How to Start a Vending Machine Route

A vending machine route is an exciting way to startwould purchase?
a small business and grow it to substantial income and· Are people using the machines? With what
financial independence.frequency?
First, remember that a vending machine route is aThese are some of the questions that will help you
business. Like all businesses, success is notformulate plans. They will help you determine what
guaranteed. Before you embark down the path as akind of vending machine equipment you need to
successful vending machine operator, you need topurchase, what kind of vending machine locations you
carefully consider what this business will look like andneed to secure, who your competition is, and what
how you'll run it.kind of pricing you need. This research will help you
Start by setting goals. Successful vending machinedetermine your unique vending machine business
operators have a predetermined goal in mind whenfeature, what sets you apart from your competitors.
they start every year, month and day. Success is aAnalyze your prospects
plan, and plans start with goals. Goals start withThe next research to do is a customer analysis, and
vision.it can be done in conjunction with your initial research.
Striking a visionStop in to a location you think you would like to have
What is your vision? Do you want to be rich? Earnand speak with anyone who uses the vending
extra income? Dominate the local vending market,machines. What do they like - and what don't they
the national vending market, the world vendinglike - about their current vending machine operator?
market? Do you see yourself working part-time orMost importantly, listen to the responses and ask
full-time? Mentally create your perfect day. A wordfollow-up questions. Get critical details: how often
of caution: If you think that vending is an "easy"does he/she come, do they take requests, are they
business - you just fill the machines, count yourquick to respond to problems? Let them talk, and
money, and presto, you're a millionaire - think again.they will tell you everything you need to know to do
The vending machine route business is a great waybusiness successfully with that site. Write down all of
to work hard and be well compensated, but with nothe responses. Can you do better?
hard work, there's no compensation.When doing this type of research, be prepared with
Planning your business, setting goalsa sales presentation. I have done this, only to
Once you have created your goals, start planningdiscover that I was speaking with the owner of the
your business. What segment of the business do youbusiness. He was fed up with the vending machine
want to attack? Are you going to be a soda machineoperator they'd been using, and I generated a new
supplier only; snack machine/soda machine only; fullcustomer on the spot.
service, snack machine, soda machine, cold foodsAnother word of caution: Don't commit to a vending
machine, coffee machine, commissary, or a uniquemachine account unless you can provide better
products vender (CDs, bait, t-shirts, gifts, etc.). Eachservice than the current operator. Most managers
of these market segments - and there are more outowners know other managers/owners, and one of
there - requires planning. What equipment do youyour goals should be to generate word-of-mouth
need, what type of route vehicle, how much moneyadvertising. If you take on more than you can handle,
should you budget, which vending product suppliersor you don't provide service at the level you
will you choose (where will you get your product),committed to, you will generate bad word-of-mouth.
how do you get your vending machines placed intoThat can quickly lead to your having a storage area
locations, what financial software do you need, iffull of vending machines. Do more than expected,
any, and on and on.give away a free sample every so often, stop in to
Have I given you anything to think about yet? Mytalk with the manager, make sure everything is all
goal is to prevent you from jumping into the businessright, handle refunds promptly, change up your
because you heard in a hotel ballroom that theproduct selection regularly, fulfill requests. These are
streets are paved in nickels, dimes, quarters andthe techniques employed by successful vending
dollar bills. The fact that you are doing researchmachine operators.
means you are on better path than the averageAnother key to success in the vending machine route
potential millionaire.business is to have good accounting practices. Know,
Research is the great risk reducer in any forum.to the penny, where your money comes from and
Doing this basic research means you are on yourwhere it goes. Understand that many variables can
way, but there is much more to do.affect your profitability - everything from cost shifts
In formulating your plans for a vending business, youin your product/s to fuel prices. It's critical to set up a
also need to perform a basic market researchproper accounting system early, one that allows you
analysis. This sounds complicated, but it really isn't.to grow. You don't want to waste the time (and
Study all the vending machines that you see:expense) of switching accounting systems at some
· Who operates the machine/s?point in the future. Talk with a good CPA and ask for
· Machine's locationsuggestions on a system. There are several off the
· Pricingshelf software products and it's important to select
· Brand of vending machinethe one that best suits you and your business.
· How clean is the machine?Careful planning and research are the keys to a
· Does it work properly?successful vending business. Be sure to start your
· Is it filled? If so, is it filled with anything youroute off with all the benefits.