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CoinStar franchises actually do not exist. It was the brainchild of a college student that had an idea…create a machine that turned loose change into cash. 18,900 kiosks later, you can find them in supermarkets, banks, drug stores, convenience stores and restaurants.
CoinStar, Red Box, and other convenient consumer self-services, are the new wave to an old commodity; Vending. Just a side note, Red Box is a subsidiary with revenues in excess of $800,000 annually. Vending can and is a lucrative franchise, on secret to having a successful vending business is product placement. Schools, small businesses, parks, and general foot traffic places where people mostly congregate.
The Future of Vending
Big Business such as NCR (National Cash Register), Diebold, and CoinStar are creating innovative niches within the consumer automated market, ATM’s, DVD’s, Games, Ticketing kiosk’s, and the health care market with patient self-registration kiosks. Even Best Buy has vending machines in select airports showcasing hand-held personal digital devices, mp3 players, iPods, etc. catering to the impulse buys of a global traveler. These niches have proven very profitable and the competition fierce to capture the market share.
Bottom Line- Is Vending Profitable for the Little Guy
The answer is a resounding yes. There will always be the ready to eat vending market seeking out the products they crave. The vending business is a low-cost and semi-low maintenance franchise to get into. The biggest secret to your longevity in vending is your location and marketing.
CoinStar used best locations to market by targeting businesses where people shop every day. Getting the best locations is key to generate traffic to your vending franchise and your ability to market yourself effectively. By applying simple online marketing methods, prime target locations will seek you out to display your vending products.