Vending machines represent a $40 billion a year industry in the United States, and current trends suggest that this figure is only going to grow. In our consumer-driven culture, vending machine manufacturers have developed innovative new ways of attracting business, while providing machine owners and operators with enhanced security features that protect their investments. As that technology continues to improve, the range of products that can viably be sold in vending machines also continues to grow, now including items such as disposable cameras, books, body care products and just about anything else that will fit in a coin-operated slot.

Vending Machines Can Now Be Used to Sell an Incredible Range of Products

One of the key technological advancements that’s led to the resurgence of the vending machine industry is temperature control. Not only do advanced cooling systems allow frozen foods such as ice cream to be sold from vending machines, less obviously temperature-sensitive items such as camera film can now also be securely stocked for longer periods of time. There’s also a flip side to the coin: it is now viable to vend items that need to be kept warm or hot, such as prepared food, coffee and tea.

In fact, coffee and tea vending machines represent one of the strongest growth sectors in the vending machine industry. These can make an excellent investment wherever large groups of people in need of a pick-me-up are likely to gather, such as cafeterias, university lecture halls, dormitories, and office buildings. A key factor in their ongoing success is the way these vending machines manage to anticipate and appeal to the everday needs of the people circulating nearby.

Vending Machine Marketing on a Whole New Level

Enticing customers to make vending machine purchases by stocking the machine with tried-and-true top-selling brands is an essential strategy. While the clearest examples of this have been demonstrated in the soft drink vending machine industry, dominated by the world’s two top soft drinks, Coke and Pepsi, the principle holds true no matter what type of products are being sold. Offering brand-name products enables vending machine owners to lure in business using the brand’s name and logo on the vending machine, a low-cost marketing tool when applied to products that already hold a substantial market share. Think Kodak for film, Johnson + Johnson for band-aids and Vaseline for skin care, for a few concrete examples.

Vending machine manufacturers themselves have begun to respond to customer demand for more designs oriented toward brand recognition. Advances in the manufacture of high-performance, sculptable plastics, stylized lighting and transparent materials allow vending machine operators to purchase a model that speaks to the preferences of their target market. Young people, for example, are known not only for brand loyalty but also for preferring sleeker, flashier displays that convey a contemporary, hip and “young” feel. Form should also match function: if you’re selling laundry soap, a classic, clean look can appeal to customers on a subliminal level.

In addition, vending machine operators are the latest in the bandwagon-jumpers who have realized they can translate nutrition trends into profits. Vending machines that offer products for people swept up in the low-carb craze, for example, are performing very well when placed in areas with high volumes of health-conscious people. With contemporary technology, the uses for vending machines is really limited only by the imagination of the people operating them, and significant profits await those who can discover a winning combination of marketing and product placement.

Designed to vend a variety of laundry products, including stain treatment products and single-use detergent portions, soap vending machines are a convenient amenity to add to shared laundry facilities. Typically found in dormitories, youth hostels and budget-range accommodations, soap vending machines can also be profitable at truck stops, in apartment complexes and at camping areas.

The basic soap vending machines manufactured for the commercial market will hold, at minimum, about 40 different items. Typically designed as wall-mount units, these vending machines usually contain a minimum of five columns, and feature easy-loading compartments utilizing a first-in, first-out system that automatically pushes older products to the front. Because the number of products a basic soap vending machine model is designed to carry is limited, most offer only a narrow pricing range for each individual product column. However, if you’re looking to diversify your product selection, you are better off shopping for a soap vending machine that allows for individual pricing. While these models are typically more expensive, they are frequently more profitable because the increase in available selection means a higher turnover of product volume.

Simpler units are lighter in weight and more compact than the elaborate soap vending machines. A no-frills, 40-item unit usually weighs between 75 and 90 pounds. It can conveniently be mounted on a wall, with little required in the way of additional support. Operators concerned about the security of their soap vending machines can also shop for a sturdy design; however, most commercially manufactured soap vending machines are constructed from durable heavy-duty steel, making them very difficult to tamper with.

Soap Vending Machines with Advanced Features

If you’re looking for a soap vending machine with advanced and enhanced features, manufacturers also offer debit and credit card operated models, as well as units with up to 24 product chambers or more. These units can be a boon to property owners and managers looking to increase profitability at high-traffic shared, public or commercial laundry facilities. Not only are these types of units designed to hold a wide variety of products (which will, in turn, attract more business), but the convenience they offer can also be used as justification for charging higher-than-normal prices for the products offered. Studies have shown that vending machines that accept credit or debit card payments can be significantly more profitable than their change-only counterparts. There are two simple reasons for this increased profitiabily: first, people are more likely to spend money if it doesn’t require them to part with physical cash; second, the convenience of paying with a card often wins business when customers aren’t carrying cash or exact change.

You can also split the difference between the basic and higher-end models available by purchasing mid-sized soap vending machines that offer some conveniences but still keep your up-front investment costs low. The best example of this type of machine is a unit that accepts both bills and coins, and makes change for customers who don’t have the exact amount of money required to make a purchase. More elaborate models like this come equipped with readers than can detect different bill denominations, useful if you want to offer products that cost a little more money. In addition, they make a good compromise between the small and easy-to-mount basic units that offer relatively few products and the large, space-consuming but more versatile high-end models.

Having taken the European and Japanese DVD rental markets by storm, DVD vending machines that both sell and rent fast-moving motion picture releases are being touted as the wave of the future. Given that 90 percent of DVD sales and rentals are generated from new releases, DVD vending machines present entrepreneurs with an opportunity to cash in on the $8 billion a year DVD rental industry without worrying about the overhead costs associated with opening a video store. You don’t have to rent space, pay employees or meet expensive operating costs; all the owners of a DVD vending machine needs to do is ensure that the products their customers want are readily available.

How DVD Vending Machines Work

Typically, DVD rental vending machines are linked to the Internet, and customers register for an account by accessing your website. After entering and verifying customer information, including name, date of birth, address and a credit card number, customers can browse a selection of DVDs and reserve titles for pickup at the nearest vending machine location. A customer’s order is then processed and verified using the client’s credit card, which is entered into the machine to complete payment. Normally, customers agree to a set of terms and conditions that permits the vendor to charge the customer’s credit card the full value of the DVD should the customer fail to return it.

While they are just beginning to catch on in the United States, DVD rental vending machines offer a significant market advantage over traditional video rental stores simply because they can offer rentals at much lower rates. Since the overhead and maintenance costs associated with managing a DVD vending machine are very small, proprietors can pass the savings on to their customers. In Europe and some parts of Asia, DVD rental machines have become so popular that finding a traditional video rental store has now become all but impossible.

Vending machines can also offer DVDs for outright sale to customers. Often these are used discs, sold at reduced prices. These single-sale machines typically require a little more upkeep, since merchandise that’s sold needs to be replaced, unlike a DVD rental kiosk which constantly recycles the same merchandise. Customers have the choice to pay with cash or credit cards, and enjoy the convenience and low prices a vending machine can offer.

Get the Most Out of a DVD Vending Machine

Regardless of whether your machine rents or sells DVDs, it’s essential to stay current by offering the latest and most popular new releases. While one or two slots might be given over to classic films and popular titles from yesteryear, the lion’s share of DVD vending machine income is earned from the movies of here and now.

While they’re currently limited to placement in fast food restaurants and convenience store chains, DVD rental machines are poised to make a big splash in supermarkets, strip malls and shopping centers around the country. With limitless profit potential, entrepreneurs seeking the hot-ticket vending machine items of tomorrow would be wise to investigate the DVD market further.