This article gives the three greatest keys to running a profitable vending route. Knowing these keys can help determine if you qualify for using vending as a good wealth creation tool. Failure to use these keys will cause mediocre results in bulk vending at best.
Many people who consider buying a gumball or candy machine for wealth building fail to understand the three keys to running a profitable route. Failure to follow these keys is what leads people to eventual failure in their business. Let me share the keys with you to help you avoid the mistakes of a number of owners I have observed first hand.
The first key is to treat your route like a business, not a hobby. You're in this to make money and maximize your time and resources. Having a simple plan for placing machines, choosing products, deciding on route dimensions, and expanding your business are key elements for a successful vending entrepreneur. Don't approach your business as "I'm just in this to make a few extra dollars" experiment. Do it right from the beginning.
Second, many vendors don't know how much it costs them in product per vend. If you think you get to keep that whole quarter come collection time, you're in for a rude awakening! You must concentrate on your margins (profit margins). Knowing your margins can help keep you ahead of the competition. The goal is not to dispense the most product to beat the competition but to dispense a fair portion keeping your product costs down to reinvest in other areas to multiply profits. Don't fall for the emotional trap of thinking you have to give them a whole handful of candy. Be a business person. Know your cost per vend.
Third, too many people enter the bulk vending arena thinking vending locators will save the day. While locator services can be a good tool at times, what you will find is the turnover rate of accounts (losing accounts) plus the mediocre accounts you will receive end up costing you too much up front money with the cost of machines and product. Even if you buy a cheap $80 machine including stand, by the time you pay a locator $40 and $12 to fill the machine, you have over $130 invested in a machine that might bring in $5 a month gross. My point is to learn to locate yourself. Focus on sales!
For any legitimate business to prosper, sales must be a focus and priority. You can learn to locate yourself if you will face your fears. I know this from my own personal experience. I have had no sales training yet I have placed over 100 machines in the last year. I still don't feel comfortable locating yet I know it is probably the greatest key to building wealth in the bulk vending business.
Take these keys into consideration and don't end up discouraged with a warehouse full of unplaced machines. You can build a successful bulk vending business if you educate yourself and go beyond your limits. As others have said, "Grow the person, grow the business."
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