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It can take a lot of time and effort to acquire a new vending account. However, not all accounts are beneficial for your operation. By asking these four questions, you can see if an account is right for you.

1. What type of location is it?

With a new location, there are a number of things you should to consider:how many people frequent this location, what type of people work there, how long these folks stay there, and what other options there may be in the surrounding area. Nursing homes, rehab facilities, and universities are often great vending accounts as people live there and grow accustomed to ordering from these machines as part of their everyday routines. Manufacturing plants, office break rooms, and call centers can also be good locations. These people work hard and often enjoy a nice, convenient snack during their limited downtime. Apartment complexes can be risky. If it is a higher end complex, it can be a beneficial vending account. If it is in a bad part of town, the chances of vandalism increase.

When deciding if a location would be a good vending account, consider how much would need to spent on equipment, the cost to service it, the prices of the products, taxes for the county, and projected profit. All of this can be tedious to track for each machine. Luckily, a vending management system (VMS) can handle all of this.

2. Does the vending account want a commission?

Some locations will want a commission as high as 30% on sales for placing machines on their property. If a location demands a commission that high, it may not be worth it. Typically, a commission between 10-15% should be enough to satisfy both parties, but it depends on the location. If there is a higher volume, maybe a higher commission is acceptable. Generally, it is good to have an average commission of about 8% in the company.

A VMS has tools that help operators deal with commissions. Commission and subsidy calculators can help operators calculate and manage commissions at all locations. These management tools ensure operators pay out the right commissions to the right locations. Plus, they can help establish trust between the location and the operator by providing sales figures.

3. Are there any special product requests?

We all know that customers like to ask for healthy, but that doesn’t mean healthy will actually sell. If this is the case, but the machines are stocked with healthy options, sales may suffer. In the beginning, it is often best to stick to the 80 / 20 rule of traditional vs. healthy product. If the potential vending account is a gym or wellness center, move the ratio to 70 / 30 or 60 / 40.

Vending management tools like product merchandising in the VMS can help ensure that the right products are stocked at the right locations. It can show how products are performing and what is actually selling well. If a location demands healthy products that just aren’t selling, there is hard data that can back the decision to swap out the items with something else. At the end of a day, it is best to stock products that actually fit a location.

4. Is there an opportunity to cross-sell other services?

Many operators pursue office coffee service, micro markets, and bulk delivery options to diversify their business and make more money. If there is an opportunity to not only provide vending, but other lines of service for a vending account, then that account is going to be more valuable.

Some vending accounts are going to be more valuable than others. In order to find one that is profitable for your operation, make sure to ask yourself these four questions. What type of location is it? Does the account want a commission? Are there any special product requests? Is there an opportunity to cross sell other services?

To learn more about what a VMS from Parlevel could do to help build trust with vending accounts, contact us here.