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Know Your Stuff When Starting A Vending Business

Apr 15, 2008
You may think operating a vending machine business is going to be the way to live the easy life. Work when you want, sleep when you want, and have a great time spending your money. After all most vending machines that you are familiar with have a steady stream of people walking by them and making a purchase. Well, if the scenario really worked out that way there would be many more people in the vending machine business

One of the biggest hidden dangers of operating a vending machine business is that it may not end up being successful for you. Now, you are probably reading this and thinking that there is no way you will let that happen. Well, you may not have a choice because these hidden dangers of the business I am talking about suck you in. It is like hitting a patch of ice on the highway that you had no idea was there. Before you know it you are spinning fast than then you crash hard.

The more efforts you put into researching quality locations for your vending machines the more successful you will be. Put your creative thinking cap on though because this is one of the toughest parts of having a successful vending machine business. Location, location, location - make it a top priority

Think hard about how you are going to sell your prospects for your vending machine business to the owners of the locations where you want to put them. If you go to them with an offer they simply can't refuse then you will have a better chance of securing that location. Instead of plugging how it will help your own business think of approaches you can take that offer a win/win situation that you can present

The offer you make with these owners in order to place your vending machines on their property need to be in writing. While a handshake to seal the deal was the way of the world at one point in time it doesn't hold up well today. Make sure you make the offer enticing enough for them to accept it but don't give them any more of your profits than you absolutely must. Start your figures lower than you really can go so they can give you a counter offer. They will be happy with their negotiation skills and you will still be getting a great deal.

You will run into those owners that want more than you can reasonably give them in order to place the vending machine on their property. Even though you may really want the vending machine locations you need to be realistic. After all you are in this business to make a profit. If it isn't something that you can come to an agreement on cut your losses and search out another location. Make sure you leave your contact information in the event they change their mind though.

When you do find a location for your vending machines that the owner will work with you on proceed with caution. You want to build a solid working relationship so go over all the details. Make sure both parties understand and agree to all the terms of the contract before it is signed. You may have to negotiate some issue before this can happen so try to be flexible. Don't blow the deal on petty points that really aren't going to affect your ability to make money with the vending machine in that location.

Don't get yourself locked into anything long term because the reality is that you don't know if the location is going to work well or not. Keep your options open so you always have a chance to operate a profitable vending machine business. If it isn't doing well you can always start talking with the owner's of other prime locations and then move them.
About the Author
Robert Farnham knows about vending. He started his vending business the wrong way, and eventually turned it into a large, profitable company. You can read more at his vending website.
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