We’ll discuss how to get vending machine contracts as a beginner or expert in this line of business.
Vending machine contracts are of various types. There are also endless possibilities for whatever type of contract you seek.
How To Secure Vending Machine Contracts
Here, the aim is to show you ways to get a vending contract. It isn’t enough to be all set without a demand for your vending product or service. You’ll have to actively seek ways to create demand.
Contracts, in turn, translate to sales and profits. So, without further ado, let’s begin the discussion.
Find An Establishment With High Traffic
Every city has establishments with high foot traffic. Such locations are ideal for vending machine installations.
However, there are procedures to follow before getting the approval or contract to install such machines. Therefore the first step is by finding such establishments. These aren’t difficult to find.
Such locations range from college campuses to sports arenas, shopping malls, beauty salons, government agencies, private businesses, and so on. Remember, the main aim is to find places with significant foot traffic.
Vending businesses thrive more in such locations due to the higher demand for such services.
So, what if you find vending machines already installed in such locations? It’s no surprise at all. You should expect that such may be the case. In such situations, you can try negotiating with the business proprietor or owner for a space to install yours.
If the ideal spot is already taken up, you can find other alternatives such as other businesses with significant foot traffic.
Before proceeding any further, there are lots of things you’ll need to know. Finding a location with a lot of foot traffic won’t be enough. You want to know at what times of the day the traffic is highest or lowest.
In other words, you are considering the peak and off-peak periods to plan your business accordingly.
Next, the cost of doing business comes into play. When the cost of doing business is being considered, you are talking about transportation costs, vending supplies, product inventory, filing, maintenance, and operating the machines.
You also want to have a rough estimate of sales to know your breakeven point and if your business will be profitable at the end of the day.
This process enables you to determine or assess if you’re prepared to proceed with seeking a vending machine contract with a client or not. This leads us to the next point;
Get In Touch With Business Owners
Having determined that a business location is an ideal place to install your vending machine, you’ll need to see the proprietor or business owner for a chat. Being able to sell your idea is crucial at this point. You might want to have someone speak for you if you feel you aren’t as persuasive enough.
The whole idea of a business is to sell a service or product to the buyer. To do this, the buyer needs to be convinced they need the product or service. Convincing will require showing or highlighting the value of your vending machine business. A business owner won’t hesitate to give you the vending contract if the benefits are perceived to be good enough.
Remember, you aren’t just selling a good vending machine business. The idea should be exciting enough to make the client decide to go with it.
It is only when you’ve determined the viability of your vending machine business that a contract proposal is made.
When writing a vending machine marketing proposal, you want to show the client(s) the benefits they stand to gain from your business. Details such as responsibilities are stated in clear terms.
In other words, you want to establish from the onset whose responsibility it is to service the vending machines. The frequency of monitoring must also be provided. Above all, the owner will want to know what they stand to gain.
Therefore, this aspect must be explained as comprehensively as possible.
In most cases, compensation will be in the form of a percentage of net sales or revenue accrued from sales. The payment period should equally be clearly stated. A well laid out proposal is likely to get you the vending contracts you seek.
However, this is only a part of the process.
Get Into Specifics
After getting the attention of the client, you’ll have to further break down the figures. Before sealing the deal, you want to fully establish how the business will be conducted. It is best to propose sharing a percentage of the net sales per month rather than offering a flat monthly fee.
The benefits here are obvious. You remain profitable when sales drop rather than trying to meet up your end of the deal by paying a flat rate which might dip into or take up your entire profits. Aren’t we pessimistic? Not exactly.
As your vending machine business grows, your profits increase.
It won’t be cool to struggle with paying the percentage of profits made early on in the business. At other times, patronage might witness a drop due to multiple reasons. When this happens, you won’t have to worry about keeping up your end of the deal.
This figure or percentage of the net profit must be fully worked about before discussing it with the client.
Doing your assignment right will eliminate the probability of making a blunder. It also helps to ensure you are not left with an unfavorable deal.
Signing The Contract
After all the above procedures have been followed, the last step will be the contract stage. Having laid out the contract terms and conditions, both parties (you and the client) will need to review them together before appending your signatures.
These are the basic steps of getting vending machine contracts. It isn’t a difficult process once you know what to do.
Now you know. Start the process by finding suitable locations for your vending machines.