Often, the best modern businesses are those that have simply taken an existing idea and adapted it to better fit a target consumer base. In a stroke of brilliance, American Vending Systems has done precisely this: taking an old business opportunity and infusing it with new life. In an attempt to best tap the ever-solid profits of the vending industry, this company has taken the standard vending model and given it a subtle tweak, exploiting its inherent strengths by crossing it with another outrageously successful product: the energy drink.

The Business of Energy

With very few exceptions, everyone has become aware of the new and booming energy drink industry.

Though some sources claim that technically the first energy drink was a beverage produced in Scotland in 1901, the first mainstream version of this product hit American shelves in 1985 and was appropriately named Jolt. For lack of a better formula, the drink was essentially the same thing every soda before had been, except that it contained twice the caffeine content.

In 1987, an Austrian company began to produce their own energy beverage, one that is now known the world over: Red Bull. Thus the energy drink industry was born.

In the next 16 years, the market slowly gained ground, turning an annual profit of $8mil by 2001. Then it exploded. By 2005, it had become more than a $3bil industry, growing by more than 50% every year. Last year, in 2007, the ever-expanding industry turned a total of $5.4bil, and major industry analysis firms are forecasting a growth to $10bil by 2010. All of which is to say that the market for this product is huge. With a few dominant names like Red Bull, Monster, Rockstar, and Full Throttle taking the helm of the trend and a huge number of lesser known labels following behind, consumers are ingesting tons of sugar, caffeine, taurine, guarana, ginseng, and an assortment of other energy-boosting ingredients every day, generally for a cost of $2-5 per can.

Hybrid Profits

Looking at the rampant success of this powerful industry, American Vending Systems decided that the best way to break into the market was not to compete directly from the shelves of grocery stores and convenience shops. Rather, they opted to apply this new, powerful product to an old business model to create something entirely new. Combining energy with the recession-resistant, $43bil-per-year vending industry, this franchise business built a hybrid system that turns the massive profits of energy drinks with the regularity and convenience that vending has long been known to have. What they now have is a moneymaking machine that wise franchisees can take part in.

The strength of this vending franchise is obviously in their products. Unlike many franchises, American Vending Systems gives franchisees two options as far as the product they sell: they can decide between Mad Dog Energy Chews and Mad Dog Energy Shots.

The energy chews are a bit of an unusual item, even in the energy world. While most competing products are beverages, these are bite-size chocolate chews that, in appearance and taste, seem only to be candy. In effect, however, each chew packs a caffeine blast equivalent to a full cup of coffee.

The energy shots, on the other hand, are closer to what someone looking for an energy rush would anticipate, though they are far smaller than most energy drinks, being only a few ounces in volume. Containing a calculated and powerful combination of vitamins, enzymes, and herbs, each shot provides a six-hour energy boost that takes effect in only five minutes and is considered "clean," meaning that it lacks the draining and disruptive fallout that tends to come at the end of most energy drink boosts. Costing only $3 each, this is precisely what tired consumers are looking for.

With either product, the key to success is putting it inside a vending machine. This makes product placement and purchasing convenience greater than any store could ever provide. Franchisees make connections with local business owners, shop owners, mall managers, and school administrators to place their machines everywhere that buyers already are. And using machines that are durable, visually appealing, and capable of holding a high volume of product, all parts of daily operation and sales are easy for the home business entrepreneur.

Harnessing the Monster

With this home based business, it is not unreasonable to expect a profit in only a matter of weeks. After paying the extremely low $10,000 purchase price and attending the initial training, any work at home franchisee is well on his way toward business success and financial freedom. And with ongoing support from a franchisor that is interested most in customer satisfaction, franchisees are never alone when taking advantage of new business opportunities that come along. And new opportunities for this work from home business will keep coming.

There are few businesses that ride sturdily on the success of two solid industries, so a wise entrepreneur will give serious consideration to putting this one to work while he has opportunity.


December 04, 2008