How to Invest in a Trending Commodity

By September 23, 2019Members T

Here’s a list of things you can use to get a New Vending business off the ground...

  • There are DEFINITELY better brands (easier to fix, more standard in design, more reliable, etc.) of vending machine than others.
  • USED vending machines are sometimes the BEST investment. Check Out Ebay
  • Its almost ALWAYS BETTER to have BOTH a snack and beverage machine in any particular location.
  • The more people at a location, the greater variety of products that you can afford to offer to appeal to a greater variety of people.
  • Pick a minimum location size (number of people, closed or open to the public, etc.) and STICK to it. You’re not making your work-life easier or growing your business by taking on a small location.
  • Have, use, and get signed (by your customers) a Services Agreement that sets up the expectations that the customer can expect from you and what you expect from them.
  • BIGGER (more selections) machines aren’t always better. Be selective with equipment placement.
  • Doorways suck and are and will be the biggest obstacle to your plans. Doors can be momentarily removed or machine parts removed to make them fit through a doorway, but doorways will likely NEVER be modified for your business needs.
  • Just because YOU PERSONALLY LIKE a product doesn’t mean it will sell OR you will make a profit on it.
  • Just because YOU PERSONALLY DON’T LIKE a product doesn’t mean it won’t sell or you can’t make a profit on it.
  • Check grocery and convenience store pricing (especially ones near the vending location) and try to match or be a little under and stock recognisable items like brand name snacks and sweets.
  • AVOID GENERIC brands bought from big stores like Costco no one pays a premium price for a brand that they usually buy in bulk.
  • Stick to mainstream/common products unless someone requests something specific AND THEN actually buys it. LOTS of people ask for things they have no intention of actually buying.
  • If an item doesn’t work out, try discounting BEFORE you remove it to recover some of your costs. And resist the temptation to just leave it out as a free item. If possible, let people know that you remove items BECAUSE no one bought them.
  • Avoid locations on upper levels that DO NOT have elevators unless the equipment you are installing can be carried by one person.
  • Always think in terms of volume for your whole business, don’t be cheap about a single location, but don’t overspend on a single location either.
  • If you need just one of a certain part, buy 2 or 3 or more if they are cheap. Spare or backup parts are invaluable once you learn when they are needed.
  • Shop around, the price difference on exactly the same items from one supplier to another can be alarmingly different; this is true for parts, accessories, repair services, etc., not just the products you sell.
  • Get an account with Pepsi, Coke and/or 7-Up/Snapple/Dr. Pepper group just for access to their equipment. Buy enough product, you get free use of their vending machines. You’ll still have to buy snack machines, refer back to the first two tips.

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