Your vending machine does not determine your success.
Your location does.
Two identical machines can produce completely different results depending on where they are placed.
This guide will teach you how to evaluate a location correctly before installing a machine.
1. Why Location Is Everything
A vending machine is a convenience business.
It works best when:
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People are present
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People are busy
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People have limited alternatives
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People are comfortable purchasing quickly
High traffic alone is not enough.
You need qualified traffic.
2. The Three Types of Traffic
Understanding traffic types will change how you think about placement.
A. Captive Traffic (Best)
These are locations where people:
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Stay for long periods
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Cannot easily leave
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Have limited food access
Examples:
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Warehouses
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Hospitals
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Manufacturing facilities
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Schools
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Hotels (back-of-house staff areas)
These are often the most consistent revenue producers.
B. Convenience Traffic (Good)
People are present, but they have alternatives.
Examples:
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Office buildings
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Gyms
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Apartment complexes
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Auto dealerships
These require better product selection and pricing strategy.
C. Pass-Through Traffic (Unpredictable)
People pass by quickly.
Examples:
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Retail plazas
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Lobbies
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Public areas
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Strip malls
These locations can perform well — but are less predictable.
3. What Makes a Strong Location
When evaluating a site, look for:
Employee or Daily Population Count
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50+ people minimum (small but workable)
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100+ people (solid potential)
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250+ people (strong opportunity)
The more consistent the population, the better.
Length of Stay
The longer people stay, the more they snack.
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8-hour shifts are ideal
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Students between classes are strong
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Overnight workers are high-value
Limited Competition
Ask:
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Is there a cafeteria?
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Are there nearby stores?
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Are food trucks present daily?
If people must leave the building to buy something, vending becomes valuable.
Accessibility
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Machine must be visible
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Easy to access
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Well-lit
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Safe
Hidden machines underperform.
4. Revenue Share Expectations
Many locations request a percentage of sales.
Typical industry ranges:
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0% (very common)
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5% – 15% (standard range)
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20%+ (rare and usually high-traffic environments)
Revenue share is negotiable.
Often, offering better service matters more than offering higher percentages.
5. Indoor vs Outdoor Placement
Indoor Machines
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Lower weather risk
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Lower vandalism risk
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More stable revenue
Recommended for beginners.
Outdoor Machines
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Higher exposure
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Higher potential revenue
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Higher risk
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Requires reinforced machine
Outdoor vending should be planned carefully.
6. Signs a Location May Underperform
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Less than 30 daily consistent users
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High access to nearby convenience stores
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Poor lighting or security
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Low employee morale or high turnover
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Irregular operating hours
If traffic is inconsistent, revenue will be inconsistent.
7. Basic Revenue Estimation Formula
Very simple way to estimate:
Daily Users × 10% purchase rate × Average $2.50 sale × 20 days
Example:
100 employees
10 purchases per day
$2.50 average sale
= $25 per day
= $500 per month
If the location has 250 employees:
= $1,250 per month potential
This is not guaranteed revenue — it is a planning framework.
8. Should You Secure a Location Before Buying?
Yes — ideally.
New operators should:
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Identify 1–2 strong potential locations
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Confirm approval
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Then purchase the machine
Buying without a location increases risk.
9. Free Placement vs Owning the Location
Two common models:
Operator-Owned Machine
You own machine, stock, and collect revenue.
Business-Owned Machine
Business purchases machine and you manage it.
Both work.
Your strategy determines which path makes sense.
10. Final Truth About Location
You can improve products.
You can adjust pricing.
You can upgrade technology.
But you cannot fix a weak location.
Location is leverage.
Choose carefully.
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