Hey there, Vendpreneur!

Welcome to Becoming a Vendpreneur—where every week I help you navigate the challenges of running a vending machine business, whether you’re just starting out or looking to expand your operation.

This week, let's dive into the most common types of vending machines and how to choose the right one for your business needs! We're covering:

1. Factors to Consider When Choosing a Vending Machine

2. Snack and Soda Vending Machines

3. Specialty Vending Machines

4. Bulk Vending Machines

5. Specialty Vending Machines

But before we jump into more details, I want to share a few quick updates on my vending business, Pod Plug:

Business Wins

• 🐦 Cracked 1,000 followers on Twitter/X last week! It's been a grind, but the opportunities it's creating? Priceless.

• 🎨 Whipped up our new company brand guidelines with some eye-popping color palettes. Check 'em out and hit me with your thoughts!

• 🚀 Just joined TRIBE, a peer community for early stage entrepreneurs. Stoked to be part of my peer group launching Monday, supporting fellow founders!

• 🎯 Weighing options on franchisee minimum performance requirements (MPRs). Leaning towards no MPRs, instead thinking of creating awards and gamifying achievements for growth and revenue milestones. Less pressure, more fun!

• 💼 Tapped my finance whiz friend to help create a killer investor deck. He's a former Tesla financial analyst, now senior financial analyst at Rivian. Aiming to raise our first round of capital in the next 90 days!

• ✍️ Knocked out the 1st draft copy for our new franchise website. Spoiler alert: It's gonna be dope.

P.S. Want in on the Pod Plug franchise action? Hit the button below to get on our franchisee waiting list!

Now, let’s dive into this week’s newsletter!

Selecting the right vending machine is more strategic than you might think.

Here's the scoop on making the smart choice:

1.) Start by considering the location.

High foot traffic areas like airports and malls demand machines with a wider variety of products.

On the other hand, a small office might just need a simple coffee or snack machine. Check out my newsletter link below where I went into a deep dive on the 10 most profitable vending machine locations:

2.) Next, think about what you’re selling.

Are you sticking to snacks and drinks, or are you venturing into niche markets like tech gadgets or beauty products?

The type of products you offer will dictate the machine's complexity and size.

3.) Technology matters.

Modern machines come equipped with touchscreens, card and mobile payment options, and even remote monitoring.

These features not only enhance customer experience, but also streamline your operations. If you’d like to learn more about all the software tools I use for my business, check this out:

4.) Don't forget durability and maintenance.

A cheaper machine might save you money upfront but can cost more in repairs and downtime. Invest in quality to avoid headaches later.

Starting out with a tight budget? My pick is to go the refurbished route. Here's why:

5.) Finally, consider the aesthetics.

A sleek, well-designed machine can attract more users and even complement its surroundings.

Make your choice with these factors in mind to increase the likelihood of you landing locations and maximize your earnings.

Now that we've covered the basics, let's dive into the best types of vending machines to consider for your specific needs. 👇

1.) Snack and Soda Vending Machines 🥤

Snack and soda vending machines are the most common types of vending machines seen in various public spaces.

They dispense a wide range of products, from chips and candy to soft drinks and water.

These machines provide convenient, quick access to a variety of snacks and beverages, making them a staple in busy environments.

Best Locations:

• Corporate Offices - A quick snack or drink keeps productivity up.

• Schools/Universities - Students and teachers need easy access to refreshments.

• Hospitals - Essential for visitors and staff needing a quick energy boost (or bored while waiting for hours).

• Gyms - Electrolyte drinks and protein bars support fitness enthusiasts.

• Shopping Malls - Shoppers often need a quick snack break.

Types of Products to Stock:

• Popular Soft Drinks - Coke, Pepsi, and other favorites.

• Healthy Snacks - Granola bars, nuts, and fruit snacks for health-conscious consumers.

• Energy Drinks - Boosts for those long days and workouts (Celsius is on fire right now)

• Water and Juices - Essential hydration options.

• Assorted Candy and Chips - For those indulgent moments.

Top Advantages:

1. Steady Demand - Consistently high traffic areas guarantee sales.

2. Easy Restocking - Simple to refill and manage inventory.

3. Tech Integration - Smart machines can offer touchless payments and inventory tracking, enhancing customer convenience.

2.) Specialty Machines

Specialty vending machines cater to specific needs and preferences, offering a range of products beyond traditional snacks and drinks.

For example: Coffee and Hot Beverage Machines ☕️

Best Locations:

• Corporate Offices - Fuel for the workday grind.

• University Campuses - Keeps students and faculty energized.

• Hospitals - Comfort for those in stressful environments.

• Libraries - Essential companion for those all-nighters.

• Hotels - Convenient for guests at any hour.

Types of Products to Stock:

• Various Coffees - From espresso to smooth lattes.

• Diverse Teas - Herbal, green, and traditional blends.

• Hot Chocolate - A sweet favorite for all ages.

• Specialty Drinks - Seasonal offerings like pumpkin spice.

• Instant Soups - Quick, comforting meals on the go.

Top Advantages:

1. Niche Market - Less competition, more opportunities.

2. Continuous Revenue - High-demand areas ensure steady sales.

3. Smart Features - Modern tech enhances the user experience, making operations smoother.

3. Bulk Vending Machines

Bulk vending machines are compact, coin-operated machines that dispense small, typically low-cost items like gumballs, candies, and toys.

They're known for their simplicity and ease of use, making them a favorite among young users and a popular choice for entrepreneurs due to super low startup and maintenance costs.

Best Locations:

• Shopping Malls - High foot traffic guarantees visibility.

• Family Restaurants - A treat for kids while families dine.

• Arcades - Complements the fun and excitement of games.

• Movie Theaters - Perfect for grabbing a quick snack before the movie.

• Community Centers - A hit in places where families and children gather.

Types of Products to Stock:

• Gumballs - Colorful, fun, and always in demand.

• Assorted Candies - A sweet treat for every preference.

• Quick Snacks - Easy grab-and-go options for busy spots.

• Small Toys - Affordable fun to keep the kids engaged.

• Stickers and Tattoos - Popular with kids for their cool designs and instant appeal.

Top Advantages:

1. Affordable - I’ve seen these machine sell for under $250.

2. Low Maintenance - Simple mechanisms mean fewer issues.

3. Ease of Use - Straightforward for customers, making them ideal for all ages.

4. Smart Upgrades - Incorporating electronic payments can modernize the experience, expanding customer base and convenience.

Launching a bulk vending machine business can be a straightforward way to generate steady income with minimal oversight, perfect for locations where simplicity and speed are prized.

*This is my choice for people on a tight budget of under $500.

4. Smart Vending Machines

Smart vending machines are revolutionizing the industry.

Equipped with touchscreen interfaces, remote monitoring, digital payments, and dynamic inventory management.

These machines don't just dispense products—they create a highly interactive and convenient user experience.

Best Locations:

• Airports - Catering to tech-savvy travelers who value convenience.

• Shopping Centers - Where high foot traffic meets the demand for instant gratification.

• High-Tech Environments - Ideal for areas with a tech-oriented demographic.

• Busy Urban Areas - Places where quick service and efficiency are highly valued.

Types of Products to Stock:

• Upscale Snacks - Gourmet treats to appeal to health-conscious and discerning customers.

• Electronics - From earbuds to chargers, catering to the tech-dependent crowd.

• Customizable Products - Use real-time data to adjust offerings based on current trends and customer feedback.

• Health and Beauty Items - For those looking for quick wellness fixes.

• Beverages - Smart machines can adjust offerings from coffee to cold drinks based on the weather and time of day.

Top Advantages:

1. Enhanced User Experience - Touchscreens and mobile connectivity make each transaction smooth and engaging.

2. Monetize on Advertisements - This money is pure profit.

3. Expanded Payment Options - From credit cards to mobile payments (think QR codes), making purchases easy for everyone.

P.S.: This smart technology isn't limited to one type of vending machine—it's versatile and can be integrated across all types of vending operations, including snack and soda, specialty, and bulk machines.

And That’s a Wrap!

I’m ending this post with my top picks for where to buy new and refurbished vending machines:

• ​AMS​

• ​VE Solutions​

• ​Vending World​

• ​USI (U-Select-It)​

• ​Vending Connection​

• Crane Merchandising Systems

Thanks for reading this week’s newsletter.

Hit reply and let me know what you found most helpful this week—I read every single reply and I’d love to hear from you!

See you next Saturday!

-Ethan

Whenever you're ready, here are 3 free resources that can help you:

1. Cold Call Scripts: Get the confidence to cold call like a pro. My guide provides you with tried-and-true scripts to approach potential vending locations and turn conversations into contracts.

2. Cold Email Scripts: Break the ice with decision-makers using our effective cold email template. It’s designed to capture attention and spark interest, helping you start valuable conversations and grow your business.

3. Location Contract Template: Nail down the best spots for your vending machines with a rock-solid contract template. This easy-to-use template covers all the bases, so you can secure prime locations without the hassle.