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November 25, 2009 – 3:18 pm

Vending Tips: Location, Location, Location

A profitable vending machine is a wonderful thing. Vending machines are one of the few business opportunities which can allow you to sit back and relax while the money rolls in. Of course, there are no guarantees when it comes to the success of vending machines, but there are ways to improve your chances and perhaps gain an advantage.

Whether you operate drinks vending machines, snack vending machines, condom vending machines or any other type of retail vending machine, there are some simple rules which can be applied to them all, which should help to encourage more sales if properly followed.

This first article in a series of vending tips will be dealing with the strategy of vending machine location – probably the most important factor when trying to achieve the highest possible product sales rates.

Vending Machine Location

A good location demands careful thought. It is not always optimal to just ‘whack the machines in the busiest area’. Try to think logically about the motivation and mood of the consumer and how they can be used to your advantage.

For instance, placing vending machines close to an entrance/exit is an obvious idea, as these areas are typically subject to the widest audience of passers-by. Though this can be an effective strategy in certain sites, for others this area is where people are most likely to be busy or distracted. In which case, this can be one of the locations that people will be the least likely to stop and purchase a vending machine consumable.

Instead, consider placing your vending machines in locations such as reception areas, waiting rooms or anywhere else people gather (spectator areas in leisure/sports environments, for instance). People who are forced to hang around for a period of time are much more likely to buy something than those rushing by – remember: impulse sales can be the key to vending. This strategy can be very beneficial to sales frequency (and therefore also profit!) and has recently been demonstrated by a leading theme park, who have installed aesthetically pleasing banks of vending machines next to the queues for some of their most popular rides.

If you happen to be operating condom/washroom vending machines, the theory still stands – though there will be usually be fewer options (mostly due to space restrictions) and so can require a little more planning. For example: some people do not feel comfortable purchasing items such as condoms from washrooms in case they are “caught” by a fellow visitor – installing your vending machines with careful thought can help to overcome this, and in turn, boost sales.

Conversely, if your washrooms happen to be in busy pubs or clubs where customer spirits are likely to be high and lacking in inhibitions, this will probably be less of a factor; in which case, installing your vending machines on the wall where everyone will them see is likely to be a good way forward.

It is essential to be aware, however, that what works for some, may not work for others. The ideas presented here are suggestions to help you think laterally about which approach will work best for your site. This will also depend on the type of products being vended (which is the subject for the next article in this series).

The best location for vending machines varies widely depending on the unique obstacles/qualities of each site, and can sometimes come down to trial and error. It is not always possible to accurately empathise with consumer emotions, or predict any of the resulting implications.

Do not be afraid to try a new location if one isn’t working out; or even if it is, perhaps there is more to be gained elsewhere (but only if you are happy to take a risk, of course).

Ultimately, you are responsible for this decision and properly considering all the factors which apply to your individual situation is a must – and usually provides the best insights for what will work best.

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