At first glance, the vending business seems simple: Place a machine, fill it, and collect cash. But it’s not always that straightforward. The heartbeat of a successful vending business is location. Yes, the location determines the success of the business.
While offices were once prime spots, the shift to remote work has changed the game. But don’t fret; there are still many spots where you can put your vending machine for hefty returns.
In this article, we’ll be covering 10 locations that can bring you an extra 5-6 figures in revenue to your vending machine service.
What Makes a Profitable Vending Location?
The primary driver of a lucrative vending location is the regular number of people in the building or “headcount”. Generally, places with at least 50 people can be profitable.
Foot traffic, or the volume of visitors, is another crucial factor, especially in public places. Even with fewer permanent occupants, high foot traffic can ensure good earnings.
Other factors influencing profitability include:
- Public accessibility (public access often means more profit)
- Operating hours (a minimum of 9 am-5 pm on weekdays is ideal)
- Nearby snack/drink shops (these can decrease your sales)
With that in mind, let’s go straight to see 10 of the best types of locations to look for when positioning your vending machine.
10 Locations You Can Put Your Vending Machine for Huge Returns
#1: Warehouses
Warehouses make for solid vending locations when they’re big enough. They’re full of people moving pallets & boxes all day who would love access to snacks & drinks in their downtime.
Since the Covid-19 pandemic, they have become an increasingly popular choice of location for vendors. Because they’re one of the establishments that never closed, more and more warehouses have been popping up while the pre-existing warehouses have been expanding in size and headcount.
Even if the warehouse has less than 50 people in it, most warehouses are open 24/7 and far from any convenience stores and gas stations. This makes for a very profitable situation.
#2: Factories and Manufacturing Sites
These sites are excellent for vending machines due to their high headcount, long hours, and distance from convenience stores. They often care less about machine aesthetics, so a few dents won’t matter as long as the machines work.
However, brand-new machines with card readers and bill acceptors can make you stand out. Be aware: customers here can be demanding. Frequent visits (twice a week) might be needed. Any issue with your product can quickly become the talk of the site, whether or not it’s your fault.
#3: Truck Stops
If you can find a big enough truck stop, you’ll have a nice money-making location.
Many truck stops run 24/7. Sales will typically be higher when drivers are not on the road, but with a big location, you’ll also have attendants and similar personnel onsite, bringing you consistent sales.
Truck stops do have a higher risk for theft and vandalism compared to other locations though, so you need to make sure you’re more vigilant with customers about your machines.
#4: Hospitals
Hospitals stand out as exceptional venues for vending machines. Why? They operate round the clock, are often far from convenience stores, and attract a constant flow of people. However, pursuing a spot in a hospital comes with its challenges.
Firstly, they typically demand new machines, ruling out refurbished options. Secondly, they might ask for healthier snack choices, which could potentially dip your sales. Lastly, securing a hospital spot is a fierce competition. They’re discerning about vendors, so you’d need to present yourself exceptionally professionally.
A solid vending machine business plan might increase your chances. But once you clinch that coveted spot, be prepared for daily restocking. The effort is worthwhile; besides adding a touch of comfort to a patient’s stay, you could rake in up to 5 figures monthly.
#5: Schools
Schools make for excellent locations. They may not be open 24 hours or completely isolated from convenience stores, but they make up for it in foot traffic. They also consist of younger demographics, which tend to use vending machines more often.
To be clear, we’re referring to educational facilities as a whole. We aren’t referring to learning centers or afterschool programs, which can also be profitable but have nowhere near the earning potential of an entire school.
#6: Malls
Malls are high volume and open 7 days a week, which makes them very profitable vending locations. Most of them will have convenience stores inside the mall; however, you’ll often win customers from these stores due to price differences. Even when they’re not big malls, there’s usually enough foot traffic to bring you an extra 5 figures a year.
#7: Airports
Airports make for amazing vending locations. The foot traffic is very high, they’re open at all times, and most of the time, you’ll be far from any type of convenience store that could take sales from you.
Even when there are convenience stores in the same place, most products are so overpriced you can win customers over just by being available.
#8: Nursing homes
Nursing homes, old age homes, and senior centers are some of the most underrated locations in vending.
Not only can they be everything you look for in a location (high traffic, 24-hour, no convenience stores nearby), but they’re also considerably less demanding compared to other types of locations.
They don’t want extravagant products or over-the-top presentations; they just want a simple and reliable vending service. If you’re able to provide this, you’ll have a very happy location that will reward you with their money.
#9: Car Dealerships
Large dealerships, especially those with repair services, can be profitable for vending. They offer two key advantages: sales from the mechanic and service departments and a captive audience of customers waiting for car services.
If you offer coffee, it’s even better, as salespeople often consume a lot of coffee. Providing this is a significant bonus.
#10: Recreation Centers
Recreation Centers are prime spots for vending machines due to their long hours and steady foot traffic. Many visitors, especially those attending sporting events, often seek quick snacks or refreshments.
However, consider the sports and activities the center offers. If they’re seasonal, your machine might experience downtime during off-seasons. A consistent indicator of good business is the presence of a weight room and cardio equipment since these are year-round activities.
If the center emphasizes fitness, be prepared to stock some healthy snack options, but a balance can still ensure good profits.
Final Note
There you have it: the ten most profitable locations where you can put your vending machines for the best revenue. You just need to identify which of the locations will be best for you and go with that.
Regardless of which of them you choose, you can be sure that securing a location from any of these places can bring an extra 5-6 figures a year in revenue and send you on your way towards successful entrepreneurship.