How to Start a Vending Machine Business That Works Any Country
Hi everyone,
Let’s dive into the world of vending machines.
I like vending machines.
They don’t require humans to manage; they are easier to operate in a small space, & they can be super profitable.
However, we don’t really see vending machines in any country.
Why?
Three reasons (according to me)
• Transaction isn’t easy. Most of any country still doesn’t have one-tap payment or coins. So the only option is paying using your ATM card + PIN, which isn’t as easy to convince people to do.
• Safety. You can’t put a vending machine on a busy street in London or California and hope everything will be alright, because it won’t be.
• Products are easily available everywhere anyways. Why go to a vending machine when there’s a shop at every corner?
However, I think the vending machine business can still work in any country. Here’s my step-by-step guide on how I will go about it.
Step 1: Finding a Product That Works
You can’t sell chips, drinks, or chocolates in a vending machine in any country. They are available everywhere anyway. No reason to go through the complexity of a vending machine for a consumer to get it.
What are our options then?
Targeting products that are non-obvious, novelty-based, and target affluent consumers.
Here are some that I think will work:
A toy vending machine (you play to win a toy, not buy):
A Cotton Candy vending machine:
You can brainstorm, but the goal is simple. Your vending machine needs to be a fun, visual thing to interact with.
It can’t just be a transactional piece.
Step 2: Location
Getting a vending machine isn’t that complicated. You can import one from China for a good price (3-4k USD range).
The main complication is the location.
Where to place it?
Obviously, you need a place with a lot of passing foot traffic; however, you also need a safe place.
My choice would be restaurants + cafes, and I will give them 20% of all revenue in exchange for the ability to put our vending machine in their store.
It is a win-win.
They get free money, and we get free location + eyeballs.
Yes, going to a shopping mall would be even better, but based on my experience, you can’t really try anything new in shopping malls of any country unless you have a lot of influence and power.
So restaurants + cafes it is.
Step 3: Finding a way for people to easily pay
People won’t put their ATM card in your vending machine. You need to find an alternative way.
There are a couple of options.
One is an app-based solution. They scan their phone, you charge from their phone, and they interact with your machine.
A little more high-tech and requires investment; however, a lot easier to manage down the line.
The other idea is giving them tickets that they can buy from the same restaurants where you have the machines. They pay restaurants money to get tickets that they can use on the vending machine.
This is easier to manage, and as they will already be in the cafe/restaurant, this kind of makes sense too.
That’s basically it.
Then you simply do two things:
• Manage the machines. Make sure the stocks are filled every day, nothing is broken, etc.
• Put new machines wherever you can.
And before you know it, you will be a vending machine mogul (not sure if you want to be known for that—but yes, that’s a possibility).
Give it a thought.