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| Dangers of Owning a Vending Machine Business |
By:
Robert Farnham |
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You may think operating a vending machine business is going to be the way to live the easy life. Work when you want, sleep when you want, and have a great time spending your money. After all most vending machines that you are familiar with have a steady stream of people walking by them and making a purchase. Well, if the scenario really worked out that way there would be many more people in the vending machine business
One of the biggest hidden dangers of operating a vending machine business is that it may not end up being successful for you. Now, you are probably reading this and thinking that there is no way you will let that happen. Well, you may not have a choice because these hidden dangers of the business I am talking about suck you in. It is like hitting a patch of ice on the highway that you had no idea was there. Before you know it you are spinning fast than then you crash hard.
You can definitely buy all the vending machines you wish but you are going to have to spend some time researching good locations for them. You are going to have to think out of the box on this one because you will quickly discover that many of the locations you think of immediately already have vending machines in place that are owned by someone else.
This is where being a sales person is going to really pay off. If you think operating a vending machine business means you don't have to deal with people you are in for a rude awakening. While you need to be bold when you approach owners of prospective vending machine locations you don't want to scare them off. Give them some time to consider the offer you are extending and then follow up with them in a couple of days.
The offer you make with these owners in order to place your vending machines on their property need to be in writing. While a handshake to seal the deal was the way of the world at one point in time it doesn't hold up well today. Make sure you make the offer enticing enough for them to accept it but don't give them any more of your profits than you absolutely must. Start your figures lower than you really can go so they can give you a counter offer. They will be happy with their negotiation skills and you will still be getting a great deal.
If they want a very high fee in order to secure your vending machines in the locations try another approach. Explain to them that you are just getting started in the vending machine business and you really don't know how profitable it will be. Ask for them to consider a percentage of your profits instead of a flat rate. This way you don't end up owing them money if the vending machine location turns out to be a flop
Think very carefully about how you want to present a contract to secure the deal for a vending machine location. You are going to have to accommodate the needs of the owner as well as your own. Make sure you are happy with the terms of the contract as you are going to be obligated to follow them
Don't get yourself locked into anything long term because the reality is that you don't know if the location is going to work well or not. Keep your options open so you always have a chance to operate a profitable vending machine business. If it isn't doing well you can always start talking with the owner's of other prime locations and then move them
Robert Farnham was a veteran vending owner/operator. He now writes all about his experiences starting a vending machine business the wrong way, and vending machine placement, on his websites. Click here for other unique vending articles. |
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