Finding great retail locations is one thing, but to have any hope of succeeding in this business, you have to be good at convincing location managers to let you put their machines on their premises. What you need is a marketing strategy that will help you contact potential customers and successfully sell them your service. This article looks at how you can put together a sales business marketing plan.
Who will do your Marketing?
Ideally, you should approach customers yourself so that you can learn as you go and keep costs to a minimum. Hiring someone to handle your marketing for you is also an option. You might even consider using the services of a professional ‘locator’ and many companies have sprung up that offer this service to suppliers.
What are you trading?
The first step is to define exactly what you are trying to sell. This is not as easy as it sounds, as the needs and opportunities at each location will be different. Most business models in other industries require you to choose a product or service and then go out and find a market for it. In vending machines, it would be foolish to buy machines and then search for suitable locations. Instead, you should be aware of a variety of vending machines, and then consider the needs and opportunities of each location on a case-by-case basis. Earn the account first and then purchase the machines to service the location.
Who are you marketing to?
Think about who your customers are and how you can design a marketing campaign that specifically appeals to them. You may need to adjust your strategies if you are targeting a variety of different businesses and organizations.
If you reach out to schools, for example, you should let them know that you can stock their machines with healthy snacks if they require it. Bring them some samples to try and let them know that you totally agree with their decision to limit their students’ junk food intake.
Make your vending machine business more marketable
Try to be different with your machines, your service, and the way you approach your business. Your competitors will already have approached managers in most major locations, and if they want machines, they’ll already have them.
Try to offer something different or come up with a concept that really appeals to the location in question and adds value for your customers. Get inside the head of a business owner and think about what he needs to improve in his business. Really listen to each client and offer them a personalized solution that adapts to their needs.
A good way to strengthen your marketing is to form a partnership with a vending machine charity and bring an official letter from them to your meetings. Inform prospects that for each month your vending machine is located on your premises, you will donate a certain amount of money to your charity partner. This is usually cheaper than giving them a commission and you can feel good about doing something good in the community.
If the ‘decision maker’ seems intent on getting a commission, then they should take a fixed percentage of the machines’ winnings. Be prepared to go a little higher if they want to trade. Let them know that he will pay them every time he comes to collect money from the machine. You can even offer to let them watch you empty the machine and count the money so they can be sure they’re getting their share.
You’ll also have a much better chance of winning big jackpots if you have at least a million dollar liability insurance, which only costs about $40 to $80 per month depending on certain variables. Vending machines are pretty safe these days, but accidents have been known to happen.
Start networking
Many people start locating vending machines through friends, family, and associates. You’re bound to know business owners or people in management positions, so this is a great way to jump-start your marketing efforts. If you let them know you’re going into sales, they may consider your services or introduce you to other “decision makers.” The more you network and tell people about your business, the more likely you are to get referrals. Consider joining your local Chamber of Commerce or other local business associations.
Get in touch directly with “decision makers”
Once you’ve exhausted your personal connections, you’ll have to look elsewhere for opportunities. Once you have a few locations in mind, you can try contacting the “decision makers” there directly.
Door-to-door cold calling is the most common approach used in the vending industry. Calling businesses directly can also work well, but you’ll probably make the best impression by visiting the locations in person.
To be successful, someone needs to hit the sidewalks at least one or two days a week representing your business and looking for new locations.
The first step is to leave your business card, introduce yourself, identify the ‘decision maker’ and find out if they currently have any machines installed. The next step is to request an appointment with the “decision maker” to go over what you have to offer them or explain how your solution is better than what your current carrier provides.
Advertising
While selling is a business where you usually have to go out and get the customer, you can also expect some customers to come to you if you advertise effectively. An ad in the yellow pages and advertising on your vehicle can go a long way in attracting new potential customers. You should also have a website set up that is optimized for the keywords that people may enter if they are searching for providers in your area.
Close the deal
Once you have an appointment scheduled, you should see how you plan to earn the account. Prepare to impress with your machines by picking up a machine sampler (only suitable for smaller machines) or a photo folder. Also bring samples of some of the products you will be selling through your machines and give them to management for testing.
Let prospects know what benefits them by highlighting some of the benefits your machine can offer, such as how it can offer your employees more comfort or act as a feature that enhances the experience for their bosses. Understand common concerns they may have and address them one by one.
Always present a professional image by being reasonably well dressed and carry business cards with your company logo and contact details.
Converting a prospect into a new customer requires salesmanship skills and you should learn all you can about looking for the ‘decision maker’, body language and how to sell and close a deal. Develop a sales script and process that you follow at each meeting. Try different approaches to see what works well so you can refine your system over time to give each prospect their best possible chance.
Your failure rate will be high, so you have to learn to deal with rejection. Try to view each rejection as a learning opportunity to improve your sales skills.
Success in marketing your vending machine business requires you to locate good locations for your machines and then convince the ‘decision makers’ responsible for those locations to allow you to place your machines there. If you are able to frequently get new leads and become adept at winning over decision makers, you will be well on your way to a ‘six figure’ income in the vending business.