Vending ROI

Vending Machine Secrets

Vending machines are low maintenance, but in most cases you need to know what sort of market you're getting into before you buy. Many business owners purchase vending units without doing the research. If you’re wanting to learn how to maintain your machines and maximize profit, here are some helpful steps you can follow.

Secret 1: Learn about the Industry

While you won’t need to go through extensive training to get into the vending machine industry, you’ll need to do some homework before starting your venture. With some market research, you can get an idea of how much time you’ll have to put into your company, the amount of money you’ll likely need to invest, and how long you’ll have to work before seeing a return on that investment.

Secret 2: Choose the type of Business you Want

When starting a vending machine venture, you can either open a new company, or buy an existing business. If you start from scratch, you’ll have the benefit of more flexibility, so you can start small with just a few machines and grow over time.

It could also mean significantly more work, though, as you’ll need to build a network of suppliers and do the legwork of finding locations.

In comparison, if you choose to buy an existing company, you’ll save time on buying or renting machines and scouting locations. However, you’ll still need to check out those locations to see how they’re doing. You’ll also want to review the numbers to be sure that you’re buying a company that will allow you to make a profit.

Secret 3: Choose the Right Locations

Location is everything in the vending machine industry. Choosing the best locations will make all the difference in whether your business is successful. Look for locations that have the following qualities: significant foot traffic throughout the week, buildings with at least 50 employees, spaces without vending machines in place and without other food options available, and places where people frequently have to wait in line.

Secret 4: Know the Costs

As with any business venture, there are costs associated with starting a vending machine business, and you’ll need to consider them when deciding whether opening this type of company is right for you. Here are some of the costs to consider:

Vending Machines – The obvious cost to consider is the machines themselves. On average, a machine will cost between $3,000 to $5,000. That number will vary based on where you purchase the machines and whether they are new or used. Insurance and Taxes – Just like with any other business, you’ll have to factor insurance and tax costs into your budget with a vending machine company. Find out about tax licenses and liability insurance policies before starting. Ongoing Costs – Rent and royalties might be figured into your contracts with the locations that host your machines. Those costs will vary on a monthly basis, but you should be able to determine approximately how much you’ll have to pay on average. Maintenance – Schedule regular visits to your sites to check on your machines and ensure they’re all functioning properly. In addition, you should factor in repairs and replacements into your budget.

Secret 5: Choose your Products

Stocking your machines with inventory might not seem like a major task, but you should put some thought into the products you’re offering in each location to make the most profit. Think about the customers at each location and what they’ll be looking for.

Snacks are the obvious choice. You can stock your machines with chips, candy, and soda and do well in most locations. If you want to change things up, you can get follow the trend of healthy vending machines. According to Forbes, cities across the country are putting legislation into effect that will create rules like making 40 percent of vending machine products healthy options.

Secret 6: Invest in your Business

Once you’ve learned about the vending machine industry and made the decision to start your business, it’s time for the real work to begin. Although it can be a great industry to be a part of, you might benefit from applying for a small business loan to cover initial costs and keep your machines stocked with fresh inventory.

More Tips & Tricks

Step 1: Stock Your Machine

One of the best ways to get the most out of your machine is to keep it stocked. The more empty your vending machine appears, the more stale your inventory will look to prospective buyers. Nobody wants to shop at a kiosk, a mall, or a vending device that appears to getting no attention. To drive sales, keep your vending machines stocked as full as possible. Keep an eye on your machines, especially when you first install them, so you can get an idea for how quickly they run out. Once you get an idea of how long your products last, you can plan your shopping and restocking trips accordingly.

Step 2: Clean Your Machine

Vending massage chairs may not need to be restocked, but they certainly need to be cleaned. Since most chairs are made from synthetic leather, they will need to be maintained in order to get the most years out of them. A safe bet is to clean your vending massage chair at least once a week and to never leave it out in a dusty, hot, humid, or extremely cold environment.

The simplest way to clean a massage chair is to gently wipe its leather with a microfiber cloth dipped in a solution of water mixed with a small amount of dish soap. For a safer cleanse, non-alcoholic baby wipes can be used.

When it comes to cleaning snack and drink vending machines, a good all-purpose cleaner in a spray bottle should do the trick. Be sure to catch any smudges or stains that have developed over time, and use a quick all-over spray-and-swipe to wipe it down and leave it shiny before moving on to your next machine (if you have more than one).

If you have purchased a new vending machine, you shouldn’t have to worry about cleaning any of the parts. Any good machine will be well-designed and keep dust out of its interior. But if you do want to do some deep cleaning, you can always take the machine apart yourself or hire a technician and give the device a good wipe-down.

Step 3: Keep Your Machine Safe

You’ll also need to consider the safety of your machine. Make sure to get some good locks on the device, and make sure you set up the devices in a well-lit area. If your device is set up in an area with 24-hour access, make sure that there is plenty of security or people around to keep your machine from getting vandalized. If your machine does get vandalized or you find that something in the environment is causing it damage, the best safety decision is to simply find another location to move it so you can avoid future problems altogether. In the long run, doing this will save you lots of money.

Step 4: Repair Your Machine

Regardless of how clean you keep your machines, they will eventually breakdown. To get an idea about how much your machines will need to be fixed, we spoke to Mark Giroux, National Sales Director for Coinco/Royal Vendors, North America’s largest manufacturer of cold packaged beverage vending machines, who said, “A commercial-grade machine may require one or two service calls per year, at an approximate cost of $100–$150 each, depending upon who provides the service and where the machine is located. Smaller, less expensive, lesser-designed machines often require much more service.” The bottom line? Be prepared to shell out a few hundred bucks several times a year to make sure your vending machine is running properly.

Maintaining/Repairs

Except for the occasionally potential electrical issue, all problems can be checked very simply in person on each of your service visits. One can easily get an overall idea with a simple test. Take some coins (preferably marked to identify later), pop them in, and turn/make a selection to see how the machine operates. Did the device take the coins? Did it run smoothly? Or did it experience a handful of problems? Take note of issues like these and try out the machine to see if it’s running smoothly. If you do find something wrong, call or schedule an appointment with a technician to make sure it gets taken care of.

Some problems might rely simply on tightening or loosening of bolt, wheel, or other mechanic. In these cases, it is wise to have some Vaseline or wrenches in your pack, so you can repair the issue on site. If there are any worn, damaged, or tampered parts that need to be replaced, usually affordable replacement parts can be found from an authorized dealer or even on sites like Ebay and Craiglist. Just ensure that 1: buying the part is actually cheaper than the entire machine (which isn’t so bad, the old machine can be sold off, or even kept, for value in its load of replacement parts), and 2: get some respectful yet apologetic signage up on the machine letting others know it’s out-of-order. No matter what, it will take time to get a new part replaced if you don’t already have it in stock, but you need to get it done as fast as possible, not just to maintain sales but reduce the number of customers with the negative connotation of finding your machine broken. Just in case though, if you absolutely want to ensure avoiding too damaging a scenario, can always leave your phone number somewhere on the machine with a sign stating to contact in case there’s any issues.

The Service

Simply focusing on the actions of refilling the machine and collecting profits, there’s little to nothing complicated about this part of the job. So long as you bring the things you need to and walk in with a smile (it helps to bridge the comfortability gap and communicate with you and the employees in each area), each service should run quick and smooth. Just make sure to keep these and/or any other items that help for your personal machine handling:

Keys for the lock/s
Tablet/Files for Recording Sales and Inventory
Bags/boxes/carts of Vending Machine Product for Refill, either measured/calculated out for carrying in or in-bulk in truck to retrieve and fill at the moment
Zip Lock or other Bags, for Money/Coins and/or to transfer Expired Product (useful with candy machines)
Cleaning products, window cleaner and/or others
Paper Towels for wiping
Spare Parts
Wrench, screwdriver, and other tools useful in repairs
Electronic Weighing Scale, optional and for bulk machines to weigh current and/or expired product
Back Pack for holding equipment/items or expired product

There are a few exceptions to consider and watch out for of course.

Conclusion

Buying a vending machine for your business is straight forward but it’s a lot of work to build a sizeable business. You’re going to have to get good at finding and selling locations (2 – 4 for every $1,000 in earnings a month), good at having the right mix of product and prices, and spend a lot of time (or someone you hire) to keep enough machines stocked. Keep in mind the 5 steps to get started:

Decide if vending machine business is for you
Figure out what type of vending you want to try first
Pick your products/li>
Get your machines
Stock and maintain your machines

If you get through these well you’re on your way to building your vending machine empire.