Step 1: Consider potential products
Food vending machines are simple and popular, but there are also vending machines that sell bulk items and even vending machines that offer local specialty products.
If you are starting a food vending machine, you can choose the theme of the machine. Offering healthy snacks in schools is a good option as schools want to provide good nutrition to their students. Generally, you can tailor your offerings to suit the market space you want to enter.
Step 2: Find the right location
Depending on the type of machine you have, you can find space in a commercial facility and create a route. It's a good idea to start out not too far away, as you or your employees will be responsible for stocking and repairing the machines. As you expand your business and hire more employees, you'll be able to cover a larger area.
Putting vending machines in local businesses means making connections with local business owners and starting to promote your services. If you want to contract with a school district or a company with multiple locations, you'll need to get in touch with a regional manager or someone who does large site management projects.
Step 3: Choose the right type of machine for your business
There are three types of machines: bulk, electronic, and mechanical. Bulk machines store a single product in bulk and dispense a set amount for 25 cents or a dollar. Commonly found in restrooms, these machines dispense feminine hygiene products, for example. Initial costs range from $50 to $200.
Mechanical vending machines are the typical break room vending machine. They offer multiple products and cost around $2,000 to start up, but they offer higher profits than bulk vending machines.
Finally, the most sophisticated version is the electronic vending machine. These can cost at least $3,000 apiece and often have touch screens to easily take credit card payments. The more drinks or food they offer, the more the machine will cost. They are very reliable, intuitive, and take credit cards, meaning fewer people have to carry cash and coins, and you get more customers. But make sure you choose a payment gateway that doesn't charge exorbitant fees.
Step 4: Find the right market
Vending machines should be placed in the best locations depending on the type of customers you want to serve. For example, vending machines that serve products like microwavable food and other meals are suitable for places like offices, hospitals, universities, and other places where people spend long periods of time and cannot afford to cook.
Snack vending machines are also great for offices, but vending machines that sell novelty trinkets or small candies are better suited for small, specialized businesses looking to make that connection.
Finally, vending machines that sell medicines or electronics are ideal to place in airports, highway rest areas, or train stations. Since these are essential items for travelers, these vending machines can command high profit margins.
Step 5: Product inventory
For food vending machines, some states require them to include a certain percentage of healthy options, so if this applies where you live, be sure to have a source for healthy snacks.
When considering your overall food inventory, you should connect with wholesalers to ensure you get the lowest cost per unit. Saving on the initial cost of food will allow you to make more profit from your vending machine in the long run.
