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Why Vending Machines Are A Great Business Opportunity Vending machines are a great low maintenance business opportunity for anyone looking to make a bit of extra money. Not only do they have a sound business model, they can provide long-term residual income and financial security. In fact, vending machine franchising was listed in Forbes Magazine as one of the easiest most profitable businesses to start. Typically vending machines can cost anywhere from $120 for a small turn-coin machine to around $3000 to $4000 for a fully automated electric soda or snack machine. You can easily purchase any small bubble gum or children's toy spin coin machine for under $200. Even with the cost of the vending machine itself you are likely to see a huge profit margin of over 300%. Once the vending machine is paid off, your profit margins can potentially double, (reaching up to 600%) since refilling is now the only major expense. If you set up your business carefully, you can avoid almost every single type of time-related expense. This is huge because it means that other than paying for inventory, there is very little labor required and practically no monthly (or yearly) expense involved with running your business. Location Is Important Finding a high-density location is the key to making money with any vending machine business or franchise. A high-density location can also significantly reduce the chance of your machine being damaged or stolen. There are so many great places for vending machines, some of which you may not have even considered. Some great places might include: -Banks -Zoos -Arcades -Bowling Alleys -High Schools -Colleges -Airports -Casinos -Coffee Shops -Laundromats -Auto Mechanics and Dealerships -Beauty Salons -Or Movie Theaters. Obviously it is ideal to find a location where no vending machines have already been set up. However, you usually have to get permission from the business owner or venue before placing a vending machine in that spot. Having A Great Relationship With The Business Or Venue Owner It is recommended that you offer a percentage of your vending machine sales as opposed to a fixed fee. This way if your products aren't selling (or are selling very slowly) you will be protected from any type of unnecessary financial loss since you will only pay a percentage of what you make. Here are a few tips on setting up your business to avoid any time-related costs. 1. Start by offering the business or venue owner 15-30% of your product sales, depending on your location. If the business or venue owner can see a long term financial benefit for themselves in your investment, then they will be much more likely to protect and secure your vending machine. 2. If a business or venue owner is being tough to bargain with, you might want to consider paying a small up front "incentive" fee to motivate the owner. The more profit you offer the business owner, the more likely they will be willing to watch over your vending machine. This is a great way to secure your long-term profit while maintaining some security for your machine and your business. 3. You could also minimize your payments to the vendor by using charities. One way to do this is by buying an official charity sticker. Many business or venue owners (especially if they are smaller stores) will allow you to put a vending machine in their store for free if it has a charity sticker on it, because it improves the public image of the business or venue. You can purchase these stickers for a very small fee from a variety of different charities. This is a great tactic especially if you want to be highly profitable with multiple machines in multiple locations. For more information about vending machine franchising and how to build your own successful business see, The Business Success Blueprint Edward Rosenberg is a professional business and marketing expert. He has studied, researched, and implemented dozens of various marketing methods for several businesses over the past 5 years. To find out more about Edward, Click Here
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