Archive for the beverage vending machine Category

How to Get an Establishment to Let You Put Up a Vending Machine

Monday, September 10th, 2012 | Permalink

by Matthew Schieltz | smallbusiness.chron.com

Vending machines take in an estimated $20 billion to $30 billion in annual gross sales in the United States, the National Automatic Merchandising Association reports. Vending machines can be found in all types of places, from college campuses and grocery stores to airports, hotels and office buildings. A vending machine’s profitability remains tied to its location. The more people visit an establishment, the higher your chances of vending success. Even though a high-traffic establishment may already have vending machines placed, you can still negotiate with the business owner to allow you to put up your vending machine or find other establishments in which you may have equal chances for success.

There are different types of vending machines like beverage vending machines, candy vending machines, snack vending machines, office supplies vending machines, and many more. A business owner may operate several vending machines in different settings and for different target audiences.

Antique soda machine. Get yours at pursuitzone.com.

Step 1
Estimate the monthly profit potential for the vending machine. Observe the level of foot traffic during peak and non-peak times at the establishment. Multiply an estimated number of daily sales by 30 to calculate an estimate of the vending machine’s monthly gross sales.

Step 2
Calculate your cost of business. Add together the estimated monthly costs associated with filling, operating and maintaining the vending machine, such as product inventory, vending supplies and transportation costs. Subtract your total cost of business from the vending machine’s estimated gross sales to determine your monthly net income.

Step 3
Compile a proposal detailing the vending machine’s potential earnings. Outline your responsibilities to the vending machine at the business owner’s establishment. For instance, explain who will be servicing the machine and how often it will be monitored. Create a section concerning the compensation you’ll offer to the owner of the establishment. Explain that you’ll offer a percentage of the net sales received from the vending machine.

Step 4
Approach the owner of the establishment with your proposal in-hand. Introduce yourself as the owner of a vending machine business in the area and explain why the establishment may be a good match for the machine. Explain the benefits of having the vending machine available on-site for both employees and customers.

Step 5
Negotiate the percentage of sales you’ll pay to the owner in return for the vending machine’s “rent.” Offer in the low-to-mid range of what you can afford to pay and wait for his response. For example, assume you’ve figured anywhere from 10 percent to 30 percent of net sales. In this case, offer 15 percent to 20 percent initially and then offer a higher percentage if the owner negotiates for more. In addition to the percent of net sales, offer to pay a minimal flat-rate amount for electricity, assuming your vending machine uses an electrical outlet.

Step 6
Type up a final agreement or contract. Detail the terms and conditions to which both you and the owner of the establishment agree. Present the document to the business owner and, once both you and he have reviewed it a final time, sign the agreement.

Tip
Offering the establishment’s owner a percentage of net sales instead of a flat monthly fee means you can still keep some of the profit in case the machine isn’t as successful as you would have hoped.

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Visit our website: http://www.pursuitzone.com, to get more information about how to buy a beverage vending machine, a coin vending machine, or candy vending machines.