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My answer might seen odd at first, but your most significant determining factor in answering your question is simply... which ones will physically fit?
You can make all the calculations you want and have all of the best intentions for profit making, ease of service, and availability, but if the machine(s) you like won't fit through the doorway of the room or space you want to install them, game over, move on to "Plan B".
As for WHERE to put machines, and what follows is my personal opinion, if you have a choice...
* INDOORS is always preferential to OUTDOORS or at least in a covered area. In short, machines stay clean longer and tend to have less problems.
* It's best to have BOTH drink and snack machines to even out your seasonal sales. BUT be aware if you have a grocery or convenience store nearby AND what they charge. Never underestimate the attractiveness of convenience, but college students are notoriously frugal. Which leads me to my next point...
* Secure placement. Unless you are going to point a camera at the machines, place them in areas where no one can have "alone time" with them. With power tools, a machine can be broken into in about 5 minutes. Professional thieves want privacy, but bored college students can be devious as well as destructive.
* When choosing machines, you might want to consider ones new enough that are capable of accepting cashless payments. Personally, I'm not a fan of credit card readers on vending machines, but companies like Nayax have devices that let people pay with their smart phones, a BIG plus with college students.
As for outside vs. inside, most standard cold beverage machines (the stacking type that do not have glass fronts) are indoor/outdoor models that can be put in direct sunlight as well as endure the elements. I would still avoid this situation if you can, the machine is perpetually dirty and the cleaning makes maintenance extra difficult.
On the other hand, most snack machines are NOT intended for outdoors. Yes, specialized models are available, but they are not common. Snack machines DO NOT like direct sunlight, candy bars can melt in a machine in the shade on a hot day.
One more thing, back the point about frugality, make every effort to buy your products wisely. If you expect to go to Costco, Sam's Club, or your nearest Club Store to buy product for your vending machines and resell it, think again. College students shop here too and know what these items cost. So investigate your local wholesale food suppliers, likely where the convenience stores buy, and try NOT to compete with those big retailers by selling the exact same products.
Lastly, expect and be prepared for sales to DIE OFF in the summer and over breaks if your tenants are mostly college students. Factor this into your buying and inventory decisions.
This would depend largely on your business model.
The simplest and easiest way of making money from a Customized vending machine would be to acquire a low cost and cheap vending machine and rent it to a reliable operator. You would need to base your rent on the period over which you want to capitalise the machine and this has to be realistic in terms of the expected returns the renter (vending machine operator) would get from his site. It goes without saying that a proper rental contract, insurances and a back-up plan if the operator suddenly stops paying you, need to be in place from the start. Background checks on the operator’s business would also be necessary to ensure he/she has sufficient experience to remain successfully in business.
Most commonly, making money from vending machines is the same as all trading operations. You purchase products for your business at the best price possible and mark them up to provide as much profit as the market will bear.
You must take into account how much it will cost you to service the machine (repairs and maintenance, filling it with stock, storage of stock, vehicles, staff, technicians and site commissions, insurances etc) and ensure there is enough left over to cover the purchase cost of the machine and return a decent amount of money to your account in net profit.
In vending this is all relevant to the SITE on which you have the vending machine. If for example, your vending machine is the only one in a factory that is situated 100 miles from the nearest town, you can probably sell a can of drink for $5 !! But those cases are unlikely and the cost of servicing a site so far away would considerably reduce your profit margin.
PRICE POINT in every market, especially the vending business is critical. It should be based on the competitive environment related to the site your machine is on, (not withstanding the ability to make a profit after your operating costs) and VOLUME - how many people are likely to buy from your machine.
For example; If you own a coffee vending machine and it’s not far from a Cafe´selling barista made coffees for $3.50 you won’t get anyone buying from your machine at $3 ! You may rely on “after hours” trade, when the Cafe´is closed but this has to be based on the amount of traffic in the area during those times and the likelihood that there is a need for coffee at those times.
You will notice that in Airports for example, products from vending machines are nearly twice the price you’d normally pay from a vending machine in town - there are two reasons for this:
1. The market is exclusive - ie, there’s nowhere else you can get those products in the airport except from those vending machines
2. The site commission charged by the airport to the vending operator is extremely heavy (sometimes as much as 40% of turnover) so he has to mark-up his product to make a reasonable profit.
Like any business, there is a point at which you should expand and a point at which you should STOP expanding - make sure you grow only to a manageable size !
Yes! Vending machine business is very profitable. This is one of the best ways to make money. With this help, you can stop at one place and increase your profits.
If you are living in Australia and want to start a vending machine business in Sydney So for that you have to choose the best location for the vending machine.
Here is a list of some common places where you will be able to choose the place for vending machines:
To update a vending machine, you need a place that offers high-traffic. Hotels are one such location that is often visited by a large number of guests that prefer having the beverages after having their meals. Moreover, since the place attracts a large traffic so you can expect a good revenue generation and the vending machine can aid you to get a stable income.
· Apartment communities:
The apartment usually comprises swimming pools, clubhouse, and other such spots. Locating your vending machine in the apartment complex can provide the access to the visitors and the people present there. Make sure to site your vending machine in a spot that generates a huge traffic.
· Construction places:
We can observe the presence of thousands of people in the construction sites every day. These workers serve us by providing their best services. In order to maintain this spirit in their bodies and keep them energetic and enthusiastic throughout the day, what is better than installing a food vending machine the constriction region? It will not only benefit the workers, but can also boost up their morale and enhance their working potential.
· Retail stores:
The vending machine can be beneficial for the part-time workers that get a short period of break time. The workers can refresh their minds, having drinks and food during this break time.
These are some of the places where you can start your business, which will benefit you a lot.
Here’s a list of things that I wish someone had told me BEFORE I bought an existing vending business…
· There are DEFINITELY better brands (easier to fix, more standard in design, more reliable, etc.) of vending machine than others.
· It’s 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.
· Have ENOUGH machines for a location. If you have to return multiple times a week (or a day) to refill a machine (congrats on that), but this is clear indication that there is NOT ENOUGH EQUIPMENT on site. Make your life easier and add more machine to handle the traffic and sales volume.
· 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 recognizable items like brand name snacks and candy. As cheap as “Uncle John’s Chocolate Spectacular” bar (instead of Hershey chocolate bars) might be, if no one buys it, you lose money.
· AVOID GENERIC brands bought from big box stores like Costco or Sam’s Club, 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.
· AVOID coffee vending machines as all costs until you have money to burn. The learning curve is HIGH and good (high traffic, easy access, and/or non-cheapskate/coffee-snob customer) locations are NOT EASY to get or find.
· 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 (now owned by Keurig/Green Mountain, yes, the coffee people) 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, so refer back to the first two tips.
· If you plan to be in this business for the long haul, attend at least one NAMA OneShow (The Premiere Vending and Refreshment Services Trade Show) once you think you can afford it or just want to for the experience and exposure to the industry. The contacts you’ll make and the products or services you’ll learn about will be invaluable. But, don’t rely solely on what you find there. There’s nothing like a good LOCAL resource that you can visit in person instead of ordering something and paying for shipping.
One last one, and this is just my policy, I only will agree to pay a commission on locations that are open to the public AND have a decent amount of traffic. If the potential sales are questionable, then I will include a “revenue minimum” in the commission agreement. If the machine does not generate enough sales for any particular period of time, then I don’t owe a commission. If they don’t believe my reported numbers, they can check the machine’s counters. If the location is NOT open to the public and they want a commission, generally I consider any employer that is trying to make money off of its own employees also won’t care about having a good vendor relationship, so I pass.
Let me start by saying that there is no such place as a “100% safe” location for a vending machine.
Thieves will find a way, potentially even in plain site, of figuring out how to manipulate or steal from a vending machine under the right circumstances.
That said, the same aspects that make a location ideal for a kiosk (like an ATM) also make for a safe spot to place a vending machine. Such as…
· Open and easy access, not just to GET to the machine, but also to open it fully and be able to refill it unencumbered.
· Good lighting, for customers and the vending operator.
· Good nearby foot traffic or placement in a location that has easy access or where people would expect to find a vending machine such as customer lounges or waiting areas.
BAD or unsafe locations have one or more of the following aspects…
· Outdoors and NOT inside of a vending machine cage.
· Placement in a stairwell, alcove, or other out of way and/or semi-private location.
· Placement in an unexpected location which means its likely NOT getting the traffic that it should, BUT the thieves don’t know that and will break in anyway.
· Poor area lighting, this is made even worse if the machine has internal lights which draws even MORE attention to it late at night or during off traffic times.
· Areas where a customer may be in danger while using the machine for any reason.
There are 20 types of vending machines available in market worldwide. It is not necessary that all types of vending machines should be available in all the countries worldwide. But, 20 is a sum-total. Here goes the list of 20 types of vending machines -
Crab vending machines in China and that’s too LIVE.
Caviar vending machines – Los Angeles.
Live lettuce vending machines in Japan.
Pizza vending machine anywhere in Europe.
Again Japan with banana vending machine.
That’s my favorite, mashed-potato vending machine in Singapore.
Australia is always cool with its food culture – French fries vending machine.
That’s even the coolest one – Shake and beer vending machines in Japan.
Cheese, egg and milk vending in Germany.
How would you reach finding an egg vending machine stalled right by you? Well, that’s possible in Japan again.
Wow, sprinkle cup cake ATM anywhere in the United States.
Delicious burgers are also available through vending machine in Moscow.
I would love to be standing by the side of Rice vending machine, Japan at the time of my lunch.
Who would not love hot dogs fresh coming out of vending machine anytime.
Japan has got quite interesting types of vending machines available for their own folks – here it is Draft beer vending machine.
Who does not love pies? Here comes Pecan pie vending machine right in Texas.
In The Netherlands, there is a whole restaurant, which is known as Vending machine restaurant.
It’s again Japan guys – this time it comes with Canned Bread vending Machine.
The best all – ice cream vending machine in the United States.
If you are a lobster lover, here comes Lobster vending machine right for you, Las Vegas.