You’ve heard this expression before when it comes to business. WHere to put your new business that will get the most customers? This is one of the hardest and one of the most important things to understand in business.
Without question this is the most important thing in Vending is location, location , location. Finding quality locations can make or break your business. Vendors that focus on the quality of their locations find they have less turnover of accounts and simply less accounts to manage.
Some pitfalls of having real quality accounts is competition. There will be many competitors who will want your location. In our training literature you will find contracts which will allow you to sign your location up long term. Also, different strategies on how to maintain,make your location happy and most importantly make them the most profitable.
Vending equipment can be costly. FInding the correct location means you can have an account that does $1,000 or a back location that does $10 per week. Include the price of equipment and your ROI (return on investment) can stretch out as far as 4 years. But with a good location you could see a return on investment in as little as 6 months.
How to choose the right location for you?
Here's an example:
Example A: has a location that requires 2 machines @ $4000 per machine = $8,000. The location makes an average of $400 per month with gives the vendor a RIO of 20 months.
Example B: has a location that requires 4 machines @ $4000 per machine = $16,000. The location makes an average of $700 per month which gives the vendor a RIO of 23 months.
Although example A makes less they have a greater ROI. This would be important people who borrow money and want to repay quicker.People sometimes will borrow money from friends, relatives or their IRA/retirement accounts
Example B: Makes more money but has a longer ROI. It is important for example B to have greater cash flow.
Understanding what locations you want also depends on what you want out of your vending business. Some people prefer a passive income to supplement their current income or pension. Some people want to build a route that will become their full time business.
If you are example A and you are looking for a passive income or starter route. We have some great ideas.
If you are example B and are looking to increase your route or make vending your business. Here are some great ideas.
On site locators vs. over the phone.
What to look for?
What to vend?
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