sites to begin with, which are relatively free from other competing machines. Choose what types of customers frequent the chosen locations and decide what to vend based on that data. Make sure there is enough space available to accommodate the type of vending machine needed to sell the chosen product. For instance, if the chosen area is a fitness gym, the target vending clients are people who are watching their shape. This means mineral water, low calorie drinks, etc., are some smart options for vending products. In this scenario, stay away from snacks and soft drinks. Haggle for the permission to set up the machine in the target site. There are many options for rewarding the location's management; one is an outright rent of the space another is a share of the percentage of the income. Offering a percentage rather than a fixed fee protects you against unstable incomes because the amount given to the space's management changes as the revenue fluctuates, which always leaves some profit for you. Lease or buy vending machines from a credible dealer who provides machine service and stock. Be sure the dealer delivers the machines to the target location or that other transportation is available to accommodate the machines. Choose machines with bill acceptors attached or consider leasing or purchasing a standalone bill changer so change for the vending machine is always available. // Page 5
6 What are the Types of Vending Machine // Page 6
7 There are many types of vending machines available from several manufacturers and suppliers. They come in different sizes, shapes, colours, and prices. Some types of vending machines need electricity in operating, whereas others use mechanical motion in vending. A business owner or a freelance entrepreneur may establish several vending machines in different settings and for different target customers. Snacks Vending Machine The usual vending machine is one offering candy, soft-drinks, and other snack food. These machines are available in most locations including office buildings, schools, train and bus stations, or malls and shopping facilities. Coffee Vending Machine These vending machines offer a coffee menu that allows customers to pick specific types of coffees, chocolate drinks, or teas for a given price and provides the cup, coffee, and milk or cream, if selected. These vending machines are located in offices, universities and college environments, hospitals, and food courts. // Page 7
8 Toiletries Vending Machine Vending machines offering toiletry and medical supplies are usually situated in public comfort rooms at airports, bars, restaurants, and clubs. These vending machines provide sanitary supplies such as facial towels, tampons, dental floss, small toothbrushes, toothpaste, and condoms. Change Vending Machine A vending machine offering change in exchange for larger notes or credit cards is also a useful vending machine in certain environments, like in parking garages or laundry shops. Office Supplies Vending Machine This type of vending machine is useful in academic settings and libraries, airports, and career centres. This vending machine provides pencils, sharpeners, pens, paper, UBS flash drives, and mailing products like envelopes and stamps. Customized Vending Machine This machine provides a number of unusual products such as CDs, DVDs, tickets, console and computer games, stationery equipment, disposable cameras, and stamps. They are great for supermarkets, malls, and retail stores. // Page 8
9 More Tips To Help Your Vending Machine Business // Page 9
10 The vending machine business requires considerable planning prior to launch if there is any hope of success. Most people are seeking the convenience of self-employment these days, and there is no better way than with a vending machine business. If you've considered buying a vending machine, these may help you get through the business: Restock the Machines Frequently Make sure the machine is restocked at least twice a week depending on the volume of demand of the items. If you sell food, you could sell a customer spoiled items, which might cause that customer to not buy from the machine again or to file a complaint against you. Also, neglecting to restock the machine regularly might discourage the customers, who may choose to visit and purchase items in competing machines. Identify trends and meet the needs of your vending customers An enthusiastic entrepreneur should know if there is an item on the market that everyone wants. Neglecting to stay on top of your industry could cause your business to receive lower profits or worse, zero profit. // Page 10
11 Install Your Own Security Camera Install one s own security camera, which records the site of the machine perfectly. This is especially helpful if the location of the machine does not have a surveillance camera or the camera does not point in the direction of vending machine. You can install a small camera in a slot in the machine or place it at the top of the machine to monitor its use. This way you can call the police or go to a location immediately when there is an issue. Hire a Service Professional Seek vending service professionals and keep them on call. You may choose an individual to work as an independent contractor for your vending company or work with another business that sends out service technicians. // Page 11
12 The Downside of Running a // Page 12
13 You also need to keep in mind that these are machines, which means they can and will break down. Vending machines are not magical money-making machines. They are a passive business, which operates 24 hours (or so) even when you are not looking after them. But, it does not mean the vendor is completely free from responsibilities. A wise entrepreneur must understand the pros and cons of this type of business. Even though the visions of having one's own business sounds very attractive toward private enterprise, owning a vending machine business offers some distinctive opportunities for success but also several strong disadvantages. The disadvantages of using the vending machine are shared by both the owner and the customers. This technology does not allow bargaining. Therefore, fixed prices apply. This might seem unfriendly for both customer and owner. Fraud cases are also common especially when customers create a means of hacking the system of the machine to dispense products. // Page 13
14 Vandalism and destruction of the machine by boisterous individuals or jealous competitors is another problem you must anticipate. You may face immense losses, like a continuous dispensing of product as a result of technical errors or permanent damages that may require you to purchase a new machine. Heavy commission and/or rent imposed on the location of the machine s site may be another discouragement for this capital demanding investment. Therefore, it is important to be conversant with all the characteristics of the vending machine technology for business. // Page 14
15 The Upside to Running a // Page 15
16 Vending machines let the customers buy items without the need of standing in line for a long time. The customers simply deposit their money in the machine and then select the item of their choice. Vending machines have myriad benefits, which are best taken by the vendors. Immediate flow of cash Your cash flow can start as soon as your equipment is placed. Most new businesses fail, in large part, from lack of cash flow in the beginning. One of the many benefits of vending machines is your cash flow can start at day 1. Multiple Streams of Cash Flow Most of the people who are financially independent are those who have more than just one source of income. Entering a vending machine business allows you to establish more than one machine at any profitable sites, which provides a good potential for multiple streams of cash flow. Working 24/7 It s like having a sales team working 24 hours a day - with no coffee breaks, no sick leaves, and no unpredictable performance because of emphatic factors. Reduction of overhead costs by not hiring of staff only increases the profit margin for you, making it a success bound venture. // Page 16
17 Part Time or Full Time In the vending business, you only work for yourself and enjoy a lot of benefits others don t: no boss, no set hours, no utilities, no advertising costs, no complicated paperwork, and most of all, no limit to income. Being a Salesman is not a Prerequisite Several of the most successful individuals in the field of vending today were those who didn't feel they were talented as a salesman. What is vitally needed is a good plan and location for the vending business, and some professional help to get your business to become more profitable. Mobility The machine can always be moved to other areas if need arises and it will continue delivering the services as usual. // Page 17
18 Where To Put A Vending Machine // Page 18
19 The bottom line of any successful business is your product and your target customers. If you want to earn more profit in the vending machine business, you need to install the machines in high traffic locations, workplaces like office buildings and schools, or any place with enough people to continuously buy from the machine. Vending machines should be placed in common areas to make food, snacks, and drinks accessible to commuters and travellers any time during the day or night. This is easy with the help of local Yellow Pages phone book to find some of the high traffic businesses with potential for placing the vending machines. The more people that pass by frequently, the more potential customers you will have. People should also need the items stocked in the vending machines, so the target customers must be considered when deciding where to site the vending machine and what products you offer the target market segment. // Page 19
20 Servicing Your Customers // Page 20
21 Vending is a business, and like any other kind of business, it needs a professional and business-like approach. Vending machines can be a lucrative business opportunity. However, owning and running a vending machine business involves a great deal of time and work. Like any other type of businesses, you have to keep your customers coming back for more. One basic consideration when looking for ways to serve the customers is that vending machines should be placed in areas that make the products easily accessible to the people who need them immediately. Another is when stocking the machines; you need to offer a different product mix to capture the particular segment of customers. Provide a customer satisfaction survey card at vending locations so your customers can leave feedback and suggestions. Customer feedback gives you the opportunity to provide better customer service by finding out what people want. Satisfied customers translate into higher profits. And the best ways to attract customers is to keep the machines well-maintained and cleaned. People won t come back to a machine that is frequently out of order or machines that take their money without giving them an item in return. When the machine isn t working well, make it a priority to repair the problem quickly to prevent losing business and money. // Page 21
22 What Products to Sell // Page 22
23 New ideas are coming onto the market every time and one only needs to pick the right product at the right time to benefit hugely. You may be well-advised to stay with what has been tried and tested at first because these are proven methods to succeed in this industry. Let's take a good look at all the different types of goods a vendor can sell in their vending machines: Snacks and Beverages Candy, Chocolates, and Gum Balls Toys and Stickers Newspapers and Magazines Toiletries Medicines Office and School Supplies CDs and DVDs Arcade and Video Games // Page 23
24 // Page 24
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