Learn the strategies for securing profitable vending machine locations and key factors to maximize your vending business’s success. Discover top site recommendations, legal steps, and tips for approaching property managers effectively.
By Brad Nakase, Attorney
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So, you’ve made the decision to launch a vending machine business. The next step is to figure out the best places for your machines. In a favorable location, an amazing machine can bring in $2,000 per month, whereas in a poor location, it might bring in only $50 per month.
The single most important thing you can do for your vending machine business is to choose a good location. Actually, location is the most important element affecting your income, second only to the real goods you are selling.
In order to help people in the vending machine business locate lucrative locations, we have compiled the most thorough guidance possible. What follows is a list of recommended locations for vending machines, instructions for locating these machines, and advice for approaching property managers about installing your vending machine business.
Assuming you can get the owner’s okay, the beauty of running a vending machine business is that you can set up shop wherever. Plus, there are more and more opportunities for small company owners in the vending machine industry, which is another plus if you decide to give it a go. One thing to keep in mind is that in order to place vending machines on someone else’s land, you need to get their legal permission.
You can’t just plop your vending machine in any public space. Putting a vending machine outside your home or in a park won’t automatically make you money. In order to do this, you would need to contact your city hall, form an LLC, and secure a license. Some places are far easier to sell on than others, and each has its own set of legal regulations.
Plus, a site isn’t necessarily one of the greatest just because someone gave you permission to put a vending machine there. Prior to deciding where to put your vending machines, you should familiarize yourself with all the criteria that make up an ideal site.
Envision yourself contacting a neighborhood laundromat in hopes of securing a spot for your vending machines there. How can you tell if they will bring in money or not? It’s not worth the effort if your monthly sales aren’t going to be more than $100, is it?
These four criteria should be considered when deciding on the most suitable sites:
1. Number of Pedestrians
You want a minimum of fifty individuals every day to pass by your vending machine. The most ideal spots are those that have a lot of foot activity, since this increases the likelihood that more people will visit. If you want to know how many people use vending machines, you have to think about both the direct and indirect traffic.
People who already visit the area you’ve selected constitute direct foot traffic. Everyone from high school and college students to hospital patients and staff to gym members and personal trainers are prime examples.
Indirect foot traffic consists of individuals who aren’t frequent visitors to the site but have the potential to become consumers in the future. Consider the crowds at an arena or an airport.
The foot traffic you receive determines the visibility of your vending machines and, by extension, the number of potential customers. Just keep in mind that the amount of foot traffic at your location can affect your inventory. If your vending machines are empty, it makes no difference how many people see them daily. You should pick a spot that encourages successful vending business without totally draining you.
2. Number of Workers
If your vending machines are in a business building, the number of workers is the same as the number of people who might want to buy something. You want to put a vending machine in an office building where there are plenty of people who will use it.
Additionally, staff members are more inclined to become repeat clients, even within the span of a single day. Think about the product you’re selling and the circumstances your employees will be in when they come into contact with your machine, in addition to its location on the premises.
If you want to attract customers who are probably on break, put your vending machines near the kitchen or a communal area. It doesn’t matter how busy the office is; positioning it near the door or exit will significantly reduce vending business.
3. Security
There are a few ways to keep your vending machines safe, but you should think about the neighborhood’s level of safety before you spend money. Theft is more likely to occur in certain areas than in others. There is far less of a threat from vending machines in enclosed spaces like hospitals, classrooms, and offices compared to those in less frequented or poorly lit public places.
You should think about these security considerations before deciding on a site:
One solution for vending machine security is to install a surveillance camera above the machine. This will allow you to monitor the machine at all times. A security cage is another option, however it isn’t without its downsides. You have to consider the price. A second issue is that it resembles a prison cell for your vending machines. It may discourage potential buyers since it lacks aesthetic appeal.
4. Indoors
Would vending machines be more successful in an indoor setting or an outside one? It depends. At beaches and parks, for example, you can make plenty of cash selling ice cream, cold refreshments, frozen food, ice, sunscreen, shades, rain ponchos, and other things. The location of your machine, be it a park or a commercial mall, determines a lot of your selections.
Although outdoor spaces offer more potential for profit, they also pose a higher danger. If it is legal in your area, you should install high-quality locks and security cameras to deter criminals and protect your property from damage.
The practical considerations are equally important. Since the majority of vending machines require an electrical outlet, there aren’t many outside possibilities for a steady power source.
Your machine may stop working and be unavailable if you can’t guarantee a constant supply of electricity. Not only is that bad in and of itself, but you will also lose any perishable contents that require refrigeration.
Consider weather-related issues next. Is there a way to shield a vending machine from the rain and snow? If you want to keep it safe from the elements, you’ll have to set it up under an awning or roof.
There are several advantages to having vending machines placed indoors, and they are also easier to manage. To begin with, the property itself provides some measure of security. Nighttime security measures include locked doors, surveillance cameras, and alarm systems for the majority of spaces.
Indoor vending machines are also much easier to evaluate in general. To get a feel for the local population, you can easily drop by their location.
Locating vending machines outdoors might be lucrative in certain regions, but it’s important to take extra precautions and keep them well-maintained. Make sure you have a strategy in place for maintenance, restocking, damage prevention, and security before you decide on this.
Because of their adaptability and abundance of positioning choices, indoor vending locations are a great choice. They are the center of the vending industry. Additionally, they provide the simplest way to begin operating your vending business and are ideal for individuals who are new to the industry.
When it comes to vending machine places, these spots are ideal. Pick one of these locations for vending machines, and you’ll have a winning formula right off the bat.
While it’s true that sales can differ by region, these are the best places to put a vending machine in the beginning. For those who aren’t comfortable with pitches or permissions, this is a list of some of the best locations to find vending machines.
1. Residential Buildings
In bigger towns, apartment complexes can contain more than a thousand people. This position may be the best of the lot because of the 24-hour visibility and access it offers.
Places like communal courtyards, pools, gyms, and recreation rooms are ideal locations for vending machines. Try to put a vending machine somewhere where people often gather. Rooms like the party room, the laundry room, or the coworking space are perfect options.
2. Motels
Most people who come to motels aren’t carrying much. They will happily grab snacks, quick meals, and even household essentials like toothpaste or dish soap. Captive audiences are defined in marketing as those that have a need for your product or service and have no other options. If you’re on the road and your water bottle has been heated by the sun, the best way to cool off is to locate the nearest ice vending machine. Vending machines are a lifesaver when folks are in such a bind.
Your machine is a godsend for motels without an on-site convenience store or any other type of facility.
People aren’t interested in the extremely expensive food sold in the majority of hotel lobby areas. Who’s going to buy a five dollar bottle of Coke? Guests might find a better option in your vending machine.
Most motels do not feature mini-marts, and those that do often have very limited selections. If you want to provide your guests with some tasty treats or everyday necessities, a vending machine is a perfect choice.
3. On-Campus Housing
College students are the most likely demographic to frequent vending machines. There is some truth to the cliché of the college diet. Even while many young adults are concerned about their health, the majority still like indulging in sweets or grabbing a bag of chips to eat as they cram before a test.
Sure, you can put nicer snacks and drinks in your vending machine than just Doritos and Coke. People who are too busy to cook for themselves would appreciate a vending machine that sells nutritious snacks and sports drinks. Machines that make coffee might also be a smart choice.
Iced coffee, carbonated water, and instant ramen are a few dorm mainstays that everyone knows and loves.
4. Healthcare Facilities
The fact that hospitals are open around the clock makes them ideal locations for vending machine companies. Patients, guests, physicians, and nurses rely solely on vending machines when the cafeteria closes.
Having access to your food vending machines may provide patients with a welcome alternative to the hospital’s standard fare. It works well for employees during their breaks. They won’t have to waste time and money on eating out or ordering takeout.
On top of that, there are the visitors. They might be waiting for a loved one to return from surgery, seeing a friend or family member, or perhaps just stranded in the ER’s waiting room. When there aren’t any nearby food or drink options, people like this will go crazy for vending machines that include both hot and cold options.
Healthcare facilities also benefit greatly from a high turnover rate. A huge crew works various shifts to accommodate the hundreds of patients per month. When you set up shop in a healthcare facility, you’ll never be short of customers and can always rely on a dependable business.
5. Warehouse Site
People who work in warehouses typically don’t take many breaks and spend their entire shifts standing. With on-site vending machines, they may easily recharge at lunch or during a quick break.
The majority of warehouses also sit on huge tracts of land that aren’t exactly bursting at the seams with restaurants. Employees who are thirsty or hungry during the workday may use your vending machine for snacks and drinks.
6. Factories
Similar to warehouses, factories are frequently far from many food options. That being the case, it could be the ideal spot for your machines. Employees often have their lunches while on the clock, and they switch up their shifts frequently. It is possible for a factory to operate around the clock with a shift schedule that alternates between day and night shifts.
Those workers who put in long hours without breaks and don’t have access to food can benefit from vending machines stocked with nutritious snacks.
7. Nursing Homes
During the day, residents of a nursing home typically enjoy unrestricted access to the whole facility. During their free time, they love having a variety of sweets and snacks. Having a vending machine on site is also convenient for the employees.
Nursing homes, similar to hospitals, are open 24/7. There are always customers available to make purchases. Many people come to see their loved ones, in addition to the normal staff and residents. There are times when doctors and other health professionals come to see patients. On their way out, they may grab something to go.
8. Schools
The majority of school districts do permit vending machine sales on campus, but they do have strict regulations that ensure the majority of the products sold are healthier alternatives to typical junk food. In the teacher’s lounge, you can advertise your vending services to the faculty or to students. You may even try setting up shop at the bus and train stations that are near schools.
Having a vending machine in the office increases the likelihood that both employees and visitors will use it frequently.
School vending machines provide a tidy profit, regardless of whether the school in question is a small, neighborhood high school, a huge public university, or a community college. In these places, students don’t have much downtime, so it’s important that they can quickly and conveniently get something to eat in between lessons.
9. Malls
Malls are ideal venues because they receive hundreds, if not more than a thousand, customers daily. This is definitely the kind of spot where a vending machine would stand out. A vending machine would look right at home at any of the many rest areas scattered throughout a large shopping mall. Guests can have a bite to eat or a refreshing drink before continuing their shopping experience.
A large number of mall employees also like to use the vending machines. Instead of standing in line at the food court, they make it easy to grab something during their break.
10. Large Auto Shops/Dealers
How do you usually pass the time while your car is in the shop for repairs? You likely immediately head for the nearest vending machine, as many others do. There are a lot of people touring car dealerships during the day, so it could be a good area to put a food or drink vending machine.
Visitors usually spend a few hours at a car dealership or service shop. It is also common for there to be lengthy wait times, which can sometimes last for as long as three hours. Every member of staff, from technicians to salespeople, will use the vending machine at some point during the day, just like the customers.
Vehicle dealerships also sometimes are part of a bigger business family, which is an additional perk. This opens the door for you to approach the store owner about the possibility of installing your vending machines in additional locations.
Finding sites is when a little research pays off the most! There are a number of approaches you may take to identify prime real estate for vending machines in your neighborhood.
You can try the pros at vendinglocator.com. From fifty to more than two hundred potential areas for you to set up shop, their staff can investigate local hotspots and provide you with tailored suggestions. Additionally, they make it a point to explore within a 15- to 25-mile radius, providing you with ample coverage and possibilities.
Finding a good spot to put your vending machines might be a real challenge, but with the help of a research service, you can overcome this obstacle. To save you time and effort, they will compile a list of possible companies for you to contact regarding your marketing efforts.
Using Google Maps is another simple method to locate lucrative vending machine spots. Look up “schools in [your city]” or “hospitals near me” online. You’ll see results right away. After you’ve compiled a list of the top choices, be ready to pitch your company to them.
Google is successful in its own right, just like Google Maps is an excellent tool. No matter what kind of business you’re looking for, the “near me” option will provide dozens of possibilities. You can find a wide variety of options nearby, including housing complexes and churches. All you need is WiFi!
You might be surprised to know that there are offline opportunities for vending machines as well. Start driving about your neighborhood in your automobile. You should aim to cover a distance of fifteen to thirty miles while making mental notes of potential locations for vending machines.
Another tactic is to just go around and see if somebody is already vending at each property. You might avoid wasting time contacting companies who aren’t interested in what you have to offer if you do this.
Once you’ve identified lucrative vending machine sites, you need to spread the word. If you are looking to connect with local businesses, these are our top recommendations.
1. Door-to-Door
If you’re an extroverted person, this tactic may work wonders for you. After introducing yourself and your services, you approach a business and politely request to speak with a manager about the possibility of placing a vending machine.
Still, watch your time and don’t be overbearing. There are some places where it is considered disruptive to turn up and promote your business when they are open, such as schools and hospitals. Alternatively, you may contact a decision-maker by calling and requesting their contact details, and then you could contact them by phone or email.
Expert advice: Carry a business card that includes your contact information. Managers sometimes have a lot on their plates during the day, but if someone gives them your card, they might contact you.
2. Cold Calling
Making unsolicited phone calls to potential clients in an effort to drum up business is known as “cold calling.” This strategy works when no one is familiar with the prospect. Although it may not be the most captivating model, it does yield outcomes. Numerous vending machine owners have found success by cultivating long-lasting connections with customers they approached via cold calling.
Being able to connect with complete strangers, communicate effectively, and have a high pitch are all necessary for success in this field.
3. Sending Out Cold Emails
Do you dislike contacting companies via telephone? Give email a go instead! For several reasons, cold emailing is preferable to cold phoning. To begin, you won’t become fatigued from sending out numerous emails. Instead of calling several people, it’s much more efficient to send them an email.
Also, you can simply copy and paste your pitch into each company’s email. Get the ball rolling by using a template that lets you include some personalized details, such as the name of a manager. No problem at all; your email is enroute.
4. Reach Out to the Person in Charge
In reality, who gets to decide if you can sell somewhere? To sell your goods at a business’s vending machine location, you must first obtain permission from the owner or manager of that establishment. Look up companies that interest you online. If you want to know who’s in charge, you can typically get such information on their website.
Contact the individual using any means you want, such as phone or email. When you greet them, be sure to be polite and respectful of their time by making your pitch brief and to the point.
After introducing your company, the last step is to schedule a meeting with the company’s decision-maker. After that, you can go into detail about your company, explain why people should use your vending machines, and, fingers crossed, come to an agreement.
Pitching is the next step after discovering a promising location. Gather the following before making contact:
You can highlight all the important aspects of your service in a brief presentation called a pitch deck. It describes your company and emphasizes the benefits and qualities of your product. Your pitch deck is a great place to display your market fit (the reasons your service is a suitable fit for a business), operational costs, and profit estimates.
A commission fee is a percentage of sales that most vending machine owners offer to property owners. With the commission charge, the company reaps financial benefits from hosting your vending machines, in addition to all the other advantages. Commission is a major selling element, so be sure to mention it in your pitch.
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