Starting Your Business Venture?

 1. Figure out what to sell in your vending machine

To figure out what to stock in your vending machine, first identify your target location and demographic. Do you plan on putting a vending machine in a corporate office or inside a school cafeteria? What kind of goods would these customers likely need from a vending machine?

Office workers may want a vending machine that dispenses beverages like energy drinks or coffee. On the other hand, college students may want a vending machine with snacks or quick meals in between classes.

Next, figure out which products have enough demand and high profit margins. An ice vending machine requires virtually no cost to stock, as an example. However, this type of machine may see smaller volume than one that sells beverages or food. Pick goods that have a solid balance of high margins and high demand.

2. Research and find an ideal location

Your target demographic will make choosing an ideal location easier. For example, if you choose to sell to college students, you likely plan on placing it on a campus. Now, you need to figure out an exact location (e.g., a residential hall compared to a student center). Consider the following questions when selecting a specific location:

•  How many people walk by this location?
•  Is this location primarily outside or inside? What’s the weather like (e.g., cold, warm?)
•  Are there other vending machines already here? What do they sell? Are they outdated or new?
•  Who manages or owns the location? Would they likely permit the placement of a vending machine?

Create a list of several potential locations. Then, find contact information for the owners and call them to set up a meeting. Dress professionally, bring information about your vending machine idea, and answer any questions.

As noted before, you can expect to pay 5%-25% of your gross income to the location owner. Negotiate with them on what cut of your profits you can give, using the range as a guide.

3. Pick an optimal machine

Choosing the right vending machine depends on your budget and goods sold.

If you plan on selling drinks and snacks, for example, you will need to purchase a machine that can accommodate both. More technologically advanced vending machines, such as ones that make coffee, require purchasing specialized equipment.

Additionally, you should consider the pros and cons of purchasing a new or old machine. New machines likely cost more, but require less upkeep and often have more technologically advanced features. Old ones, on the other hand, cost much less, but may cost more in maintenance.

Vending machines types include:

•  Drinks
•  Snacks
•  Combination
•  Hot and cold food (e.g., burgers and fries, ice cream)
•  Coffee
•  Merchandise 
• Medicine & Personal Care Items