School vending machines present entrepreneurs with excellent opportunities to create income streams by selling a variety of foods, drinks and other goods. You should, however, begin your research by looking into laws that apply to school vending machines in your state, county and/or city. You should also be aware that certain jurisdictions, particularly on the county level, have also overtaken the job of managing school vending machine contracts. In such jurisdictions, school boards have complete control over the operation and management of vending machines and usually take half the profits, with the other half being pumped back into the school. Independent operators do not stand to profit from vending machine operation in these jurisdictions, which have turned to self-reliance in an increasingly health-conscious society.

Industry estimates suggest some 20,000 school vending machines are in operation across the United States. Each of them is governed by federal and state laws regarding hours of operation and, more frequently nowadays, the types of foods and drinks that may and may not be sold. Almost all elementary, middle and junior high schools in the country now enforce strict policies which do not allow foods of “little nutritional content,” particularly soda pop, chips and candy bars, to be sold in vending machines. However, high schools that do permit the sale of sweets and treats in vending machines hold the potential to earn their operators high profits.

Consider the following statistics, drawn from a recent study:

• Approximately 71 percent of the items students purchase from school vending machines are soft drinks.
• Similarly, 71 percent of the student body surveyed in the study purchase soft drinks from campus vending machines on at least a semi-regular basis.
• Of students who use vending machines at least semi-regularly, 68 percent of them usually buy at least one snack item in addition to a soft drink.

The study also found that consumption of sugary beverages is higher in schools that are located in close vicinity to fast food restaurants, owing to the habits kids form from indulging in quick, cheap lunches. To the vending machine owner considering operating in a school that permits high-calorie snacks and sugary drinks to be sold, these figures suggest a combination snack-and-soda vending machines placed in a school near a high concentration of fast food restaurants are the most likely to generate sustainable profits.

Stocking School Vending Machines Healthfully

Of course, one way around the restrictions on foods offered in vending machines is to stock them with healthier alternatives. But will kids accept them? It seems they will. Miami-Dade County Public Schools in Florida made changes to high school beverage machines in 2004. Only one-third of their machines still stock soft drinks. Another third offer only low-fat milk, and the remaining third offer water and juice. Water is an increasingly popular choice, and revenue from the more health-conscious machines increased by $400,000.

Yogurt, nuts, string cheese, fresh or dried fruit and vegetable-and-dip packets are popular choices for restocking snack machines. With technological advances in refrigeration, machines that accept swipe cards and other innovations, it is becoming easier than ever before to offer healthy options such as salads, sandwiches and fresh produce to school children.

Perhaps no segment of the vending industry has benefited more from improvements in computerized technology than the ticket machine sector. Featuring everything from touch-activated screens to customized ticket printing in mere seconds, ticket vending machines are widely used for many applications, notably in the transportation and entertainment industries. Proprietors and operations managers of movie theaters, sporting venues, parking lots, subway stations, bus and train terminals and anywhere else ticket lines get long can improve efficiency and manage customer demand by using ticket vending machines.

Features of Today’s Ticket Vending Machines

Depending on its specific application, a typical ticket machine will come equipped with a variety of features designed for user convenience and easy management. As sophisticated technology powers most modern ticket vending machine designs, the vast majority of ticket vending machines being produced by manufacturers today accept a wide variety of payment forms, including credit and debit cards, bank notes, coins and specially created vending cards. Ticket vending machine manufacturers that service subway stations, for instance, can accommodate special pass cards issued by the municipality’s transit authority. These features can both enhance customer accessibility and improve the machine’s intake of revenue.

Data transfer within ticket machines is managed by a centralized computer system, and can usually be set according to the requirements of the machine’s application. Usually, vendors have the choice of two options for data transfer: the Global System for Mobile communications (GSM) or a Local Area Network (LAN) configuration. Both permit users to customize their ticket purchases, and are very useful for vending tickets when a variety of options are available to the consumer through the machine.

The touch-screen interfaces of modern ticket vending machines can also be customized by the operator for virtually limitless uses. Programmed into the computer technology that drives the machine are endless settings options that allow proprietors precision control over the types of ticket products offered and their costs.

Types of Ticket Vending Machines

Three common sub-types of advanced ticket vending machines are manufactured for commercial markets: mobile, stationary and cashless. The difference between a mobile unit and a stationary unit is simple–mobile units are stand-mounted for easy transport between different end locations, while stationary units are wall-mounted. Both have advantages and disadvantages. Stationary units are smaller but less versatile, while mobile units have more uses but are costlier. Cashless units typically fall at the high end of the pricing spectrum and feature sophisticated electronic technology to process sales rapidly while simultaneously logging comprehensive details of every purchase.

Simpler ticket vending machines provide a cost-effective alternative when the machine is needed only for a single application. These machines often employ similar user features, such as varied payment options, but use much simpler technology. They’re ideal for providing an alternative to long lines at ticket kiosks in businesses, such as amusement parks or concert venues, which sell general admission tickets at a single price. No matter what you intend to use it for, when shopping around for ticket vending machines, it’s recommended that you make direct inquiries with the manufacturer to determine a particular machine’s suitability for your intended application.

Even though the number of smokers worldwide is in decline, cigarette vending machines continue to rake in significant profits for their owners, and not only because the tobacco habit is so overpoweringly addictive. Vending machines are a way to score impulse purchases; smokers usually don’t wait until they’ve run out before buying their next pack.

However, legal concerns are particularly applicable to owners of cigarette vending machines. Eight recent, independently conducted studies showed that, within the United States, minors were successfully able to purchase tobacco products from cigarette vending machines 82 percent of the time or more–in several studies, they were able to get away with their illegal purchase 100 percent of the time. The law may hold the proprietor of the cigarette vending machine responsible, not the owner or lessee of the property where the machine is located. Hefty fines can result. If you’d prefer to be safe rather than sorry, consider locating your cigarette vending machines in environments where external age controls are already enforced, with bars and nightclubs being the most obvious examples.

Stock Cigarette Vending Machines With Specialized Products

One technique that vendors use to draw more business to their cigarette vending machines is to offer tobacco products that are difficult to find in conventional corner stores. Imported cigarettes, for example, can lend an exotic, refined air to your cigarette vending machine, and coax curious customers into spending some extra dollars for the specialty product. If you’re going to go that route, always ensure you’re stocking products that are legal in your jurisdiction, and that all applicable duty fees have been paid. Also be sure to offer specialty tobacco products in tandem with recognized domestic brands to ensure you cover the spread.

Depending on where you live, cigarette manufacturers may also make specially packaged cigarettes available to vending machine operators. Some tobacco companies box special packs specifically for sale in vending machines, which contain an odd number of cigarettes (usually 17 cigarettes in a box manufactured to hold 20). This is done to increase both the tobacco company and the vending machine operator’s profit margins, though you should be wary that this ploy is unlikely to attract repeat business. It’s best used in locations where smokers are willing to pay more to get their fix–again, bars and nightclubs are the best examples.

What to Look For In a Cigarette Vending Machine

You’ll want to purchase a cigarette vending machine that allows you customized control over the pricing and dispensing of the individual product chambers, and shop knowing that even the most basic units have a capacity of at least 100 packs. Most units produced nowadays come standard with bill validators, electronic money changers and the ability to accept bank notes of most any denomination. More and more cigarette vending machine operators are finding it worth their while to invest in a unit that permits payment by card, since it also allows them to charge additional premiums on top of the already inflated vending machine cost of a pack of cigarettes. It’s also worth spending the extra money on a machine that offers more security: cigarette vending machines tend to suffer from theft and vandalism more than other vending machines, simply because they offer a product that has an inherent street value.

While cigarette vending machines come in many shapes and sizes, they usually weigh 200 to 300 pounds and stand three feet high or less. If you’re looking to invest in one, you should consider buying a new unit directly from the manufacturer, since financing plans are often available and comprehensive warranties are usually offered so that you can protect your investment.