The Evolution of a Vending Business Plan

Vending Business Plan

The Evolution of a Vending Business Plan

It amazes me how far I have come, and what I have learned, in such a short amount of time. When I first started out I envisioned making my fortune off of just gumballs and candy. Reality, and the cost of goods, eventually set in and I realized I needed higher return on investment (ROI) to grow at the pace I wanted, so I started doing more research on products.

Slowly my business plan changed, I wanted to get into more toys. Toys have the great benefit of very little to zero loss due to product going bad. Higher mark-ups on toys giving me better ROI.  I also started looking at some of the flat vend machines for Tattoos and Stickers after running across a few great deals on machines.

So I made a few racks, not thinking this through like I should have. It’s pretty easy to find locations for single and double machines. Finding good locations for racks, that don’t already have a rack, isn’t as easy as I thought. Don’t get me wrong, I am not giving up on racks, but I am again changing my strategy, my business plan.

So where am I now, and where do I want to go eventually. I am currently considering:

3 types of singles;

  1. Assorted Gumballs for .25
  2. Nerds Gumballs for .50
  3. and toys for .50

4 types of doubles;

  1. Assorted Gumballs / skittle .25 / .25
  2. Assorted Gumballs / Bouncy Balls for .25 / .25
  3. Assorted Gumballs / Toy for .25 / .50
  4. Toy / Bouncy Balls .50 / .50

And the occasional rack when the opportunity presents itself.

I think this type of setup will afford me a good combination for most places while keeping inventory management simple. It will also keep my cost of good (COG) low and my profit high.

I am also hoping to move to a 60 day service cycle. Since I still work at my regular day job, time management is essential for both growing and managing my business. A 60 day service cycle would save me money but more importantly it would free up my time for more locating, meaning I can grow my business faster.

My needs and business plan may change, in fact it’s supposed to change to fit my current needs and to fine tune it as it grows and I learn how to do things better. So don’t get to hung up on your own business plan. Be willing to be flexible and to change it up, because growing and changing are a part of life and business.

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