Vending Machine Location Analysis

Getting good locations is the most important thing in the vending machine business. And, fortunately, there are still thousands of great locations to be found. Here's how to spot a great location and compare it to the locations you've already got.

1) Make sure there's traffic. Slow traffic. You want locations where there are at least a dozen people a day that are going to be spending enough time near your vending machine that they might consider getting themselves something to eat or drink (or whatever). As you visit locations -- and you should visit them at least three times before you talk to the owner about placing a vending machine -- spend some time there yourself. This can be hard with employee break rooms (which are terrific locations, by the way), but not so hard with professional offices or service locations (car servicing waiting rooms are great, too).



To hit the "good" income level of $75 a month per machine (I'm talking a simple bulk gumball machine here), you need to sell about 400 vends. That works out to about 13 vends a day, or a bit more than one an hour. Make sure there are enough people in your location to make that happen.

2) Consider access. This is critical with some of the larger vending machines. Can you get your machine up a flight of stairs? Through the tight doorways? Is there a suitable electrical outlet nearby? These kinds of limitations are frustrating, but there's no getting around them. An otherwise perfect location might turn into a nightmare the second you realize you're going to have to re-negotiate with the site owner to upgrade an outlet.

3) Consider security. It might be a location with a bunch of hungry and thirsty people, but there's a reason there are no vending machines in the drunk tank. You want your machines to be in well-lit areas, preferably behind lock and key. Pre-selected groups of people (like employees) are the best vending machine audiences.

4) The owner, or the site manager. Are they easy to get along with? Sane? Or semi-sober and prone to fits of rage. It will make a big difference.

5) Competition. Are there other vending machines on the site? This is not necessarily a bad thing, and actually it almost always means that someone is making money at this location. However, it does mean you'll have to find your niche. If there are only soda machines, consider putting a snack machine in. Diversify. Both the owner and the other vending people will appreciate a good selection in this case, as it builds on the little "store" area that they had already started.

6) Stay local. After you've been in the business awhile, you are going to become a bit of a full-time locator. It just happens. And, inevitably, you are going to find a couple of really good locations that are quite a bit outside your vending territory. You'll want to make an exception becuase this site seems so good. It might be a good choice, but consider these things before you move forward. How much gas is it going to cost you to service this machine as often as necessary? How much time is it going to take. Calculate those factors in before you get too excited about an amazing new location.

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