Red Bull Vending Machines- are they a good business investment?
2006 was the year of the energy drink. Red bull began to take an unprecedented bite out of the soda market, and energy sales surge well beyond expectation. Now several years later. The possibilities of niche marketing vending products has grown along with the surge in energy drink sales. The key to profiting from these trends however is not as obvious as it might appear at first glance. The key to this surge is planning, and target marketing. Although energy drink sales have really caught on. They are still consumed mainly by a specific demographic. Most energy drinks are consumed by those in between the ages 16-34. In Urban areas. This just happens to be the perfect demographic to for vending service as well. Young professionals flock to snack and drink machines during break times, and college students are in a never ending search for energy in all forms. Society is demanding more out of the same amount of hours. The only way to do that is to have more energy.
During 2006 and company known as creative concepts partnered with royal vendors to create some customized models of one of Royals Merlin machine. It all seemed like a great concept ready to take off. The only problem was that the owners of creative concept turned out to be con artist swindling many unsuspecting investors out of thousands of hard earned retirement. As unfortunate as that situation was, it does provide an opportunity for those looking to capitalize of the emerging trend now. Red Bull sales are higher than ever, and had red bull been successfully mass marketed in the vending industry then, it would be a near mature market today. This did not happen however. Loads of would be vending entrepreneurs were left with vending machines and no support as to how to run a successful business. Now several years later they are trying to get rid of these red bull vending machines. Many of which have sat dormant and unused for several years in garages or warehouses waiting to become profit centers. So how do you profit from others mistakes. Here are a few tips.
Never purchase new vending machines your first go around. They are entirely too expensive and should never be bought at the retail invoice price you would be paying just starting out. Test the waters with machines that can be as less than half the cost even unused.
Have a plan as to how you will reach you target market. It would not be a bad idea to try and get a spot to put the machine before you spend the money.