There’s no doubt that the vending machine business is an ideal investment for a lot of business owners. It is a lucrative industry that generates passive profits. However, before buying one or two vending machines, you need to consider a lot of factors.
The first step to creating a successful vending machine business is identifying the right location. Of course, you need to find a spot that has high-foot traffic. Aside from that, you also must check whether your target audience and location match.
Are you interested to learn tips in selecting the best locations? Then, you’re in luck. At TCN Vending, we want to help you out! So, stop searching the internet for ‘vending machines near me’ and check out this guide. Here, we will give you proven techniques for you to earn more.
Vending Machine Near Me: Why Should I Consider Location?
Many people quickly assume that starting a vending machine business is easy. But they may be quite wrong. You need to assess different factors and elements before entering the business.
More so, you should prioritise finding a good location. Remember, you cannot simply place your vending machines everywhere. When you want to put it on someone else’s property, you need written consent and a contract. Second, you should do your market research. Studying your target customers can highlight the best location for your business.
Steps in Selecting a Profitable Vending Machine Location
1. Identify Places with High Foot Traffic
Customers are the lifeblood of every business. That’s why you need to know where your customers are. Foot traffic is the key element to a successful business. In the vending machine industry, purchases fall into at least two major categories: impulse buys and habitual buys.
People want to grab something quickly. They also form habits to purchase something they see every day. So, you need a spot that has higher foot traffic to accommodate these purchases.
2. Understand Your Competition
How many vending machines do you see in your apartment complex? If there are more than ten vending machines, it might not be ideal to install one of your own. However, you shouldn’t be afraid to start your business because of competition.
In every industry, competition will always be present. In fact, it is a good sign of a thriving market. The only thing you should do is determine whether it is a healthy competition.
If you find a good location with high foot traffic, you will have competitors. That’s why you should evaluate your competitors on their:
Price Point
Check their latest deals and offerings. Do they offer great promotions? Are their prices fair? Can you compete with their current prices?
Condition of Machines
Of course, newer machines are more attractive to buyers. So, compare their existing machines to your current ones. Which vending machines stand out? Ask opinions from your peers to have a better perspective and insight on the topic.
Product Selection
Other than the price and look of the vending machines, identify the product range they sell. What more can you offer? Do you think your customers will patronise your products more than the existing selection?
Payment Options
Years ago, customers spend their loose cash or spare change on vending machines. Today, many Aussies are going cashless. That’s why vending machines with more flexible payment options get better profits. Don’t hesitate to look around and innovate. Start offering card or mobile payments, especially when your competitors don’t offer those options.
3. Always Ask for Permission.
This can be the most stressful experience in setting up a vending machine. In some cases, you’ll have to jump through quite a few loops to land a contract. While in other cases, it can be extremely easy.
Before you contact the property owner, have all the paperwork ready. Make a proposal and inform the property owner of the benefits of having a vending machine in their commercial space.
Depending on the situation, business owners may ask for a percentage of their profits or a fixed monthly rental fee to offset the expenses.
Top Three Locations to Start
Now that you’ve finally learned the steps to finding the right location, it’s time to scout for the right place. But before you strut the streets and start your hustle, we’re giving you a bonus tip.
Here at TCN Vending, we found these sites to be the most ideal locations to pursue:
Apartment Complexes and Condos
People constantly come and go to these establishments. What’s more? They have easy access to extremely busy professionals who crave ease and convenience. That’s why you should set up your very first vending machine in these locations.
You can place a vending machine in common areas, party rooms, laundry rooms, or even the gym. These are excellent spots where residents frequently use on a regular basis.
Schools and Universities
Students are always in a hurry, and they want to purchase items on the go. That’s why selling snacks and drinks in schools and universities are the best way to earn more. Ideally, you can set up food vending machines that offer healthy and delicious snacks. This way, you can get the support of the school administrators to start your business.
College dorms are always excellent places for vending machines. Many students tend to stay up late and want to buy snacks conveniently. So, vending machines are a smart and hassle-free solution.
Offices
Many offices have vending machines. Typically, they’re in-house. However, if you’re planning to put a vending machine in an office, you need to consider the company’s size. Businesses with more than 50 employees are ideal. Anywhere below that number might not give you the revenue you want.
If you place a vending machine in an office, you also need to be keen with your product selection. This is to give your customers more options every time they purchase.
Want to Find the Best Vending Machine Locations? Partner with TCN Vending!
There are dozens of profitable vending machine locations out there. However, identifying and securing one might require a lot of legwork. Let TCN Vending Australia help you find the right spot for your business.
As part of our growing clientele, you will have the access to full training and ongoing support to start your very own vending machine business. Stop searching the internet for providers of ‘vending machines near me’ and trust the experts today!
For more details and information, you can call us on 1800 959 910 or send a message to enquiries@tcnvending.com.au.