With numerous futuristic innovations coming up, the vending industry is passing through an evolutionary phase. These trends of innovation and new developments have made vending business one of the most lucrative options for entrepreneurs. Since vending machines offer an avenue for (steady) passive income, many business people are increasingly getting inclined towards this highly flourishing business.
However, it involves a lot of smart and hard work to turn these snack-dispensing machines into money minting machines. One of the most crucial steps to have a profitable vending business is to select an ideal location.
A vending machine that’s virtually invisible can never generate profits! If you are planning to start a vending business, here’s something you need to know where and how to place a vending machine:
Is it Feasible to Place a Vending Machine (Just) Anywhere?
Technically speaking, you can place a vending machine anywhere you want. However, it’s not so simple! Firstly, you just can’t legally use someone else’s property to operate a vending business. Secondly, not every location is perfect; it’s pointless to place a vending machine where there’s literally no footfall. Whether you are starting a new business or expanding an already existing one, it’s vital to find the most lucrative locations to earn some quick buck.
How to Find a Potentially Profitable Vending Machine Location?
Just like the real estate industry, the success of a vending business solely depends on its LOCATION. You pick the right location and see your business break all the success records. Like every project, this task too involves a lot of research and legwork to evaluate a number of factors like traffic/footfall and competition.
What’s the point in placing a vending machine where there’s practically zero footfall. Substantial traffic is the key to earn quick bucks from the vending business.
Vending purchases often fall into two categories:
- Impulsive purchase
- Habitual purchase
Impulsive buying is characterised by a consumer who grabs the first refreshment option that catches his eye, while they are in a hurry. For example, a traveller grabbing a packet of chips on the airport, just before he boards his flight. Habitual purchases usually take place from a machine that’s easily accessible to the consumers. For example, an employee buying a sandwich from a machine placed in his break room.
Know the Competition Placing the first vending machine in a premise can give you an early-bird advantage; as it helps you get a hold on that location.
However, you can always slide into a location which already has a vending machine! Contrary to popular belief, competition can actually prove to be beneficial, especially when your machine offers niche products. Moreover, if your machine offers a newer and attractive assortment of products, it may also attract a lot of eyes. To find an ideal location, evaluate the following factors to determine your competition:
- Condition of your competitors’ machine
- Their product assortment and selection
- Payment options available in the machines
Best Locations for Vending Machines
We’ve listed down some of the prime locations where you can turn your business vending into cash-cow
- Gyms/Health Clubs
The gym-goers work up an appetite and so post-workout they don’t necessarily want to stop at a restaurant next-door. They usually want to eat something that fills their stomach and is also wholesome. Gyms and fitness centres, therefore are perfect locations for vending machines that dispense healthy refreshments that people can use to refill their appetite after an extensive workout session. Besides, the employees who work can also benefit from a healthy vending machine during their breaks.
An office with 50 or more employees is a great location to place a vending machine. Working hours today have become erratic, therefore employees want easy access to grab-and-go snacks/beverage options. Placing vending machines offer the ultimate solution for employees who don’t pack drinks or lunches and want to satiate the hunger pangs at odd hours. A vending machine in the break room gives them options – and provides you with a steady source of income.
- Retail Outlets
In a supermarket or retail outlet, you will find two types of audience. The first category consists of people who are busy-bees and have to run errands. When they get into the store, they often feel thirsty and (sometimes)hungry. Therefore, placing a vending machine near the entrance can help you capture amazing foot traffic and leverage these impulsive buyers. Moreover, retail employees usually get a couple of ten-minutes breaks a shift and a short break for their meal. Going to a restaurant and having lunch in such a short time is not feasible for them. It’s here that a vending machine provides a cost-effective opportunity to recharge themselves before going back to their work.
If you have any questions about the vending machine business, feel free to contact us.