|Owning a vending machine business enables you to earn steady passive income as long as you know how to find and maintain the right machine and where to place it.
The vending machine business could possibly be the easiest business to start for it requires very little work and capital. You have the option to start small and still be able to earn a decent lump of change for your trouble. See if this business model would work for you. Below are tips on how to get started.
The Right Vending Machine
Your gut instinct would probably tell you to work with franchised machines – and honestly, that does make sense. Supplying well-recognized products seem like a stable business plan. But before you do, consider owning your own machine. Vending machines aren’t that expensive plus you’d have the luxury of catering to your customers’ needs.
By expanding your selection, you’d have a better chance of acquiring regular customers. It will also be easier for you to rotate your inventory – anything that doesn’t sell can be pulled out quickly.
After you’ve decided on a machine, it would be time to secure a location. Go around and see if there are high-traffic areas that could use a vending machine. Laundromats, arcades, car dealerships, and the like come to mind. Consider areas where people have to spend a lot of time in. Remember, vending machines are not limited to food products. You could explore buying claw machines, toy machines, or even sticker dispensing machines if there’s a demand for them.
If you intend on servicing the machines yourself, make sure that the location would be accessible to you – especially if you’re still working a full-time job. Make the location work to your advantage.
Establishment owners would get a cut from sales in exchange for letting you use their space. During negotiations, do not offer them more than 15 percent. Build rapport with owners and see to it that they have all your contact information so they can report any malfunction, should there be any.
Maintenance is Key
Not having the know-how on fixing vending machines can be a problem but that can always be remedied by hiring someone to do the job for you. As the experts make their rounds, go with them to learn basic troubleshooting. Eventually, you should be able to handle minor repairs and save on maintenance.
Just as important is keeping your machine clean; a dirty machine would only push customers away. Position your inventory to make sure that older stock gets sold first. Buy your products at big box stores to get them cheaper.
Finally, remember to do your due diligence. Assess how much it would cost to run the business. Keep an eye on your investment. Reposition machines that are not pulling in enough revenue. Should this work out for you, consider using your sales to acquire another vending machine to double your sales. To help you out, here’s a list of vending machine prices
courtesy of Entrepreneur.com.