Author: pmasters@wittern.com

Vending.com
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Be Mindful of these Pitfalls When Purchasing A Used Vending Machine

The Vending Machine Business

Did you know that as of 2022, the US has roughly 5 million vending machines? According to the industry market research firm IBIS World, the vending machine industry generates close to $8.9 billion in annual revenue. About 67% of this market comprises small independent operators selling snacks and beverages and making small margins. For most vending machine owners, it is primarily a side hustle.

Vending is a booming business, and starting one is not very difficult. The vending business is a constantly changing and evolving industry. It provides an excellent opportunity for all kinds of entrepreneurs, whether you are a novice or a seasoned business owner. The range of products that can be offered to your customers is vast. The most common and popular items being sold are snacks, candy, and beverages like soda, water, and coffee.

Used vending machines generate profits quickly with a low initial cost

If you are new to the vending business and would like to try your hand at it, then an easy way to start your own vending business is to buy used vending machines. A used vending machine will typically cost a fraction of its brand-new unit. You may also chance upon a used vending machine that has barely been used.

While experimenting with new locations, a used vending machine can be a good choice. If you are operating with limited resources, used vending machines may be the way to go. Many such use cases get you started on a used machine and earn the capital required to invest in a brand-new device.

There are many kinds of used vending machines available in the market today. They sell a variety of merchandise, from sodas or general snacks in malls to travel electronics like headphones or phone chargers in airports. You can also buy COVID-19 essentials like masks and sanitizers from vending machines in hospitals and public spaces like malls or theaters. Picking the right product and pricing it right will help recover the capital invested in buying your used machine.

Important aspects to consider before purchase

A used vending machine might seem like a cost-effective choice to jumpstart or expand your vending business. There are a few important things, however,  to consider before buying one.

There are business pros and cons when investing in a used vending machine. The right price, the suitable model, long-term reliability, value over investment, etc., form the cons. Vending.com ensures that these cons are handled and converts them to advantages.

  • Warranty –
    • Con  – Used vending machines come with no warranty, unlike new ones. 
    • Pro – Vending.com “factory refurbished” and “certified used vending machines” do come with a great price and limited warranty
  • Financing- 
    • Con – purchasing a used machine most likely will be a cash-only transaction, or you may have to take out a loan. 
    • Pro -Vending.com has a few attractive financing options that have been designed for entrepreneurs and their cashflows in mind.
  • Number of Features
    • Con – Used vending machines are generally older models. Legacy units will not have the latest features and technology like contactless transactions. They may not be equipped to accept card payments, thus limiting the number of customer transactions. 
    • Pro -Vending.com has the expertise and parts catalog to address this.
  • Hidden expenses –
    • Con – Used machines may work perfectly fine initially, but as they near end-of-life, their mean time between failures becomes lesser and lesser. While the cost of repairs will be a factor considered, the more significant aspect would be the lost revenue from sales. 
    • Pro- Vending.com’s one-year factory warranty and Vendnet’s 90 years of vending experience ensure your machine operates with no problems. 

When purchasing a used vending machine, it’s always a good idea to inspect the vending machine in person. If Tinder taught us anything, it is that profile pictures are often overrated.

  • Seeing is believing. Check if there are any physical damages like scratches or dents. It is relatively easy to improve the external appearance of the machine. If there are heavy dents, it is better to take a closer look at the circuit boards and refrigeration systems before moving ahead with the purchase. You should ask for the machine’s original manual and schematics and whatever proof of service the seller has at hand
  • If you are buying a vending machine for dispensing cold beverages, check the compressor thoroughly. Insist on starting the machine a couple of hours before you arrive. If you have a gas leak detector, do not forget to take it along. Freon-based coolants like R232 are relatively easier to detect with their distinct smell. It is the propane-based ones that are difficult to spot without a detector. It is better to look for better options if the compressor does not inspire confidence.
  • Check the bill acceptor and coin validator. Test it to make sure it is not malfunctioning. No one wants to use a vending machine that simply eats up their money and dispenses wrong items or nothing at all. You could also retrofit a card reader or cashless payment system to the machine. If the bill acceptor or coin validator is glitchy, ask for a discount in the asking price that will help you retrofit one from Vending.com.

 

The kind of used vending machines you buy can influence the pros, cons, and ultimately the success of your vending business. Getting a quality machine will save you lots of money and time while maximizing revenue-generating transactions. Purchasing your vending machine from a reliable company can help eliminate uncertainties and risks. Vending.com has a wide range of factory-direct new and used vending machines that are manufactured in the USA. All machines have been factory inspected and remanufactured to look and operate just like new vending machines. 

When buying your vending machine from Vending.com, you can rest assured that you are in good hands. With over 90 years of experience in the vending industry, Vending.com offers a dependable business proposition to help you build your own vending business.

Vending.com offers affordable used vending machines that are factory refurbished and certified.  Call 1-855-929-1042 today for all your vending needs.

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Snacks, Drinks, Frozen Foods, or Combo – What Would Give You More Vend Sales?

The product decides the machine.

A vending business is a reliable source of revenue, if you do it right. Even if you are not a mainstay vending business owner, an additional revenue stream from a vending machine gives you the liberty to pursue your passion. It helps you save money for a rainy day. The first step towards getting a steady flow of revenue is by choosing the right product to sell and the machine that vends it, in that order. It is important to remember that while people interact with the machine, it is the product that they consume.

First-time buyers often tend to focus more on the vending machine for sale than the best products for those vending machines. The product is a bigger capital investment than stocking the machine. They tend to pay less attention to the fact that revenue and profits come from the product you stock and sell. So, choosing what you want to sell takes precedence over the machine you use to sell it. Let us discuss how to select the right product that will give you the best results.

Factors to consider

The most obvious factor influencing your decision on the best products for your vending machines should be user experience. Your consumers should get the best satisfaction by buying from your machine. The best experience comes from the product they want to buy and the machine they interact with. So, the product you sell and the machine you use should be of the best quality and at the right price point. These two factors are applicable to what product you choose to sell. Other factors are influencing the selection of the product you choose to sell, however, like the ones below.

  • Volume: Some products sell in higher volumes than others. The higher the number of transactions, the better the returns on investing in a vending machine. Water bottles and beverages constitute more than 56% of the sales through vending machines[1]. They are universally sought staples and can also generate a decent margin[2]. Moreover, vending machine products are generally impulse buys. This means while users start transacting to buy a water bottle, they can get interested in a bag of chips or an energy bar. So, high-volume products increase the chances of up-selling and generating more revenue per user.
  • Profitability: Certain products can fetch a higher margin than others in your vending machine. While the same product may not have the best profitability everywhere, there are certainly some sweet spots. There is statistical evidence from a survey showing that the humble water bottle scores high on the profitability scale. Fruit snacks are a close second[2], but again, these are statistical averages. While your water bottle might get you good profits at a gym, sugary drinks and candies might earn big bucks at an amusement park. That takes us to the next factor you need to consider while selecting the right product to sell, the location.
  • Location: The location of your vending machine can significantly influence what sells and what does not. The volume of traffic, the spending power of the traffic, and the need for convenient access to supplies are all dependent on the location. Outdoor vending machines with cold beverages at a summer fair can be a bigger attraction than the rides. Cold sandwiches might fly off the machines at the factory cafeteria. Protein shakes are more likely to be bought at a gym than most other places. Location not only defines what sells but also how much of it. Some vending enthusiasts place so much significance on the location that they are happy to select their machine or product based only on this factor.
  • Demographics: This is a slight evaluation of the location. This defines who is likely to use the machine. The demographics you are likely to cover at a school are children between 8 and 18 with access to disposable income in the form of pocket money. An office is more likely to have an older age group of people but with a bigger purse at their disposal. This kind of classification of who is likely to use your machine will help you identify the products they will likely need. It also indicates how you can price the products that have a compelling demand against others that don’t.

The right machine for the right product

Choosing the best product for vending machines impacts you’re the experiences of your customers, who do business with your machines. Getting the product mix right has a great influence on the revenue and profitability of your vending business, but the product by itself does not complete the experience of your customer. They conduct these transactions through your machines. Hence, the right machines combined with the best products deliver delight to your customers and success to you. Striking a balance between performance, features, cost of purchase, cost of ownership and maintenance could be tricky even for experienced vending machine owners.

This is where businesses like Vending.com can help. With over 90 years of experience in the vending industry and a sophisticated ecosystem of distributors and partners, Vending.com can provide the right vending solutions tailored to your needs. Reach out to us at www.vending.com or call us at 1-855-929-1042 to know more.

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Winning the right location for your vending machine (the sales approach, not selecting the location)

Factors influencing the success of a vending machine business

9 out of 10 vending business owners would agree that location is the most crucial factor in determining success. Important factors, such as selecting the right vending equipment and choosing the most profitable and saleable merchandise, depend on the location.

For example, in a location where a hip demography loosens their purse strings, having an intuitive interface and reliable operations results in more transactions. Whereas, in transit centers, salty snacks and bottled water are often the most profitable. The only factor that does not depend on location is your vending machine and the service partner – Vending.com.

So how do you put a vending machine somewhere profitable, somewhere good? This blog lets us dive deep into the location factor to see how a vending business owner can win suitable locations to maximize revenue and profits.

Finding a good location

There are several parameters to consider while selecting the right location for your vending machine. These include: 

Volume of traffic: The location you select must have high foot traffic. After all, vending is a numbers game. The higher the traffic, the higher the number of transactions.

Type of traffic: Vending is about convenience and the experience depending on the consumer. It is the simple magic of the mechanics for a young kid when you push currency into the machine to get what you want. It might simply be about waiting with a beverage at the Airport for the next flight for an adult. The kind of traffic will define what you sell and how it is priced. The visitors to your location shall define the suitable machine and the right merchandise.

Demographics: The demographic of your location is going to have an impact on profitability. For example, if your machine is at a gym, customers will more than likely be looking for bottled water and not for soda. A themepark, on the other hand, may require more chocolate bars or chips. Ignoring the demographics of your location can be detrimental to your business.

Competition: The presence of other vending machines is a good sign. While the location might need more effort to win, it is a proven location for a vending business. Remember, the vending machines do not compete for the consumer’s attention. They only compete for real estate. It is the products within the machine, the quality of the interaction, and the ease of the transaction that attract consumers. The right product mix is always attainable by studying the competition and by selecting complementary products. For optimizing the customer experience, the right technology and the right aesthetics go a long way. Picture this, a fully contactless vending machine with guaranteed vending technology accepting cashless payments, with attractive designs on them – with bestselling products. This is just an example of how Vending.com’s range of machines delivers the optimal customer experience.

 Building the proposition

A vending machine owner or operator is not just doing himself a favor by placing the machine at a location. There is definitely value for the location owner, too. Winning the location is dependent on articulating the value for all stakeholders, including the location owner.

The location owner might have different types of benefits. Some might give more weight to the rental income or the commissions they will get from your vending machines on their premises. This is the most common benefit, but not always the largest.

In other cases, businesses might be keen on improving customers’ convenience. Location owners may also want to use the vending machine as a channel to promote products aligned to their business. A good example would be protein shakes and protein bars in the vending machines at a gym. This increases revenue and reduces the need for additional sales bandwidth. Some might consider your machines a good branding opportunity by sticking their brand on your machines. Features like UVend Technology on vending machines and contactless transactions can enhance the sense of safety at some locations.

While the fee for placing the vending machine is a given, its size can depend on how well the other benefits are articulated to the location’s owner.

Our 90 years in the vending industry have given us experiences that can empower your vending business with the proper guidance and insights to be successful. To know more, talk to us at 1-855-929-1042 or visit this link to get help from professionals.

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Posted on | by pmasters@wittern.com | Leave a Comment on How does a ‘Made in USA’ vending machine help your vending business

How does a ‘Made in USA’ vending machine help your vending business

 

Buying Made in the USA – The What and The Why?

Some suppliers sell truly American-made products, while others do not. The government has ensured that buying Made in the USA is no longer an abstract concept. The high-level description of an “All or Virtually All” American-made product is that more than 50% of the product and its components by cost must be made in the country. Thanks to FTC guidelines [1] and federal regulations, every industry also has clear rules as to what is eligible for a Made in the USA tag and what is not.

A recent survey by a leading magazine [2] says about 69% of the respondents preferred buying American-made products. About 83% of them were also willing to pay a premium for the Made-in-America label if it is a genuine claim. This may not be surprising as we all want to reward the American spirit of entrepreneurship and innovation. The benefits of buying a product made in America, however, are not limited to patriotic fervor. There are sound business benefits to vending machine owners and operators while buying American machines or services.

What it means for your vending business

Local Customer Service: A vending machine is complex equipment that is built with a variety of electrical, mechanical, electronic, and communication equipment. Adequate customer support with cross-functional technical capabilities is essential to deliver the best user experience for the end-users of the machine. Local manufacturers understand the challenges of local customers. A good understanding of many variables like ambient weather, tastes and preferences, compliance to regulations, and other factors influence the quality of service. A business that designs and builds machines in the USA is more likely to understand the nuances of these variables and provide the best support.

International Supply Chain Woes: Manufacturers, relying on global suppliers for their components currently struggle with a severe supply chain bottleneck. This is not a temporary situation. If your machine’s card refrigerator unit fails and you must wait for a month to replace it, it means your machine is out of action. The cost of spoiled inventory in the machine is not even a scratch on the surface of what you will stand to lose as revenue. If you have purchased your machine through a financing option, you will also service the debt without revenue. On the other hand, a local manufacturer can quickly replace parts and keep the cash registers ringing.

Standards of Safety and Quality: The safety standards are a minimum benchmark for an American manufacturer who understands the consequences of a gap. However, for manufacturers in a developing nation, the standards are simply a matter of compliance to purchase specifications. Both might be working towards meeting the same safety standards, but the drive to meet such measures can be quite different. North American and Western European businesses are much more savvy than most other regions. This also gives an edge to American manufacturers compared to those who buy parts or machines from other countries to sell locally.

Faster Delivery Time: Mobilizing machines, equipment, and parts locally are faster than ordering and shipping from thousands of miles away. In a market where impulse purchases of products are short-lived fads, “time-in-transit” can be a killing. Also, the distances your machine or parts must move without any economic value can hurt the environment. A local manufacturer might still burn gas to haul your machine a few hundred miles. But it is way faster, cheaper, and environmentally responsible than shipping it on a diesel barge across the ocean.

Geopolitical Uncertainties: The last thing that a vending machine owner or operator must be worried about is the relationship between countries and world leaders. Today’s environment is so volatile that countries trade tariffs, embargos, restrictions, and retaliatory measures between each other at the drop of a hat. Suppliers who rely on foreign products or components are often impacted by the tectonics of international politics. Local manufacturers are relatively insulated from such uncertainties and become reliable partners to your vending business.

Made in the USA is not a tag. It is a proposition.

Buying USA-made vending machines has a definite reason why and positive impact on the success of your vending business. You can improve your revenues, reduce risks, ensure consumer convenience, and escape impact from extraneous factors. You can also contribute to empowering the country. You can give a boost to both your patriotism and profitability by doing business with an American manufacturer. Vending.com has been manufacturing vending machines in the USA for more than 90 years. You can talk to us to know more about the benefits of doing business with an American manufacturer like us. Call us now at 1-855-929-1042 or click here.

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Full-spectrum vending machine and vending solutions supplier

 

How Do Vending Solutions Contribute To Business Success?

Vending is more than the machines, installation and operation, and maintenance. The complete vending service solution you choose extends your identity as an entrepreneur or business, which goes beyond the latest features and newest technology It also needs to be equipped to

  • Serve your customers better – take care of your customers in the most efficient way possible by enhancing the customer experience through the latest technology and features.
  • Further your business objectives – the ideal solution helps you achieve more sales, more profits, more customers, repeat customers, more avenues for monetization, etc.
  • Advocate your brand – vending solutions are an essential and easily customizable part of your real estate. With the right partner, you could increase your brand’s recall with the appropriate audience. 
  • Reflecting your business’ vision –the way we treat our customers reveals a lot about us, the most important being the business’ stability and plans for the future.
  • Representing your identity –providing an inclusive and accessible customer experience indicates the values that drive you and your business. 

You need a full spectrum vending solutions provider to achieve all of this, and more.

Vending.com – The Full Spectrum Vending Solutions Provider

We are committed to assisting our customers with complete vending service for their business needs. We are focused on understanding what customers seek from their vending solution – in terms of business objectives. We recommend solutions that complement their business objectives. We want you to succeed and constantly think of ways to make this easier for our customers. For example, our profit calculator helps prepare you for your business venture by giving you an estimated number of vends needed before turning a profit.

Our complete vending service solutions creates value for all stakeholders

  • Vending solutions: We have dispensers for snacks, beverages, frozen foods and coffee. Plus, our custom solutions reimagine the limits of items that could be stocked, including eyelashes, live bait vending and bowling products, to name a few.
  • Designing: Find solutions that fit your needs like a glove. We are drawing on our decades of experience and the latest technology for our customers. For example, our custom vending solutions serve the self-service retail domain. We cover diverse end-use locations like bowling alleys, self-serve laundry, car wash centers and more.
  • Engineering and Manufacturing: We invite you to experience our 350,000 square foot facility used for engineering, manufacturing, warehousing, selling, financing and vending management.
  • In addition to having the infrastructure, people, and expertise, our service, support and maintenance department is put in place to serve vending businesses long after their purchase has been made.
  • Research & Development: Our in-house R&D works on hardware, software, payment systems, user interfaces, access technologies, product security, and merchandise delivery mechanisms. 
  • Parts: Vendnet is a dedicated vending machine service provider that services vending parts. Be it to replace parts or upgrade your machine, Vendnet is here to help guide you every step of the way.
  • Financing: Making credit available is a business need. Making it available on time with easy documentation is helpful. Providing flexible repayment plans is good. Doing all of this and helping customers profit from day one is excellent. Vending.com is excellent and dedicated to bringing affordable financing alternatives that fit the needs of each individual customer.
  • Business Support: Vending.com serves the customer and the industry. We work in close collaboration with multiple entities across technology, merchandising, distribution, etc., to meet or exceed customer expectations with the exact solutions they need.
  • Custom Vending Machines: Have a unique vending requirement or use case? We have the solution for you.
  • Legacy: Vending.com is a part of the Wittern Group, which has delivered vending solutions since 1931. We have transformed the vending experience and made our customers more successful.
  • Resources: We make available helpful content around setting up and running the machines in the form of videos and documents. Sample our training videos or check out our blogs to look for industry news and vending ideas.

What Does A Complete Vending Service Solutions Provider Like Vending.com Provide?

We cover all aspects that deliver business success for our customers. Our complete vending services help our customers

  • Gain a competitive edge with new features 
  • Reduce machine purchase costs through constant innovation 
  • Reduce running costs by using high-quality materials
  • Ensure business continuity with support
  • Reduce the threshold for investments with our used machines
  • Maximize value for their investment with our refurbishment know-how

We also comprehensively cover all of the tactical bits. For example, our seven manufacturing lines are capable of creating over fourteen snack machines, soda drink machines, cold and frozen vending satellites, coffee machines, and more. 

We also complement our customer’s business development strategy by being the single stop for all vending-related plans. This means that while our complete vending services provide all of the necessary ingredients for success, we also save them time and money while doing it.

Experience The Benefits of a Full Spectrum Vending Solutions Provider

Vending.com is a proven, single-source solution for all vending requirements. We look forward to answering your questions on our offerings and brainstorming to achieve your business objectives. Contact us now to know more.

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5 features your vending machine must have (UV, Cashless, GuaranteeVend, etc.)

Five Must-Have Features of Your Vending Machine 

Are you in the market for a vending solution?

Vending machines wear multiple hats – they are a great source of extra income and a way for products and retail brands to improve the customer experience. If you are in the market for a vending solution, the ideal starting point is to check out our profit calculator or contact us directly at Vending.com.

 

What are the features or capabilities that your vending solution must possess? 

There are certain features that are required when considering the purchase of any vending machine for sale so that the machine is able to accommodate a variety of requirements for users. Entrepreneurs, retail businesses, facility management agencies, the list goes on. Your business is unique and requires solutions aligned to your business goals and your target vending audiences. Some areas will need your attention before investing in a vending solution. This blog post outlines five of these areas.

Accessibility – Are your vending machines ADA compliant?

The Americans with Disabilities Act is comprehensive in its scope, as well as scientific and compassionate in its stipulations. Though there are multiple aspects that the act covers, accessibility is an feature that should apply to the vending machines you choose.

Vending.com’s offerings are all ADA compliant or ADA ready. Our solutions comply with the ADA by its design, ergonomic access to the user interfaces, intuitiveness, and its ability to be accessible to all. Contact us to know more about our ADA-compliant machines.

Customizability

Just as your vending partner needs to cater to your business’s unique identity and operations, you also need someone well-versed with your industry’s demands. Custom-developed solutions, wherever applicable, will help drive more sales and ensure a richer user experience that delights users.

Vending.com has custom vending solutions with machines that have been designed and redesigned with features for specific industries, domains, and applications, like PPE kit vending, gym and fitness centers, self-service laundry businesses, and more. Our partners and affiliates add to our vending solutions’ customizability.

In addition to providing the custom vendor, Vending.com also helps in catching the attention of your customers with eye-popping designs. Our custom graphics offering helps in decking out your vending machine to attract more audiences – right from the factory. Our marketing team helps you serve the right look for your audience. 

Effectiveness Of Technology And Application Used

Technology has raised the bar with end-user expectations regarding features and experiences. It is essential to choose the appropriate features that are relevant for your target vending audience. 

Vending.com has constantly developed products and solutions filled to the brim with features, and we have done this for all stakeholders – our customers and the end-user audience. We have everything from easy item loading to handling multiple form factors. For the end-user, we have easy item selection, cashless transactions, sanitization, and more.

Contact us now to understand the multiple vending machine features and options that would work for your audiences.

Alternative Methods of Monetization

We are all looking to maximize the returns from our assets and investments. Complementary or supplementary income avenues are a way to do that. In this connected and digital world, there are multiple ways to augment the principal revenue source. For instance, any surface that demands the public’s attention is ideal for placing advertisements. When it comes to vending machines with digital displays and an internet connection, the possibilities are endless.

Vending.com’s vending machine solutions have feature-rich interfaces. Our in-house engineering is laser-focused on incorporating cutting-edge technology that helps our customers recognize tangible results. Check out our Express Combo Vending Machine to see for yourself. 

Sustainability

In this day and age, machines have to be energy-efficient as much as possible. Multiple technologies are applicable across design, ergonomics, hardware, software, customer behavior, etc., for reducing the energy consumption of vending machines and their carbon footprint. 

For example, Vending.com’s MarketOne 5W Cold Food & Drink Vending Machine is a combo machine that includes cooling solutions, digital displays, touch interface, cashless payment, and much more. It has Energy Star compliant technology, LED lighting, and the latest in energy usage optimization from our in-house innovators.  

Why choose Vending.com for your Vending Solutions?

Our 90 years of proven vending industry legacy and leadership focus on long-term innovation and planning. We offer everything required for your success. Our end-to-end ecosystem for vending solutions covers everything from usage-specific machines and new technology-driven features to financing and hassle-free maintenance.

Vending.com’s vending excellence has multiple testimonials and countless success stories. We are always at the precipice of the latest vending machine technology, features, and business practices that help our customers become more successful.

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Posted on | by pmasters@wittern.com | Leave a Comment on Buying a vending machine is easy (Financing, leasing, reman/used, etc.)

Buying a vending machine is easy (Financing, leasing, reman/used, etc.)

Buying a vending machine is easier than ever before.

Everybody must have experienced the fun of buying something from a vending machine to just see it spit out the product you chose to buy. Owning a vending machine can be even more fun and rewarding. Nobody will mind an alternate source of revenue from vending machines. There are several stories where what started as a side hustle became a thriving vending business.

Investing in a vending machine can improve the experience of the customers or visitors of your establishment. Customers will find it convenient to wait with a beverage until it is their turn to be served. Businesses can also use vending machines as another channel for the sales of products relevant to their business.

Investing in a vending machine is simple when considering the following five aspects before making the purchase.

Finding the right location

One of the most important factors to consider for your vending machine is the location. If a machine is purchased for your own business, customer accessibility is a critical consideration. If a machine is difficult to access, it will have a difficult time generating cash. Additionally, if you are looking at an outdoor location, it is important that your machine has the correct specs to accommodate customers. 

If you place the machine at a location owned by someone else, then you will need to consider things like partnership expectations, such as commissions, rental fees or custom branding on the machine. Vending is a numbers game. The more people looking at your machine will result in more revenue for you.

Selecting the right products to sell

The numbers for 2019 point to packaged snacks and food items as the most sold products in vending machines. Beverages come in at a close second, leaving everything else eating their dust, but this is still a generic classification. You need to be more specific as to what you want to sell. Some products give you razor-thin margins, while others are more rewarding.

A good example would be a chocolate bar. The average gross markup on a bar of chocolate would be 46% over the list price. Considering you must still cover your logistics, energy, location fees, insurance, and other costs, this is not much. On the other hand, the humble bottle of water might give you a tidy 85% markup. The logic is simple when you need water, you need water. A chocolate bar can always wait.

It is not just the markup. It is also about the demand. Pick products that move fast. The cost of products staying in the machine is often unnoticed, but can be very costly. M&Ms might fly off the machines at a waterpark, while a yogurt cup may not. The product to location ratio is everything in the vending business.

Investing in a machine

If you know what to sell and where to sell it, all you need to do is pay for it, but this is where most operators are stuck. While some operators can dig into their operating income or personal savings to buy a machine, others cannot. However, the good news is that reputed vending machine manufacturers have made it easier for such operators to buy their machines. They offer several options like the ones listed below.

  • Cash purchase: If you have the cash and you are willing to use it to buy a vending machine, then it is straightforward. All you need to do is find the proper manufacturer or seller who will give you a machine that costs you less to buy and to own.
  • Financing: Buyers can also obtain financing support to buy their machines. Depending on the business case, the manufacturer of the machine might offer attractive interest rates or other benefits to encourage the purchase. Individual operators trying to create an alternative source of income often find this appealing, as they can invest in the latest technology without large upfront costs.
  • Used: Beginners can also try used machines. They come at a much lower upfront cost, however, the cost of maintenance and upkeep of these machines will depend on the quality of the machine. If the machine is already old, over-used, or faulty, the cost of owning the machine might become high. It is essential to buy used machines from businesses of good reputation to avoid future surprises.

Installation and Setup

The machine’s installation and setup are often covered by the manufacturer when you buy a new machine. If you buy a used machine, however, ensure that you calculate the setup cost. Other than costs, installation and setup also require skills. Configuring your machine for the products you sell, providing proper payment interfaces, connecting to software inventory management systems if there is one, and other aspects of installation might need professional support. Buying new or used machines from reliable businesses can help you address these needs. They often provide the necessary support.

And you can rest assured knowing that our dedicated service entity covers all installation, setup, and setup requirements. Vendnet also supplies all spare parts and hardware along with easy-to-use manuals for all our models that help in DIY troubleshooting.  

Stocking

Once you have the machine up and running, all you need to do is stock your machine. If you have already decided on your product, make sure you buy fresh stock. Ensure that the products are worth the price your consumers are paying. It is vital to have quality products as it impacts consumer experience. Only a happy consumer will buy again from the same machine. Also, ensure that you have the necessary mechanism to keep your machine stocked. An empty machine continues to cost you without generating revenue.

A vending machine can be your steady stream of additional income. The past two years have taught us that even a strong market or economy can be fragile. Investing in vending machines can reduce risks to your income. Operators who carefully consider the above mentioned aspects and buy from reputed sellers are wise. They minimize the upfront capital expense and optimize the cost of owning the machine while also reducing risks. Our specialists at Vending.com can assist you through your purchase of a new or used vending machine.  Our offers are simply icing on the cake that you simply cannot resist. Talk to us at 1-855-929-1042 to know more.

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The true cost of vending machines

 

Total Cost of Ownership – The iceberg below the water level

Owning and operating a vending machine is good business. More than 2/3rds of vending machine owners and operators are micro businesses and individuals. They do not have the “big-four” accounting companies keeping their books. Suppose you are a small business or individual owner-operator of vending machines. There is a high chance that you will have to keep a tab of your collections and earnings yourselves. Most of us do it, too, but what we often tend to lose focus on is the cost. While buying the vending machine is a clear capital investment, there are other costs during the life of the vending machine that will define your profitability. As an owner-operator, let us see how you can understand these costs of owning a vending machine and ensure maximum profitability from your devices.

The costs across the lifecycle

Vending machines typically have a long cashable life. This means that adequately maintained vending machines can generate revenue for several years. Depending on the type of goods, location, maintenance and technology, machines can last anywhere between 5 and 15 years. The cost of owning these vending machines is also incurred over the product’s life. As the age of the machine increases, so does the cost of owning it. That is why used vending machines are cheaper to buy, but more expensive to own. It is also easy to forget that a non-functional machine means a loss of revenue. So, the decision to invest in a new machine or buy a used one should be made after carefully considering the following costs.

Cost of Buying – The cost of new vending machines for sale can be a few thousand dollars. The cost of buying a used one might be much less. This is a one-time expense and is considered a capital spend.

Cost of Installation – If you buy a machine, you will also incur charges to transport the machine to the location. Then comes the cost of setting these machines up and getting them up and running. You may have to pay for such services if you are not an expert.

Cost of Owning – Operating the machine includes the cost of the goods sold, energy cost, the cost involved in stocking or replacing goods, and other operational costs.

Cost of Upgrading – Depending on the age of your machine and the advancements in technology, you will incur expenses to upgrade your machines. Cashless payment systems are a good example. While many machines have card readers, modern cashless systems, like NFC and mobile wallets, may need upgrades.

Cost of Retiring – If your machines reach end-of-life, you will need to remove them. Malfunctioning machines or ones with obsolete technology will continue to cost you while generating no revenue. There will also be a cost of disconnecting, dismantling and disposing of such machines. 

Understanding all the costs incurred during the entire life of the vending machine will help you decide several aspects. You can choose to buy a new or a used machine. You can also calculate the returns from your machines better.

Cost Types

In each stage of the life cycle, several factors contribute to the cost of owning a vending machine. Calculating these costs meticulously can help you estimate the profitability of each machine you own and operate. Let us discuss these cost components.

  • Machine Cost – This is the initial investment that forms a big part of your upfront cash, but this is not the most significant component of your total cost.
  • Installation and Commissioning Cost – The size of this spend depends on your expertise, availability of professional support, and your deal with the machine supplier. Some manufacturers bundle this as a part of their machines to make it easy for buyers.
  • Cost of Accessories and Peripherals – The performance of your vending machines can be improved by adding peripherals. Accessories can also help upgrade old machines and extend their life.
  • Energy Cost – Machines need lighting, refrigeration, heating, handling payment transactions, or connection with back-end platforms.
  • Location or Real Estate Cost – This cost depends on your agreement with the owner of the location. Machine operators pay fixed fees, a commission on the sales made, branding on the machine, or a combination of these options.
  • Maintenance Costs – The maintenance cost includes servicing outages or repairs and preventive maintenance scheduled at regular intervals.
  • Merchandise Cost – This is the highest cost of owning any vending machine. This can be a few hundred dollars or thousands of dollars per stock replenishment, depending on what merchandise you sell.
  • Insurance Cost – General liability insurance costs are also a component that runs into a few hundred dollars per year.
  • Warehousing Cost – You will incur this cost to store your inventory before stocking your machine.
  • Consumables, Parts & Supplies Cost – Your machine will consume resources to operate. Some of them are your coolant in your refrigeration unit and lubricant in your mechanical unit. These will need periodic replacement or replenishment.
  • Taxes on Earnings – Taxes on your income from the vending machines are based on what and how you report in your earnings statement.
  • Cost of Downtime – All the above costs are direct costs that can be measured. The cost that cannot be measured is the cost of downtime of your machines. This is the revenue lost when your machine is not usable. If your stock includes perishables like fruits or packaged meat, downtime will also cost you the spoiled inventory.

 

Recovering Total Cost of Ownership

It is now clear that the cost of owning a vending machine is just the tip of the iceberg, but do not let that scare you. Vending machines are a very lucrative investment with a low barrier to entry. The returns from this investment are fast and help you recover your total cost of ownership quickly. Every transaction your machine makes can give you a decent markup on the product sold. Depending on the location and merchandise, operators markup merchandise prices by anywhere between 50% to 200%. This is the fee that the consumer pays for convenience and accessibility.

Further, reputed machinery manufacturers also support their customers in the buying process to make investing in a vending machine even more attractive. They also have tools that help you estimate your returns from investing in a vending machine. You can call the experts from Vending.com at 1-855-929-1042 to learn more about the costs and benefits of investing in your next vending machine.

Cost-Benefit Comparison for Vending Machines

  • Per Machine Profitability
  • Aggregate Revenue and Profitability
  • Maximizing Profits

Selecting the Right Machine

  • Help you understand TCO
  • Partner, not vendor
  • One-Stop-Shop (Machine, parts, consumables, software)
  • Financing
  • Accessibility.
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Full Profit Vending Program

What does a full profit vending program look like? How much can you, hypothetically, make from your vending machine? Check out our price recommendations below.

Can cold drinks (Major Brands)
Vend Price———————————————————————————————-$1.25
Cost per can———————————————————————————————–.32
Profit per can————————————————————————————.93

Bottle cold drinks (16.9oz-Major Brands)
Sale/Vend Price—————————————————————————————$1.50
Cost per bottle——————————————————————————————-.67
Profit per bottle——————————————————————————–.83

Bottled Water-#1 Selling Beverage (16.9oz)
Sale/Vend Price—————————————————————————————$1.25
Cost per bottle——————————————————————————————-.13
Profit per bottle——————————————————————————-1.12

Chips-Top Name Variety Pack (50 Ct.)
Sale/Vend Price—————————————————————————————-$1.25
Cost per bag———————————————————————————————–.28
Profit per bag————————————————————————————.97

Candy-Top Name Variety Pack (30 Ct.)
Sale/Vend Price—————————————————————————————$1.25
Cost per candy bar————————————————————————————–.70
Profit per candy bar—————————————————————————.55

AVERAGE PROFIT PER SALE: $.88

For more information, contact Vending.com by calling 1-800-548-1982.

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How to Find Locations for Your Vending Machine Equipment

A common question asked by new people getting into the vending business is, “How do I find the best location for my vending machines?” Some new vendors will get permission to place their machine(s) at places such as their own place of business, a relative or a friend’s business or a business where you know the owner. To assist further, we have listed below a number of businesses to consider when placing your machines. Keep in mind, you are not asking the business owner to buy anything. You are providing a FREE service to them, their employees and their customers!

Start small, one machine at a time

Local businesses with 30-50 employees and businesses with a good number of walk-in customers are good places to start. Choose businesses in your area close to your house. A short driving distance from home is ideal.

Tell them about your “Free” Vending Service

Ask for the manager or owner and ask if you can place one of your new Express Combo drink and snack machines in their business at no cost to them. We recommend you dress professionally and take a brochure about the Express Combo to each location. Be sure to let the business know that you will keep your machine filled with all the top brand products including some healthy selections at standard product pricing.

Replacing old machines with the new Express Combo Vending Machines

A good number of businesses will already have old, outdated vending machines. The odds are high that their current vending machine(s) do not accept credit/debit cards and do not have the guaranteed product delivery feature. The Express Combo, however, has all of these features! It is not too difficult to convince a business that you have a better vending program to service their employees and customers.

List of Locations

Here is a list of possible locations where vending machines can be placed:

  • Amusement park
  • Apartment building
  • Assisted living center
  • Auto brake shop
  • Auto dealership
  • Bank
  • Bookstore
  • Bowling alley
  • Bus station
  • Business office building
  • Car wash
  • Community center
  • Community swimming pool
  • Computer store
  • Dormitory
  • Driver’s license division
  • Dry cleaner
  • Fire station
  • Fraternity/sorority
  • Furniture store
  • Golf course lounge
  • Gym
  • Health club
  • Hotel
  • Humane society
  • Industrial park
  • Laundromat
  • Library
  • Manufacturing plan
  • Medical building
  • Meeting hall
  • Military Reserve/ Guard Center
  • Military Treatment Facility
  • Motel
  • Motor Vehicle Division
  • Motorcycle Shop
  • Muffler shop
  • Nursing Home/ Retirement Home
  • Oil & Lube Center
  • Police Station
  • Private School
  • Public Utility Office
  • Railroad Station
  • Recreation Center
  • Rental Yard
  • Roller Skating Rink
  • School
  • Senior Center
  • Shopping Center
  • Ski Resort
  • Stock Brokerage
  • Telemarketing Office
  • Tire Store
  • Tourist Attraction
  • Truck Stop
  • Trucking company
  • Veteran’s Affairs facility
  • Veterinary office
  • Waiting room (of any kind)
  • Warehouse
  • YMCA
  • Youth center
  • Zoo

Are you ready to get started finding locations for your vending machines? Contact Vending.com by calling 1-800-548-1982 today!