Monday, November 18, 2013

The Vending Machine Business - What are the differant areas of the vending machine business?

 Part One - What kind Of Vending Machines?

So you are interested in the vending machine business, well that's not a bad thing as so was I some time back and I am still part of an industry I made my carrier path over 20 years ago.
Like any business the vending machine business has its ups and downs and can or can not be a great business for you. The vending industry has gone thru many changes since I started as a vending machine repair guy back in Aurora Illinois a suburb of Chicago.

To start out in the vending machine business you need to start out by deciding what part of the bsuiness you want to be in.
I break down the differant sides of the vending industry as
Looking at each of these areas of the vending business you can see how each section is different and can be a business within itself. I am going to go over each category in a brief summery and will go more into detail later in the blog

Bulk Vending - Gumball Machines and Capsule Vending Machines:
The bulk vending machine side deals with the gumball machines and usually takes many machines to make a living doing as the amount of money that a bulk vending machine takes in is small per machine in most cases. Bulk vending machines are usually located in locations that are service style locations such as oil change waiting rooms or the entrances and exits to restaurants.

Candy and Soda Vending Machines Full Size:
Candy and soda vending machines are machines that service many of the lunch room around the country at our workplaces. The vending machine is best known for that machine at work that I get my snacks and drinks from each day. These machine are much larger in size and hold different amounts of products depending on vending machine set ups. The full size vending machines in most cases make more money per machine visit over the bulk vending machines. The full size vending business is more work in way of moving machines and managing more items in your inventory.

Candy and Soda Vending Machines -Compact Combo's:
The over under or compact side by side combo vending machines are vending machine sets that are designed more for that smaller location of satellite office area of a larger location you service with a full size vending machine. These compact combo's are the ones we see many vending business opportunity companies sell.
The combo vending pair has a need in the vending business model and many vending machine manufactures include some version of a smaller combo vending machine as part of their product lineup. These machines are most popular on E-Bay and Craigslist as well as other internet listing websites and you can find them all over the internet. The reason you find them everywhere is because so many people did not get the business model that was part of the package, to work.
Many of these machines are being sold at over priced equipment and can be purchased without the added features of the business opportunity. Many  operators do not need the entire programs and can save big money per machine if they buy teh machines by themselves and find their own locations.

Coffee Vending Machines:
The coffee vending industry has seen its ups and downs over my time in vending.
Coffee at one time was on a slide then back in the 80's the coffee industry took a big leap forward and started picking up speed, and never looked back. The coffee vending machine is everything from a small single cup machine to a full size coffee house doing everything from grinding the beans to brewing the coffee. Many overseas companies have come on the coffee vending machine scene here in the U.S.especially Italian made coffee houses.
The coffee vending service can be done a couple different ways by supplying the location with just the coffee supplies or the entire brewing system.


Water Vending Machines:
The water vending industry is bigger then I ever thought it would be. I remember standing on the convention floor when the 1st bottles of water were being set up at a booth as a product to sell from the vending machine. I remember thinking who is going to buy water? Guess what, I was wrong and have long since learned that bottle water is a big business and the margins on bottle water is to say the least well worth it in my option. Water comes in many different bottles and one thing you have to make sure of is that the right bottle is placed in your vending machine. The bottles in many cases are very thin and the walls are weak and cause problem when vending if theya re not bottles designed with a vending machine delivery in mind. Most operators include water as one of their drink selections in the soda vending machines.

Micro Markets:Micro markets are the newest thing on the vending scene. The Micro Market or Open Area Markets bring a new concept to the lunch room at work. These open markets are like small conveyance stores located right at work. With fresh fruit hanging from produce baskets to more food selections that you just open the door and look at. The cold drink coolers have more selections with healthy vending products that in some cases keep the product out of a traditional vending machine because of packaging designs. Micro market vending is the hip new way to deliver the products to our customers without the use of a vending machine. Micro markets have some advantages over the vending machines and some disadvatages as well. Micro markets allow the sell of many products that would not fit or vend from a vending machine and in most cases you can get more selections in a micro market space then you can in that same space for vending machines. Customer like the fact that they know the product is not getting stuck and they can touch and read the products before they are purchased. I belive Micro Markets will continue to grow and will have to work hand in hand with vending machines as there are many locations that a Micro market is just not going to work for that location.


Automated Retail Marketing:
Have you looked around at the airport and you see a Best Buy Vending Machine? How about at the mall instead of the sales kiosk are full touch screen automated retail vending machines. The vending machine has evolved into a 24 hour sales cabinet with interaction touch screens and selections that are everything you may need from electronics to medicines. Many large retail stores are looking at ways to get the products they sell to you in smaller store locations that are located in areas customers gather.

Inventory Dispensing Systems:
Inventory control is a problem with many companies and how to get control over it is becoming easier with the Vending Machine adding a hand or should I say a coil.
Many larger and even smaller companies are taking advantage of the vending machine tool cribs system or even office supplies systems to dispense products that use to walk out the door.
Employees now have a badge that they use at the vending machine to get such items as drill bits and office supplies and the employer knows who took what and how many.





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