Businesses that take advantage of a vending machine business strategy benefit from having fewer overhead costs such as labour, store front, and maintenance fees. However, vending machine strategies are only effective if each machine is located in a profitable area. How can a business determine what location is best for selling their product? Here are a few key factors to consider.
High-Traffic Areas
Vending machine sales depend very much on the traffic around the machine. Increased exposure to potential customers will create more customers. Typically vending machines are selling items that are bought more impulsively, and it is not often that a customer will go out of their daily routine to buy something from a vending machine. Busy places are always best, so consider what areas people tend to come together at. Transportation stations, event venues, community centres, busy shopping malls and other large government buildings like schools or hospitals are often popular places to locate a successful vending machine.
Demographics
Understanding your ideal customer is important in every business, and it applies especially when choosing a vending machine location. For example, a vending machine that sells candy bars or other treats that, although delicious, may not be a healthy decision, would not benefit from a location around or inside a fitness centre as much as it would benefit from being at a train station or subway terminal. This is because the population making up the demographics in that area are less likely to be interested in eating an unhealthy snack if they are regularly working out and dedicating time and money to fitness. However, a vending machine selling protein bars or power drinks would likely see success if located at a fitness centre.
Competition
The same vending machine stocked with protein bars and power drinks would not be as successful if there are already three other similar machines in the area. Finding a location that does not have many competing businesses will help ensure the most sales possible from your machine. If competition cannot be avoided, do some competitor research and make sure you are offering a quality product for a competitive price.
Hours of Operation
The same vending machine will be even more profitable if it is located at a gym that is open 24 hours a day. Not only because this means there is more time for customers to come and go, but it provides customers access to products that cannot be found anywhere else at certain times. After a late night work out most restaurants, especially those that serve healthier options, are closed for the night. This leaves a conveniently located vending machine as the only option for someone in need of a snack on the go.
Considering these location variables when choosing the most strategic spaces to locate a vending machine will help ensure the most sales and success for your business.
Whether you’re planning a vending machine strategy, or you have it all figured out and just need the machine itself, contact us and our team of professional will be ready to help. You can also visit our Facebook page to receive more information and updates on Regional Vending.