Vending Machines: How to Strike a Deal with an Establishment
Vending Machines generate $20 billion to $30 billion annually. Getting an establishment to agree to host your machine can be very profitable. A vending machine’s financial success is tied to its location. The more people visit an establishment, the greater your chances of sales.
Look for locations with lots of employees or pedestrian traffic, such as colleges, auto shops and factories. Stay at least a few blocks away from coffee shops, grocery stores, and bakeries.
Push the Right Buttons
Contact the business owner or the property manager of the building or business where you want to install your machine. Introduce yourself as the owner of a vending machine business in the area and illustrate why a vending machine would be a great fit for the establishment. Explain that a vending machine is beneficial to customers, employers, and employees—especially in that they can access lunch, drinks, and snacks without leaving the building. It can also boost morale and productivity.
Come to Terms
Some businesses may agree to a vending machine only on the condition that they receive a percentage of the net sales. If there is no competition, negotiate a commission of up to 10%. Or, to help to determine the rate, research the local market to find out what other vending machine companies pay.
Expect to answer the business owner’s questions about how much power the machine uses; how it works, runs, and is installed; how, when, how often and by whom it will be monitored, restocked and serviced; and how commission is tracked and payment is sent. Offer to keep the machine stocked with the items that are most popular according to your records.
Seal the Deal
Create a document that details the terms and conditions to which you and the owner of the establishment agree. Review it with him or her a final time before you both sign it.
The vending machine industry can be a lucrative one. If you secure a suitable location that attracts a steady stream of people and keeps the machines fully functioning and stocked with the items customers enjoy most, you can definitely make some serious coin.