Have you dropped a coin into vending machines lately? If you did, you sure contributed another dollar to this whopping billion-dollar industry!
No wonder, this has become an attractive cash business opportunity for a number of Americans, but some would get into the vending machines business without preparation; they get burned like moths flying too close to an oil lamp.
However the fact can’t be ignored that vending machines have become an indispensable part of the American life as you can spot one vending machine in every conspicuous corner you can find and manufacturers have reinvented vending machines to become fully functional and be able to dispense, not just goodies, but services as well.
Vending has given selling another facelift when it becomes possible for even services to be marketed through the vending process. Gone were the days when only soft drink and bulk candy came out as soon as you drop a coin into the vending slot; now, from your CDs to back massage, vending business has got you covered.
Here are tips on how you can potentially set up a vending business that can guarantee you Call to action if you still keep your regular job or a means to fortune if you dedicate your efforts to really make your vending business grow:
1.) Know Your Territory. Learn everything you can about the business before you make the plunge. Collaborate with other entrepreneurs who are into the vending industry and determine the pitfalls they have experienced, which you should avoid and the strategies that have worked for them.
2.) Find Your Niche. You can’t be selling the universe out of your vending machines, thus you should determine your niche market and the products your market may have a strong demand for.
3.) Determine Your Hot Spots. When you have established a profile of your customers belonging to your niche market, you should determine next, which locations have high volume of foot traffic. You can capture the flow of traffic right into your vending machines by getting one installed on every place your machine is most likely very much needed.
4.) Do Your Math. Going into business without a plan is like sailing out at sea without a compass, even worse, because your hard-earned money is involved. If you hated Math in school, this is the right time to look at it from a different point of view. You need to know and understand basic accounting and its terminologies, such as cash flow, profit and loss statement, working capital and other financial matters that can help you understand your vending business more.
You must also calculate how much you should pay the owner of the location where you install your vending machines. “Small leaks can sink a ship”; you should be wary about the fine prints in business, otherwise you would end up wondering why your vending business is going downhill.
5.) Invest wisely. When you choose vending machines for sale, do not just look at the price. A lot goes in and out of the vending slot; not just coins and goodies, but your reputation as the owner of your vending business. If your vending machines are not manufactured by reputable companies, you might end up spending more on repairs and the cost may eat up on your profits. Poor vending machines also irritate. Sooner, you will have more people kicking at your vending machines than dropping coins.
Chunk of coins go through vending slots everyday that most budding entrepreneurs have laid eyes on the vending industry more favorably these days. If you are a bit worried the vending business may not be what you want to build your fortune upon, you can start part time and keep your day job. However, most people have realized that vending business can be a lucrative source of income if managed properly. It won’t be America’s $20-billion industry for nothing!