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’ll focus on how to choose the right products for your machines by:

1. Conducting customer surveys

2. Analyzing sales data

3. Testing products

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

• 👥 Spoke 3 agencies to help me build our team at VMLP (aka Vending Machine LaunchPad) - now I have 2 interviews next week with a couple candidates with some great sales backgrounds. We're preparing for our re-launch in late November with a lot more features. Stay tuned!

• 🎯 Just launched Rocket Fuel Marketing, which is VMLP's in-house marketing and branding partner - we help vending companies create logos, websites, flyers, brochures, pitch decks, company apparel, and a lot more. And…we just brought on our first client who wants us to create a 3-page website and trifold flyer for his orange juice vending machine company!

• 🤝 Conducted 4 interviews this week: Art Director, Procurement Manager, Business Development Manager, and CRM Assistant - gave offers to 3/4 and they all accepted!! Two of them will begin this upcoming week!

• 💼 Spoke to 3 investors - one of which is a lawyer who has major nightlife/hospitality contacts in Vegas

• 🏦 Finalized our agreement with our equipment lender to finance and rent Pod Plug vending machines, exclusively for our future franchisees. Now onto adding in the language to our FDD.

  📚 Finalized our franchise marketing plan and now working on our 150 page operations manual, which is our secret sauce on how we do business the Pod Plug way and shared only to our future franchisees.

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

🔗 Best Links

Curated picks for vending entrepreneurs

📱 Top Reads

• Pokémon Vending Machines Are Here! Discover if there’s one near you. 🎮 (Pokemon Center)

• When Does a Restaurant Become a Vending Machine? A thought-provoking take on automation in dining. 🤖 (The Hustle)

😱 Trending Now

• Wine enthusiasts would love these wine-dispensing machines. 🍷 (TikTok)

• Never worry about running out of golf balls on the course again with these golf ball vending machines. ⛳ (TikTok)

Let me share some of my early mistakes in the vending business:

I started by placing my machines in locations that were easy for me to get to, instead of spots that would appeal to my actual customers.

One example? I set up a machine in a biker bar mostly visited by dads over 50.

After months of slow sales, I knew I needed a new approach.

I realized that stocking items like vapes, phone chargers, tampons, gum, and mints in high-traffic bars and clubs frequented by people aged 21-35 worked way better.

That pivot changed everything.

Here’s another one:

Once, I stocked up on a two-month supply of Esco Bars, a popular disposable vape brand. I was sure they’d keep selling like crazy.

But after just three weeks, sales started slowing down, and I couldn’t figure out why.

So, I decided to go straight to the source. I visited several of our Austin locations, parked myself in front of the machines, and started chatting with customers for a couple of hours.

Out of 75 people I talked to, 85% mentioned a new brand taking over—Elf Bar.

Turns out, the market had shifted fast, and Elf Bars were now the top choice.

2 weeks later after stocking Elf Bars, our sales skyrocketed 40%!

The takeaway? If you’re not tuned in to what your customers want, trends can flip on you in no time.

Here are 3 steps you can take to stock your vending machines smarter (and avoid the mistakes I made):

Step #1: Use Surveys to Get Customer Feedback (FAST!)

Quick, simple surveys are a great way for vending machine operators to get direct feedback from customers.

This strategy is all about understanding what people really want and making your product choices better.

What Questions Should You Ask?

For the best results, keep your questions focused on what matters most to customers. Here are some examples:

• How often do you use this vending machine?

• What time of day do you typically use this machine?

• Are you happy with the variety of products offered?

• What kind of products would you like to see more?

• Have you ever wanted a product that wasn’t there?

• What do you think about the prices of the products?

• Have you ever had any issues using this machine?

P.S. I shared extra questions to make your surveys more effective. Give them a try and see what your customers say!

Keep your survey questions simple, and mix it up with multiple-choice and open-ended questions for a blend of quick stats and deeper insights.

Easy Survey Methods

Make it easy for customers to give feedback with these tools:

• QR Codes: Place a QR code on the machine so customers can scan and give feedback instantly.

• Suggestion Slips: Set up a small box for written ideas – it’s simple but effective.

Using these approaches to get customer feedback not only boosts satisfaction but also helps you keep popular items stocked and increase your sales.

Step #2: Analyze Sales Data

Want to know what products to stock up on in your vending machine?

Check your sales data.

Tracking what’s selling and what isn’t gives you REAL customer insights and helps you keep the right items available.

Use a Tracking System

To stay organized, start by creating a tracking sheet.

Log each sale by product, quantity, and date. For one or two machines, a basic spreadsheet works great.

But when you expand, these tools will help:

• Nayax or Cantaloupe: Simple POS and inventory tracking.

• VendSys: Advanced inventory and warehouse tracking.

PS. If you choose Nayax, use my promo code “ETHANPROMO” for a discount.

Step #3: Maximize Sales with Smart Product Testing

Testing new products in your vending machine keeps customers excited and gives you valuable insights.

Here’s a quick way to try new items without risking your profits:

• Start Small with New Products - Rather than overloading with choices, try adding two to four new items each month.

• Keep the Classics Alongside New Items - Your regulars have favorites, so don’t swap out too many proven items. Keep the core products that customers love while adding new ones.

• Analyze the Results - After a month, review the sales data. Keep items that are selling well, and replace those that aren’t moving as quickly.

The goal is to find the perfect mix that keeps customers happy and coming back!

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

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

1. 📚 Ultimate Guide to Starting a Vending Machine Business: a 90-page comprehensive and actionable guide on kickstarting your vending empire.

2. 🎭 Cold Call Scripts: Boost your confidence and convert conversations into contracts with my field-tested approach to reaching out to potential vending locations.

3. 📄 Location Contract Template: Now once you’ve secured your prime spot using the cold call scripts, it’s time to use my lawyer-built contract template. All your bases will be covered here.