Factors to Consider when Locating Vending Machines

The opportunities are endless when it comes to suitable locations to place a vending machine. At  first glance you might think that the only requirements for a successful location are having enough people nearby and permission for placing your machine. However when it comes to choosing profitable locations for vending machines there is much more to it than meets the eye. This article looks at how you can go about locating vending machines and establishing a profitable route.

What Kind of Locations to Look For

The first step is to sit down and brainstorm a list of suitable vending machine locations in the area that you are targeting. You may decide to target schools, offices or factories specifically or you may decide to take whatever you can get. It could be a good idea to focus on smaller towns or suburbs near your home where the vending business is not as competitive as in the city.

Route Planning

Mark out your territory on a map. The key to maximizing productivity is keeping your route tight so that you are efficient with your driving time and fuel costs. Try to keep all your accounts within a limited radius of your home base or secure one large account first and then try to get other accounts nearby.

Be Observant

Keep an eye on changes and developments within the communities that you are targeting. It is safe to say that most obvious location opportunities will have already been targeted by vending companies. Things do change though and you will find that many factors can cause bad locations to suddenly becoming good ones. Look for opportunities and be the first to strike.

Scope out your area and look for new buildings or new tenants moving into existing buildings. One way to judge potential is to examine the number of cars parked outside a specific location. You can also observe the number of staff working on night shifts as vending machines are often well used by this group.

Do a Head Count

You can learn a lot by counting heads or observing traffic patterns. Visit a potential location and try to find out how many people are based there at various times of day and how many people are coming and going. There is a good chance that you can make a location with 50 employees profitable. Any less than that figure though and you have to give the account some serious thought. When weighing up the pros and cons of a potential workplace location take note of how many employees leave the building during break times.

Competitors

In determining the viability of a location you need to take into account the competition. Your competitors are not only other vending machine operators but also local retailers such as convenience stores. If they are within a five minute walk from your machine then you will be in direct competition with them and you will lose sales to them. However, the threat posed by any stores beyond a walking distance of about five minutes will be diminished considerably. Ideally you want to have a 'captive audience' in that your customers have little choice but to use your machine. 

Other more direct competitors would include in-house cafeterias if you are dealing with larger organizations. Food trucks can also pose a threat if they stop nearby your locations.

Demographics

When making the decision to place a machine we should not only be concerned with the number of people who are nearby but we should also give some thought to demographics. We can judge how likely somebody is to use a vending machine by considering their age, gender and the line of work that they are in.

Prospective vendors should note that men typically buy more snacks and beverages from vending machines than women and blue collar workers in general buy more than white collar workers. A NAMA survey noted that around 41% of vending machines were located at manufacturing locations while only 26% were located at white collar office locations.

Survey a Location

If you are really unsure about the viability of a location ask the location manager if you could ask them and their staff some questions. Find out about the demographics of the employees, their working hours and their break times. Survey staff directly and ask them if they would use a vending machine if one was available, how often they would use it and what kind of products they would consider purchasing.