Importance of Location Over Machine
Discover why selecting the right location can significantly impact your business's success, far more than the number of machines you own.
Choosing the Right Location: Why Revenue Per Site Matters
In vending, it's not about how many machines you own—it's about where they are placed. One A+ location can generate more income than five poorly placed machines. This module highlights why selecting high-performing sites is the real key to profitability and how to avoid the most common trap new operators fall into.
Quality Over Quantity
Core Principle:
It’s not the number of machines that matters—it’s the revenue per machine that defines a successful route.
Example Insight:
A single machine at a premium location might do $2,000–$4,000/month.
Five machines at poor locations might barely hit $500 combined.
Bottom Line:
Prioritize A+ locations like high-traffic residential buildings, hospitals, and employee break rooms—not low-footfall or low-engagement spots like auto shops or low-end gas stations.
Common Pitfall: Idle Machines
Many new vendors buy machines before securing quality locations.
Case Example:
A common response Mike hears:
"Well, one of my machines is sitting in my garage." This is not a strategy—it’s wasted capital and space.
The First Question You Must Ask
Before even asking about machine type, ask:
"What is the revenue per machine?"
This one question reveals whether you're operating a profitable business or just collecting metal boxes.
Key Takeaways
Never buy machines until you've secured a revenue-worthy location.
Focus on profit per machine, not machine count.
Your first priority is placement—always find the right home before investing in the equipment.
Avoid emotionally-driven decisions like rushing to buy a machine on sale if you don’t have a proven site to place it.
This mindset shift—focusing on revenue per location instead of inventory count—is what separates thriving vending entrepreneurs from hobbyists.
Complete the following exercises:
1. Reflect on a business or project you are involved in and analyze its current locations. Are there opportunities to relocate resources to more profitable areas? Consider the demographic and foot traffic of your existing sites and identify areas for improvement.
2. Imagine you are starting a new vending machine business. Outline a plan for identifying and securing A-plus locations. How would you research potential sites, and what factors would be most critical in your decision-making process?
QUIZ
1. What is a key factor in determining the success of a business reliant on physical assets like vending machines?
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Leave your comments and questions below.
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