How To Avoid Vending Machine Business Failure

The vending machine business can be lucrative, especially if you add more machines later on. Even if it’s a lucrative business for some, other still have a hard time making decent earnings. It is sad to see people pour all their savings into a business and then fail and lose all that hard-earned money.

There are some common pitfalls to avoid and it is good to find out about them before you start a vending machine business. You can save yourself a lot of cash, energy and disappointment 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.

Getting locators – If you have the time to look for your own locations, why pay someone to do it? Professional locators will say that they can guarantee good locations for all your machines, but reality is, he can only secure perfect and profitable locations for some, not all your machines. Search for your own locations and save yourself a lot of money that you can put elsewhere.

Wrong machine in excellent location – Just because there’s a lot of foot traffic in certain places, 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.

High rent – You can pay full price for rent but you can also negotiate for a commission are rental payment. Having a fixed rent may be disadvantageous to you if sales are low at certain seasons. Negotiate for a commission based rent or tie up with a charitable organization. Some landlords waive rental fees if the vending machine business using their space donates to a charity.

Buying too many 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.

Used 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.

You can t your vending machine business if you ignore these common pitfalls. Don’t say that it won’t happen to you. Not knowing about which factors to avoid can cause you to commit mistakes. Find out what other factors can lead to business failure and make plans to work around them or avoid them completely.