Tips To Success In Vending Machine Business

If you are considering business alternatives, vending machines are a good place to start. Once the experience is accumulated they can make for some hefty profits.

Here are a couple of tips for getting you started.

1. The object of the sale can be crucial to the business but it can vary from different types of beverages to hygiene products. Product demand and profit margins are to be studied thoroughly for each type of product. For example candy and gumball machines return a profit greater than the actual product value but the sales have to be larger or you need to have more than one machine in one place.
2. Once you have decided on a product you have to choose a proper location, where people stay or gather, places like lunch rooms, bus or train stations, access ways. The location is of critical importance and must be according to what you are selling – for candy, balls, gumballs the best places are where kids may wait like in front of restaurants or at zoos. Restrooms or airports are the best locations to place vending machines selling condoms or tissues.

3. The vending machines can be either rented or purchased. It is usually much cheaper to rent a vending machine but the new ones don’t come very expensive and if they are successful, studies have shown that they pay for themselves in less than a year’s time.

4. Used machines are another way to go. Letting aside the price advantages for this option you can find that many companies that sell used vending machines offer a reasonable payment plan and even guarantees that their machines will work without any problems.

5. Browse the web for special offers. Many manufacturers now sell their vending machines online and offer great deals on new or refurbished products.

6. The biggest problem for used vending machines is posed by the currency changes they may have seen. You have to check if they work with present currencies and how easy is to receive the desired product because this will bring the customers back or drive them away and put you out of business. If the vending machine works just fine, you just cut your investments a great deal.

7. A thing of interest is the availability of replacement parts. More and more companies offer metal vending machines that are more reliable than the old plastic ones. Also the repairs are a lot easier and you don’t need a lot of plastic spare parts like with the old ones.

8. You have to keep in mind that the vending machine business is related to the business that houses the machines and it should be a popular one – the more people the bigger the profits. Before asking permission to place the machines remember that persistence is the key to this tough game where 9 of 10 business will turn down your offer .Always talking to the owner of the business instead of an usual employee increases your chances dramatically.

9. The percent of the profits that you are sharing with that business is a thing to take into consideration. You have to find a compromise between motivation of the store/business owner and your own profits.

10. You can take a shortcut and buy the vending machine already placed in a great location. The previous owner will provide you with information about the success of the business, the most frequently encountered problems, most demanded products and store owner commission.

Vending Machine Business Tips

Other customers have emailed the following tips and ideas which may help your business!!

• General Vending Machine Tips
• Bulk Vending Tips
• Snack & Soda Vending Tips
• Jukeboxes 

 General Vending Tips

• A well maintained vending machine will be used more often than a neglected one.  Service your vending machine often and it will yield a bigger return.  Keep records.  Change slow moving products to alternatives.
  Spread out your route, it will bring up your sales average.  Service your machine yourself and when you're comfortable with it you may  want to hire someone to help you. Check their work regularly.  The more selections of products you put in a location, the more profit that  location will bring in.
  A colorful machine will bring in more revenue.
  Check with other vendors to compare notes.
• Try not to go the same time to, collect your money like every Monday, on the 1st. You never no who is watching you. Try and go different times of the week or month. Its good security
• I think I have a great idea how to avoid paying a % of your profits. Say you have one machine at Miller Auto and you want to put one at Ace Hardware but he wants a %, tell him you will put some kind of advertising of his on your vending machine at Miller Auto. If it's a franchise it just might work
• always look below the vending machine people always drop money under i looked and found 5 dollars in one week once
• When approaching a new location, take a "gift basket" filled with a good variety of top selling items to distribute to employees. Be sure to include several business cards so that the employees are familiar with your business name.

Bulk candy, Gumball, Capsule Tips

• When filling your bulk vendors for the first time in a new location, only fill each selection about 2/3rds full.  Then, check it frequently until you learn how that location will do.  This will avoid having too much candy sit in a machine going bad rather than being vended in your busiest locations.  The exception is if this location is out of town & not serviced for long periods. 
• On bulk candy vendors, do not stick candy labels or charity labels on your machines with their adhesive on the backs.  It can be difficult to remove & if you use the wrong remover, it can discolor your vending machine or fade your canisters.
• To help prevent Mike & Ikes or Hot Tamales from sticking together, spray them with Non-flavored PAM.
• To prevent critters from climbing your stand & getting into your machine, many vendors coat the top of the stand with Vaseline.
• Don't assume just because a location already has a machine, you won't be able to locate yours. Especially notice if the current machine has been "out of order" or near empty longer than a month. The business owner may readily accept yours alongside the other.
• Peanut M&Ms sell better than regular M&Ms most of the time.
• I HAVE 40 3 HEAD MACHINES @ BY PUTTING SMALL DIXIE CUPS UPSIDE DOWN ON TOP OF MACHINES SALE WENT UP 20%
• Keep your bulk vending machines out of direct sunlight. Place the vending  machine where sunlight will never hit it. Sunlight will cause candy to melt and/or loose it's freshness very quickly. This may cause you to loose money and loose your location.
• Chocolate almonds are a GOLD MINE!!!!...(note: vending machine will have to have plate cut larger for almonds....)
• When seeking a location for a bulk vending machine do not immediately seek the expensive glamorous. First brainstorm; friends, associates relatives anybody who will not charge you as much or at all to locate your machine there. Even if their shop is small, I find often that i get still a large amount of profit and i don't have to shell out to those nasty store owners.

Snack & Soda Tips

• On snack & soda accounts, if the location wants a commission, you generally mark your sale price up to cover the commission.  So, rather than 50 cents for a coke, to cover a 10% commission, you would sell them for 55 cents.  Sometimes when you tell the location this, they will say never mind,  just keep the prices low for our employees.
• Did you know that 24 oz bottles generally cost you MUCH less than the 20 oz bottles? 
• If at all possible try to vend your sodas for 50 cents and your chips for the same. The customers will be able (and will usually) to spend the whole dollar in your machine. As opposed to chips for 55 cents and soda for 60 which means they'll need to spend 2 dollars and are less likely to do so.
• Mountain Dew is a money-making "sleeper".... kids like that poison! LOL
• Make sure to upgrade your DBA with the new chip that reads the new $5. I finally did and now the thing has lots of $5 bills. Now, recouping the $129 chip will take a few weeks to get back. Oh well. 
• Ginger ale doesn't sell well. I ended up having to drink 30 cans, and found out Mountain Dew should have been there.
• Most coffee vending machines use water valves with a rubber type valve and if the machine does not get a lot of use these valves tend to stick from water scale that builds up over time. It is best that every time you service your coffee machine you do all the bowl rinses. Where you make your route drivers go into programming and actuate the program, all the water valves open and close and all the whipper motors turn and if it is a bean grinder or fresh brewer then also do a brewer rinse.
• Use a toy suction cup arrow to pull can drinks out of Antares lanes faster.
• Using quarters only in your changer will more likely get the whole dollar fed back into your machine than not. The $.60 candy bars will require a dime but your quarters only change will buy a soda and a chip, cookie, or cracker snack if both are priced right and typically there are more snacks at $.50 than $.60 in my machines.
• This vendor submitted tip could be considered gambling - check with your state "Rubber band a $1.00 bill to a can soda and put it in the vending machine. When it is purchased, it won't take long before the entire office hears about it and everyone tries to get a drink with a dollar attached. Do it once per month."
• I usually load up a credit so the first person gets a freebie, but I make sure to tell somebody....the first time I did it they called to tell me my machine was broke because it kept spitting their money back....Nobody thought to hit a button....
• If a machine can't be moved from a hot spot, get Reflextic insulation from Lowe's or Home Depot, and trim to fit from cash door up to top, and half of sides. Use water based glue. It solves 90% of the problem.
• After working on or loading pop or candy vending machine before you leave always take a quarter dime & nickel and put in machine and then push coin return. How many times have you seen someone change flavor ids or something else and get called back after leaving. A distraction can lead to not finishing the job.

Jukeboxes

• Jukebox owners---keep the remote away from old, crusty, grumpy employees. They will almost always lower the volume and sometimes turn the unit completely off during their shift. They are poison, don't help the owners or the music operators, as I have had a few of them on my route.
• When filling your jukebox with new titles, don't go by what the TOP 40 says. Ask the bartender or owner what kind of music the patrons like to listen to. Also, buy from a jukebox CD supplier, homemade labels look tacky.

Vending Machine Business Advice and Information

Instead of just jumping into vending and hoping for the best you should prepare by doing as much research on the subject as you can. Let's consider some of the vending machine business information sources that you may use to get a preliminary understanding of the industry, some data for your business plan or some solid advice.

Advice from Other Vending Machine Business Operators

The best way to get advice and information about the vending business would be to ask some existing operators about the local industry and their businesses.

Due to the competitive nature of the vending machine business some business owners may be unlikely to share a lot of information and may even discourage you with false information.

However some of the more established operators care a lot about improving the often bad reputation that the vending industry has. They may be keen to see new operators start out properly instead of having them end up adding to the myth that vending machines and their owners are not to be trusted.

If you try to get talking to a business operator while he or she is re-stocking one of his machines you may be able to get some information out of them as part of a polite conversation but it is unlikely that they would spare a lot of time to go into the details.

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Used Vending Machines – Cut Down On Your Initial Investment

When buying used vending machines, the best ones to buy are the ones that are 100% metal. When you see a used vending machine on sale, the price is usually a lot lower than if you purchased it new, which is a great way to get started in the vending machine business. If you are looking for a home business that you can work on your own time and for which you don’t need to hire staff, then take a look at some of the used vending machines that are available. 

You have to be careful when buying used vending machines. This is because the coin receptacle doesn’t usually get replaced if the currency changes, such as dollar bills being changed to coins. This is something that you do have to check out. Check over the used candy vending machine if that is the kind of vending machine you want to use by putting in coins and seeing how easy it is to get the candy. This will give you an idea of how well your vending machine business may go. If the machines are easy to use, you will have many repeat customers. If they are difficult to use, then customers will avoid your machine when they want candy, a snack or a drink. 

You will find many used vending machines for sale if you do an online search. Some of the companies that have the vending machines for sale offer a guarantee that you will not have any problems with the machines that you buy from them. When you compare the price of a new snack vending machine with the price of a refurbished machine, you can save yourself thousands of dollars. With this saving, you don’t have to wait as long to recoup the cost of the used vending machines from the sales of the products.

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Considering Vending Machines for Your Business?

Facts you should know about vending

Vending machines are machines that dispense food items, beverages, toys or other items for a fee. Vending machines can hold many different types of items, such as cold drinks, coffee, candy, cookies, sandwiches, cigarettes, bubblegum, gumballs, newspapers, ice cream, ice, healthy foods, soda pop, water and snacks. Most vending machines are coin operated, but some operate with a lock and key, or by code. You can find vending machine companies by looking online for one near you or by checking your local phone book. 

Consider which type of vending machine you need for your business, such as soda cans, juice beverages, and coffee. If you're an antique store owner, you may be interested in antique vending machines for your business. Some liquor stores may even offer beer bottle vending machines. When wondering how to choose the vending machine for your location, check out several different vending machine companies and their backgrounds. Target vending machine companies that offer the specific type of machine you want, such as crane, claw, mini, manual, automatic, ATM, carousel, bulk, personal, combo or vending machines for capsules and stickers. 

Find out how long the companies have been in business, what their hours are, and what their service availability is. 

Find out if the company or franchise is properly licensed, and get written quotes and prices for all services. Inquire as to what type of vending machine services are available, such as repair, as well as accessories such as labels. 

Ask how often the vending machine company representative will come by to refill items. Work out a schedule in advance and get it in writing. When choosing a vending machine company or franchise, research the various types of vending machines available. Research various vending machines online, where you can find reviews, prices, photos, and troubleshooting tips. 

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Is Vending Machine Business Profitable?

Vending machine business profit has always been the topic of discussion in the society. Many people are eager to know how much vending machine owners can earn and how profitable are vending machines in general. The answer to the question, is vending machine business profitable is YES, provided you follow some rules and regulations. The vending machine profits are sometimes very huge while others have to struggle a lot to reach that level. 

How to Earn Profits in the Vending Machine Business

Arrange for Finance
The profitability of vending machines is great, however, this business requires money or credit at every stage. If you are cash strapped, then you may have to postpone buying the products from your suppliers and this will hamper your business prospects. So, you need to ensure finance at attractive rates of interest to increase your business volumes. If you find it difficult to get loans sanctioned, then bring in a business partner and divide the expenses equally.

Look for the Best Location
The answer to the question are vending machines profitable is surely a yes if they are located at prime locations. The vending machine business profit would naturally be high if you are able to sale more products to more and more people. So, crowded streets, shopping malls and multiplexes would be the best options for setting up vending machine business. Vending machine profits would be high if you cater to the customers in rich localities because of their high spending power.

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How does coin recognition in vending machines work?

You Asked:

How does coin recognition in vending machines work?

My Answers:

For human beings, recognizing if a coin is real is pretty easy. We can look at the coin, weigh it in our hand, feel the temperature, listen to it hit the floor, etc. If someone handed you a coin replica made of plastic, you would immediately know it is fake even if it looked authentic to your eyes. If someone handed you a blank steel slug, it would obviously be “not a coin” because it wouldn’t look like a coin at all.

What we take for granted as humans is not so easy for a vending machine. A vending machine needs a relatively inexpensive way to detect if a coin is real.

If you look at vending machine you can understand how the simplest possible vending machine recognizes coins. It uses the simplest possible coin detector. All that it looks at is the diameter of the coin.

In something like a soda machine, there is usually a more sophisticated recognition system that usually depends on: A) diameter, and B) magnetic fields. 

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Vending Machine Placement Fee and Commission Plans

The concept of paying for a location in the vending business can be categorized under one of three headings:

1.Placement Fees
2.Commissions
3.Locating Fees

It's important that you understand the unique nature of each of these items. Snack and soda vending account placement require a bit of effort in marketing and sales to make the right placement locations. Using a vending account locator service to find accounts for you might seem like a simple way to land locations for your machines but understand that when you use such a service you will have to pay a Locating Fee to the service when you close the deal with the property that your machines will be placed at. These fees are generally only one time expenses but can be very large in some cases based upon the perceived value of the account to your business, meaning the amount of money that you are expected to make from the account over the course of the first year.

Placement Fees are in a word BAD in another word STUPID and in a final word REDICULOUS. Never agree to pay a placement fee. If the property owner asks you to pay a placement fee it means that you are not important to them, they do not value your relationship to them and they will replace you as soon as your competitor comes along willing to pay a higher fee than you are.

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Vending Machine Financing - Funding For Your Vending Business Startup

Due to the generally low startup costs involved with vending compared to other industries it is not a sensible idea to go too far into debt right away. You may need access to credit at a later date to see you through tough times or to expand so it is best to use savings to cover startup costs if possible. However if your starting capital is insufficient you could consider one of the vending machine financing options below.

Financing from Family and Friends
If you do need funding then a loan from friends or family would be the best way to go. If they have a lot of trust in you and you are sincere with them this arrangement can work well. If things go bad though you can risk losing a lot more than your business.

Investors
Alternatively you could look at taking on an investor and giving them an ownership stake in your business. Potential investors would probably want to see a detailed vending business plan. They may also want to have an active role in the management of the business in return for their investment. For the small amount of funding required you are usually better off having 100% ownership of your business and having full control.

Vending Machine Distributors
Vending machine distributors will often offer you financing plans to help you to purchase their machines. It is likely though that you will be required to come up with the money for a sizable down payment. If this is not possible then the distributor's finance company may be able to offer you financing to cover most of the cost providing that your business plan looks strong and that you have some collateral to offer.

You will also find that some of the distributors that you are able to purchase inventory to stock your vending machines with, can sell to you on credit. Depending on the deal that you work out with them you can usually arrange to pay your invoices within 30 days (Net 30). This is usually only possible if you have a good credit history and are able to show references.

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Vending Tips

Other customers have emailed the following tips and ideas which may help your business!!

• General Vending Tips
• Bulk Vending Tips
• Snack & Soda Vending Tips
• Jukeboxes 

 General Vending Tips

• A well maintained machine will be used more often than a neglected one.  Service your machine often and it will yield a bigger return.  Keep records.  Change slow moving products to alternatives.
  Spread out your route, it will bring up your sales average.  Service your machine yourself and when you're comfortable with it you may  want to hire someone to help you. Check their work regularly.  The more selections of products you put in a location, the more profit that  location will bring in.
  A colorful machine will bring in more revenue.
  Check with other vendors to compare notes.
• Try not to go the same time to, collect your money like every Monday, on the 1st. You never no who is watching you. Try and go different times of the week or month. Its good security

Read more >>