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Vending Business Information, Issue #013 -- Location,Location,Location...
April 23, 2011


As anyone with any experience in the vending industry can tell you, location is everything. Where your machines are placed can make or break your business, so a critical analysis of a potential location is crucial when you are just starting out in the industry.

Locating a bulk vending machine is different from locating a full-line vending machine (which is a typical snack-and-drink machine). Bulk vending machines have greater flexibility in where they can be placed, because many of the machines do not require electricity, unlike their larger, plug-in counterparts. At the same time, because of the particular appearance and products of bulk vending machines, options for placement can be limited. Bulk vending machines also tend to be small, which means that vandals can steal machines if they are not placed in an area with suitable security.

Don't let that deter you from the business, however. Bulk vending has the highest profit possibilities of any type of vending, because of the huge profit margin of the products you can sell. For example, a typical gumball costs 2 cents and is purchased by consumers for 25 cents. That's a 23 cent profit-- a 92% rate of return. Not many businesses can boast numbers that high!

But in order to make your business successful, you need to sell out your inventory, and that means picking a profitable location. Key traits of a location are long operation hours, lots of children, and large amount of foot traffic. It is also crucial to note if there are other bulk candy machines in the area, as competition will diminish your market share. Particularly profitable locations also tend to be areas where people are carrying change (like in laundromats) or need to wait for a long time.

Some locations will require you to pay a commission, and it is up to you to determine whether or not the placement is worth it. Some high-competition locations demand up to 50% of your profits as commission, although if you are creative (and an excellent salesperson), you can find a commission-free location. Additionally, prepare for rejection-- many locations will turn you down before you will find one that will accept a machine. When you do find a location, however, you have the difficult part of the job over with. The machines work for you 24 hours a day, never complain, and never take a day off.

Most importantly, be patient with your location selection-- it's a process that requires time and experimentation. Machines may need to be relocated, but don't let that be discouraging. Allow a machine to remain in a location for 2 or 3 months to determine how successful of a placement it is. If the machine is not turning a sizeable enough profit, consider relocating the machine. The worst thing you can do is be inflexible about your locations-- if something is not working out, change it up! By trying out different locations and strategies, you will be able to optimize your vending routes and cash in on maximum profits.

A Lydens is an expert vending correspondent for Article Source:

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