When I first started in the vending machine business over a decade ago, I made my fair share of mistakes. Some cost me time, others cost me money, and a few nearly made me want to throw in the towel. But over the years, I’ve learned that the #1 mistake new vending operators make is this: choosing the wrong location.
It sounds simple, right? Find a spot, put a machine there, and let the money roll in. Unfortunately, that’s not how it works. A bad location can drain your resources, leave you frustrated, and ultimately cause your vending business to fail before it even gets off the ground.
Why Location is Everything
Let me tell you about one of my early mistakes. I had just gotten my second vending machine, and I was eager to place it anywhere that would take it. A local office agreed to let me set it up in their breakroom. The office had about 20 employees, so I thought it would be a decent spot.
Big mistake.
I quickly realized that the employees hardly used the machine because they either brought lunch from home or left the office to grab food. I was barely making enough to cover restocking, let alone turn a profit. After months of low sales and wasted time, I finally pulled the machine out and searched for a better location. I learned the hard way that not every “yes” is a good yes.
How to Choose the Right Location
A great vending location meets three key criteria:
- High Foot Traffic: The more people pass by your machine, the better. Places like busy break rooms, apartment complexes, schools, and gyms tend to have great demand.
- The Right Customer Base: A machine in a gym should have healthier snacks, while a vending machine in a truck stop might perform better with energy drinks and chips. Match your products to the people using your machines.
- Limited Competition: If there are already three vending machines in a location, you might struggle to compete unless you offer something unique (better prices, healthier options, or specialty drinks and snacks).
Other Common Pitfalls to Avoid
Poor Inventory Management
New operators often make the mistake of overstocking or understocking their machines. Overstocking leads to expired products and wasted money, while understocking can frustrate customers and lose sales. Keep track of what sells best and adjust accordingly. Use software or apps that help track inventory levels in real time.
Neglecting Maintenance
A broken vending machine is a useless vending machine. If customers constantly see an “Out of Order” sign or coins getting stuck, they’ll stop using it. Regular maintenance, from cleaning bill acceptors to checking product pushers, is key to keeping your machines profitable.
Failing to Monitor Sales Data
One of the best things I ever did for my vending business was start tracking my sales data. Instead of guessing what products worked, I could see exactly what sold and what didn’t. This allowed me to tailor my inventory and maximize profits.
Final Thoughts
If you’re new to the vending business, remember this: a bad location will make your journey much harder than it needs to be. Take the time to find high-traffic, high-demand spots that make sense for your machines. Once you do that, stay on top of inventory, maintenance, and sales data to ensure your business stays profitable.
I’ve been in this business long enough to know that mistakes happen. But if you learn from mine, you can avoid the biggest pitfalls and set yourself up for success from the start.
Have you made a mistake in your vending journey? I’d love to hear about it—drop a comment below!
