If you’ve been exploring vending machine franchise opportunities, you probably have a list of questions the length of your arm.
From how much it will cost to restock machines, to how much time you’ll need to invest in refilling and maintaining your machines, there are lots of important questions to ask your potential franchisor and to work out for yourself.
One question we often hear from would-be franchisees is:
“Which vending machine is the most profitable”
If you’re researching vending machines it’s important to underline that there are a number of factors which influence profitability, from products, to location.
This means that no two machines are alike in terms of profitability. It is possible, however, to highlight some particular trends which offer clues about what vending machines profit the most.
These are the trends we’ll be exploring in this article.
The Variables
Before we try to answer what vending machines profit the most, let’s consider the variables that affect their profitability before exploring them in more detail:
Products
The products a vending machine sells will influence its profitability. For example, a machine stocked with sweet snacks and treats may not do well at a health centre, while healthy snacks may not go down as well at a play centre or pub.
Of course, this is a huge simplification, research into local demographics are key to understanding which products will be most successful in which locations.
Machine type
From hot drinks machines, to change machines, tower style vending machines to more conventional snack options, there are lots of different types of machine you may choose to operate.
The profitability of each depends, again, on matching your selection to the demographics in your location. Machine type can also affect franchise costs; namely the resources you’ll need to invest in maintenance and restocking.
Location
This really is an important variable which affects which vending machine is most profitable.
Machines in high footfall areas will always perform better and, if you can match your machine type and your products to your location, you can enjoy even better performance.
Profitability: Putting it all together
When considering what vending machine profits the most, assessing each of the above factors in conjunction with one another is essential.
The three are closely interrelated and, when combined, they will help potential vendors establish the most profitable possible machines.
Products
Unfortunately, there are no hard and fast figures which clearly indicate exactly which products are purchased most frequently from UK vending machines.
However, snack machines come out on top time after time according to industry experts. In the US, however, Automatic Merchandiser recently released this list of its top selling snacks in dollar sales:
1) Snickers
2) Doritos Big Grab
3) Peanut M&Ms
4) Cheetos Crunchy
5) Cheez-It Original
6) Twix Bar
7) Strawberry Frosted Pop-Tarts
8) Rice Krispies Treats
9) Lay’s Chips (Walkers crisps)
10) Mrs. Freshley’s Jumbo Honey Bun
As you can see, a range of chocolate bars, crisps and bite-sized snacks tops the list in the US, with plenty of variation in the top 10 regarding product type.
Clearly offering a range of products, designed to tempt all tastes, is an important part of operating a profitable machine.
The profitability of offering healthy alternatives, or wholly healthy machines will depend largely on the location of the machine.
Machine types
When it comes to the type of machine used, again, there are few representative figures available for the UK snack industry. Like product type, however, location is fundamental to the type of machine you choose.
At Tubz Brands we use vending towers, which have several benefits over other machine types:
– They are light and easy to transport compared to other vending machines.
– They are non-electrical so easy to maintain and repair.
– And they are not obtrusive so easy to find sites for.
These factors mean greater flexibility and lower franchise costs than with bigger, electronic machines.
Location
To assure profitability, potential vendors may consider conducting research at possible locations, using questionnaires to find out about the habits and preferences of the area’s demographics.
Assessing which shops are in the local area may also help you plug a gap in the market.
Learning more about the different activities conducted nearby will also help you choose a machine type (and product type) that brings in the greatest possible profit.
If you want to know more about the vending machines available at Tubz Brands just contact the team today at: info@tubzbrands.co.uk or 01795 414 480.
Image courtesy gimmevending.com
