Functional
A reasonably priced gumball machines can be the best choice for someone looking for a vending machine business that is recession resistant. Done right, this can be a very profitable venture. The majority of competition for a gumball machine business will be competitors with candy, snack and soda machines.
As both machines give you something small and sweet, candy is probably the biggest competition for a gumball vending machine. Lower prices is what makes many people choose gumballs over candy. From a vending machine gumballs are much more affordable than candy. The sales of gumball machines are generally higher than those of candy machines. Gumball machines are small enough to fill spaces that candy vending machines cannot, giving you more placement options.
To be profitable, you will need to carefully select locations to put your gumball machine. Because a number of retailers selling food products don’t allow candy machines, they represent a perfect location for gumball machines. A gumball machine fits in almost anywhere and takes up little space. It pays to think about your main consumer when selecting the location for your gumball machine. Children will most likely be your biggest customers so look for locations that will have a lot of children passing your machine.
You need to keep the prices of your gumballs low. The majority of profits will result from increased volume, not margins. Owning multiple gumball machines will increase your profits greatly. When placing your machine try to avoid areas that receive direct sunlight. This makes the beautiful colors of gumballs fade, and can hurt the basic quality of the gum. It is common to pay a commission to the store where you put your gumball machine. The commission can either be a fixed fee or a percentage of the total sales from the machine. A small fee is commonly charged by most stores in existence. The larger the business, the larger the commission they require – but it is made up for in the greater sales volume that location brings.
