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, we’re diving into a big question: Should you hire a vending locator service to find new locations? I’ll breakdown:

1. What the service is and how it works

2. The benefits and drawbacks

3. Key factors to consider before hiring one

But before we jump into more details, I want to share a few quick updates on my two vending businesses, Pod Plug and Vending Machine LaunchPad (VMLP):

Business Updates

• 🤝 Super excited to announce our new LA Operating Partner, Devin! His background in business development, account management, and deep connections in LA nightlife make him the perfect fit. We're set to make waves in my hometown this January with Devin leading the charge at 25% profit share. This is exactly what we needed to dominate the LA market!

  🚀 The momentum keeps building - just welcomed another Vending Machine LaunchPad member today, making it our second addition this week. And trust me, we're just warming up!

  🎙️ Made my podcasting debut on The Business Blitz with Collin Rutherford! If you're curious about the full Pod Plug origin story, stay tuned - I'll share the recording next week once it's polished and ready to go.

  ⚠️ Had an eye-opening conversation about Naturals2Go Vending's business opportunity model. Learned about someone who invested $60k for 6 machines and still hasn't gotten locations after 6 months. Really reinforces my belief in the franchise model - they simply have more skin in the game and care about your success.

  💻 Just wrapped a great demo with BrandWide for our franchise CRM needs. Really impressed with their lean approach compared to FranConnect. The personal touch of having their CEO run the demo showed me they're hungry and ready to grow with us.

  👥 Thrilled to welcome two key players to the team on Monday: a CRM & Automation Specialist and an experienced Social Media Manager bringing serious agency-level expertise. Our dream team is coming together baby!

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

🔗 Best Links

Curated picks for Vendpreneurs

📱 Top Reads

• Check out this thread where people share their experiences using vending locators. (Reddit)

• Need more ideas? Here are 27 places where you can put your vending machine.📍 (UpFlip)

😱 Trending Now

• Reverse vending machines are popping up in malls everywhere! They’re a fun and simple way to help save the environment. 🌍 (TikTok)

• Self-serve 🍿 popcorn vending machines are now a thing. Just picture having one of these outside a theater. (TikTok)

There are two main ways to get vending locations:

1. You can find them on your own, or

2. You can hire a vending locator to do the work for you.

I’ve done both, and I can tell you that each option can go right or wrong (depending on how you approach it).

If you want to go the DIY route, I’ve got a guide that shows you exactly how to do it.

But if you're considering hiring a vending locator service, stick with me.

I’m about to break down whether it’s really worth the investment. 👇

What is a Vending Locator Service?

A vending locator service helps vending machine operators find the best spots to place their machines (where they can bring in the most $$$).

In a nutshell, here’s what they do:

1. Vending locators use data to find high-traffic locations like schools, hospitals, gyms, and offices.

2. They also help negotiate deals with property owners, handling commission rates, maintenance, and placement terms.

3. They provide insights into local trends, helping you adjust your machines to customer preferences.

Popular Vending Locator Services

Here are five popular vending locator services I found across the web

1. AllVending24

2. ABL Locations

3. Vending Locator

4. Vending Location Pro

5. Vending Business Services

But honestly, my best locations were ones I found on my own.

I've had success with a mix of strategies.

One method is cold calling businesses and asking if they'd be interested in a vending machine.

The other is walking in, talking directly to the manager, and pitching your idea in person.

PS. Check out my previous newsletter for tips on cold calling and in-person visits to land prime locations.

Both approaches work, but here's a pro tip: If you're already a regular customer at the business, it can make all the difference.

They’ll see you as familiar and trustworthy.

That could increase your chances of landing the location by 10x!

Pros and Cons of Hiring a Vending Locator Service

Hiring a vending locator service could totally transform your vending machine business. Let’s take a look at the pros first:

• Saves time

• Less stress

• Reduced risk

• Ongoing support

• Increased efficiency

• Negotiation support

• Expertise and experience

• Access to a large network

• Better chance for expansion

But it’s not all smooth sailing. There are some cons to consider as well:

• Less control

• Limited customization

• Not all services are reliable

• Dependency on third parties

• Cost (these services don’t come cheap! For full-size snack, soda, or combo vending machines, fees typically fall between $400 and $1,000 per location).

In the end, vending locator services can be super helpful, but it’s important to weigh the pros and cons carefully.

What to Consider Before Hiring a Vending Locator Service

Before hiring a vending locator service, it’s important to consider the following factors:

1. Your Budget- Locator fees can vary based on the type of machine and location. Be sure to set a budget before you start.

2. How Hands-On You Want to Be - Some locators handle everything, while others let you be more involved in choosing locations. Decide what works best for you.

3. Your Experience - If you're new to vending, a locator service can help you get started. If you're more experienced, you may prefer to find locations on your own.

4. Researching Services - Look for reviews and referrals. A reliable locator will have a proven track record of success.

5. Contract Terms - Carefully review the commission rates, contract length, and cancellation policies to avoid surprises.

6. Guarantees & Replacement Policies - Many services offer guarantees, but be sure to read the fine print. Ask for the right of refusal and the option to test locations, ideally within the first two months.

7. Payment Terms - Avoid paying the full amount upfront. A trustworthy locator typically asks for 50% upfront, but be cautious of anyone asking for 100% without a solid reputation.

By considering these factors, you’ll be in a better position to choose a vending locator service that meets your business needs and helps you succeed.

And That’s a Wrap!

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