How to Improve Gumball Machine Profits
For entrepreneurs looking to break into the vending machine field, one way to start is by purchasing several gumball machines. Gumball machines can be placed in high-visibility, high-traffic locations and require minimal maintenance. However, making this investment profitable can require some creativity, market research and negotiation. Taking a few initial steps to make your machines more attractive to potential customers may pay off with increased profit margins.
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Instructions
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Calculate your upfront costs -- the cost for the machines, the product and transportation -- and price your product accordingly. This will help determine whether your gumballs (or other product) should be sold for 25 cents or 50 cents.
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Scout out locations for your machines, searching for high-traffic public areas, or offices willing to put your machines in their break rooms. Offer to pay the owner of the location a commission, but only in percentage of sales, not a flat fee. This will help you avoid paying fees above the location's sales.
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Start small with one gumball machine, and purchase new machines with your profits. Don't overreach in the beginning with too many machines.
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Perform market research on your machines and their product. If a location is not providing consistent foot traffic, move the machines. If your product is not selling, despite high traffic, try switching the product. Target the market attracted to each location; gumballs may work better in a car dealership but stickers of pop stars might work better at a mall.
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Increase the number of machines and variety of product in each location as your machines become profitable. A display of six machines featuring gumballs, bouncy balls, stickers and toy capsules is more likely to attract attention than just one gumball machine.
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References
- Photo Credit bubble gum image by Tomasz Plawski from Fotolia.com
