Are you planning to start a vending machine business? It’s a convenient option for a lot of people since they no longer need to find a store nearby to get some snacks. In addition to this, businesses don’t have to worry so much about overhead costs.
Getting started and earning from a vending machine can be a good option especially if you want something that doesn’t actually require an employee to cater to your buyers. Vending machines are also handy for anyone trying to get some snacks or even meals. In fact, there are even some vending machines that sell healthy food for its customers.
However, if you are asking if you can actually make money with a vending machine business, you have to understand that the average weekly revenue is only $76. This is something that you should be thinking about if you plan on starting on a vending machine business.
That only means that every month, a vending machine gives you around $300. To give you an idea, an average person will most likely spend $27 per year at a vending machine. Before you even start this kind of business, this is a solid consideration that you will have to make.
But of course, the vending machine business is still a serious industry in the US. In the United States, it generates $7 billion annually. However, there are around 4.6 million vending machines in the US.
How to Start a Vending Machine Business?
Now that you have an idea how much it could actually generate for you, it’s about time that you know exactly how to start a vending machine business.
- Why start a vending machine business in the first place?
What you have to know first is to clarify your reasons why you actually want to have a vending machine business. The last thing that you want is to have some type of regret because you will realize that it actually doesn’t align with what you had in mind.
Why do you start your vending machine business in the first place? It can vary from one person to the next.
- Additional income every month
- Business that doesn’t require too much attention
- Actively do something about your spare cash
- More time with your family
- Are you planning to do it full-time?
You also have to consider if you are going to run things full-time or if you are going to do it part-time. If you plan on doing the vending machine business as a full-time business, you will have to understand that it also takes a good amount of money considering the average income a vending machine can generate.
For this reason, you need to consider the volume of vending machines that you will operate. Some full-time businessmen that made use of vending machines as their primary source of income would usually operate around 50 vending machines.
But if you are only doing it as means to supplement your current income, then you don’t actually need to be investing on a good number of vending machines.
Before you even decide whether to do it as a full-time business or just a means to add some money to your monthly income, you will have to assess your financial capability. Keep in mind that the cost increases along with the opportunity to do business. This means that more vending machines also mean added cost.
- Choosing the right vending machine
You need to choose which kind of vending machine you should be going after. Are you looking to invest in a standard vending machine that offers junk food and soda? Perhaps, you are looking to provide healthy meals? But of course, vending machines go beyond the product choices. There are also different types of vending machine options that you can go for. There are those vending machines that can take credit card or debit card payments. Heck, there are even those vending machines that can take payments via smartphone.
If you opt to invest in a vending machine that takes credit card payments, these machines are equipped with remote monitoring. This allows you to know the amount of money that you receive plus the products that the customer bought. With its remote monitoring, you can log in at home and see which products your vending machines have sold.
- Know the location and the most profitable products
Next, you want to make sure that you maximize the money that you generate from your machines. In order to do this, you have to make sure that you know the best products that are in demand in a particular area. Each area has a different demand.
For instance, if you are going to be selling your products in a gym, then perhaps healthy options and water are usually in demand more than soda and junk food. You have to understand your market well to know which products you should be selling.
In addition to this, you also have to consider the fact that you take a closer look at the foot traffic in a particular area where the vending machine will be placed. And also, you will also need to know the prevalence of crime in a particular place. The last thing that you want is to have some vandals knock your vending machines down just for fun.
When you have a location in mind, not only do you need to take a closer look at the market, you will also have to know the competition. Is the area already saturated by other vending machines? Do they already cater to products that you wish to sell to your audience?
- Make the vending machine stand out
You want a vending machine that stands out. You want to make sure that the vending machine is going to get the attention of your target market. Digital LCD screens for instance and the necessary lighting can make a big difference about this.
If you plan on investing in a vending machine, it is important to make the most out of your venture. With these steps that we have mentioned, it becomes possible that you make the most out of your vending machine.