Becoming A Crane Toy Vending Machine Operator

There are thousands of people who want to become their own boss and be financially independent. One of the best ways to do so is to join the vending industry as a vending machine operator. To begin with, you can opt for one or two vending machines and gradually expand your business as the profitability rises.

A Planet Antares crane toy vending machine with claws and plush toys is the perfect choice for anyone interested in starting a vending business. These are very popular among kids as well as youngsters and can generate reasonable amount of income. So, this is a lucrative option that can offer adequate return on investment within a short period of time, usually within the first year of starting the business.

Here are a few basic features of crane vending machines that will help you understand the main aspects of these machines.

• Usually, a claw vending machine has plush toys as prizes inside a glass box or cage.
• There is a crane or claw attached to the ceiling of the machine.
• A player has to insert a coin to start operating the machine by manipulating the joystick to control the claw movement.
• The time limit given for winning is about 15-30 seconds or even upto a minute in certain vending machines.
• At the end of this time limit, the claw will make a gripping attempt on the toys.
• After this, the claw will move to an opening in the corner of the cage to drop the toy won by the player.

A popular version of the crane vending machine is the “two button” machine that has a forward and right arrow. The crane is placed near the front of the machine and the user will have to press the forward button to move it towards the back first. Then the right button becomes active and is lowered to grasp a toy. This version is difficult as compared to the original one.

The first claw vending machines to gain popularity were those placed at Pizza Hut restaurants in the late 1980s in the United States. Later, they spread to other venues and many big brands started advertising through plush toys in crane vending machines.

By mid 1990s, the claw vending machine’s popularity had gained considerable heights with locations like Fry’s supermarket, K-Mart, Safeway and Wal-Mart. Even hotels started keeping these machines to attract young guests as well as sports establishments for inducing sale of stuffed toys with sporty symbols and designs.

At present, there is a large variety of plush toys to choose from. There are new toys being launched in the market each month. New movies and cartoons are promoted this way on a large scale.

Definitely, there is great scope for generating income in this vending business and for beginners; it is a very lucrative option.

What Is The Impact Of Commission On Vending Machines?

Location is an important part of your vending business. If your vending machines are placed at bad locations, it may be very difficult to achieve the required amount of sales and profits. Your investment should not go to waste due to ineffective locations or ignorance while placing the vending machines.

Once you have taken the right steps to locate vending machines, you can relax as your vending machines will do the rest. When you approach a business or store owner, they will generally ask for a vending commission in exchange for keeping your vending machines in their premises. This amount may vary for different locations and machines.

Simply stated, the commission is determined as the amount to be paid to location owners out of the revenue earned by the vending machines placed in their premises. While the standard rate is usually about 7 to 10 %, it may vary for various locations from 5-50%. Before entering into an agreement with the location owner, you must negotiate the vending commission with them.

The service contract will have a validity of one year on an average. After such time period ends, you can choose between two options:

• Cancellation of contract

• Renewal of contract

Most service contract will be automatically renewed at the end of a particular time period. Reputable vending companies like Planet Antares Inc will supply machines and products as well as provide locating services to ensure smooth operations for your vending business.

However, some vending operators view vending commissions as a financial burden and a hindrance in cost reduction measures. They forget that cutting down on vending commission is not enough. They will have to increase managerial efficiency and reduce operational problems to get best results.

The main aim of your vending machine business is to earn adequate profits to cover the Return On Assets (ROA) requirements. If you are able to locate your vending machines in good places and maintain a high level of sales, there will be enough surplus profits to be allocated as vending commission to business owners.

Rather than reducing or eliminating vending commissions, you can adopt an alternative approach. This involves paying a higher commission in return for an increase in selling price of products. Not only will this help in satisfying current and potential location owners but also keeping profits at a sustainable level.

If you fear that customers will turn away after a price hike, don’t be. This may happen initially but with time, customers will adjust to the price change. Then, you will be able to earn higher profits without cutting down on vending commission rates.

Basics Of Toy Vending Machines

Have you heard about the potential for profits in toy vending business?

Probably one of the best selling vending products, toys are loved by children ad youngsters alike. It won’t be surprising to see a few elders trying their luck at a game-oriented vending machine either. These machines can be found at places like children thrift shops, restaurants, laundry mat's, car dealership lobbies, and other places with heavy kids’ traffic.

Different kinds of toy vending machines are offered by many reputable companies like Planet Antares Inc. larger vending machines may dispense 2” toy capsules while the smaller ones offer 1.1” capsules. If you don’t find lucrative locations for these machines, your investment may not pay off and end up as a costly mistake. You can put a toy vending machine in a family restaurant or other such places. Go for a double head machine that offers candy as well as toys to maximize customer usage and sales.

Another form of toy vending machine that attracts a lot of customers is the machines that offer toys as prizes or free gifts with the purchased product. Some stores use vending machines to dispense their own items while others may have specialized toy vending machines to match their business activity and customer desires.

Here are a few factors to be considered while setting up a toy vending business:

(a) Look for a trustworthy vending machine company after comparing several suppliers. Planet Antares toy vending machines provide high quality functions with diverse features available at reasonable prices. You can even benefit from after sale services for effective locating and maintenance of vending machines.

(b) Different toys are suitable for different customers. These vary from small, simple stuffed toys for toddlers to sophisticated toys and stickers for teenagers. Choose the vending locations after taking into consideration, the kind of customers traffic expected there.

(c) While trendy and latest items provide large amount of revenue in the short term, stocking of these items alone is not recommended. For consistent returns, keep a combination of conventional bestsellers and items in demand currently.

(d) Monitor the sales of various toys to see which has high popularity and which ones are performing badly. Such slow movers should be replaced with bestsellers to get better sales and profitability. You can also keep better inventory control and use your funds optimally.

(e) With time and experience, you can expand your business to include new products, vending machines and locations. Business growth requires extension of the vending route.
When you start a toy vending business, treat it as a real business and keep a check over the performance of the various elements to get the best results.