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Convenience Store icon Vending Machine Business Plan

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LiveHealthy

Value Proposition

LiveHealthy vending provides healthy, delicious, and affordable alternatives to traditional vending machines. We understand that despite your busy schedule, you aim to remain satisfied between meals by accessing nutrient-rich foods. We are committed to providing you with options that are aligned with your health goals as you manage your hunger and help improve your diet quality. People should not have to trade convenience for quality.  

The Problem 

Consumers complain about the worn-out, outdated, and unhealthy vending machines that dominate spaces begging for more intentionality. These spaces often include workplaces, K-12 schools, universities, and hospitals. People are tired of feeling the shame of convenience and seek to elevate their snack on-the-go options with quality choices.  

The Solution

LiveHealthy looks to support real people with their goals and values of living out their best lives despite their busy schedules. Everyone should have access to snacks that make them feel good. To do that, we do extensive research on the products we provide to ensure they are healthy and delicious at a price point that we can all appreciate.  

Target Market

The primary market for LiveHealthy Vending is health-conscious and focused, yet busy people that aim to satisfy hunger with nutrient-rich options. Common attributes include: 

  1. A commitment to aligning their active lifestyle with healthy snack options.
  2. A desire to access nutrient-rich snack foods despite being busy.
  3. An interest in supporting a healthy diet and weight management. 

The secondary target market is people in the immediate area of the vending machine looking for a quick snack.  

Competitors & Differentiation

Current Alternatives

  • Local vending machines in the immediate area 
  • Convenient stores, gas stations
  • Higher end Grocery Stores (Whole Foods, Market of Choice)

Why Us?

On average, Americans eat about 2.2 snacks per day and get about a quarter of daily calories from snacks. Unfortunately, a large majority snack on junk food which increases their intake of excess fat and simple carbohydrates. 

When you shop at LiveHealthy, you can be confident that you are getting the best possible products for your health. We only sell products that are made with natural and whole ingredients. Our vending machines are located in convenient locations, so you can always find one when you’re on the go. 

We offer a hassle-free way to get your healthy snacks and drinks. Simply select your desired item and pay with your credit/debit card or cash. LiveHealthy prices are competitive, so you can get the healthy snacks and drinks you want without breaking the bank. Lastly, our vending machines are regularly stocked and cleaned, so you can be sure you’re getting the freshest products available.

Funding Needs

The target vending leasing spaces will be at 5th Street Public Market, Oakway Shopping Mall, and the University of Oregon campus. LiveHealthy expects to start with 8 vending machines with an expected cost of $5,500 per machine. The initial inventory cost will be $8,000. Marketing costs at launch amounts to about $2,000. Beginning operational costs of 1 year, including ongoing inventory, employee salary, machine maintenance, etc., amounts to $24,000. 

The total initial funding needed is $78,000. 

Sales Channels

  1. Retail location

Marketing Activities

  1. Personal accounts/references
  2. Blogs/Newspaper
  3. Affiliates
  4. Website

Marketing activities will be minimal for LiveHealthy vending. The main marketing tactic will be personal references and accounts from customers. 

Financial Projections

Ongoing expenses will include employee salary, taxes, advertising, and paying for maintenance. Maintaining consistently flowing inventory and ongoing maintenance will be a significant cost to keep the vending machines running effectively. A minimal but consistent cost will include advertising expenses and website maintenance. Additionally, to have vending machines on a property you typically have to sign a 5-25% revenue-share agreement with the property owner or agree to a set monthly rent. 

Luckily, price fluctuations aside, expenses should decrease over time after the initial equipment investment.

Revenue:

  • 2022: $42,000
  • 2023: $55,000
  • 2024: $68,000

Expenses/Costs:

  • 2022: $78,000
  • 2023: $38,000
  • 2024: $44,000

Profit:

  • 2022: $(36,000)
  • 2023: $17,000
  • 2024: $24,000

Milestones

  • Find initial vending machine locations — September 1, 2022
  • Sign leasing fees for respective properties—  September 10, 2022
  • Install machines on properties — September 20, 2022
  • Add initial vending machine inventory – September 25, 2022
  • Open for business — September 29, 202
  • Take professional photos of the vending machines — September 29, 2022
  • Create a website and google/yelp accounts —   October 1, 2022
  • Make initial employee hire for Inventory upkeep – November 5, 2022
  • Google/Yelp review forecast —  December 1, 2022
  • Explore possibilities of expanding leasing sites— January 15, 2023
  • Add new leasing sites  — March 15, 2023

Team and Key Roles 

Owner/Manager: Establishes the business and is in charge of overseeing the hiring of employees, managing inventory, and long-term business prospects. Maintains a constant flow of inventory, and supervises daily activities of the vending machines. Analyzes new potential locations for expansion. 

Inventory Associate: Assists owner in purchasing snacks and drinks for vending machine inventory and identifying items that will sell. Tracks new inventory and sales volume to make sure that vending machines are properly stocked. 

Partnerships and Resources

The purpose of these partnerships is to generate awareness among the key target audience and increase LiveHealthy’s share of the local vending machine market. LiveHealthy will target local establishments that see heavy traffic. The expansion of inventory and locations will allow for the continued growth of LiveHealthy as a premiere and unique healthy vending machine choice.

  • University of Oregon 
    • Various locations across the campus (EMU, Rec Center, Dorms)
  • PeaceHealth Hospital 
    • In lobbies throughout the Hospital
  • 5th Street Public Market and Oakway Shopping Mall
    • Offered as a quick alternative to a traditional meal
  • Apartment complexes (The 515, Union on Broadway, Identity Eugene)
    • In lobbies at local student apartment complexes