We are sorry for the doom and gloom at the beginning of this article. But we must face the fact that the coffee vending machine service industry is not as simple as it seems. Although people will always want this beverage, and there are many customers you can tap into, the market is demanding. This is how it works: you earn only a few cents per coffee sold, and the profit must be split with the landlord, utility company, and machine repayment. What would your net income be? You would have to collect money and clean the machine to prevent pest infestations. You may have had hopes that your coffee vending machine for businesses would become an automated cash dispenser machine. You must be able to see the big picture in order to make this business profitable. These are two secrets to help you design your vending machine company, so it produces guaranteed profits.
Secret number 1: Avoid shopping malls
Yes, that is correct. This is not a typo. Avoid malls if you are looking to start a coffee vending machine business. This will not make your business profitable, regardless of how strong your inflow is. You will have to pay huge overheads and rents, which will reduce your profit margins. Contrary to popular belief, even though shopping malls have high traffic, they might not be able to generate the sales you desire. This is because there are many F&B outlets where consumers can purchase coffee. Why would they choose to go to your vending machine?
Secret number 2: Less is more
You should avoid areas that receive a lot of foot traffic and visitors. Consider this: Where would your customers use your coffee vending machine services? These are places that don’t have access to coffee shops or restaurants. These are places away from the typical shopping crowd. It is essential to place your vending machine where traffic flows the most efficiently, but not in an area that makes it seem like it is being overlooked. You will also need to make sure that customers don’t have easy access to other beverages nearby. Otherwise, sales may suffer. Coffee vending machines have reported high sales in areas like neighbouring hospitals, police stations and military compounds.
These are the things to keep in mind as you set up your coffee vending machine.
