What type of business

**steven.ruddell** · 05-13-2007 06:03 PM

I'm working on a business plan for a vending machine business that distributes energy drinks. What type of business is that. I would consider it retail business but I'm not for sure. So...a little help.

**pbradish** · 05-13-2007 06:22 PM

I would go with retail, but I think others may be more knowledgeable in that area.

It's funny you mention vending though as I used to work in the vending machine business as a kid. The owner literally started his business out of an old barn and has turned it into a multi-million corp. using kiosk technology. His system is now known as "canteen" and it is used in jails and prisons all across the country to distribute snacks, deodorant, ect to inmates.

Back then he would purchase broken vending machines at auction, so they were dirt cheap, and we would repair them to look like new and fill them up with what the customer wanted. Not sure if this could apply to your business, but, you'll save hundreds by purchasing machines at auction instead of paying retail or b2b prices as long as you do the fix work yourself.

I think that you have a solid idea, selling energy drinks in a vending format. That could work well.

**DJ Samson** · 05-13-2007 06:34 PM

I like the energy drink niche. Where do you plan on putting the machines? My guess would be in establishments mostly populated by young people like malls. Also, take in account that many energy drinks are different sizes which is unlike soda. Tab Energy is significantly smaller than Rockstar. Are the machines capable of selling different size cans?

I'd like to see where this goes.

**steven.ruddell** · 05-13-2007 06:43 PM

Well, I plan on placing the machines in our Boise Town Square Mall and also at teen hangouts such as Skate Parks, Paintball Arenas, and Gyms. Those are just the basic ideas. I just looked at vending machines for about thirty minutes and there are ones that can hold bookoo sized cans and also vault bottles. Those are what I have seen. I haven't done a lot of research on the vending machines because I need to know where to get them from.