How to Maximize Vending Machine Profitability

 

Payment System

While vending machines were originally designed to be operated by coins only, they advanced to more sophisticated cash and coin readers, and modern vending machines are equipped with entirely cashless payment systems. Whether they operate with debit/credit card readers or are compatible with mobile payment systems, people in today’s world want convenient payment methods even for their vending machines.

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Purchasing new machines that are equipped with cashless payment options and upgrading older vending machines to the current standard is a great way to improve the profitability of your vending machine business. Most people don’t carry coins or paper money anymore, and vending machines that don’t offer card readers or mobile payment options may not be able to use the machine at all.

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Essentially, the easier it is for people to pay, the more often you’ll see potential customers committing to the purchase. Meeting the demand for accessible payment systems can make a world of difference when it comes to the machine’s success.

Product Type/Diversity

Product diversity is the key to a popular and profitable vending machine business. This holds true for a single vending machine or multiple machines in one area. For example, putting a snack machine and drink machine together will generate more profits than two snack machines side by side; people who walked over for a drink may grab a snack to pair with it, and vice versa. Two of the same type of machine, however, will end up competing with each other and lowering the profitability of both.

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Offering a range of products within a single machine can also help vending owners maximize their profits. Catering to every individual as best you can is the only way to maximize the number of people that are making a purchase. Not only does a diverse product selection increase the number of people that are buying from your machine regularly, but it also gives them more options to purchase multiple items at one time.

Inventory Management

Inventory management is a significant component of a vending machine’s success. It doesn’t matter if you’re placing vending machines in high traffic areas if there isn’t any stock in them for people to actually purchase. Keeping a close eye on the stock levels in your machine is essential for maximizing profitability.

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In addition to maintaining high stock levels, inventory management also involves the decisions behind product selection. Certain products will sell better than others, and if certain items are not selling at all, it is important to remove that item from the selection and replace it with a different one. A machine full of highly desirable items will make a lot more money than one full of items that people don’t really want.

Cleanliness/Maintenance

Although we’re all told growing up not to judge a book by its cover, we still all judge a book by its cover. The same concept applies to vending machines. A dirty machine will not be appealing to potential customers, and any visible signs of disrepair will be a significant deterrent as well. Keeping up with the maintenance and outward appearance and cleanliness of your machines will help attract customers and generate more income.

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Similarly, vending machines that don’t function properly may attract customers, but you can bet they won’t ever use the machine again if their first payment method was declined or their item got stuck. While they can call the service line for assistance with these issues, they likely won’t be interested in purchasing anything from that machine in the future. Keeping up with maintenance to ensure the machine is always functional will encourage repeat business and improve profitability.

Hours of Operation

Just like any other business, the number of hours that people can access the vending machine will impact how much profit your vending machine business will earn. In more secure environments like malls, your hours of operation may be limited to mall hours. In this case, the high foot traffic would make up for any lost sales due to overnight closures, but not every location (even other retail shops) will offer that benefit.

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Most vending owners choose to leave their vending machines open to the public 24/7, and if your hours are currently limited and your profits aren’t where they should be, extending the public’s access may be the easiest way to increase the profitability of the machine. Unless the property owners are dictating your hours, it is best to let people purchase items any time of the day or night.

Marketing Efforts

Many people new to the vending industry don’t understand that marketing is still an important step in starting their business. After all, if people don’t know about a new vending machine, they won’t be able to use it. Posting about your vending machines on social media and accounting for the importance of word-of-mouth advertising is a sure way to improve profits.

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Marketing doesn’t only have to occur online or through person-to-person contact, either. There are a number of companies out there that can create custom skins for your vending machine to improve its aesthetic appearance and encourage consumers to approach and check out what’s on offer.

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If you find that business is fairly slow for your new or established vending machines, it may be worth talking to a wrap company or two to create a new and engaging design for your vending machines, as well as investing some time in social media marketing.

Most Profitable Vending Machines in 2023 - Vending Locator

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