What to Avoid When Starting a Vending Business
Having a prosperous vending machine business is something that many people dream of. After all you get the pleasure of being your own boss and setting your own hours. If you go about it in the right way this can be exactly what you dreamed of for so long. Unfortunately though this dream becomes a nightmare for some who start a vending machine business. This is because they made common mistakes that you can avoid.One of the biggest hidden dangers of operating a vending machine business is that it may not end up being successful for you. Now, you are probably reading this and thinking that there is no way you will let that happen. Well, you may not have a choice because these hidden dangers of the business I am talking about suck you in. It is like hitting a patch of ice on the highway that you had no idea was there. Before you know it you are spinning fast than then you crash hard.
The best thing you can do is guard against these hidden dangers in the vending machine business so they won't affect you. I am telling you now that finding quality locations for your vending machines isn't going to be easy. The main ones you can think of probably already have them in place. You have to get the permission of the owner of the location too before you can put one in place. It isn't as easy as just showing up one afternoon and plugging it in.
The other barrier you are going to run into is that the majority of the locations you have thought of to place your vending machines don't allow vending machines in their establishments. Now, you may be able to use this to your advantage if you have some excellent communication skills. Before you waltz into the establishment though and ask if you can place your vending machines there (and they say no like they do to everyone that asks that question) you need to practice and perfect your approach.
Do your homework before you go in for negotiations with the owner of the location for your vending machines. You have to know what the highest price is that you can offer them as a monthly fee for placing your vending machines in their establishment. Of course you want to give them as little as possible but you can't give them too much and then end up with little or no profits from your endeavors
If they want a very high fee in order to secure your vending machines in the locations try another approach. Explain to them that you are just getting started in the vending machine business and you really don't know how profitable it will be. Ask for them to consider a percentage of your profits instead of a flat rate. This way you don't end up owing them money if the vending machine location turns out to be a flop
Make sure all the information relating to the placement of your vending machines is carefully documented in a contract that both of you sign. Make sure you hold up your end of the deal as well. If the owner of the property states that you can only fill the vending machines when his business is closed then honor that. Don't let him catch you out there filling them up in the middle of the afternoon as customers are going in and out of his establishment.
Always try to keep the terms of your vending machine contract open as far as the length of time. While you hope this will be an excellent location for your vending machine you want to be able to move it should that not be the case. You want to be able to explore other options as well so don't commit yourself to any long term relationships in the beginning of your vending machine business.
About the Author
Robert Farnham built a profitable vending business after starting totally the wrong way. He now writes about building a vending machine business and the pitfalls to avoid. Visit his website at My Vending Uncle for more.