Water vending machines provide a perfect example of how changing trends in nutrition awareness have translated into opportunities in the vending machine industry. Two major types of machines are available on the market. The first type is designed to vend bottled spring water, often alongside soda pop, juices and other chilled drinks. The second type is a drinking water vending machine, which customers use to fill their own water containers with fresh, cold water for a relatively inexpensive price.

Water Vending Machines and Branding

While vending machines designed specifically to market branded bottled water are still relatively uncommon, it’s a growing segment of the $40 billion-a-year vending machine industry. As water brands such as Dasani and Evian continue to increase in popularity, vendors are latching on to consumers’ name recognition of those brands and turning the bottled water craze into a significant and reliable source of income.

Bottled water provides an excellent alternative for health-conscious consumers who prefer to avoid the sugar, caffeine and chemicals contained in commercially prepared soft drinks. Especially in large urban areas, where tap water is usually recycled through a filtration system and highly chlorinated to meet high demand, many people prefer the taste and purity of bottled water, and they’re willing to pay extra for the luxury. By combining intelligent vending machine placement with widely recognized brand names and logos, water vending machine operators can realize significant profits.

Water vending machine operators are also cashing in on the recent trend towards ensuring that only healthy foods and beverages are offered in public schools. Consider the following facts:

• In the year 2000, only 8 percent of U.S. states outlawed the sale of junk food and sugary drinks in public schools. By 2006, that number had risen to 32 percent.
• Over the same period, the percentage of schools offering bottled water for sale in vending machines jumped from 30 percent to 46 percent.

These numbers continue to rise, and are generally indicative of trends outside the public school systems as well. People everywhere are making healthier choices, and vendors who offer those alternatives are enjoying the benefits.

Important Details About Drinking Water Vending Machines

Machines specifically designed to fill customer-provided containers (usually gallon jugs) with fresh drinking water are also becoming increasingly popular. These units typically cost several thousand dollars, and are coin-operated, requiring little in the way of service. They are automated to deliver fixed quantities of water, using a mechanism similar to what’s found in a gasoline pump. In fact, most vendors need to do very little upkeep other than collect deposited monies and refill the machine’s water tanks.

However, there are a couple of things to keep in the forefront of your mind when considering purchasing and operating a drinking water vending machine. First, and foremost, these units are not designed to vend anything but drinking water. While many vending machines offer more versatility (and therefore have a higher profit potential), these do not.

Secondly, it’s essential that vendors perform regular tests to check the levels of bacteria in the water for sale. Early studies being conducted suggest that because the water stands for a longer time, the bacterial levels can be higher. Fecal coliforms and Pseudomonas aeruginosa are the two bacterial culprits you need to watch for.

If properly maintained, these units can perform very well wherever travelers gather or stop to rest: campgrounds, rest stops, national and state parks and any place with few or no sources of drinking water and a high volume of thirsty traffic.

Vendors can turn a cool profit operating ice vending machines. Thanks to improvements in temperature control technology, ice vending machines can now service consumers 24 hours a day, requiring little more than an electrical outlet and product restocking. Responding to the needs of their customers, ice vending machine manufacturers are now also offering units with never-before-seen features that can attract more customers, thereby increasing profits.

Features to Look For in Ice Vending Machines

Most ice vending machines you’ll encounter are a little like portable ice houses. They will automatically weigh and bag ice for a customer once payment has been entered. The best of them are designed to service the needs of both individual and bulk consumers, since flexibility is the key to maximizing revenue.

Thus, units which allow for scaled pricing, giving discounts to customers who buy more ice, are usually the most profitable. While most of the ice vending machines available for a modest price are coin-operated, units that permit customers to purchase ice using a credit or debit card are certainly worth considering, for two reasons. First, the convenience of being able to pay with a card can win customers who might otherwise have gone elsewhere to buy ice. Second, higher-end units with electronic payment capacities can help you recoup your up-front investment costs faster, since operators generally increase the price of ice when offering the ability to pay by card.

Ice vending machine manufacturers who offer their customers state-of-the-art technology also provide management support tools. With the rise of electronic communications, ice vending machines that permit operators to monitor sales remotely are gaining greater and greater popularity with vendors. Using a hand-held communication device such as a Blackberry, or a standard Internet connection, operators can interface with their ice vending machines to track sales and anticipate any service needs. As part of their warranty plans, some manufacturers even offer round-the-clock technical and mechanical support to customers, should a problem ever surface and affect the operation of the machine.

Other features that you can find in top-of-the-line ice vending machines include:

• vending of both bagged ice and bulk ice (for coolers)
• machines that seal bags automatically
• variable production capacity (the amount of ice dispensed can be customized to be as small or large as you choose to allow)
• computer-operated ice delivery systems

Ice vending machines can also be custom-painted to include a company name, graphic or logo. For a modest additional cost, available either from the manufacturer or from a private party specializing in sign and graphic design, you can customize your ice vending machine to attract more business. By accessorizing your ice vending machine with clear, strong lettering and attractive graphics that display the price of ice, people will spot your machine from further away and take notice of it, even if it’s just for another time. Ice sales remain relatively constant throughout the year, and vending machines that service the consumer’s need for ready-made ice are becoming an increasingly popular way for vending machine operators to make money.

Candy vending machines come in all shapes and sizes, from single-unit gumball dispensers to elaborate multi-purpose models that vend everything from candy bars to licorice. Up-front investment and maintenance costs vary, depending on how elaborate a machine you’re planning to operate. Here’s a broad-strokes breakdown of what you can expect to find on the market.

Generic Candy Vending Machines

Whether you’re looking to spruce up your storefront with a gumball vending machine or want to satisfy your customer’s sweet tooth by offering a variety of low-cost treats, you can find a new or used machine that will fill your needs. The simplest units are single-chamber, vending a lone product for a fixed rate (usually a quarter) and dispensing a pre-set quantity of candy. Typically, machine operators can calibrate the machine to provide customers with greater or lesser quantities of candy. These machines typically service the market for bite-sized treats, such as Skittles or M&Ms.

However, proprietors seeking to offer more variety in a bid to increase revenues can opt for multi-chamber units. Manufacturers offer candy vending machines that are typically divided into 2 to 12 sections, each with its own individual coin slot. These units provide customers with not only more to choose from, but they also allow for individual section pricing, so that operators can stock select chambers with pricier treats. Another advantage of opting for a multi-chamber candy vending machine is it makes it easier to determine what type of candy sells best. An operator only needs to look and see which section has emptied out the fastest to get an instant picture of which products are the most popular.

Vending Machines Units Designed to Sell Branded Confectionery Products

In the United States alone, consumers spend about $64,000 a minute on products sold through vending machines. A large majority of those sales are comprised of branded goods, such as potato chips, soft drinks and candy bars.

Various vending machine designs are available on the market for investors looking to profit from the country’s sweet tooth. However, getting into the candy vending machine business isn’t a simple proposition of buying a unit, stocking it and letting the cash roll in. As with any business, key marketing and promotional considerations must be made to maximize profit potential.

Most candy vendors wisely offer a range of products, including chocolate bars, nuts and gum as well as healthier alternatives such as granola or fruit bars. However, associating your vending machine with well-known candy brands can attract business that might otherwise have passed you by. For this reason, it’s not a bad idea to approach your procurement of a vending machine through a well-known candy manufacturer. Most of them offer their own dedicated vending machine units for lease to individual operators, which can put you at an instant advantage in the marketplace.

By acting as an independent distributor of brand-name candy products or selling candy, nuts and sweets in bulk, you can enjoy a slice of the $40 billion-a-year pie that is the vending machine industry. Shop around for the best price on a new or used vending machine, make sure to do your research, place your machine properly and perform the proper maintenance–this is an easy way to turn a profit.