Think of all the places people need food and utilities. Practically anywhere they exists
But of course, along with service to mankind, we would want you to make profit
There is no such exact place for a vending machine. It must be at a place where it is approachable to the consumer. It nudges the individual to purchase a product.
- The location of the vending machine must be near a power source.
- To have an uninterrupted connection, it should be installed in a place where internet strength is good. (We are assuming that you are smart and would take an automated machine only)
- For vending machines with fresh food, there should be a microwave handy.
One needs to understand the location can be decided according to the product and the market which the person is targetting.
The first step for a profitable vending business is choosing the right location. A vending machine that no one sees cannot generate any revenue. Targeting locations with high traffic is the ultimate goal. Here are the most profitable locations which Wendor has have experienced:
- Corporate office parks or large offices
- Factories and manufacturing companies
- Hospitals, clinics and medical centres
- Colleges and schools
- Waiting rooms
- Residential society/apartments
- Cinemas and theatres
- Hotel lobby
- Shopping malls
- Airports, bus stations, railway stations
- Petrol Pumps
- Departmental stores
These places are highly profitable once you are able to get hold of it. There are a few questions stated below which would help you to decide among them
- What is the location’s daily footfall?
- Is there a food court nearby? If yes, are your products in the vending machine different from those?
- How would you approach the administration of that place?
- What commissions/rent would be applicable?
- What are the entry and exit timings/rules that the place has?
With these questions answered you’ll have a clear understanding about a certain place, and how profitable it will turn out to be
How to approach and convert a vending location
Vending machines generate value according to the location where it is kept. The concept works the same as in real life. For example, space charges for vending machines might be expensive in airports and malls but when we compare it with the charges of colleges it might be less.
One needs to be prepared to approach a location owner about the opportunities you are offering. Getting in touch with owners of elite institutions can be tough but it’s a crucial step for a successful business. Even if you are just starting a vending business, present yourself as a successful business owner. Remember it’s gonna mutually benefit each other by getting a vending machine installed.
So what should be the way to approach the vending location?
There would certainly be some owners to whom no convincing is required as they would want to welcome the new food/snacks/drink source at their place. And if they are getting some percentage of your profit- it is a win-win
On the other hand, you have to go through a fully organised and planned process, step by step especially in malls, hospitals, colleges etc.
The first step to approach a vending location is to research about the location.
- What is the footfall of the place?
- What income group do your customers belong to?
- Is there food courts available?
- How to approach the administration of the place
- How much profit would you be able to make?
- What business model are you planning to pitch the owner?
If possible read about that place online- read the reviews that have been provided, you would have an idea of the type of audience it attracts, some idea about the administration of the place etc
Then you must visit there as a customer/visitor and look around the area for a suitable place for your vending machine plus it will help you to understand the footfall/audiences better.
Approaching the admin with your idea is the next step. Get to them