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🚀🔐 5 Common Vending Mistakes To Avoid Before Launching Your Business

So you can save time and money

September 28, 2024

Hey, Vending Hustlers!

Welcome to The Vending Vault: your go-to source for running a smooth and profitable vending machine business. Whether you’re just getting started or looking to level up, we’ve got you covered.

This week, we’re diving into five common mistakes that new vending owners make and how to steer clear of them. Here’s what you’ll learn:

  • Why skipping market research is a costly move

  • How location can make or break your sales

  • The hidden costs of going cheap on machines

  • What expenses to plan for from day one

  • The tech you need to streamline your business

Mistake 1: Skipping Market Research

Too many entrepreneurs assume they know what their customers want. We made this mistake early on. Our machines sat untouched because we guessed instead of asking.

The fix? Real feedback. 

Stand by your machine and ask people to fill out a quick survey. Data beats guessing every time.

Ask questions like:

  • What products would you like to see?

  • How often do you use this machine?

  • Are the prices fair?

Mistake 2: Overlooking Location

A bad location can kill your business. We learned this the hard way when we both placed our first machines: wrong demographic, slow sales.

Location is everything.  

Put your machine where your customers are. For example, if your target audience is young adults, focus on bars or clubs.

Action steps:

  • Identify where your audience hangs out.

  • Understand their habits and needs.

  • Shortlist potential vending spots.

Mistake 3: Choosing Cheap Over Quality

Cheap machines seem like a good deal…until you’re constantly fixing them. We bought no-name machines early on, and the downtime crushed our profits.

Invest in quality.  

Durable machines mean fewer breakdowns and happier customers.

A few solid options:

Brand

Model

Price Range (Refurbished)

AP 112

Snack Model

$2,000 - $2,750

Dixie Narco Bevmax

Drink Model

$3,500 - $4,500

USI 3565 Combo

Snack + Drink Model

$3,000 - $3,500

Mistake 4: Underestimating Operating Costs

Most people only budget for machines and products. But what about the hidden costs? I didn’t, and it hurt.

Breakdown of ongoing costs:

  • Credit Card Processing: 2.5% + 10¢ per transaction.

  • Inventory Software: ~$9.99/month.

  • Maintenance: Budget $30/month for parts and repairs

Mistake 5: Ignoring Technology

Running a vending business the old-fashioned way will hold you back. I started with cash-only payments and spreadsheets for tracking. Big mistake.

Tech is your friend.  

Systems like Nayax or Cantaloupe allow for cashless payments and automated inventory tracking. They save time and boost sales.

Quick Recap

Avoid these five mistakes:  

  1. Skipping Market Research: Ask customers what they want.  

  2. Overlooking Location: Find a spot that matches your product.  

  3. Choosing Cheap Over Quality: Invest in good machines.  

  4. Underestimating Costs: Budget for ongoing expenses.  

  5. Ignoring Technology: Use tech to streamline operations.

That's it!

Thanks for reading this week's newsletter on Common Vending Mistakes and How to Avoid Them.

Hit reply and let us know which tip you found most useful this week—We read every single reply and we’d love to hear your thoughts!

See you next Saturday!

— The Vending Machine LaunchPad

Ready to Level Up?

Want more guidance on building your vending empire? Check out Vending Machine LaunchPad for a step-by-step system to get you from one machine to a thriving business.

Until next time, keep those machines rolling!