Home-based Business: Vending Machine

Vending machines make a good home-based business. It is like having stores in different areas in your community. However, unlike a real store, you do not need manpower to assist customers, as vending machines are self-service.

Cashiers are not required to make computations, accept payments and hand out change to customers as vending machines are designed to have its own system of handling such transactions.

But not all who engage in this home business are successful financially. Elements are of vital consideration to have your vending machines earning. Niche is the first. You have to decide who your target market is. When you found the market to vend, you would know which products to sell.

If you choose to market to people who go to the physical fitness gym and yoga practice clinic, you know that they need to replenish their water intake. Hence, installing a vending machine that sell bottled mineral water and thirst quencher drink like Gatorade will click.

Another element to analyze is the location. Even if you have set your target market and know which product to sell, your vending machine will not earn unless you know where to place them.

So, if you plan to sell cigarettes, you have to know which areas smokers do frequent or which places are smoking encouraged. Public places such as clubs and bars will prove lucrative.

Besides cigarettes and water, other products that have sure market are iced coffee, hot coffee, toys, pizza, hotdogs, sundaes, soft drinks, snacks, and candy. As a home-based business, it is wise to study the locations and the type of people that visit them.

Make it certain that these locations are close to your home. There are no reasons to hire staff, but you have regular tasks to accomplish such as monitoring the contents and sale of your vending machines, and checking the condition of your machines.

Some machines have parts that are weak and easy to destroy. So it is best to know which parts need replacement to avoid serious damages. When you have found the perfect place for your home business, determining the number of vending machines is important.

Starting from one to three machines is good because when mistakes are made, the impact is small. It is also a good way to test the market for your product. The costs for maintenance are small with small start up.

There is always the possibility of adding more machines as you become familiar with the customs and mechanics of such machines. Some establishments may require commissions on the overall sale of the vending machines as part of your agreement with them.

If such is the case, it is wise to submit your proposal to as many related establishments as possible. And choose the ones that have the lowest rate. In most cases, the commission rate is 10%. If there are buildings and institutions that agree to have between 7-9%, then you will have more profits on your part.

Some entrepreneurs who engage in this home-based business say that there are corporate offices and legal assistance buildings that do not require commissions. Thus, when you present your proposal, better not bring the subject of commission unless they do.


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