Vending Machine Business – 5 Mistakes to Avoid

The vending machine business can be a lucrative business venture, especially when you have several machines already in place in ideal locations. Although it is a good business to get into, many still aren’t able to make it click. Some people pour a lot of saving into a vending business and then lose all that money because they have a dozen machines stuck in their garage, not making money. Some are operating but are not really making any real profits.

There are some mistakes to avoid and it is good to know about them before you venture into the vending machine business. You can save yourself a lot of money, energy and heartache by knowing some negative things to steer clear of from the start of your business. Learning these common pitfalls in the vending industry will also allow you to create a back-up plan in case you become a victim to unforeseen events that will affect your earnings.

Relying on professional locators – Many people who venture into the vending machine business don’t realize that, with the proper knowledge, you can get good locations for your machines without the help from professional vending locators. Locators will charge you a bundle just to get a handful of profitable locations. It is likely that some of your machines will be placed in mediocre locations anyway. Find your own locations, it will save you a lot of money and disappointment.

Good location, wrong machine – Just because there’s a lot of people passing through certain locations, it doesn’t mean it will be a good spot for all your vending machines. The vending machine business isn’t solely about placing your machines in places with heavy foot traffic, you also have to find out what all these people would want to buy from vending facilities. Match the items and machines to what the people are most likely going to buy.

Paying a lot for rent – You can do away with paying too much for rent by offering a commission to your landlord. There are times when sales are not so good and having a fixed rent can be disadvantageous to your vending machine business. Instead of rent negotiate for a percentage of your sales as rent or you can donate to a charity to get your rental fees waived. Some landlords offer free space for vending machine owners who give part of their earnings to charities.

Too many vending units – Avoid buying too many vending machines in the beginning of your business venture. It is a good idea to secure locations first before purchasing so many machines. If you can’t find locations for them you will be stuck with tens of thousands worth of investment sitting in your garage.

Second hand machines – Buying used machines to start your vending machine business can be good if you are sure you can get them in excellent condition. If they will break often in the future, you may be spending a lot of money to have them repaired. If you know how to repair the machines yourself, then it would be good to get used machine, just make sure that there are still spare parts for them.

Sure, you can make your vending machine business lucrative if you know what mistakes to avoid. These common pitfalls like buying old machines that break down often or selling the wrong items in good locations can lead to lost profit in the thousands of dollars. Don’t pretend these risks won’t happen to you.They could happen to anyone and it’s best to be prepared and know how to avoid costly mistakes.