Coffee vending machine business is a tough business, anyone that tells you otherwise is either the landlord or the vending machine salesman! Yes, both wanting to get some businesses from you.

Imagine this, you only earn a few cents for every coffee sold and this profit has to be shared with the landlord, the utilities company and machine repayment. How much would you be left with?

Then, there are those folks that sings the merit of coffee vending machine business being the best model and how this model can really provide you with a passive source of income. Read on and evaluate if this model is really passive.

The machine would break down, the ingredients would run out, money needs to be collected and you need to clean the machine for pest prevention. It would really be great if you do not need to attend to the machine everyday, forget about coffee vending machine business being an automated cash machine...

Sorry about the gloom and doom on the coffee vending machine business, I simply do not want people to come into this business, thinking it is easy money. Sure, it is difficult but not impossible. The 3 secrets that I am sharing might potentially change the way you run your business.

Secret number 1: Avoid the malls

Yes, this is exactly what I am trying to say, no typo error. If you want to run a profitable coffee vending machine business, please do not place any machines in shopping malls.

It is simply not profitable and regardless how well your inflow might be, the outflow would wiped out everything.

Any placement in shopping malls come with the basic rental, utilities and usually with commission takings on monthly sales. Depending on your pricing, the commission can take away whatever little profits you have.

Then, contrary to popular beliefs, shopping malls while having good traffic might not have the sales that you are looking for. This is mainly because, there are tons of F&B outlets for consumers to purchase their coffee, why would they go to your vending machines?

Secret number 2: Less is good

This is the essential component for any coffee vending machine business, choice of location. Anyone would tell you that location is key in retailing business and they are not wrong. However, for vending machine business, it is slightly different.

Think of it this way, when would you need the vending machine most? When you cannot find a shop nearby and need a drink or snack right? And, that is the key success factor of a coffee vending machine business. The absence of the usual shopping buzz.

While you should look for areas that are not so popular, still maintain the look out for an area that is populated. What you do not want is competition, you still need to have traffic to make a living!

Neighbour hospitals, police stations, military compounds, fire stations are all great areas where coffee vending machine business reported strong sales.

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