The vending machine industry has been a proven growth business for over a century. Retail vending machines are typically not a franchise operation but a business opportunity where the buyer owns the machines outright and keeps all the revenue generated by the machines. Many concepts will have you pay a rental fee for the location and any other expenses associated with owning the equipment. Most concepts will also provide training and maintenance support to help you keep up with your machine.
Learn more about owning a vending machine business:
1. As with all retail merchandising, location is everything in the vending machine business. The more foot traffic that passes by the machines, the higher the sales potential. Having the right product at the right place is the key to a successful vending operation.
2. There are many advantages to owning a vending machine business. Vending machine operations typically have a low start-up cost, low working capital requirements, and low overhead. Vending machines make money around the clock without the owner present. Automatic merchandising is more resistant to recession than traditional retail stores.
3. Euromonitor International reports that common trends in the Canadian vending industry include non-cash machines and more convenient payment methods as well as an increase in consumer desire for healthy snack vending.
4. Some machines require minimal effort to run, and can be restocked quickly with bulk merchandise, like candy, and less often. These usually sell lower cost items in larger volume. Others machines require more time to refill and sell higher priced merchandise, like different food stuffs at different prices. Before you buy, it is best to consider what makes a good location and understand what products will sell best there.
Franchising vs. Independent
If you'd like to become part of the rapidly growing vending machine industry, joining a franchise offers a lot of potential benefits compared to operating as an independent vendor. Working with an existing vending machine business gives you access to that company's brand, which can be invaluable when trying to get your machines into profitable locations.
Being part of a vending machine franchise can help with everything from marketing strategies to product selections and will also help you hit the ground running when it comes to getting your machines into desirable spots. The franchise owner has already done the hard work of choosing vending machines and researching maintenance providers, so you can build on their successful model with minimal startup costs.
Starting a Vending Machine Business in Canada
Providing vending machines for business owners can be an efficient way to make a passive income. There are many different kinds of vending machines. The most common ones offer convenient snacks and chilled drinks, and they can do well in high-traffic areas such as public transit hubs, colleges, or leisure facilities.
Other popular vending machines include coffee machines and ones that sell small, essential products such as sunscreen or toothbrushes that may be desirable in hotels.
How to Start a Vending Machine Business in Canada
If you'd like to start a vending machine business in Canada, the first thing to do is identify your target market. With that market in mind, you can start looking for locations for vending machines that aren't already well-serviced.
For example, you may wish to provide vending machines full of healthy snacks for athletes and target sports venues that either lack vending machines or currently only offer sweet treats and other unhealthy snacks.
Another possibility would be to offer vending machines to co-working spaces, pitching them as an added source of income for the owner of the space and a convenience for clients who might prefer pushing a button to vend a snack over taking the time to use the kitchen.
Building a successful business requires contacts, a marketing strategy, and a great product. Joining an established franchise can give you a head start in those areas.
How Franchise Direct Can Help You Get Started
At Franchise Direct, we have a large database of franchise opportunities, including vending machine businesses. We have been working with franchisors and franchisees since 1998, and we are committed to helping entrepreneurs find the best opportunities in their chosen niche.
If you're interested in launching a vending machine business, take a look at the list of franchise opportunities listed above. If you see one or more franchise opportunities that interest you, tick the box to request free information and provide your contact details so the company can follow up.
We understand that entrepreneurs are always looking for new opportunities, so why not take the chance to join our free mailing list and get updates on the latest franchise opportunities? Whether you're looking to invest in a major brand or you're starting a small franchise on a budget, we can help you find an opportunity that you can grow into a successful and sustainable business.