Finding Perfect Vending Locations
In the real estate business, people often say that the three most important criteria for success are location, location, location.
In the vending industry, the same age-old principle holds true.
Without a great location, your vending machines will wallow in neglect, unable to generate the sales you need to break-even or profit.
How should you find the 'right' location? One common approach is simply walking through business districts in your area and knocking on doors.
Each time, ask for the manager or owner of the establishment and present your case.
Tell them you are interested in placing a vending machine in their building, one which would cater to expressed customer needs and increase traffic to the host business.
Don't discus commissions unless the owner brings the topic up, but if you're forced to negotiate, try to pay a percentage of sales (set payments are unwise, as you don't know how much your machine will make and you don't want to lose money).
As a final ploy, explain that in order to pay a commission, say ten percent, you will have to raise prices by that margin.
Some owners will prefer to save their customers or employees the additional cost, which saves you cash as well.
After meeting with each manager, continue to the next business, expecting to secure a location every 10-20 doors.
When considering prospective locations, you must also consider the amount of foot traffic through the area, nearby competition and customer demographics.
Try to find locations with high traffic and visibility, as a steady supply of hungry or thirsty customers is the life blood of your vending business.
If there is competition in the immediate area, you may have to consider how impressive your machine looks, and how it will match up with others in the location.
Last, make sure you understand the needs of the local population.
Do they want healthy snacks? Are they thirsty and prefer drinks? Do they want more unorthodox products? Using all of this information to select the perfect vending machine and stocking it with the perfect merchandise is an art, one which you'll improve as you gain experience.
However, choosing the wrong location can be devastating to your business.
For this reason, learn from the experts before trying to ferret out profitable locations yourself.
There are entire ebooks written on this topic, one of which I reviewed, (along with a few other general vending resources) on my website, available in the resource box.
Check these review out, and don't be afraid to invest in valuable vending information - it could easily be the best few dollars you've ever spent!
In the vending industry, the same age-old principle holds true.
Without a great location, your vending machines will wallow in neglect, unable to generate the sales you need to break-even or profit.
How should you find the 'right' location? One common approach is simply walking through business districts in your area and knocking on doors.
Each time, ask for the manager or owner of the establishment and present your case.
Tell them you are interested in placing a vending machine in their building, one which would cater to expressed customer needs and increase traffic to the host business.
Don't discus commissions unless the owner brings the topic up, but if you're forced to negotiate, try to pay a percentage of sales (set payments are unwise, as you don't know how much your machine will make and you don't want to lose money).
As a final ploy, explain that in order to pay a commission, say ten percent, you will have to raise prices by that margin.
Some owners will prefer to save their customers or employees the additional cost, which saves you cash as well.
After meeting with each manager, continue to the next business, expecting to secure a location every 10-20 doors.
When considering prospective locations, you must also consider the amount of foot traffic through the area, nearby competition and customer demographics.
Try to find locations with high traffic and visibility, as a steady supply of hungry or thirsty customers is the life blood of your vending business.
If there is competition in the immediate area, you may have to consider how impressive your machine looks, and how it will match up with others in the location.
Last, make sure you understand the needs of the local population.
Do they want healthy snacks? Are they thirsty and prefer drinks? Do they want more unorthodox products? Using all of this information to select the perfect vending machine and stocking it with the perfect merchandise is an art, one which you'll improve as you gain experience.
However, choosing the wrong location can be devastating to your business.
For this reason, learn from the experts before trying to ferret out profitable locations yourself.
There are entire ebooks written on this topic, one of which I reviewed, (along with a few other general vending resources) on my website, available in the resource box.
Check these review out, and don't be afraid to invest in valuable vending information - it could easily be the best few dollars you've ever spent!
