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Vending machine business income: making a six-figure profit

When entrepreneurs begin to consider selling as a business opportunity, one of the first questions they often ask is whether it is possible to earn a ‘six figure’ income in this industry.

“Six figures,” or $100,000 or more in pre-tax earnings per year, is still considered a reasonably good benchmark for success for many people. They want to know that they will have a realistic chance of reaching this level of income in a few years before investing their time and capital in a new business venture.

Let’s look at some of the factors that typically separate operators with ‘six figure’ vending machine business revenues from the rest.

Part time or full time?

It’s common to start out selling part-time while also holding down a regular job. Some vending machine business operators earn a good income to supplement their day job salary. However, to reach the $100,000 earnings level, you will probably need to work full time.

Understanding vending machines

Successful operators understand sales teams and closely follow industry developments. Understanding in these areas enables the business operator to purchase good quality machines at the best prices and to organize their maintenance effectively.

Brand

Winners in this business understand that branding is important. If you establish a name and reputation for yourself over a number of years, you’ll find new accounts coming your way instead of having to go out looking for them all the time.

organization

High earners in the vending industry are organized and manage their time well. Computer systems and software can be used as a way to collect data that can help a vending machine business owner make crucial decisions that can affect profitability. While some see selling as a way to earn easy passive income, the most successful players realize that this will be many years from now and there is a lot of work to be done before we get to that point.

Master the art of sales

Landing new locations comes down to having an attractive offer and strong sales skills. To be successful, you must fine-tune the art of scoping potential locations, getting appointments with decision makers, and selling them what your machines can do for them and their business. Good vendors find ways to make their machines more marketable, such as working cooperatively with charities.

Employee recruitment

While you can start doing everything yourself, you will soon discover that to scale your business to the ‘six figure’ income level you will need to hire reliable staff to do the work for you while you focus on growing your business.

Relationships with customers

Always maintain the highest level of customer service. Maintain machines regularly and keep them clean and presentable. Never give the “decision makers” at your facility any excuse to ask you to remove their machines from your facility. If you maintain good relationships with the managers at each location, you may even be able to hire them for additional machines. This can be an easy way to increase revenue without having to find new clients. You will also get referrals from your customers if you keep them happy.

Fee

Most sellers who see a decent level of income learn to deal with the issue of commissions. Selling your vending machines for the benefits they offer to an establishment’s staff, management and customers is better than selling them for a percentage of the revenue. However, successful vending machine business operators realize that some locations are so good that a commission can be justified if it is needed to win the account.

Attention to details

Selling is a numbers game and the best entrepreneurs in this industry realize the variables they need to focus on to improve revenue levels. To get to a decent level of profit, you need to maximize your locations, maximize the quality of your locations, reduce the frequency of machine breakdowns, reduce commissions paid to location managers, and maximize the efficiency of your employees.

Getting the right mix of products or category management is also crucial for your stock to sell well and so that you don’t run out of some items quickly while others take longer to sell. In this way you can increase sales and reduce the frequency of visits to replenish the machines.

the right attitude

Determination and a willingness to learn are important attributes for a trader to possess. A vending machine business can be difficult for the first year and you have to get used to constant rejection when you try to place the machines. The key to success is learning from failure and rejection and seeing them as opportunities to learn how to improve and refine your systems until you find the ones that work. Keep trying and trying and trying again and success is inevitable.

Could you make a ‘six figure’ vending machine business income? With the low barriers to entry and low start-up costs that this industry offers, it is definitely an opportunity worth considering.