Hi everyone, lots of people ask us about the profitability of vending machine business and we published a blog post on this also to make things more clear to everyone. If we take a step back from profitability, the most important factor to keep in mind is the best location for vending machines.
Vending machine businesses have time and again proved to be very profitable for the business owners. They are considered to be one of the best businesses to be a part of due to their low-risk nature and the low costs involved.
One of the most important factors that determine whether you will be able to take advantage of both these features, is the location of your machine or machines. The placement location of the machines is the factor that will decide whether you have a successful business or not.
Technically, you can place the machines anywhere, but they will not generate the kind of revenue you would want them to.
Factors that influence the placement of the vending machines:
The placement location is extremely important and thus, it requires a lot of research to find an ideal place for your machines. Some places are ideal which would, in turn, mean profitable whereas some are just not going to give you the desired results. Therefore, it’s imperative to take the following factors into consideration:
Other options & Competition
Every good business worth owning is going to have a certain level of competition and the vending machine space is no different.
If your vending machine dispenses food items and snacks or if you have one of our smart vending machines that dispense daal-chawal, rajma, etc. it is a good idea to make note of any food establishment that could drive away your business.
So before placing your vending machine, you need to think about your competition in terms of nearby vendors that might sell the products you are trying to sell. If that is the case, then you will want to offer a competitive edge so that people gravitate towards the vending machine. If you place a vending machine with several exciting options that allow cashless payments, it will definitely work in your favor.
Most vending machines are electrically operated so you should ensure that you have an uninterrupted supply of electricity and minimal power cuts. If there are power cuts then power backup should be in place.
Stable Internet Connection:
If you own or rent a smart vending machine (the best decision you’ll ever make!), then you should also ensure that the machine has access to a good speed internet connection for digital payments to go through and stay connected to the server to transmit data in real-time.
Distance from Warehouse:
Vending machines don’t necessarily require a lot of maintenance but they do require re-filling almost on a regular basis and for this reason they should not be located too far away from the warehouse. This is going to help you avoid logistics issues and save money.
Daily Footfall at the Site
Vending machines are meant to serve people and thus the location to install them is the one that enjoys high traffic.
A vending machine should be installed in an area where people visit frequently. It must have tremendous footfall. A vending machine will be the most profitable when it is in a location that gets a lot of foot traffic.
Think about areas where there will be pedestrians walking by on an everyday basis. The idea is for your vending machine to attract either habitual buyers or impulse buyers.
Areas where pedestrians walk by frequently. The idea is for the vending machine to attract regular buyers or impulse buyers i.e., people who walk past the machine regularly and people who decide to buy after seeing the machine. The chances of people using the vending machine will increase when placed at a location where a lot of people will see it.
Without customers, you cannot have a profitable vending machine. Good footfall is one of the important factors to make good profits from vending machines.
Placement: Outside or Inside
Placing a vending machine outside would be a good idea if you offer drinks and beverages as people would want to hydrate while they are outside.
If you decide to place it in an indoor location, make sure it is at a place that is easily accessible to people.
Great locations also include points of exit and entry and lobbies as these locations see a lot of traffic.
One issue that the machines placed outside face, is the threat of theft and in some cases even vandalism. To prevent this from happening, vending machines should ideally be placed at secure, CCTV monitored locations.
Best places to install vending machines:
- Offices & Coworking spaces
- Apartment Complexes
- Hotels and Motels
- Schools, Colleges, and Universities
- Amusement Parks
- Railway Station
- Metro Stations
- Malls and Retail Stores
- Hostels & PGs
- Co-living spaces
- Manufacturing & Industrial Sites
Now, we will discuss why these spots are the Best location for vending machines placements.
Offices are the best places to place a vending machine. Office goers often look for quick snacks while on their breaks. They don’t want to step out of their office building and thus vending machines are the perfect option for them.
You can provide them with healthy meal options along with snacks and drinks.
- Apartment complexes
Apartment complexes house a lot of people from the community and see people moving around 24/7. Placing a vending machine in the shared community spaces is a great idea.
From doctors and other hospital staff to people visiting patients, vending machines are a great way for them to get a snack on the go without wasting a lot of their precious time.
- Hotels and motels
Hotel and motel lobbies are other spaces that people frequent a lot. From tourists to regular business fliers, there is a lot of foot traffic.
A vending machine could also be placed on every floor for the guest’s convenience.
People after working out are looking for a quick healthy snack or meal and vending machines are a great way to offer them that service. Instead of driving around looking for options, they can simply pick something up on their way.
- Schools, colleges, and universities
All these institutions have people with healthy appetites who are on a tight schedule. Vending machines are a great option for them.
- Amusement parks
People visiting amusement parks want to have access to drinks and snacks during or after their day out. Vending machines can offer them all kinds of options at affordable prices.
Airports are busy throughout the year. India has over 450 airports both international and national included with millions of people flying in and out every single day and vending machines at airports have been operational for a long time.
- Railway and metro stations
India has an extensive network of railways running throughout the country and a network of metro running through all the major metropolitan cities that all have extensive populations thus vending machines at metro stations and railway stations will be extremely profitable.
- Malls and Retail stores
India has a video number of malls and retail stores that can all be updated by installing vending machines for various purposes.
- Hostels, PGs & Co-living spaces
These institutions have students and working professionals concentrated in one place and vending machines could be extremely helpful for them.
- Manufacturing & Industrial Sites
India’s manufacturing sector is one of the major contributors to the GDP and is constantly on the rise with lakhs of employees working round the clock every day, therefore industrial sites and manufacturing locations are perfect for vending machines.
There is so much information out there and we are sure you have a lot of questions. Do not worry! For we are here to answer all your queries!
The most commonly asked questions are as follows:
How much does it take to set up a vending machine?
If you wish to rent a machine it can cost you anywhere between INR 5000 to INR 25000.
If you wish to own a smart vending machine, you could do that for an initial investment of INR 1.5-2 lakhs.
Can you place a vending machine anywhere?
You can technically place a vending machine anywhere but you need permission from the concerned authorities for placing a vending machine in both, private and public spots.
Daalchini will help you easily navigate the entire process. Reach out to us, today!
Is there an app to find or locate vending machines?
Yes, an app helps to find or locate the vending machines in your area. Daalchini has built an app that customers can use to locate nearby vending machines. They can also place orders via the app and go to the vending machine to collect or pick up the order.
How to start?
Finalizing the location of the machine is a rigorous task and is important for the business and you need all the help you can get.
Daalchini is a company that will do the work for you. The company not only provides you with state-of-the-art vending machines but also assists in identifying the optimal locations for your business.
The placement of vending machines is the factor that can make or break your vending machine business and also affects the profitability of the business.
So choosing the right placement spaces for your vending machines should be given a lot of thought to optimize their use and in turn your profits.