To Vend or Not to Vend....that is the question

Are vending machines a money maker in apartment complexes or just a dud taking space?

Thanks,

I've done them in high-end luxury buildings only as an amenity to the property, and not to count on it as a big income generator. What I think is useful in larger luxury complexes is an ATM machine, but the ATM vendors don't think most apartment complexes have enough traffic to warrant putting an ATM machine in.

I would look into the DVD/Video game kiosks for vending.... You see them in stores, why not on property? I do not know what the percentage would be for the property.

I'm not sure if this is the same thing as what Johnny mentioned, but Redbox might be a good solution. And if there isn't one already in the area, it might actually be a good pull from the surrounding community, as well. This would probably help boost a community theater by creating more of a one-stop-shop for the movie experience. This could also make traditional vending machines more viable - Having one stand-alone vending machine may get forgotten, but if you have a distinct area where you get your movie, soda, and maybe a bag of microwavable popcorn, you have an all-inclusive experience...

Redbox IS one of them. There is another out there, but I cannot remember the name (CRS is acting up)....

Redbox actually has really high numbers required to get one setup.

If you are a business owner who serves at least 17,000 customers a week and you’re interested in business opportunities with redbox

Although I think it's a great idea, doesn't seem feasible.

Seems like they need to team up with a vendor that already serves the apartment industry providing movies to create a slimmed down version that only gets maintained once a month (or so) instead of once a week, or however often Redbox normally does.

I definitely agree that your business will depend on one word "location", but it is better to start small, one or two vending machines first then see how the machines perform a month.

Vending machines are still perfect for apartment complexes. Tenants find it very convenient. They can just easily purchase items without having to stand in line and check out at a store.

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I agree, vending is great... but pick a vendor that you have a good relationship with . I know it sounds silly, but there honestly is not a bigger pain then to have vendors ignore an ongoing problem with the machine, the vendor not keeping up with demand, or replacing it when it begins to look outdated! Keep in mind the location of where you want to put the machine as well. Location matters to get the most usage out of the machine, especially if it is outside. Many people will not feel safe using one if it is in a dark corner of the community etc.
BTW.. love the red box idea... if only it was attainable...you've given somebody an idea to run with out there... you'll see it in one of our monthly magazines for sale!

Any community with vending machines should consider installing Vending Misers along with them to keep energy costs down when the machines is not in use. Obviously, this is best for non-perishable items.

Contact your utility company to see if there are rebates or give away programs. You never know. They were giving these away in Northern California. . .

I should also mention in urban areas or where the unit mix is studio's or 1 bedrooms, vending machines should vend more than just the usual candy and pop - for instance, condoms, toothbrushes, toothpaste, tylenol. I have a site where these items are the best selling items. By best selling, I mean they run out. Be revenue sharing with the vendor - it is still a very low return on the per square foot price of the space. Again - its considered more of an amenity than an income generator.

If YOU owned and maintained these machines, the items in them often carry as much as a 50% markup, and will pay for the initial investment rather quickly. If you are a part of a large company, you may be able to start up a whole 'vending division' that would include your laundry machines, and keep the profits in house. This division would be responsible for everything to do with them; from negotiating the purchase price of the machines, to maintaining (keeping the machines stocked and handling the money) the machines for all sites.

If your company is doing something like this, fill us in on how it was set up (what kind of machines you have, what kind of labor is involved, and what kind of profit you see for each property)