Sorry for bringing the gloom and doom out at the very start of this article, but we have to face the facts here – the coffee vending machine service business is not as easy as it sounds. Sure, people would always demand this beverage for as long as they live and of course, there is a huge pool of customers that you can tap into by starting this enterprise, but the market out there is tough. Imagine this, you only earn a few cents for every coffee sold and this profit has to be shared with the landlord, the utilities company and machine repayment. How much would you be left with? The machine would break down, the ingredients would run out, money needs to be collected and you need to clean the machine for pest prevention. If you have been harboring any hopes that your coffee for businesses vending machine is going to turn into an automatic cash dispensing machine, it is time to take a reality check. In order to make any profits in this business, you need to have your wits about you. Here are two inside secrets that you can use to design your vending machine business in a way that it generates sure shot profits for you:
Secret number #1: Avoid the malls
Yes, you read that right. I haven’t made any typing mistake here. If you plan to set up a coffee vending machine service, you should try and avoid malls as a probable location at all costs. It simply would not be profitable for you, no matter how strong your inflow may be. Despite of the large turnover for your business, you will also have to deal with humungous overheads and rentals that will kill your profits at the end of the day. Then, contrary to popular beliefs, shopping malls while having good traffic might not have the sales that you are looking for. This is mainly because; there are tons of F&B outlets for consumers to purchase their coffee, why would they go to your vending machines?
Secret number #2: Less is good
Taking cue from the above point, you should also avoid places with large volumes of daily footfall and visitors. Think about it this way – where would your customers need your coffee vending machine service? – in a place where they do not have access to a restaurant or a coffee shop. These are the places that are away from the usual shopping buzz. You need to smartly place your vending machine in a location where the traffic is optimal – not so much that your machine ends up getting ignored in the corner. Plus you will need to ensure that your customers do not have access to a variety of beverage options nearby or else, your sales will take a hit. Neighbor hospitals, police stations, military compounds, fire stations are all great areas where coffee vending machine business reported strong sales.
Keep these things in mind when setting up your coffee vending machine service.