How to Start a Vending Service Company
Countless vending machines exist throughout the United States. Schools, retail offices, malls and transportation centers are among the many locations where consumers make purchases from vending machines. You can start a vending service company to sell various products. Vending companies are great to own and operate because you do not need labor to sell products. However, you must be persistent in finding and securing solid locations, such as at business or medical offices.
Other People Are Reading
Instructions
-
-
1
Determine your company's focus and avoid overstretching yourself. For instance, you might start by working in a 20-mile radius and offering healthy snacks in public and private schools. Consider geographic location, product and target audience, which you can highlight in a basic business plan.
-
2
Select equipment based on the products you will sell. Decide whether you will lease or purchase new or used machines, plus consider maintenance costs. For instance, a snack machine will not be useful if you will sell cold drinks in bottles or cans.
-
-
3
Calculate likely expenses and revenues. Compare product prices carefully---wholesale distributors charge less than retailers. For example, you can fill a vending machine with products from a local grocery store that charges $10 or from a wholesaler who charges $4. Charge enough so that you cover your marginal costs. If you spend 75 cents per product, do not charge 60 cents unless you have other high-profit products that will offset your losses.
-
4
Approach owners of target locations so that you can place your machines in areas with high traffic. If your business includes DVD rental machines, contact convenience store owners. If your machines offer pet waste products, contact public park offices and apartment managers. You might have to pay a nominal fee, such as 1 to 5 percent of total sales.
-
5
Maintain your machines so they are operational. Assess your sales to determine if you should change your product mix. For instance, if a particular brand of chips has not sold quickly, try another brand or consider different products, such as pretzels.
-
1
Tips & Warnings
Consistently review your machine locations. As builders construct new developments, approach decision makers (like the development's owner or property management company) so that you can add machines and expand your sales potential.
While some products are cheaper to purchase online, research the sellers' reputation so that you are not victimized by scams.
