Vending Machine Passive Income Business

AI Vending Machine -- Future Vending Machine

2020-06-01T15:25:00.000+08:00

WHY DOES COCA COLA NEED AI?

The Coca Cola company produces about 3% of all the beverages consumed globally. Its distinctive red and white logo is recognised by over 90% of people in the world.

But maintaining this leadership position takes hard work, with huge investment in marketing. A few years back Coca Cola was spending more on advertising than Apple and Microsoft combined.

It relies on huge amounts of data to understand why people are buying. It takes even more to figure out why they switch, and what makes them buy more. Nowadays, Coca Cola has an extensive product range. So gone are the days when success was mainly about getting people to choose Coke over Pepsi.

There are similarities with other brand-conscious purchases such as trainers and luxury fashion. There may be some functional differences between competing products, but sales seem disproportionately dependent on attitudes to brands.

R&D is key to Coca Cola’s success, not just in products, but also understanding customers and brand effectiveness. The volumes of data involved in the last two are immense. The relationship with buying patterns is complex, and is one of many compelling reasons Coca Cola uses AI.

AI is now fundamental to Coca Cola’s business, something it acknowledges publicly:

AI is the foundation for everything we do.

– Greg Chambers, Global Director of Digital Innovation, Coca Cola

Of course, there are also endless opportunities to use AI across the value chain, for example in distribution, logistics and manufacture. But a company like Coca Cola uses AI first and foremost to improve the customer and brand experience. Business functions that directly affect these are the biggest beneficiaries of AI.

WHAT IS AN INTELLIGENT VENDING MACHINE?

There are three different aspects to how Coca Cola uses AI in a vending machine. Each reflects one of the three main functions a vending machine fulfills:

A physical sales outlet at a location with high demand;
A contact point with loyal customers; and
A showcase of different product choices.

Success of each function is measured by different things. Understanding the data to improve that is not straightforward.

For example, how do you choose the best location for a vending machine, and how do you decide when or if to move it? How do you persuade loyal customers to buy more drinks, and reward them for doing so? And how do you decide which drinks to stock?

In many ways, this is a microcosm of what Starbucks deals with for every store it opens and runs. But of course, at a vending machine there are no staff around to do anything needed.

So one way to look at it, is that an intelligent vending machine should much of what you’d expect from a store, but automatically. The moment you break that down into the data needed, AI starts to make some sort of sense.

COCA COLA USES AI: TO DETERMINE THE BEST LOCATION FOR VENDING MACHINES

Using the Starbucks analogy again, deciding on the best location for a vending machine is something that can be modelled. This requires using location data, such as footfall, local economic indicators, and of course competitor information. There’s also going to be a body of comparison data from other machines.

Once a machine has been set up, understanding sales data is key. It’s used to validate how the machine is performing as a sales outlet compared to expectations. For this, it’s not enough to simply know drinks sales in a given period. So connectivity is a desirable feature, allowing data about sales to pass directly to the company.

However, the power of what Starbucks and others do when evaluating a store’s performance is about much more than this. One key activity comes from more personalised insights into the transactions. This is where loyalty schemes and apps are key.

Which is where the second function of the intelligent vending machine comes into play. But it’s only possible because the humble vending machine is part of the Internet of Things. i.e. it’s now a connected machine.

COCA COLA USES AI: TO ENGAGE WITH LOYAL CUSTOMERS

An intelligent vending machine should integrate with a company’s loyalty programme. If the loyalty scheme enables payment, the machine should accept more than just cash payments. And this is where Coke vending machines start to get more interesting.

In Japan, customers who use the “Coke On” smartphone app collect points when buying from the machine using their phone. Coke gets all the usual loyalty scheme benefits from this, primarily customer preference and buying data. And the customers are rewarded with a cash value for their points against future vending machine purchases.

In other markets such as Australia, Coke trialled a different intelligent vending machine. I was again designed to encourage and reward loyalty while gathering customer and sales data. In this case, customers could use their phone to order drinks in advance, and collect them from the machine.

This kind of innovation isn’t just about connectivity — this time with a phone as well as the internet. It’s also about having digital displays on the machine.

With both connectivity and a display, the opportunity for AI steps up further. This time, Coca Cola uses AI to turn the vending machine into a fully-fledged “smart” device.

COCA COLA USES AI: TO SHOWCASE THE COKE BRAND & PRODUCTS

Vending machines have always been used as prominent signage points, promoting brands through posters. In recent times, these have become more sophisticated. Digital displays allow the use of a variety of high quality images and videos in one place.

The Coca Cola vending machines take this much further, because of intelligence in the actual vending machine. This concept goes back nearly a decade, to the company’s original “Freestyle” vending machines.

The first Freestyle machines allowed customers to decide exactly what drink they wanted from a wide range. The machine would create the exact chosen selection then and there. So a machine could offer up to 200 variations on the base products, mixing and dispensing each as required.

The new generation of Freestyle machines have a large touchscreen — bigger than most home computers — and of course a mobile app. But they also have lots of dormant features to be activated later, such as audio capability and optical sensors.

With this kind of hardware, connectivity and intelligence, the future opportunities for how Coca Cola uses AI seem only limited by the imagination.

The humble vending machine has become a smart device with the potential to rival anything in the home. And in the process, it provides a rich source of data for Coca Cola.

COOLEST VENDING MACHINE IN THE WORLD - Marijuana Vending Machine

2014-09-30T21:10:00.000+08:00

Installed by Herbal Nutrition Center in Los Angeles this unique vending machine allows people requiring a marijuana prescription to pick up their fix quickly and conveniently. In order to ensure only those with a valid reason to be picking up their drugs, the vending machine verified their identity with a finger print, oh, and there are security guards to keep everyone else away, too!

Vending Machine - Immediate Car Dispensing

2014-09-26T21:07:00.000+08:00

Japanese vending machine may not have actually been working, but I'm not getting your hopes up, because this just might be something that we'll see in the future. The model vending machine was designed to dispense a Smart Car or Cabrio following a $20,000 payment. Sure beats hours upon hours negotiating at a dealership with pushy car salesmen, so let's hope we've got something to look forward to with this innovative style of vending machine!

Manicures Vending Machine - Ladies Love It!

2014-09-22T21:05:00.000+08:00

You might not have time to run into the nail salon as often as you'd like, in order to maintain your manicure, but you can take advantage of nail art vending machines that allow you to select an image or design that you'd like to have airbrushed onto your nails. The vending machines allow you to get an on-the-spot manicure that can only come with the convenience of modern technology!

Charity Vending Machines - SO COOL!

2014-09-19T21:03:00.000+08:00

Available in Japan, charity vending machines allow thirsty consumers to purchase a drink and choose a charitable cause which they would like to give their proceeds to. For those who aren't thirsty, it's still possible to donate any spare change to a great case conveniently by selecting the cause and selecting their donation increment. Other machines are exclusive to the White Ribbon Campaign, and drinks dispensed even include the White Ribbon Campaign logo, which signifies support for pregnant women's health in developing countries.

Innovative Ideas Vending Machine

2014-09-16T21:02:00.001+08:00

There's nothing that's better than having just about anything you need available at the touch of a button, without the need to deal with annoying salespeople working on commission, or worrying about hours of operation.

ZoomDoggle.com recently released the Fun-o-Meter, which dispenses innovative ideas for 50c a piece as gathered from user comments on the website. This unique vending machine was created in order to generate additional income for the website, and there's already a great deal of hype surrounding it! The first Fun-o-Meter is making its rounds around NYC, moved to a new location on an almost daily basis. Along with the ideas it dispenses, it also includes a map or toy, for directions or props if relevant to the idea provided. In order to keep the project going, ZoomDoggle.com is requesting that readers submit more ideas to keep up the fun!

NIKE VENDING MACHINE JUST AWESOME!

2014-09-16T20:48:00.001+08:00

On the streets of New York City, there's a vending machine full of Nike gear--socks, T-shirts, hats--so you can get some fresh workout clothes on the go. The only catch is, it doesn't take cash, debit, or credit. It only takes your hard-earned sweat.

The machine only dispenses the goods in exchange for your Fuelband points, earned through the brand's wearable fitness monitor. But there's also another catch--the points had to have been earned in the past 24 hours. So you're not getting a new T-shirt for that bike ride three months ago.

The machine was set up in various spots around NYC, with Twitter hints leading people to its locations.

Vending Machine Business - Bulk Vending Machines - Which is Best For You

2011-08-11T13:42:00.001+08:00

If you are among the business people who want to have a vending machine business, you need to know more about this business. There are many different types of vending machines available and it is important for you to know which one is the right for your business. You will also have to consider your budget. If you have small budget, look into buying used machines or rebuilt machines. To acquire more knowledge on what kind of vending machine is appropriate for you read this article and learn more about the benefits of bulk vending machines.

Bulk vending machines are found everywhere. It is one of the best vending machine types you can use for limitless profits. You only need to look for the best location to place it in order to earn money. With bulk vending machines you don't have to have a huge supply of inventory.

You have to choose the right distributor to give you the best quality bulk vending machine available. You can choose from the different models of bulk vending machines. Most of the bulk vending machines are used for dispensing M&M candies, gumballs, and peanuts. In bulk vending machine groups you can place different kinds of products in each one. You do not have to buy different kinds of vending machines for different kinds of product; you can put them all together in one bulk vending machine grouping and earn money.

The bulk vending machines for candies usually dispense a handful amount of candy for kids. Putting a coin into the vending machine and receiving the candy is a thrill for kids. Kids often use these bulk vending machines for candy because they are amazed on how it works. You will see that both parents and kids are the usual costumers of the machine. Adults love using the vending machines too; it reminds them of their childhood.

The distributors of bulk vending machines in most cases will supply you with a good source for the product to fill the machines. Usually, this bag contains 30 pounds which is just enough to fill your bulk vending machine. From time to time you will have to refill your bulk vending machine with a new supply of candy.

The coin receptacle and the turning knob are the most sensitive parts of the vending machine and these parts should be taken care of. You should post directions that contain the proper way to use your bulk vending machine.

This is the best way to start a small business. Some people do not pay much attention to the bulk vending machine business but what most people don't realize is that it earns a lot since the machines are working all the time.

The fact that these machines do not require electricity to work is very attractive to small businesses. So what are you waiting for? Start your business now and profit as much as you want.

Kick start locations provides you with the best service for hiring and using bulk vendor machines of all categories.

Vending Machine Businesses Passive Income at It s Finest

2011-08-08T13:36:00.001+08:00

Vending machines are a great way to make extra money without a lot of work. After the upfront investment, it costs very little time and money to maintain a vending machine. Plus, with the right location, you can make some serious cash. If you’ve wanted to earn some passive income on the side, vending machines are a great option. They have a much smaller startup cost than real estate which makes them a great starter business. Many times you can find a used vending machine for just a few hundred dollars. This allows you to start small and expand as you please.

Finding a quality vending machine supplier is crucial in your vending machine business. You’ll find no shortage of vending machines out there, but getting the right one is extremely important. You don’t want to end up with a low quality machine that drives customers away. You also don’t want to overpay for a product nobody needs. When it comes to vending machines, choosing the right type is just as important as the location. You wouldn’t put candy machine at a gym would you? When searching for your vending machine supplier, you’ll come across dozens of different types of machines. They can range from ice cream to coffee. Knowing your market is very important, just like any other business.

Here are a few of the most popular types of vending machines:

Snack Vending Machines – These are one of the most common types of vending machine and are a safe bet for many locations.

Soda Vending Machines – These go hand in hand with the traditional snack machine and work in just about any location.

Coffee Vending Machines – A coffee vending machine is a great for commercial locations and offices.

Ice Cream Vending Machines – This is a cool alternative to the snack machine and sells great with kids.

DVD Vending Machines – This the newest craze out there. DVD vending machines have nearly wiped out the traditional video rental store.

There are also many different twists you can put on these common vending machines. Rather than chips and candy, you can sell granola bars and health foods. Rather than soda, you can sell energy drinks. Niche markets like this can make a killing if placed properly. Always consider what type of foot traffic your location gets before choosing your type of machine. This will make or break your success in vending machine business.

Many times your vending machine supplier can help you find and even sell you a location for your machine. This is a great service to have, as most first time buyers don’t know anything about leasing a space for a vending machine. There are other companies that solely provide this service. Its well worth the investment to find a good location for your vending machine business so don’t skip out on it. If your vending machine supplier doesn’t provide this service, ask for a recommendation.

Once you’re successfully making profits on your first vending machine, it’s easy to start expanding. Follow the same steps you did the first time and just rinse and repeat. Over time, you’ll see your passive income grow into a full time business with minimal required maintenance.

Author Resource:- To learn more about starting a vending machine business and generating passive income, check out http://www.vendingmachinesupplier.biz

Article From Base Articles

Vending Machine Business Dealer

2011-06-30T08:45:00.004+08:00

When choosing a vending machine dealer, remember that your dealer will become your unofficial partner in the vending machine business. A good dealer will have a solid business record (dealers that have run vending machine companies are preferred), should be honest, and have a list of satisfied (and dissatisfied) customers you can call. A quality dealer will carry several lines of new equipment and have a service and refurbishment department for used equipment. Most quality dealers offer several levels of refurbished used equipment to help you best meet your needs. They usually have some type of financing available, as well. Shop your rates and terms, because vending machine equipment is very difficult to finance; ask your accountant for your best finance solution. The dealer’s service staff should be available by telephone for quick suggestions on repair. They should have delivery services. Generally, a quality dealer has the ability to help you with all facets of your vending machine business and should be able to guide your decisions in an unbiased way. Of course this all comes with a cost: most quality dealers will be slightly more expensive than their competitors.

Keep in mind, though, that you don’t want to be “penny wise and pound foolish,” as the old saying goes. The added initial cost of your vending machine equipment will be overcome by the added service you will receive, and avoiding one simple mistake can generate thousands of dollars in added income. Use your dealer as a source of information and capitalize on that information.

Vending Machine Business Equipment Valuation

2011-06-29T08:24:00.001+08:00

The valuation of vending machine business equipment is based on several factors:

Storage value
Collector’s value
Scrap value
Parts value
Operational value
Market value

In trying to value vending machines, each of these valuations is significant.

1. Storage value:

Vending machines in storage are generally considered liabilities, and they cost you money each month. Even if you store the vending machines in your garage, they’re taking space that could be used for something else (like your car), which leaves them a liability.

2. Collector’s value:

If you have an extremely old vending machine, you might have a piece of equipment that is collectable. The most notable examples are rounded top soda machines. These vending machines were made in the 1950s, and are examples of the initial entry into the cold drink vending era. They were usually purchased by bottling companies and painted with a brand of soda (Coke, Pepsi, Crush, etc.). They were usually single-selection (one flavor) and operated with primitive coin acceptance. Snack vending machines are much the same; they were usually a mechanical vend process with primitive coin acceptance. To be valuable, they need to be working and in pristine condition. Few of these machines still exist; just because a vending machine is old does not mean it is valuable.

3. Scrap value:

All old vending machine equipment has a scrap value, if nothing else. Scrap is the lowest value available and is calculated by weight. Because vending machines are generally made of steel, they’re heavy. The scrap value of steel fluctuates frequently, based on world demand. Scrap value is best figured by calling a local shredding facility that deals in scrap metal. Make sure to figure in the cost of transportation, as this figure can make it unprofitable to scrap machines. I personally use a local man who takes a truck and trailer load (pickup with a flatbed trailer) to the scrap yard; for his efforts, he keeps the revenue. Unless the value of steel is extremely high, we do not generate revenue from this process, but at no cost, we remove junk from our facility. We do not “junk” a machine until we have used all the available parts.

4. Parts value:

Old vending machine equipment also has salvage value in the form of parts. The cost of replacing individual parts from vending machines can often be recouped by scrapping parts from other vending machines. Replacement parts can be costly and requires time to obtain. If you have a compromised machine, the parts value can far exceed the machine value. Vend motors, compressors, switches, computer boards, changers, validators, spirals, coin chutes, glass, etc., are all available if you salvage the vending machine. Our company has purchased machines (usually one that’s been vandalized) intending to use it strictly for parts. Repair parts are immediately available at a reduced cost. For example, snack machines have 30 to 40 selections, which means 30 to 40 vend motors and spirals. New vend motors start at $10, spirals at $5 – so one machine yields $600 worth of motors and spirals. The glass is worth $50; trays are worth $15. Nuts, bolts, specialty parts have some value. Changers and validators are worth $50 each. If you have the need, the parts value can add up quickly.

5. Operational value:

Vending machines on location develop cash flow; they produce cash for your operation. The amount of cash generated depends upon the location, but if placed properly, one can expect positive cash flow from vending machines business. The operational value is the amount of single net cash flow that can be generated by the vending machine in 9 months. Single net cash flow is the total revenue minus the cost of goods sold. Let’s do the math:

Account A: $400 per month gross sales               $400.00
$50 Cost of goods sold (100% margin)                  $200.00 -
Single net cash flow         $200.00 X
9 Months                                        9        =
Equipment Value                 $1,800.00

This formula is a quick guide to equipment placement. If you can accurately forecast your sales, you can determine how much to spend on equipment. Your goal should be to violate this formula by spending less on your equipment. This will make your accounts more profitable.

6. Market value:

Market value is the amount of money you will pay for a vending machine in the open market. Market value falls into two categories: new and used. New values for vending machines are determined by the manufacturer and sales organization. Like all value, the value of new vending machines depends on options, name brand, warranty, reliability, standardization, versatility, and so forth. Not all vending machines are created equal; some brands have features that are superior to others, and it is critical that the dealer stands behind that equipment and honors his warranties. Used equipment can be purchased several ways – through want ads, vending companies going out of business or updating equipment, and from dealers. Used values are determined by many of the same factors, but also include the seller’s motivation to move the equipment.

Vending Machine Business for High-Tech Equipment

2011-06-28T16:08:00.001+08:00

Technology and vending machines business go hand in hand, kind of like peanut butter and jelly. In the last few years the vending machine industry has seen an increased demand for high-tech products sold in the ultimate convenience format, namely, through the swipe of a credit card. Let’s take a look together at some of the wildest, most innovative products that are now available at your neighborhood vending machine.

iPods: Apple

From a company whose motto seems to be “out-tech everyone, including NASA” comes a vending machine that sells just about every variation of an iPod available, from Nano to Shuffle, along with a slew of other Apple-centric products like iPhone covers and iPad chargers.

Laptops

Renting products from a vending machine is a relatively fresh concept and it’s now possible to get a laptop on-the-go through new public PC vending machines where laptops of various size and capability can be checked out for certain lengths of time. Sliding a credit card ensures borrowers won’t run off without payin.

Advanced Food Products

Have you ever wondered what bread in a can tasted like? Yeah, me either, but they sell it from vending machines in Japan! While you’re at it, you may as well pick up a cryogenically frozen crab (still live, just hibernating) for dinner on the way home…in Japan apparently crab and bread go well together. And you get one guess as to which nation now sells live, hermetically protected rhinoceros beetles as a snack for pedestrians from a stationary vending machine? If you guessed China you win the award for stating the obvious.

Smart Cars

Japan didn’t stop at food when they were coming up with weird vending machine concepts and they’ve subsequently introduced what is definitely the most convenient non-convenience purchase. The world’s first smart car vending machine was introduced there late last year and though sadly, the machines were created as part of an advertising campaign and the only thing it actually dispenses is marketing materials, wouldn’t it be great to buy a car that way? That is of course, for those of you who have an extra twenty-five grand burning a hole in your pocket.

25 Cent Vending Machines

2011-06-22T08:30:00.001+08:00

Vending machine come in different sizes and forms as do the products the customers can purchase from them. Most electrically-operated vending machines can accept both coins and bills and then there are vending machines that only accept a specific coin denomination and reject the rest.

One of the most common problems one faces when dealing with vending machines is jamming. It is either the customer inserted the wrong coin or the bill is crumpled but ultimately, the customer loses money and does not get the product he or she wanted to buy. It also means that as an operator, you need to get the vending machine serviced to remove the coin or bill stuck in there.

Simply put, it is bad for business as the vending machine remains unavailable while something is lodged in the very mechanism that actually allows you to earn. This is a loss-loss situation for both the customer and the owner that should be avoided as much as possible.

In the bulk candy vending machine realm, the quarter vending machines reign supreme. They have become sort of de facto in this particular niche of the vending industry. Gum balls can be sold at 25 cents apiece and the vending machines can be calibrated to dispense the appropriate number of candies for the same amount.

Keep Your Vending Machines Safe

2011-06-20T08:54:00.001+08:00

When starting an independent vending machine business, you have to invest a lot of money, time and hard work into your machines so it makes sense that you would be concerned about the safety of your vending machines. You do not want to be robbed of your product or your money.

Are your vending machines safe to the people that use them? Modern vending machines have been tested for their safety and they typically do not cause any injury to anyone who uses them responsibly. The only times that people have been known to be injured by a vending machine was usually while trying to rob from it.

On some rare cases when the vending machine failed to operate properly (steals someone’s money, dispenses wrong product, etc.) people have been injured from venting their frustration on them. People have been crushed when machines tipped over on them and some people have had broken bones or injured fingers from trying to get sodas from vending machines or candy bars that were lodged in.

A large and fully loaded soda machine can weigh over 1,000 pounds and while they are built to not tip over easily, if someone does manage to get them knocked over, they can be very dangerous. Part of your responsibility will be to keep a close check on your machines for malfunctions. You might also want to include a number on the machine that people can call to report malfunctions since this is what leads to many people getting upset with the vending machines and thus resulting in injuries to the consumer.

Anti-theft

Vending machine technology has come a long way as far as preventing theft from vending machines. They are made to make it hard if not impossible to get the product out without paying for it. They are built durable and not easily broken or tipped over or even damaged by bad weather.

There are also alarms and other anti-theft devices that can be installed on the vending machine to help deter theft and vandalism and keep your vending machines safe and functioning properly. Taking the time to consider safety options for your machines and for your consumers will make your business more successful.

Vending Machines in Schools

2011-06-18T08:49:00.005+08:00

Have you ever considered putting your vending machines in schools? While this is a fairly new phenomenon, it is becoming more and more popular. High schools and college campuses are the most common places to find various vending machines.

In the United States, vending machines are not as common in elementary schools although in some areas they have them as well. In colleges and universities that are not funded by public taxes, the rules are sometimes a bit different regarding contracts with vending machine companies and bottlers’ and competitors. You will have to check with your area to find out all the facts.

Commission

When you place your vending machines in schools, it is usually with the stipulation that you share the commissions with the school. The school agrees to the deal because they get extra money needed for funding certain things and it works out as a great money-maker for you as well.

Since most public schools are funded by tax dollars, they are usually always in need of more funds to better the school. This is why many agree to take on vending machines in the schools and use the commissions to help fund programs like sports, music and more.

Be aware of the issues

If you are considering placing vending machines in public schools then you also need to be prepared for the politics that can be involved. There is often debate over what goes into the machines. Since vending machines tend to contain large amounts of “junk food” – sodas, chips, candy, cookies and other snacks – many people complain about them being so readily available to today’s youth.

But you can get the best of both by adapting and changing your vending machine contents. All you need it to have machines that have healthier drinks and snacks. You might even consider vending machines that contain stickers, trendy school supplies and more. Machines that dispense pencils, pens, erasers, etc. may be very popular in public schools.

Interesting Vending Machine Types

2011-06-15T08:38:00.011+08:00

Vending machines have come a long way over the years and you will be amazed at some of the options that are now available. It is also possible to customize your own vending machines and get a bit creative with what you put inside them.

If the traditional soda and gumball machine is boring to you, go ahead and consider some of the many other interesting vending machine types out there. Or maybe you want to try a little of both and see what is more successful for you. Just keep in mind that sometimes the most important thing is not what is in the vending machine but where the vending machine is located.

Interesting food options

The traditional soda and snack machine has evolved greatly over the years. You can now get hot coffee, mini pizzas, sandwiches and much more from a vending machine. There are machines that sell hot nuts, frozen ice cream and many other interesting and non-traditional vending machine foods.

You can stay on the cutting age of vending machines with interesting machine types that have interesting items inside. Remember that it’s important that your product is in a location where it will be needed and wanted if you want to boost sales. Think strategically when planning what to put in your vending machines and where to put them.

Non food options

Food isn’t the only thing that goes into a vending machine. There are machines located near hotels that have soap, shampoo, toothbrushes and toothpaste, condoms and much more in them. How many times have you needed a safety pin or a similar item and you would have paid a vending machine nearby to pop one out for you? This is the idea behind non food vending machines.

DVDs, laundry soap and even medical supplies can now be found in vending machines. There are machines that provide band aids, mini first aid items and kits, Tylenol and aspirin and much more needed in emergencies. You can make a lot of money off of having these items available for consumers and in the right location.

Avoiding Vending Machine Business Scams

2011-06-13T08:33:00.002+08:00

If you want to run a vending machine business, you might have heard stories of how you can make incredible amounts of money with very little work involved. And it makes sense when you think about how many people use a vending machine each day and how much money must go into the machines. However, if you are considering starting a vending machine business, you need to be cautious of common vending machine scams.

Unfortunately there are actually many different scams out there, particularly in relation to a vending machine business. A quick search of the internet will show you many different companies and sites offering to help you start your own vending machine company and get rich quick.

Check your facts

One of the best things you can do if you are considering investing in any business such as a vending machine business is to check your facts. If there is a company you are considering buying from or investing in, check them out with the Better Business Bureau.

There are legitimate vending machine companies out there and investment opportunities for people just like you. However, there are probably even more that are not legitimate. You should be cautious of anyone who contacts you by “cold-calling” or from emails, mail, etc. Some ads make it seem as if they are offering you a job when in fact, they are just selling you the equipment. If you then purchase the machines, you assume all responsibility for them. What you do with them and if you make money from them at all is totally up to you.

Look out for obvious scams

Sadly, if it seems too good to be true, then it probably is. Be on the lookout for “business opportunities” that promise you will make large amounts of money in little time and with little effort. There are some that claim to make $25,000 a day and that they will show you how as well when in fact, their money is likely coming from scamming people just like you who buy into the entire scenario.

Be cautious of anyone who makes big promises, is vague and won’t answer your questions or that pressures you to give them money to find out more. They may try to get you to give money up front to prove that you “are serious about the opportunity” and other tricks.

The Costs Of Starting A Vending Machine Business

2011-06-10T08:05:00.002+08:00

If you are looking to start your own vending machine business, you might be wondering how much this is going to cost you. What seems like a simple process that leads to big income might be more expensive than you think initially. You will have to buy the machines, buy the product and in some cases you might even need to hire help to get the machines to their locations.

There are also other basic business expenses that you will have with any type of business that you start and it’s just the same with a vending machine business.

However, a proper business plan and some smart planning and knowledge on your part can keep your expenses to a minimum so that you have more profit rolling in.

Beware of Scams

It’s also very important that you are cautious of vending machine business scams. A good general rule is that if it sounds too good to be true, it probably is. There are companies out there that try to promise you that with one small investment of x amount you can become rich from your vending machine business. Many give you the impression they want to hire you as an employee when in fact, they are just selling you vending machines that you then have to figure out what to do with. Always get all the facts first.

The Machine

Your next cost consideration is going to be the actual vending machines themselves. What kind of machine you get and also how many you get will determine the costs. Some other costs involved will be in what type of features you have on your vending machines.

For example, machines that take different forms of payment such as those equipped to accept credit cards may be more expensive but pay off as an investment since more people are able to use them. Machines that cook mini-pizzas, dispense hot coffee and cocoa and similar are also sometimes more expensive than a regular soda vending machine or gumball machine would be.

The Product

Next to consider in the costs of your vending machine business is the price of the product. You will likely order your product from a distributor or a wholesaler. Who you buy from can also vary according to what the product is. Name-brand products tend to come straight from the manufacturer whereas generic thing like candy or gumballs might come from a wholesaler.

The price varies as well according to the product and how much of it you buy. Often you can get discounts on large quantities or regular orders.

Plan Your Vending Machine Business

2011-06-09T08:54:00.005+08:00

You need to have a realistic idea of your goals in mind first so that you know whether a vending machine business is really for you or not. Many people fall prey to the many scams out there and they think that buying into a vending machine business is a quick and easy way to make a lot of money. The truth is that many of these places exaggerate and some of them are just outright scam artists.

A legitimate vending machine business should be treated like any other business opportunity and will take proper planning and consideration as well as work and investment. You will need to purchase or rent the actual vending machines themselves so you will have to plan and decide on what types of vending machines you are going to have. You also have to plan what product will go into your machine.

You need to plan out where your vending machines will be located. You can’t run a business from sticking a vending machine in your front yard. You need to know where to place the vending machines, how much investment it will take to get the vending machines and have them stocked, as well as any other business expenses.

You will also need to learn about finding customers, increasing your sales, tracking your sales and progress and much more. If you want to be successful with your vending machine business, you need to take it seriously and plan it just as you would any other type of business.

What Type Is The Best Machine To Get

2011-06-07T08:38:00.010+08:00

When deciding to run a vending machine business, one of your most important decisions is going to be what type of vending machines to get and what to put in them. There are many different options out there such as snack machines, gumball machines, soda machines and more. The decision of what type to use will also partly depend on where your vending machines are going to be located and your target customer market for them.

This question you need to answer when starting a vending machine business. Do you need to buy some machines? You need to know how to choose a snack vending machine and what type is the best for you and your business?

Location

Where are your machines going to be located? What is your target market? Who are your customers? These are important questions to ask if you want to be successful in your vending machine business.

Let’s say you decide you want to use gumball machines. Children are the biggest market for these vending machines so you want to have them in locations where there will be frequent visits by children. You might put a soda vending machine or one with water, PowerAde, juice, etc. near a park, gym, or facility where people will frequently be thirsty.

Think outside the box

When it comes to snack machines, you have many different options. Snack foods aren’t the only things that can be sold in snack vending machines. We have seen items such as cigarettes, toiletries and even tennis balls. Vending machines located in or around hotels often have small shaving kits, toothbrushes and toothpaste and similar items. It’s all about thinking about what the person could want or need and making it conveniently available to them.

You will also want to consider your payment options. The more payment options your vending machines have, the more consumers you will appeal to. For example, if you only accept coins, you may lose the customer that has only bills in their pocket so accepting both bills and coins is a great sales booster. There are also facilities now that let you accept credit and debit cards at the machine which brings in even more sales.

Maintaining Your Vending Machines

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When you have your own vending machine business, you know that the hardest part is usually getting started.

You have to plan the business, buy the vending machines, buy the product, stock the vending machines and even find places to put the vending machines. Its hard work and you will feel very happy when you finally have your vending machines in place and being used by the public.

However, it doesn’t stop there. You aren’t finished with your work as an independent vending machine business owner. While you’d probably like to just sit back and watch as the money pours in, there are still responsibilities that need to be taken care of to keep your business going smoothly and being profitable.

Maintenance

But once you have your machines in place and your products stocked, you will need to maintain the machines. It is important that you check them for product, restock when needed, remove the money regularly and also keep a look out for malfunctions. You want your machines running in top shape so you get the maximum income from them.

You need to stay on top of your machines and be sure they are not malfunctioning. This is a leading cause of both loss of profit and damage or vandalism to the machines which results in you having to pay to have it repaired. You should also have a telephone number on the machine for people to report malfunctions. Jammed coin slots and other common problems can save you loss of profits when fixed right away.

Restocking

You should have a plan and a set time for when you will restock the product in your vending machines. In time, you will learn when there are busier times and when your product runs out quicker, etc. These are key times to make sure you get product back in your vending machines. An empty vending machine means loss of profit for you.

Take the time that is needed to maintain your vending machines properly and you will see people continuing to use them, business owners continuing to allow you to keep your vending machines in their premises and more money coming into your pocket.

Social Vending Machines From Pepsi

2011-06-04T03:47:00.002+08:00

I bet you thought buying a drink from a vending machine was one of the last untouched-by-technology things you could do. Well, Pepsi is out to change that with its new Social Vending Machines.

That's right, PepsiCo is trying to make drink-buying a "social" (in the "social media" sense of the word) experience. Pepsi's new Social Vending Machines, which debuted at this past week's National Automatic Merchandising Association's One Show in Chicago, feature touchscreen interfaces and the ability to "gift" a drink to a friend--or even a stranger, as a "random act of refreshment."

Even buying a drink is more interactive, because you can swipe through choices and read nutritional info on the spot. The real "social" aspect of this vending machine is, of course, the ability to gift drinks to friends. Just tap the "Gift a Drink" button, enter in your info, choose a drink, and record an optional video message. Then enter in your friend's info, and they'll receive a text message with a code to redeem your drink at another sociable machine.

What's unclear is how -- and if -- you pay for the gifted drinks. From what I've read, it seems like this gift is free. In fact, Mashable comes right out and says that you can give free drinks to a friend.

Excellent. Welcome to the future, where everyone just gives drinks to each other and never pays for Pepsi (and let's be serious, Pepsi isn't worth paying for) again.

All right, all right, calm down. There's more: you can also give free drinks to strangers as a "random act of refreshment." The strangers who will receive your drinks could be in a city that's experiencing bad weather, or from a university that's just won a championship. How these strangers will be picked is unclear.

So yeah, now even drink-buying is getting all social on you. The only problem, of course, is that all of these gifted drinks must be redeemed at a Social Vending Machine. So unless Pepsi manages to get these babies on every street corner in the next year or so, I don't really see it taking off.

Negotiating Vending Machine Locations

2011-06-03T08:17:00.003+08:00

The ability to negotiate for a vending machine location is perhaps one of the most valuable skills a small operator can have. Identifying and securing new locations is how you start and expand your business and maintain success.

Step One – Identifying Target Vending Machine Locations

The keys to spotting locations that are vulnerable are simple. First, look for locations that have machines that appear in need of service. These neglected locations would possibly benefit and thrive from an attentive operating company taking over the service. Another location that can be capitalized on is the one that is underserviced by either the vending machine type or selection offering. While this scenario is rarer, occasionally they will pop up due to a change in foot-traffic or in the climate of the locale itself. Business locations usually contract their location out, but observing how these locations are serviced can give you insight on if it is worth it to attempt to snatch these up.

Step Two – Speaking With the Location Owner
When negotiating to gain a new location it is always very important to have a well-laid out plan of how you can better serve the needs of that site. Having done your homework during the identifying stage, you can address personalized issues that will establish your credibility and professionalism. Offering a trial period to test your ability to service their location is a great way to show them that you are in it for the long haul, and showcase reasons your service is the better fit for their location.

Step Three – Follow Through

Once a vending machine location has been established, remember to continue to foster the relationship that you have with your location-holder. Oftentimes when using a locator service vending machine operators forget how important it is to maintain that business relationship. Many operators also undervalue the continuing need to understand the dynamics of a location. Doing this can serve to establish yourself in at that site, bring better services to your customers, and as a result cause them to purchase your products more often. Remember that different seasons and times of the year may bring in a wildly different demographic depending upon the location.

How Can Compact Vending Machine Add Value to Your Business?

2011-06-01T08:24:00.004+08:00

A Shift in Vending

As manufacturing and big business continues to be outsourced from America, operators face declines in the classical desirable vending machine locations. Instead of adapting to these changes, often times it is decided to reduce routes, cutting smaller “less profitable” sites, which in the future may become a large portion of the available locations. To adapt to this change, a paradigm shift must occur. Operators must embrace technology, and the recognition that a compact, full feature machine can add a tremendous amount of value to a route.

Technology

While the cutting edge of vending machines moves towards telemetry and remote inventory management, to the majority of small operators; it is still widely inaccessible due to the investment cost. Smartcard/Smartware technology is still readily available however, and offers an efficient way to poll inventory levels without taking a large chunk out of your bottom line. In addition, some lines of standard Smartware offer the ability to be upgraded down the road to offer remote access to inventory levels, which offers scalability as smaller revenue streams grow through efficiency. Be aware, however that the third-parties required to upgrade often charge monthly fees. Other technologies that allow the operators to monitor driver speed, routes, and efficiency enable the streamlining of location management. This can serve to fast-track the development of the newer efficient standards necessary to succeed. Looking to the future of vending, it is vital to understand the role technology can play in increasing efficiency and turning these satellite locations profitable as America sees the return of small business.

The Compact

The full feature compact vending machine is often overlooked by the operator, but it provides all the advantages of a full-size vending machine with less upkeep and less initial investment. This coupled with the appropriate technology can help the operator add value to their routes, and reinvigorate those flagging locations. When implemented properly to account for local foot-traffic and demand, along with the utilization of forecasting to help predict future localized demands; the compact machine can be leveraged as a valuable tool in the arsenal to fight the diminished standing of vending in America.

FDA Proposes New Vending Regulations

2011-05-30T08:46:00.003+08:00

Two tentative regulations were proposed by the FDA regarding caloric labels on menus and menu boards in chain restaurants, retail food establishments, and most importantly to us– vending machines. Luckily, they are still tentative and the FDA is open to receiving comments on these proposed policies. The document can be read in full here.

The Regulatory Run-down

Vending operators with more than twenty machines will have to display nutritional information for their products via adjacent signage, unless their packaging prominently displays the nutritional information already. The FDA has tentatively concluded that bulk vending machines without any type of selection button are not covered by the proposed policy, leaving crank operated gumball machines to be unregulated by these rules. Vending machines that do not vend a majority of food items, such as crane vending machines, are also safe from this new regiment of requirements.

Act Now

By commenting on this proposed piece of legislation, we can band together to save the vending industry from being saddled with yet another bit of inefficiency in an industry that struggles against unstable fuel costs and other inherent problems that can be a death blow to small businesses which are the backbone of the American economy. In these days of engorged government spending, this is but one more example of wasted government funds, and if this passes they are wasting the funds of vending operators everywhere.

To submit your comments to the docket via mail, use the following address:

The Division of Dockets Management
HFA-305
Food and Drug Administration
5630 Fishers Lane, Room 1061
Rockville, MD 20852

Or via email at oira_submission@omb.eop.gov