This guide will give you a detailed resource so you don’t have to make the same mistakes they did!

With the huge technological advancements made over the last decade, the vending industry has also seen quite a bit of improvement in technology…but nobody seems to be talking about it.

These amazing new technologies are aimed to help you, the vending business owner, and you need to know about them if you want to get ahead of your competition.

As the healthy vending experts, we know a lot about this stuff. We put this complete Guide together to make it easier for you to learn not just how to start a vending machine business, but all the options available at your fingertips to improve your chances for success in it.

It all starts with your “WHY”.

Perhaps you’ve done a little homework and you think the $42 billion-dollar vending industry might be the right fit for you. Maybe vending sparked your interest because you heard it has less overhead, no rent or electricity bills, and more flexibility than businesses in other industries. Perhaps you like the idea of a permanent escape from the office where you can interact with your neighbors and make an impact on your community.

Before you continue down the wrong path, it’s important to know why you want to get into this business. The last thing you would want to do is invest a lot of time and money, work your tail off for 5 years, and then suddenly realize that you made the wrong decision because it doesn’t actually align with your long-term goals.

The vending machine business is essentially a “location generation” business. While there are many other things involved, you won’t get very far unless this first part is taken care of.

As with many aspects of growing your business, lead generation is not a “one and done” step, but rather something that is both ongoing and cyclical in nature. Simply put: lead generation never ends!

Proper lead generation is a combination of prospecting, finding and contacting leads through specified research of who could benefit from your business, and marketing/promoting your business in a way in which leads find you.

When tied together and used effectively, setting vending machine placement meetings with qualified locations will be as efficient as possible.

Good questions to ask include:

• What is the location’s estimated daily foot traffic
• Do they currently provide vending or food service options? If so, who is their vendor?
• Do they have a contract with their current vendor? If so, how much longer are the locked in for and how happy are they with their current service?
• Do they currently receive a commission from vending machine sales? If so, how much are they receiving?
• Additional services being provided by their current vendor?

These are all of these vital pieces of information should be collected during the discovery phase. Record every detail.

Avoid asking open-ended questions. Rather, ask questions that help you collect the simple, yet vital information pieces that are fact-based.

Variety creates novelty, and your outbound communication model should be geared to capitalize on that one very small, yet very important concept.

As the saying goes, “before people will care about how much you know, they must first know how much you care.” Accomplishing this requires you to take the time, before you begin discussing the specifics of business, to establish a level of trust and personal connection.

The goal is to cultivate real, meaningful relationships that lead to customers wanting to do business with you because of who you are, not feeling obligated to do so because of what you offer.

Getting there requires you to activate the second level of questioning, which is known as Iceberg Questioning.

During this line of questioning, you are able to get to the core of what any customer truly desires, and what they cherish.

This will provide invaluable insight into what pain point your vending business can solve. This can come in very handy for objections down the line.

INSIDER TIP #1: Make sure to come with all the appropriate material. Seems silly to even say, but you’d be surprised how many people don’t check to see if they have all the supplemental materials they might need. The machine is great to talk about, but it’s even more impressive if you have a one-page description to hand them or a life-sized banner to pull out.

INSIDER TIP #2: Use Social Proof. When people can see that others in their same situation have had success with what you’re proposing, they are prone to buy. Social proof also provides you with a network of success stories to fall back on when growing your business. Use those successes as much as possible!

INSIDER TIP #3: Don’t Expect A Big Finale. When most people think of “closing” a machine placement meeting, they imagine it’s this big dramatic moment at the end where someone stands up and shouts, “So, are you in or out?!?” This isn’t the case. Ask questions throughout the meeting. Make sure they understand your proposal, and get small confirmations that they could benefit from each aspect. This method gets the location to (a) close themselves and creates their own “buying” desire and (b) will show you what their primary hesitation points might be.

Perhaps this is easier said than done.

Every location is different – with different customer demographics, traffic patterns, and unique requirements – and must be treated as such. There are a plethora of items on the market, and multiple factors to consider when creating a product mix – including a consumer base that increasingly values health and nutrition. Success depends on finding a mix that balances these factors in a way that meets the needs of your location.

Luckily, we’re here to help you navigate through this confusing terrain.

Insider Tip: Hold a Sampling Event at Locations

Sampling events serve a two-fold purpose – first, they’re a great way to help get the word out about your vending program, and build anticipation and excitement for your machine.

Equally as important, a sampling event gives you the opportunity to gauge the taste profile of your average consumer. Partner with a variety of vendors to offer free samples, and see what does and doesn’t work. Armed with this knowledge, you’ll be better able to create a product mix that your consumers will love.

We call some of these fun extras, “Buzz Boosters.” Again, they help you look good in the eyes of your location and are fantastic marketing techniques to drive sales.

A lot of people struggle with that question because they don’t frame it correctly. It’s not that one startup option is necessarily better than the others.

The question you need ask yourself is which option makes the most sense for you.

#1 Do It Yourself

If you have a lot of business and sales experience, then you may decide to try and start your own vending business.

You’ll be responsible for locating a reputable machine supplier, training yourself, and conducting your own sales process to land locations. Without experience in vending, this process may take up to a year before you get up and running with a couple of machines.

In other words this option can be incredibly time consuming for a new entrepreneur, and there’s a lot of risk involved. That being said, the “do it yourself” method can also be the most affordable.

This vending business route would be a great idea for someone with a strong business background – someone who is fearless (not afraid to negotiate to find optimal locations), and someone who is willing to put in a lot of hours initially to get their business off the ground.

Pros

• Cheapest way to get started

#2 Buy an Existing Vending Machine Route

There may be other vending machine business owners in your area that are looking to sell their existing business.

The major advantage here is that you have a ready to go business – no need to purchase your own machines or find locations. The disadvantage is that you’re buying old equipment.

Generally speaking, this option requires less upfront time, but depending on the size and quality of locations, it can be the most expensive option. Make sure to thoroughly research the existing business and analyze the current sales figures to ensure that the money is worth the price.

The option of buying a vending machine route would be an optimal choice for someone with advanced business skills who has or can finance $150,000 to $500,000.

Pros

• No need to purchase your own machines
• No need to find locations

#3 Buy a Franchise or Business Opportunity

You can also buy into a franchise or business opportunity. In this situation, you get to partner with a company that has an established brand, a proven business model, and a dedicated sales team to help you secure vending locations.

In most situations, you also get machine training and sales support (varying on the opportunity) throughout the entire location acquisition process, and on the franchise side this will generally extend throughout the life of your business.

You also benefit by joining a community of other vending business owners. Each franchise/bizopp has a forum or online community where entrepreneurs from across the country get to share tips and best practices.

If you’re looking to start a vending business with the most help and support possible, including significant assistance with securing vending locations, a franchise/bizopp is the best option out of the three.

Pros

• Turnkey startup model
• Branding/Marketing power
• Lifetime support
• Expert location acquisition services