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, I’m sharing the first step I took to land top locations and that starts with creating your prospect list, AKA “The List.”

Here's what we'll dive into:

• Insight #1: Where is your target market?

• Insight #2: Who is your target market?

• Insight #3: What does your target market want?

• Insight #4: Creating your CRM to track your leads

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

Business Updates

• Kicked off the process of sourcing new products, including some naughty ones! 😉

• Ordered four new machines, two of which will be stocked with risqué products in restrooms. 😈

• Received a $30,000 deposit for the $150,000 Austin sale of 8 machines, and began training with the new buyer. The deal should close in two weeks.

• Partnered with a lender who will likely finance machines for future franchisees.

• Finalizing the financial model to raise $500K in equity over the next 3-4 months to support franchising growth.

• Started creating the franchise operations manual and will meet with our consultant in Dallas next week to review the operation.

• Begun documenting systems and procedures in one place to simplify troubleshooting (yes, very fun).

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

🚨 Attention Vendpreneurs! 🚨

Are you ready to take your vending business to the next level?

Imagine having a treasure map that leads you straight to the most profitable vending locations. A guide that helps you understand your customers better and grow your business faster than ever before.

Well, I've got great news for you!

Reading "Traction: Get a Grip on Your Business" by Gino Wickman transformed the way I approach my business.

This book introduced me to the Entrepreneurial Operating System (EOS), a game-changing framework that has fueled our rapid growth and helped create a more structured organization.

But the real gem? Creating "The List."

PS: I tweeted more key takeaways from the book. Check them out below:

First of all, what is “The List”?

This is your secret weapon to vending success.

It's not just a random collection of places, but a strategic process to identify prime locations and meet your customers' wants and needs head-on.

By crafting this list, you'll build a rock-solid foundation for your vending empire.

Curious to learn more?

Keep scrolling to discover how these powerful ideas can help you understand and target your market like never before! 👇

1. WHERE is your target market?

When you’re planting, the first thing you need to know is where to plant the seed.

Business is the same.

• Knowing your location helps you visualize your options.

• It helps you understand the "room" you want to break into.

• You can plan your next moves based on the locations you've listed.

Here’s how I would do it:

Google the following high-traffic locations within 15 miles of me:

• Hospitals

• Apartments

• College campuses

• Offices & warehouses with 100+ employees

• Bars & nightclubs (depending on your product)

PS: For a complete list of the best locations for vending machines, I suggest reading last week’s newsletter.

Then, I’d jot down each one’s email and phone numbers (this will take time). We’ll cover this in detail in an upcoming newsletter.

But wait, creating “The List” doesn’t end here. Let’s narrow it down. 👇

2. WHO is your target market?

You can't just place your machines anywhere.

Focus on locations that need what you offer and match their clientele with the products you’d like to sell.

This leads to higher conversion rates, and you end up selling to places more likely to say “YES.”

In the vending business, you deal with two main groups:

1. Vending customers

2. Location owners

For vending customers, view it through a B2C lens.

Consider these factors:

• Geographics (where are they?): Urban, suburban, rural, climate, population density, regional preferences.

• Demographics (what are they?): Age, gender, occupation, income.

• Psychographics (how do they think?): Purchasing behavior, brand loyalty, product usage, benefits sought.

Next, assess the location owners/managers from a B2B perspective.

Key characteristics to note include:

• Industry

• Job titles

• Company size

• Type of business

Example:

In my nightlife vending business, I’d target:

B2B:

• Ages 21-25

• College students

• Young professionals

• Nightlife enthusiasts

B2B:

• Venue decision makers (Owners and GM’s)

• Venues with monthly alcohol sales over $80k

• Venues with a foot traffic of more than 4k people monthly

Now that you've identified your target market, let's zero in even further.

3. WHAT does your target market want?

Now, it's time to dive into the psychology of your ideal customers.

What motivates them? What are their needs and desires?

Start with the customers:

• Needs/Wants: Do they crave convenience? Are they health-conscious or trendy?

• Pain Points: Think about lack of payment methods, no time during the work day, limited access during late hours, etc.

• Buying Patterns: Are they impulse buyers or planners?

• Product Usage: How often and in what context do they use your product?

• Emotional Triggers: How much do they care about product quality, cleanliness, customer service, and brand values?

For location owners/managers, focus on these:

• Motivation: Financially inclined, customer satisfaction, and space utilization.

• Pain Point-Solution: Outsourcing vending means they don't worry about upkeep, product selection, or security.

• Trust and Partnership: Customize product selection or brand the machines to match the location’s aesthetic.

• Value-Added Services: Offer promotional partnerships, co-branding opportunities, or event sponsorships.

Example:

In my case, I consider factors like:

• The pursuit of fun

• Impulsive buying behavior

• Seeking social enhancement

• Desiring instantaneous gratification

• Valuing convenience and popular products

4.⏰ CRM time!

With your research done, it's time to organize your prospect list.

I like to keep my CRM simple and include the following columns:

• Location

• City

• Contact name

• Position/Title

• Phone number

• Email

• Date contacted

• Notes

• Next steps

There are many affordable CRM options like Monday.com, Hubspot, Salesforce, but I always return to Google Sheets/Excel.

PS: If you’re interested in the main software tools powering my business, check out my past newsletter.

What to do next?

Note everything you gather about each location. It’s now your “The List!”

Only then, start contacting the locations (via cold call, email, and drop by in-person.)

When reaching out, keep these in mind:

• Make it personalized.

• Provide a simple, one-page flyer.

• Ask more questions, let the prospect do most of the talking.

Update the list as you go.

PS: I shared an example of our sales flyer on Twitter, and for download below. Take a look!

And that’s it for the week!

Creating “The List” gets you one step closer to your vending goals.

Knowing where to conduct business is critical, so it’s important to understand where your customers are. This helps you adapt what you offer to what they want.

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.