When it comes to the vending machine business, the hardest part of the business is getting good locations. Obviously when you’re growing and expanding your route this requires a lot of initial placement work, to a certain extent once you have a fully established route, your need to find good locations tapers off, but it never truly ends. Even well established routes will need about 5% of their locations be replaced every year, so a decent sized route of 500 bulk machines will require about 25 new locations a year. It’s a never ending process.
Using a Telemarketing Locator
There are a few things you can do to help with the locating process. Since I’m working part time, I work with a telemarketing locator. My locator charges $40 – $60 per location depending on the size of the machine. The tricky part of using a locator is finding one you can trust and who won’t rob you blind. Unfortunately locators are one area of vending that is rife with problems;
there are a couple good ones, but a lot more bad ones. The best way to find a reliable locator is to use one that comes recommended by other venders, so a good place to start looking is on vending chat boards. This is no guarantee but at least it gives you a reasonable place to start shopping around. What I recommend is that you only pay for 1 or 2 locations at a time, this keeps the locator hoping to get more business from you, plus if you do get ripped off, at least it won’t be too painful. I hate to take this tone, but this is the reality when it comes to using a locator. Some locators ask to be paid up front, so this is not necessarily indicative of a scam. Some have earnings guarantees, discounted replacements and free replacements if you get bounced out before 60 days. Some locators also give you the right to refuse locations right away if you don’t like the location. Locators can locate all different types of machines including: bulk machines, energy vending machines, full line machines, amusement machines, coffee vending machines and virtually all other types of coin operated machines.
The Perils of Hiring an In Person Locator
I’ve never worked with an in person locator, but they do exist. I’m very hesitant to recommend using one because these businesses and individuals are even sketchier than telemarketing locators. Proceed with caution.
How to Affiliate With a Non-Profit
One thing you can do that will increase your odds of getting a location is to affiliate with a non-profit, this is true if you work with a locator or place the machines on your own. Some non-profits already have established vending programs, but you could work with a local non-profit and set up a deal of your own. These programs are a win-win for both the vender and the non-profit. Most programs charge the vender $1 per machine per month for the right to place the non-profits sticker on their machines. This helps the non-profits make money and it also makes it easier for venders to get their machines on location. Business owners are a lot more receptive to vending machines if it helps a charity.
Placing Machines Yourself with Telemarketing or In Person
When it comes to placing vending machines on your own, you can either do telemarketing or in person locating. Telemarketing is easier because you don’t have to drive around town lugging a machine with you, but the success rate is low. In person placement gives the business owner an opportunity to see you and your machine, plus it’s harder to turn someone down in person than on the phone, but the placement rate is still low, only about 10%. So, to place 100 machines, expect to visit over 1000 businesses.
Affiliating With a Local Non-Profit
One thing you could try is to find a local organization you want to support and affiliate with them, for example, a local scout group or junior high band. You could pay the kids per location plus $1 per machine per month. If you had a route of 500 machines, this would be $500 a month. I’m sure a lot of non-profits would love to have an extra $500 a month for their group.
Hire Someone You Know
With so many people currently out of work or needing extra money, I’m sure you might be able to hire someone you know and pay them a set amount per location; kids are particularly hard for business owners to turn down. If you’re going to pay a locator $50 per location why not pay someone you know. No matter what method you use, you better be prepared for the never ending cycle of getting vending machine placements.