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Providing vending services to factories can be incredibly rewarding. Most of these accounts are HUGE, and you’ll be improving the workplace for people who help provide an important service.
However, because of the size and demographic of these accounts, there are some important things to keep in mind.
In this article, we’re going to cover them.
Working at a factory means being in the presence of heavy machinery. As a result, safety gear is a must have in order to provide vending services at these locations. Not only will it reduce the risk of potential injuries, but many managers and supervisors won’t even let you access the machines without them.
The type of safety equipment you’ll need in order to be on-site is going to vary from location to location; however, every location we’ve personally visited has required safety shoes at the bare minimum.
Some other safety gear you might need include:
Some factories might even enforce a certain dress code. One of our locations was at a factory that made paper cups and asked all of its employees to wear hair caps to prevent hair from potentially getting into a cup. As a result, we would wear either a hair cap or a hat whenever we visited this factory to service our vending machines there.
You can find most of this equipment at a store like Home Depot or Uline.
Certain factories might ask you to work-related supplies into your vending machines. Many of these will be some form of safety gear, while others might be even more work-specific equipment such as blades and screws. Depending on how work-specific the supplies are, you might be able to get them to buy these for you, in which case you would have to workout a fair price.
Even if the factory owners never ask, you should still consider putting supplies in your vending machines if you can anyway. It’s a good gesture and the workplace will appreciate your business for it.
Some examples of supplies you can put into your machines include:
Most of these fit into a snack machine fairly easily.
Factories are full of heavy machinery. As a result, they use massive amounts of electricity. This can lead to power surges from time to time that can potentially damage your vending machines.
At Lucky Vending, we have personally had this happen. An electrical surge at a factory resulted in our machines in the breakroom being overloaded. This ended up destroying the motherboard on one of the snack machines and we had to replace it as a result.
We don’t want you to go through what we went through. So we highly recommend using Surge Protectors for all of your vending machines, particularly in factory settings.
A particularly great thing about factories as vending machine locations is that the workers tend to use the machines pretty frequently. Expect to restock a lot of products whenever you make a visit at one of these locations.
Because of the frequent usage however, be prepared to deal with a lot of comments and complaints. If they experienced a problem with one of your products or vending machines, they’ll make sure you know. They’ll also be ready to make suggestions about what they think should be in the machines, and sometimes it will be things that are not possible. We’ve once had a worker suggest we put frozen pizzas in the snack machine.
Some things you can do to best prepare for this:
Commission is a percentage of your profit that you pay back to the factory owner. Not every location will ask for this, but the biggest ones will usually ask you for a percentage.
In the vending machine business, ‘Rent’ often refers to your part of the electrical bill. It’s no secret that vending machines use quite a bit of electricity, and leaving them constantly running can be a significant expense to some companies.
Both of these are things you need to be ready to negotiate with owners about. Work out something that’s fair to both you and the owner. The owner should not be stuck with a massive electricity bill, but they should also not be taking a significant portion of your profit.
Also, this is important:
When discussing commission payments, make sure you’re agreeing with the owner on a portion of your NET PROFIT. Do NOT cut into your gross profit. If you don’t gross enough on a monthly basis, you’ll end up LOSING money after product, gas, and service expenses are accounted for.
We hope this article helps with servicing factory locations in your vending machine business.
Thanks for reading!
For more tips and guides on the vending machine business, visit our blog.
If you’re a factory, a manufacturing plant, or anything in between from Toronto or the GTA and would like a premium vendor to look after your breakroom, click here to contact us.
Vending machine businesses have grown in popularity due to their potential for generating passive income and offering flexible hours.
While combo vending machines may seem like an ideal choice for entrepreneurs wanting to offer both snacks and drinks in one machine, there are several reasons not to use them as the foundation of your vending business.
Combo machines can be attractive as they save space and seem convenient, but they have certain drawbacks that can negatively impact your business operations. From increased expenses to more frequent breakdowns, these issues can make running a vending business more challenging than it needs to be.
We’ve used combo machines at the business and found out the hard way how troublesome they can be. In this article, we’re going to cover the setbacks of combo machines so you know what you’re getting into if you consider using them.
A combo machine, short for combination vending machine, is an innovative and versatile type of vending machine that allows you to sell various snacks and beverages in a single unit. These machines offer a wide array of snack options, such as chips, chocolates, candies, and different types of refreshing drinks like soda, water, and juices.
Since they cater to diverse consumer preferences, combo machines have become very popular in recent years. They are easy to move around, can fit in tight locations, and can be placed in businesses of all sizes. These machines are also simple to operate, program, and many of them can accept credit cards as well as cash.
However, there can be some reasons not to use combo machines in your vending business. For instance, combo machines may not be ideal for situations where you only want to provide snacks or drinks in separate locations. Stand-alone machines for specific items may be more suitable in those cases. Also, since combo machines cater to a broader audience, it may become challenging to maintain consistent inventory levels and balance the demands of different snack and beverage options.
In summary, combo machines have certainly revolutionized the vending industry, but it's essential to carefully evaluate your business needs before deciding whether or not to invest in a combo machine for your vending business.
When starting your vending machine business, you need to consider the costs associated with purchasing combo machines. These machines combine the functionality of both snack and beverage vending machines, and while they can offer certain conveniences, they can also be quite expensive. In fact, the cost of a new combo machine can reach into the thousands of dollars. If you're looking for more affordable options, you might find used vending machines for sale on platforms like eBay.
It's important to remember that the initial cost of the vending machine is just one part of the overall expense equation. You also need to consider other costs associated with your vending machine business, such as stocking inventory, maintenance, and potentially refitting the machines. Additionally, if you plan to move or upgrade your vending machines in the future, the higher cost of combo machines can add to these expenses.
While combo machines may have their advantages, especially when it comes to space-saving and offering a wider variety of products, it's crucial to consider your budget and the long-term sustainability of your business. By carefully weighing the investment and potential return, you can make an informed decision on whether combo machines are a suitable choice for your vending business.
Combo machines may seem like the perfect solution for your vending business, but there's one drawback you should be aware of: they tend to break down more frequently than single-purpose machines. This not only leads to increased downtime for your business, but also higher maintenance costs.
One reason for the higher breakdown rate is that combo machines have more complex mechanisms and components, as they're designed to handle different types of products. This complexity increases the chances of a malfunction or equipment failure. An improperly functioning machine can lead to customer dissatisfaction, lost sales, and a tarnished reputation for your vending business.
Regular maintenance is essential for all vending machines, but combo machines may require more frequent servicing to keep them running smoothly. This means dedicating more time, effort, and resources to equipment maintenance, which can ultimately cut into your profits. Additionally, the specialized nature and complexity of combo machines can make it difficult to find qualified technicians, further increasing maintenance costs.
Furthermore, the stress of handling a variety of items can put more wear and tear on the machine's components, potentially leading to a shorter lifespan. This means you may end up needing to replace your combo machines sooner than you would with traditional single-purpose machines, which could ultimately affect your bottom line.
In summary, while combo machines offer the advantage of saving space and potentially attracting a wider range of customers, it's important to consider the potential drawbacks. The increased likelihood of breakdowns, higher maintenance costs, and potential for a shorter equipment lifespan should be weighed carefully in your decision-making process.
In the vending machine industry, reliability is essential for the success of your business. One key factor that may affect the performance of your machines is the availability of replacement parts. When you opt for combo machines, you may encounter difficulties in sourcing the right components, particularly when compared to standard vending machines.
Firstly, the unique design of combo machines often results in less popular and more specialized parts. As a result, manufacturers may not produce these components in large quantities, making them rarer and more challenging to find. Furthermore, if your combo machine model is discontinued or the brand stops producing the same equipment, the task of securing proper replacements becomes even more daunting.
Additionally, finding a service provider who is well-versed in maintaining and repairing combo machines is not always easy. The combination of two different vending categories in a single unit means that technicians must possess specific expertise and knowledge. For example, a snack-and-beverage combo machine may require dealing with both cooling systems and delivery mechanisms, which can put pressure on your technical support network.
Finally, the rarity of some parts can also impact the cost of replacement. When sourcing components for combo machines, you may encounter higher prices due to the limited supply and low popularity compared to traditional vending machines. This situation can significantly increase your overall operating expenses and cut into your profit margins.
In conclusion, as a vending machine business owner, it's crucial to maintain high levels of equipment performance and efficiency. Opting for combo machines may present challenges in finding replacement parts, which could affect your ability to keep your machines up and running. Considering these factors, you might want to think twice before choosing combo machines for your vending business.
Combo vending machines, which combine snacks and drinks in one unit, may seem like a great option for your vending business, but restocking them more frequently could be a drawback. With a wide variety of inventory options, your combo machine is likely to run out of products faster than separate snack and drink machines.
Managing a vending business means staying on top of product levels to ensure your customers have a selection of fresh snacks and drinks. You need to be vigilant about restocking and checking your inventory regularly. In a combo machine, the combination of perishable food options, popular snack items, and drinks can lead to more frequent restocking.
Since some drink options are heavier than snacks, additional stress may be placed on the machine's mechanisms, potentially leading to increased wear-and-tear or need for repairs. It's essential to stay proactive about maintenance and inspect your vending machines to keep them functioning properly.
When planning your vending business, consider the demand for snacks and drinks in your chosen locations. You might find that separate snack and drink machines cater to customer preferences better and require less frequent restockings. This can help save time and reduce issues related to maintaining inventory levels.
In conclusion, while combo machines offer convenience and variety, the need to restock them more often might not be the ideal choice, depending on your vending business goals. Weigh the pros and cons before deciding on the type of machines to invest in, taking into account factors such as location demand, maintenance requirements, and inventory management.
Combo vending machines, while offering both snacks and drinks in one unit, can have limited capacity compared to dedicated snack or drink machines. This can lead to frequent restocking and potential loss of sales if products run out. Furthermore, a malfunction in one part of the machine can render both snack and drink sections inoperable, causing inconvenience for customers and loss of income for you.
Combo machines are generally more compact than dedicated snack or drink machines, making them appealing for locations with limited space. However, they often hold fewer items and may not provide the same variety of products as dedicated machines. Additionally, their refrigeration systems may be less efficient, leading to increased energy consumption and costs for you.
Like any vending machine, combo machines require regular maintenance to ensure smooth operation. However, since they have both snack and drink components, there may be more potential for malfunction. These machines may require more frequent service checks and repairs, which can result in higher maintenance costs.
Due to their smaller capacity compared to dedicated machines, combo vending machines can limit the variety of products you can offer. This could lead to lower customer satisfaction and reduced sales. By choosing dedicated snack and drink machines, you have the opportunity to offer a wider range of choices, catering to different preferences and tastes.
While profit margins vary depending on factors like location, product selection, and costs, combo vending machines may yield lower profits due to their limited capacity and potential for higher maintenance costs. Additionally, offering fewer product options can result in decreased sales, further impacting profitability.
Before selecting a vending machine for your business, it is crucial to evaluate the available space at the location. Combo machines may be an attractive option for smaller areas since they combine snack and drink offerings in one unit. However, if space permits, dedicated machines can provide higher capacity and a greater variety of products, potentially leading to higher revenue.