A vending machine business is one of those few legitimate businesses that require you to put in very little time and effort, but still rake in huge profits. That being said, this venture does have its own positives and negatives, which you need to consider before starting your own venture. Know that this business is a 100% cash-only business with a nominal initial investment, i.e., if you are not opting for those huge machines, and one that does not require a history of sales-and-marketing experience.
Setting It Up
It is better to start small, and climb the ladder of success, gradually. Ideally, you must go in for just one or two vending machines. Select a good spot for the machine, and see how it performs for a month. This way you will get a feel of the routine involved in running the business. If things are not going the way you expected, you can make the changes -- in pricing your goods, location, etc. -- as and when required. Once you are confident of the way things are moving, besides gaining a monetary incentive, you may opt for more machines.
The location
Location is the most important factor when it comes to vending machines. You should, ideally place your vending machine where human traffic -- foot traffic in particular, is constant. A vending machine will get customers only when it is visible to them, and they will see it only when it is placed strategically. If your vending machine is easily accessible, it is bound to attract customers and help you make a decent profit from your venture. Yet another advantage of keeping your machine where there is consistent human flow is security as doing so will rule out the chances of your machine being vandalized -- a problem which is quite common when it comes to vending machines. If you place your machine in an area which is hardly frequented, it will not make much profit, and chances of it being vandalized will only increase. Good places to have vending machines include malls, busy street corners, movie theaters, inside or outside pubs and discos, inside the school premises or outside it, ... the list is virtually endless.
Getting hold of the place Irrespective of where you intend to place the machine, mutual understanding with the owner of that place is a must. If you are lucky enough, you may get a place for your machine for free, or for a nominal share of the profit. Whatever deal you strike, it is always better to have an understanding between you and the other party on paper as doing so will rule out legal issues, which may crop up if differences occur at any point in the future.
Target customers
Location will also depend on who your target customers are. A little research will always work in your favor. Today, almost anything can be sold through a vending machine -- soft-drink cans, gum, hot coffee, cold coffee, cigarettes, even hot dogs and pizzas. Know the taxes Before placing your vending machine on any street corner, or outside a pub, or any such place, make sure that you check with your local authorities, and find out what taxes and tax deductions are applicable for vending machine business in your region.
Buy from a reputed manufacturer/dealer Avoid buying machines from manufacturers, who make tall claims of earning big amounts from day one. These people may be out to cheat you, and the aggressive marketing that they resort to is only to cover up the fact that the quality of their machines is substandard and their service, poor. It is in your best interest to buy vending machines from a reputed manufacturer/dealer. It may, initially cost you a tad more, but will be much more profitable in the long run.