I bought a vending machine during a pandemic.
Small business growth strategy.
So I bought a vending machine for my small business earlier this year. Then a pandemic hit, social unrest, and a coin shortage. It was still worth it. Let me tell you why.
I have a small publishing company called Feral Publication. I mainly print and sell zines. A very niche audience. It is a hard business model, but some how I’ve been able to make it work. I’ve reached a large portion of my target demographic. Once you attain a large segment of a given demographic you need to reach out.
The dilemma that I faced was, how do you reach out and not destroy what you’ve built? So I came up with my plan early this year, and have been executing on it. The vending machine is a part of that growth strategy. There are many benefits that the vending machine offers me.
- It is a low cost. I attained my sticker vending machine for $300. Something that my company can stand to part with.
- It’s flexible. As I am trying to grow into different markets I have to be able to move around. If a location doesn’t work for me, I can pick up the machine and relocate it to another location targeting a different market.
- It’s something that can be scaled. Finding locations that work, I can then invest and buy another machine leaving them permanently in the locations/shops that are working.
- It allows for branding. I have repainted and branded my vending machine. Allowing for all my social media handles to be seen on them. Making the machine a billboard of sorts.
- It’s great fixed capitol. If I ever need, or want to sell the vending machines that I have accumulated, I can.
Now, if you’re wondering why a publishing company would be messing with vending machines. You’re probably assuming that I am using them for the same snacks, and stickers. I’m not.We are looking at vending machines in the wrong way. We see them as a set model to be followed, and so we see many individuals trying to compete in the same business model.
In a Washington Post article, Hold on to your Honey Buns,October 24, 2019, they claim that there is 5 million vending machines in the USA.
That number might make this industry seem over saturated, but in reality that’s a small number. The more problematic thing about this industry is limitations that business people are putting on them. All, if not most articles, only talk about vending machines as a way to sale snacks. That is a very limiting thought. The reality is that vending machines can hold anything. It is claiming a space inside of a brick and motor.
For example, my vending machine is a sticker vending machine. From it, I will be selling one page mini zines. This will be used as an introduction to the subculture of zines. I haven’t seen this done before, but I’m sure someone, somewhere, has also thought of this.
In Los Angeles, I saw a start up make up company selling bags of make up from a vending machine. They had it placed inside of a clothing boutique. The sight of it making me realize the brilliance of it. They came to buy clothes, they might want some make up with that.
Who might want some zines?
The locations I will be shooting for are comic book shops and skate shops. These are two demographics that will be more open to the counter culture of zines. I’m also not in direct competition with the shops, and its adding value to the guest experience.
That’s how we need to start looking at the vending machine business. The machines can hold anything, meaning that you are only limited by size and your own ideas.
It is the perfect growth strategy for so many small business out there. Find shops that would be complemented by your products, and get yourself a vending machine to claim that space.
Thanks for reading.
-Rich
