The Vending Machine Business Most Profitable Accounts
Blue Collar Factory
The blue-collar factory has been the stable for the vending machine business industry for the last sixty years. The most profitable factories are those that have a high concentration of male employees. Men in general are more likely to eat from a vending machine than women. Men that work in a factory are less likely to leave the premises during a break or their lunchtime.
A good majority of the factories around a nation will have very specialized machinery to produce the product they manufacture. This machinery is very expensive so as demand builds for their product they are more inclined to hire a second and third shift to keep the equipment producing 24/7.
Factories have found this to be a much more cost effective way to run their businesses than to buy more machinery and build more buildings so they can have an all daytime crew.
This is also more profitable for the vending company because when a company is running three eight hour shifts they will normally pay their employees straight through their breaks and lunch time. When the factory pays their employees for their breaks they are normally shorter in length and in many cases the employees are not allowed to leave the premises.
The shorter breaks make it less likely an employee will leave the premises at break or lunchtime even if they are allowed to leave. These are the reasons all vending companies are seeking to gain the business of the blue-collar factories.
Warehouses can be very profitable locations for the vending machine business to go after also. Warehouses that supply many stores are the main warehouses a vendor will be looking for. Places like Wal-Mart distribution centers, Dollar General, Hy-Vee Food Stores and Menards are all warehouses a vendor will be looking to land.
These places can employ from a few hundred to a few thousand employees.
The distribution centers have become very sophisticated in the movement of the materials they handle. Some of these places have extensive overhead conveyors that transport the product from the actual warehouse to the shipping end of the distribution center.
Along the way the conveyors will have scanners that direct traffic sending boxes to their final destination. These large warehouses many times will have more than one break room.
With the kind of money these warehouses have tied up in the equipment they have, they just like the blue collar factories, like to keep the warehouse open 24/7.
The large office building can be a profitable location to place vending machines also. The thing I would like to caution you about is that you will have approximately half the sales per person that you will have in a blue-collar factory.
These large office buildings will many times be the corporate headquarters for large regional or national companies. In most cases these offices pay a lower wage than the blue-collar factories and have most of their employees working during normal business hours.
Their breaks in many cases are not as rigid as those in the factory which leads to more people coming in and out of the break rooms during the day which is a benefit to the vendor.
Many of these places like to use catering companies on a regular basis to reward their employees and this will never help the vendor unless they are the catering company.
Schools and colleges have been places that use vendors to supply the student and staff with on location snacks and food. The cola companies have been willing to give the schools many gifts and high commissions to get their cola business.
The cola companies want to get to the youth because they know that if they get them drinking their products at this age they will for the most part have a customer for life.
Schools have for the most part become a low priority for the vending machine business as the drinks, which make up approximately 50% of a vendors sales have been given away by the cola companies.
The hotels and motels have been good locations for vendors over the years. They do require some different items to be carried in their snack machines such as combs, toothbrushes and things the traveler may have forgotten to bring along with them.
Unless you are located in an extremely large hotel/motel these are not normally huge accounts. They normally will not need daily service and the thing many vendors like about them is they don't normally ask for a cold food machine.
When starting out in the vending machine business it may be easier to land accounts that may not be the most prized accounts. This will enable you to gain credibility in the vending machine business. After gaining credibility it will be easier to land the prized accounts.
Vending companies should also think about
as it will save them money in time and inventory.
Return from The Vending Machine Business Most Profitable Accounts to the Home Page
Opt-in to our E-zine and stay up on the vending industry. Monthly E-zine will be sent to you at no charge. Sign up below.