• Vending Machine Business Plan

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Vending Machine Business Plan

Vending Machine Business Plan helps the entrepreneur to understand, to visualize, to plan and to identify risks even before making any investments in the business. Beginning a vending machine, just like opening any other business, takes money, planning, and time. The first things you must consider when creating a business plan is, "What are your goals?", and "Does the math work?" Many people first get the idea to get into vending because the notion of passive income and controlling their own destiny is so compelling. While this is true, they forget to estimate if it even performs sense for them.

Without a proper business plan, you can set yourself up for defeat from the start. This is because, in vending, there is a notable delay between your movements and your financial results. Whether you make the right or wrong judgment, you don't see your result for a while. So much money is moving from place to place in vending that it can be difficult to track. There are many sources of income: Cash from machines, free vend, subsidizations, renting machines, opinions from corporations, and more.

It may seem honest, but in a business where the average working profit is 45%, but the average net profit is just 2%, you can’t manage to plan. Creating a business plan will serve you value your merchandise, set up set lists, set minimum sales specifications for locations, determine how much you can control to invest in new business, and it lays the foundation for your future interest. Vending machines average over $7 billion a year in sales. The snack and vending machine business creates over $64 million a year in profits. The vending machine business is mostly cash-based — three out of every four vending machine transactions are in cash.

There are an estimated 4.6 million vending machines in the U.S. 56 percent of vending machine selling were for cold drinks, including soft drinks, sauces, water, etc. The exact math you need to do will be reflective of your particular goals and the support you need to achieve those goals. As such, it's beyond the scope of this article. If you need help deciding what's realistic for you, I suggest seeking the help of a professional in the vending industry. Planning for the future is also part of your business plan. How do you plan to grow your business? Do you plan on making lots of cold calls? Do you plan on creating a referral based business?

Learning vending is a fabulous way to learn how to run any business. This is because, instead of running one monstrous entity like a restaurant, you are running dozens or hundreds of tiny machines, each with their own cash flow. In doing this you will get really good at identifying good business opportunities and bad possibilities because you can automatically do the cash flow in your head.

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All organizations are made up of group of capabilities that are coming from People, Processes and Systems. These capabilities are working together in a seamless manner to deliver the requisite capabilities to the customer. The various capabilities that need to be addressed in a vending machine business plan are given below:


A typical vending machine is headed by a Chief Executive Officer or an Owner. The other important roles are Manager, Route Driver, Wellness Coordinator, Attendant, Parking Meter Technician, Helper, etc.


Customer Objectives View, Embedded Control System, Method of the Key Drivers, Controllers, etc.


Owned or leased office space, computers, Security Camera, Coin Validators, Computer Control Boards, Refrigeration Units, and Lighting, etc.

Most of the businesses have professional bodies across the globe and being associated with these organizations tremendously helps in understanding the current trends in business. Some of the professional bodies are listed below for your reference:

National Automatic Merchandising Association
20 North Wacker Drive, Suite 3500, Chicago, IL 60606

Automatic Vending Association
Automatic Vending Association, The Clare Foundation, Wycombe Road, Saunderton, HP14 4BF

Canadian Automatic Merchandising Association
Association Office, Member Services, CAMA, 2233 Argentia Road, Suite 304, Mississauga, ON L5N 2X7

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