People are often attracted by the vending machine business because they see it as an easy way to build some passive income. This is one of the biggest myths in the business right there, the idea that it’s a “passive” business. It’s much more work than most people imagine when they get in. You can’t expect to get rich by putting two or three vending machines in random places with random things in them. You’ll need to do a lot of research until you find something that works and you can build a solid route for yourself. Let’s take a look at some of the things people don’t understand about the vending machine business.
If you want to make money with vending machines, you’ll need to start with a plan. If you decide to buy the machines, you will have to establish relationships with suppliers. You will have to make sure that everything in your machines is fresh and constantly keep tabs on your inventory. All of this requires sound asset, time, and money management and is far from easy.
Another misconception is that vending machines are pretty much all the same and people won’t care as long as they can get what they want. But you’d be surprised at how much more attention and profit an enticing machine in the right spot will generate versus a drab, nondescript one.
If you want to sell refreshments, for instance, then people need to know that your machine serves from a good distance. If you serve small meals and snacks, the machine has to look clean and in a good condition for people to trust it.
This is why you might want to either buy or lease a new machine instead of an old used one. New machines are less likely to break down and they will have a warranty on major components, so it’s a better investment for the long term. If you’re looking for top-of-the-line vending machines with snazzy graphics and nice features, these machines are great for generating revenue.
A lot of people assume that the vending machine market has been cornered and that there are no good spots left. But there are still plenty of places that could use a vending machine, you just have to work to convince owners to install one.
Buying an existing route can make things easier but can come with issues as well. For one, you won’t know what the condition of the machines is. The owner of the route may know that their machines are getting outdated and be trying to unload the problem on you. For instance, they might know that most of their machines don’t have card readers and that you’ll have to equip them with card readers or replace them. So, you will need to carefully assess the assets on your route and run the numbers to see how long it will take for you to recoup your investment.
Don’t assume a machine full of sodas will be a hit in a health club and don’t expect fruits and sandwiches to be popular at your local bar or nightclub. You will need to do some significant research into where you’ll be putting your machines and your target audience. This might take a lot of time to figure out and some machines will underperform. This is all part of the game and only means that you’ll need to revise your strategy.