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Return to Articles about Business

Starting a Gumball Machine Business

by: Michael Rad
Are you thinking of starting a vending machine business? If so, gumball vending machines might just be the perfect answer for your needs. Learn how and why gumball vending is profitable by reading the complete article.

Competition and strategies
The most frightful competition where gumball vending machines are considered is candy vending machine, and soda vending machine. Candy vending machines are an alternative to gumball ones, because they are both considered to be sweets. The difference however, is the fact that gumball vending machines are so much cheaper, so they have more popularity among people. Sales from a gumball vending machine are much higher than a candy one. And besides, the gumball vending machines are smaller and can be placed in any food store. A gumball vending machine is first of all a vending machine business niche element. So in order to make profit and be successful in your business, you most certainly must think about positioning the gumball vending machine. Considering the fact that candy vending machines canít be placed in a local food store - a gumball dispenser is, however, a great replacement, being smaller and much more adaptable to a local store. Kids are the main targets to a gumball vending machine, so placing vending machines in locations where kids go is a major factor in increasing your revenue and developing a profitable vending machine business.

The gumball vending machine business
Itís true that gumball machines produce gum that is extremely cheap, so the price canít be so high. But think again, because things can be different. Having gumball sold in million pieces a day, you can even make a fortune out of gumball vending machines. Purchasing more than just one gumball machine is the key to increasing your profit. And placing them in childrenís way is the key to a successful vending machine business. One of the major factors that can bring you trouble is direct sunlight. Having your gumball vending machine put straight into the sunlight can affect the quality of the gum not to mention the color that will slowly fade away. So, in order to protect your vending machine business, make sure you place your gumball vending machines in a shady cool place for the durability and good maintenance of the quality of the gumballs.

Commissions Ė a basic strategy in vending
Paying a commission fee to the owner of the store you place your vending machine in, is a must. Usually, you will have to pay a fixed commission. But in many cases the commission is based on the sales, and has to do with the percentage of your sales. Most store owners will only charge you a small fee, because a vending machine is a good advertising source for them as well. Especially, if you have invested in a gumball vending machine, the commission is not highly rated, since the machine itself doesnít take much space. Though, make no mistake: paying commission is a basic in vending. There are stores that will ask for up to 25% of your sales. This is the case of a major superstore, with great sales itself, that will only do you good if it lets you place the vending machine in its location. Find fresh new vending business information here:
www.vending-machine-expert.com


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