Vending machines are looked upon as ‘mini-marts’ and they are usually placed in various public locations, including apartment buildings, sports arenas, office complexes and shopping centres.
They can be a good source of income and product placement is the determining factor of any vending machine’s success.
Vending Machines are in High Demand
There is no denying that vending machines are quite popular and can be found virtually everywhere, signifying that the demand for them is great. However, if you have been searching for a vending machine business for sale, you will want to proceed carefully in order to avoid any missteps along the way.
Avoid leaving a full-time job for a start-up venture
The business may become quite profitable eventually, but it may not equal what you are earning for the foreseeable future. Instead, begin the project as a part-time venture and gain some hands-on experience in the industry.
Also start with a well-constructed business plan that enables you to effectively budget your finances, your human resources and your time.
Note that there are three factors that could definitely contribute to (or detract from) the success of your vending machine business:
- the site where your machine is located to ensure sufficient sales because it is a high-traffic area,
- the type of equipment you buy,
- the amount of start-up capital you will have to invest in machinery, the products being sold, rent and maintenance, together with other related expenses.
Choosing the right products to sell
Today, the most profitable product sold in vending machines is bottled water, which may cost $0.47 per unit (depending on brand and volume) and sell for as much $6.00 per unit, resulting in an impressive profit margin.
Understandably, you will need a height volume in sales to benefit from this, but the potential profitability is undeniable. Soft drinks and energy drinks are both very popular and very profitable as well and also have nice profit margins.
Investment Start-Up Costs
Buying a vending machine costs approximately $3,000, but typically, the annual profits it yields equals at least 10 times the original investment depending on location.
This indicates that the pay-back period is relatively brief, and the residual income should last if the location continues to be a good one. In addition, your total income should increase as you additional machines at various sites.
Popular Products to Sell
As people become increasingly aware of the harmful effects of so-called “junk food,” healthy snacks are now considered to be good, tasty alternative.
They include organic products such as nuts and dried fruit, and are less costly to sell than various inferior products.
Also, such vending machines are said to be more profitable when they are placed in white-collar offices and other venues where people tend to be more health-conscious than the rest of the population.
If you pay close attention to the three vital factors mentioned above—location, machinery and financing, you will have covered the first three quarters of your journey to success with a vending machine.
The last quarter will be based on your hard work, perseverance and a bit of luck.