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 want to talk about the 5 crucial steps you can follow to secure your first vending location:

• Step #1: Identify Potential Locations

• Step #2: Research Location Demographics

• Step #3: Prepare Your Pitch & Flyer

• Step #4: Make Contact with Decision-Makers

• Step #5: Finalize the Agreement

Before we dive in, let's catch up on some exciting updates from my vending business, Pod Plug:

Quick Business Updates:

• Hit the NAMA trade show in Dallas, the biggest vending machine event of the year. Made great connections with vendors and got a sneak peek at some cool new machines, including an orange juice one!

• Had a promising meeting about selling our Oxford, MS route of 3 machines for $30,000.

• Joined top vending influencers at an exclusive axe throwing event in Dallas. Networked and made some new friends in the industry.

• Finalized the financial model for our upcoming franchise program.

• Visited 20 of our strongest 65 Dallas & Fort Worth locations, strengthening partnerships and ensuring every staff member has my number in case of any issues.

Now, let’s dive in!

Securing your first vending location might feel like a gamble, but with the right strategy, you can turn it into a surefire win.

You might ask, “Is there a best way to nail down a prime spot? What crucial elements could I be overlooking?”

I'm here to guide you through this essential phase, ensuring you lay a solid foundation for your vending venture.

Ready to tap into my insights? Let’s do this:

Step #1: Identify Potential Locations

Start by Googling high-traffic locations within a 15-mile radius of where you live:

• Gyms

• Hospitals

• Apartments

• Office parks

• Laundromats

• Bars & nightclubs

• College campuses

• Hotels and motels

• Apartment buildings

• Manufacturing facilities

Here’s a pro tip:

Organize your findings in a straightforward excel spreadsheet. This helps you assess each location on key aspects such as:

• Visibility of the machine

• Foot traffic of the location

Then, make a list of each one’s email and phone numbers. This step will take a few hours.

Once you've built your list, it's time to narrow down.

This step is crucial to avoid wasting time and effort on locations that might seem promising initially but don't align with your needs upon closer inspection.

Think about these questions: If you get a spot, how will your machines fit there? Is it a good place for your business? What changes might you need to make? What problems could come up?

Beyond your initial assessments, you should also consider:

• Employee count

• Security conditions

• Machine placement (will it be outdoors or indoors?)

At this stage, you define your deal-breakers and where you're willing to make concessions.

For instance, if a location has weak security but high profitability, you might decide it's worth implementing additional security measures for your machines.

This step is about balancing your capabilities with practical adjustments to secure the best possible locations.

Step #2: Research Location Demographics

Getting to know the regular visitors at your potential locations is key.

This knowledge allows you to customize your vending machine selections to suit the preferences of your customer base.

In this phase, stop by the location to get a feel for the demographic. Pay attention to:

• Age

• Economic status

• Preferences —> how do they think? what do they need? what do they appreciate?

Here's an extra tip:

Observe the flow of people at various times throughout the day. This will give you a clearer picture of who your customers are and when they're most likely to purchase.

This step is all about aligning your offerings with the specific needs and habits of your target customers, ensuring your vending machines hit the mark.

Step #3: Prepare a One-Page Sales Flyer

A one-page sales flyer is your initial tool to pique the location owners’ interest. It’s crucial to keep it concise and impactful.

Here’s what to highlight:

• The three uniques of your vending machines

• Your tested and proven process

• Your commitment and guarantee (for instance, offer to remove the machine after a month if it’s not a fit for them).

Visual appeal is also key. Ensure the design flows well and the graphics effectively represent your business’s essence.

This flyer is your initial handshake with potential partners, so make it count by clearly communicating the value and uniqueness of your vending solutions.

To get a copy of our latest flyer, find it here.

Step #4: Contact Decision-Makers

Once you've got your narrowed-down list and one-page sales flyer ready, it's go-time.

Target property managers, business/location owners, or administrative personnel at larger organizations.

Whether you're reaching out by email, phone, or aiming for a face-to-face meeting, your pitch needs to sell the benefits of having a vending machine.

To help you nail your pitch, last week I put together a Cold Call Script Guide and a Cold Email Template.

Click on the links below to access these resources:

• Cold Call Script Guide

• Cold Email Template

Remember, these templates are just a starting point.

If they show interest, follow up with the customized sales flyer you've prepared.

Be ready to tackle typical concerns such as space requirements, commissions, refunds, security issues, and the aesthetic impact of installing a vending machine.

Step #5: Finalize the Agreement

Once the proposal is accepted, draft a contract that outlines the terms of the placement, responsibilities of each party, and any financial agreements.

Get access to the contract I use here.

Streamline the signing process to make it as straightforward as possible. I suggest utilizing DocuSign for convenience and simplicity.

And that’s it!

Remember the #1 rule in vending:

Secure the Location Before You Buy The Machine.

You’ll avoid the pitfall of having a great machine in a bad location (where it collects dust instead of dollars).

You now have a step-by-step guide to secure your first vending location.

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