There a lot of decisions that you have to make when starting
any new business. The same is true for a vending machine business. A big
decision that you must decide during the planning stages of your business is
what kind of markets you want to pursue. Do you want to stick to a specific
niche or do you want to diversity and broaden your vending services to be more
inclusive? There are benefits and drawbacks to each, but making this decision
early and defining the role your vending services will fill will be crucial in
the success of your business!
Niche Vending Advantages:
- Lower Competition – By focusing the products that you offer, the locations you sell them and the target demographics that you sell them to, you eliminate a lot of competition. General beverage and snack vending machines will not be direct competition to an organic granola bar vending machine that only vends in specific book and music stores.
- Set premium prices – By offering specialized products that are difficult to find anywhere else, you can set your prices at a higher level than broad scope venders. This is because customers are willing to pay more to find exactly what they want and for the perceived additional value to your products.
- Easier targeting of markets – By having a very specified, niche product, you will easily be able to identify your target markets. Operating vending machines that only vend energy drinks and beverages will be easier to place effectively based on your ideal consumers instead of a machine that sells every kind of beverages from water to coffee and soda.
Niche Vending Disadvantages
- Small Market Size – The main disadvantage of niche vending is that your customer base, or target market, shrinks considerably the more specialized your machines become. If you only sell one product in your machines, then only people that want or need that product will purchase it. If you offer a wider range of products, you will attract more customers.
Niche marketing can be a very lucrative strategy for your
vending business, but you will have to do your research and make sure that you
understand your target market. Being extremely effective at meeting the needs
and wants of your target market will be key to succeeding with a niche vending
business. This means finding locations, equipment and suppliers that all work
together to maximized the real and perceived value of your services to your
customers. USelectIt.com has a wide range of vending machines for sale that will help get your niche vending business up and running!
