Breathalyzer vending machines are situated almost in all places where alcohol is consumed: bars, restaurants, nightclubs, athletic events, and more. There are numerous benefits to a business having a professional coin-operated breathalyzer, and practically zero reasons not to.
Most importantly, having a breathalyzer vending machine guarantees that the business cares about the lives and well-being of its clients. Owing to this and many more, the breathalyzer vending machine business has become one of the best businesses penetrating the nightlife market.
Note that more and more people are getting interested in this kind of venture. However, just like any other business, people who are looking to venture into the breathalyzer vending machine business will have to carry out extensive research. Once you know the business properly, you have a high chance of experiencing success.
Steps to Write a Breathalyzer Vending Machine Business Plan
Table of Content
Instead of taking chances and blowing into the unforgiving breathalyzer of law enforcement, we at City Equalizer intend to offer the citizens of San Francisco the opportunity to just pay $2 at a kiosk at their favorite bar to test their blood-alcohol level before deciding if to drive home or call a taxi.
After extensive research and necessary networking, we are ready to place 22 breathalyzer kiosks in well-established bars across the city of San Francisco. This kiosk will make available a touch-screen interface that allows patrons to test their blood-alcohol limit to the thousandth decimal point. We will also ensure the information is not stored on the kiosks to guarantee privacy, and even help patrons contact a taxi directly from the kiosk.
a. Our Products and Services
Truth be told, businesses that serve alcohol have a certain societal responsibility to prevent customers from driving drunk. In the United States, reports have it that almost 30 people in the United States die in motor vehicle crashes that involve an alcohol-impaired driver every day.
With San Francisco being a drinking city – with secret cocktail bars up abandoned staircases and breweries that keep their prices low so you can get a few pitchers without going completely broke, a breathalyzer machine for bars can genuinely help save lives while also improving the overall image of the bar.
b. Nature of the Business
City Equalizer will be offering unique vending machines that come with advertising capabilities for additional revenue to interested alcohol businesses. By using the kiosk throughout a night of drinking, customers will become more enlightened on how intoxicated a person can be, compared to how intoxicated they feel they are. We will be offering the kiosks initially as a no-cost service to bar owners interested in having the booths installed in their establishments.
c. The Industry
City Equalizer will be part of the United States Vending Machine Operators Industry, servicing bars and businesses in the Nightlife industry.
d. Mission Statement
Our mission at City Equalizer is to become a notable leader in introducing innovative, quality alcohol testing machines to the market and ensuring the safety of the end-users. By leveraging close customer contact and excellent relationships, we will help our customers carry out their social responsibility of preventing their customers from driving drunk.
e. Vision Statement
Our vision at City Equalizer is to make available innovative, quality products that can both expand existing markets and create new ones for our customers. We will penetrate the vending industry with innovative, first-to-market, high-quality breathalyzer vending machines.
f. Tagline or Slogan
City Equalizer –Balancing Safety and Fun
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
City Equalizer will be registered in the state of California as a Limited Liability Partnership. Our partners/management team consists of Anthony Craig, Freeman Dolton, and one financial investor Fredrick Larsson.
h. Organizational Structure
- General Manager
- Administrator and HR manager
- Head of sales and marketing
- Information Technologist
- Vending machine attendant
- Customer Service Manager
i. Ownership/Shareholder Structure and Board Members
Just like it was noted above, City Equalizer will be registered in the state of California as a Limited Liability Partnership. Our ownership breakdown includes;
- Anthony Craig: 40%
- Freeman Dolton: 40%
- Fredrick Larsson: 20%
- Easy to understand interface
- The instruction given is simple and anyone can go through it in a short time
- Simple entry skills needed
- Encourage people to drink responsibly
- Promote safety
- People after a few alcohol intakes might assume the instruction is not interesting
- The instruction may not able to attract target learners.
- The machine may not be properly and regularly maintained
- The popularity of bar breathalyzer
- Growing concern for safety and general well-being
- The benefit to bars and restaurants
- A well-researched location
i. How Big is the Industry?
According to reports, measured by revenue, the United States Vending Machine Operators industry is $8.9bn in 2022.
ii. Is the Industry Growing or Declining?
Note that the Vending Machine Operators industry in the US has grown 0.8% per year on average between 2017 and 2022. The industry is still expected to grow 3.5% in 2022.
iii. What are the Future Trends in the Industry
According to industry reports, demand for breathalyzers has consistently been on the rise owing to the increasing instances of alcohol abuse.
Note that the government of various countries has instituted tighter laws to limit the number of road mishaps and ensure the seamlessness of traffic, and this is expected to fuel the demand for drug abuse detection breathalyzers, remote breathalyzers, and point-of-care breathalyzers. However, there are certain trends expected to dominate the industry in the coming years. These trends include;
- Fuel Cell Technology is Expected to Hold Major Share in the Breathalyzers Market
- Stringent Government Regulations And Increasing Use Of Breathalyzers Will Keep Driving Sales
- North America is Expected to Dominate the Breathalyzers Market
iv. Are There Existing Niches in the Industry?
No, the breathalyzer vending machine business is already a niche that focuses on helping nightlife businesses ensure the safety of their customers.
v. Can You Sell a Franchise of your Business in the Future?
No, we do not intend to sell a franchise in the future. Instead, as our business and customer base grows, we seek additional supplier relationships with large bars and restaurants, and also customize our machines to suit their needs. We believe this would enable City Equalizer to supply machines to national companies and allow them to brand the machines with their product lines.
- Government laws and regulations
- The threat of New Entrants
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
i. Who are the Major Competitors?
- Dragerwerk AG & Co. KGaA
- Quest Diagnostics
- Intoximeters, Inc.
- Alcolizer Technology Pty Ltd
- Lifeloc Technologies
- Andatech Pty Ltd
- Bedfont Scientific Ltd
- Abbott Laboratories
- Alcohol Countermeasure Systems
- Saltillo Corporation
ii. Is There a Franchise for Breathalyzer Vending Machine Business?
- IntoxBox: $2,000
- Alco Buddy: $1,199.
- Breathe Legal: $10,000 – $25,000
- Boozelator Breathalyzer: $1,995
iii. Are There Policies, Regulations, or Zoning Laws Affecting Breathalyzer Vending Machine Business?
Yes, you’ll need to make sure that you have all the necessary permits and licenses before you can start a breathalyzer vending machine business. In most states, you may be expected to obtain a vending machine permit. For instance, in Maryland, you are expected to obtain a vending machine license from the clerk of the circuit court in the county where your machine is located. However, in most other states, you do not need a vending machine license. Since the regulations on vending machines vary widely, check your state’s rules.
a. Who is your target audience?
i. Age range
- 21-34: 23.9%
- 35 to 44: 20.7%
- 45 to 54: 20.4%
- 65 and above: 16%
ii. Level of Educational
No formal educational credential!
iii. Income Level
- Average Household Income: $160,392
- Median Household Income: $112,449
- Whites (41.3%)
- Asians (33.9%)
- African Americans (5.3%)
- Multiracial Americans (9.9%)
- Native Americans and Alaska Natives (0.7%)
- Native Hawaiians and other Pacific Islanders (0.4%)
- Persons of other races (8.4%)
- Hispanics or Latinos of any race (15.6%).
There are no language restrictions at City Equalizer
vi. Geographical Location
At City Equalizer, our clients are well within San Francisco, Illinois, and we also intend to grow and expand into other key cities in the United States.
American households spent an average of $484 per year on alcoholic beverages like wine, beer, liquor, and other malt beverages, but San Francisco locals spent well over that, with an average of $1,131 per year between 1996 and 2016. Truth be told, that’s a lot of alcohol, and the cash used on it takes up a greater percentage of their paychecks than in other cities.
b. Advertising and Promotion Strategies
- Offer special incentives for referrals.
- Ask your customers to provide reviews and recommendations.
- Create a strong web presence
- Invest in social media influencers
- Make the most of SEO
- Build our email list
i. Traditional Marketing Strategies
- Handing out flyers or brochures
- Billboards at strategic places
- Direct mail
- Print ads
- Event marketing
ii. Digital Marketing Strategies
- Clearly define our target customer
- Identify our main competitors
- Develop our value proposition
- Optimize our business website
- Leverage other digital channels like blogs and email marketing
- Take advantage of social media
iii. Social Media Marketing Plan
- Post Consistently
- Make Posts Visual and Add Relevant Hashtags
- Engage with Customers and Followers
- Pay Per Click
- Use Facebook Advertising.
- Show Your Team At Work On Instagram
- Encourage Engagement
c. Pricing Strategy
We at City Equalizer will be offering the kiosks initially as a no-cost service to bar owners interested in having the booths installed in their establishments. We will compete aggressively in our pricing strategies to attract and retain new customers.
Sales and Distribution Plan
a. Sales Channels
We will identify large- and medium-sized regional and national operators, distributors, and manufacturers as our primary targets. We will focus our efforts on the key decision-makers at each company. We will also look to our customers as important sources of industry information and create new leads from them.
b. Inventory Strategy
We at City Equalizer believe we can benefit from using a vending management system (VMS). A good VMS makes it easy to manage our routes, vending equipment, and more. We plan to use Parlevel software that is well renowned as an all-in-one solution to help them better serve accounts and maximize profits. This software covers everything from inventory management to cash accountability to route management. And best of all, it’s on a single, cloud-based platform.
c. Payment Options
Below are the payment options we at City Equalizer intend to make available to our clients;
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
d. Return Policy, Incentives, and Guarantees
We do not have a refund policy at City Equalizer, and this entails we will not provide compensation for services rendered by our machines, as they are expected to be fully functional and effective.
e. Customer Support Strategy
- Quality support and service, recognizing that our success depends most importantly on the relationships it’s able to create.
- Innovative, quality products that can both expand existing markets and create new ones for our customers.
- The steady, disciplined pattern of growth.
- Sponsor relevant community programs
- Distribute our brochures and flyers in targeted areas
- Place our Flexi banners in strategic positions where our machines and kiosk are located.
Our headquarters will provide 24-hour maintenance and repair services for all our machines. We intend to employ a few technicians and delivery personnel. Our vending machines, we strongly believe, will both expand existing markets and create new ones.
The ROI exceeds the industry norm of 12-18 months. In addition, the quality of the products, as well as the attractive and distinctive design features, will work to satisfy existing customers and attract new ones. We strongly believe we can achieve sales targets at City Equalizer via a combination of relationship building and aggressive pricing.
Note that our initial targets will be medium-sized operators and hospitality businesses that have the space and crowd to need our machines. We will continue to participate in industry tradeshows and grow our advertising budget when the funds become available. In addition to this plan, we will establish relationships with larger upscale bars and restaurants to become a supplier of choice.
a. What Happens During a Typical Day at a Breathalyzer Vending Machine Business?
In this line of business, daily activities tend to vary exponentially, depending upon your skillset and the number of breathalyzer vending machines you own. However, note that each machine is expected to be kept in working order at all times. It should also contain enough straw mouthpieces 24/7.
Anything less and your business is losing money. A good number of breathalyzer vending machine business owners have a regular route they tend to each day, where they check to ensure everything is working as it should. The rest of the team’s time is spread between administrative duties and establishing relationships with bars and the businesses that house the machines.
b. Production Process
There are no production plans and processes at City Equalizer
c. Service Procedure
We aim to leverage the traditional benefits of first to market. We will strive to leverage this position to solidify our brand in the market. As a new breathalyzer vending company looking to establish itself, we will be attentive and innovative in meeting our customer’s demands. We have also taken our time to design features that will make us very competitive. In addition to these design features, we will also be competing on price.
d. The Supply Chain
At City Equalizer, we will seek distribution agreements with large regional and national distributors. However, before these agreements are put in place, we will sell directly to the operator. We are also seeking relationships with upscale bars and restaurants to supply them with machines for their customers.
e. Sources of Income
Our sources of income for now at City Equalizer include;
- Own blood-alcohol level testing fees
- Advertising and promotional fees
a. Amount Needed to Start your Breathalyzer Vending Machine Business?
At City Equalizer, we are seeking total funding of $320,000 to start our breathalyzer vending machine business in San Francisco, California. Note that this capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.
b. What are the Cost Involved?
- Legal: $15,500
- Insurance: $32,750
- Rent: $12,500
- Research and Development: $32,750
- Breathalyzer vending machines and inventory: $167,750
- Advertisements and Signs: $4,250
- Miscellaneous: $2,000
c. Do You Need to Build a Facility?
Yes, but we intend to begin operations from a rented facility in a business area in San Francisco, California. Initial investments will be made to set up an office, website, and management software to schedule, manage and facilitate our routes.
This facility will include a small warehouse to keep our inventory or machines and supplies. We also plan to maintain a showroom, where we provide customers with product demonstrations, coupled with an administrative area to handle the business functions.
d. What are the Ongoing Expenses of Running a Breathalyzer Vending Machine Business?
- Payroll and payroll taxes
- Website support
- Marketing strategy.
- Maintenance of machines
e. What is the Average Salary of your Staff?
- General Manager: $56,720
- Administrator and HR manager: $52,410
- Head of sales and marketing: $48,000
- Information Technologist: $47,210
- Vending machine attendant: $34,510
- Accountant: $32,980
- Customer Service Manager: $24,890
f. How Do You Get Funding to Start a Breathalyzer Vending Machine Business?
City Equalizer will be financed solely by Anthony Craig, Freeman Dolton, and one financial investor Fredrick Larsson. They will control the direction of the business to make sure that it is expanding at the forecasted rate. In terms of business start-ups, no equity funding or outside loans will be needed. With the help of financial experts, we have also put together a detailed financial plan for our breathalyzer vending machine business.
a. How Much Should You Charge for your product/Service?
The standard fee is $2 to $3.50 per test.
b. Sales Forecast?
- First Fiscal Year (FY1): $360,000
- Second Fiscal Year (FY2): $720,000
- Third Fiscal Year (FY3): $1.4 million
c. Estimated Profit You Will Make a Year?
At City Equalizer, we expect to make;
- First Fiscal Year (FY1): $144,000 (40% of revenue generated)
- Second Fiscal Year (FY2): $324,000 (45% of revenue generated)
- Third Fiscal Year (FY3): $700,000 (50% of revenue generated)
d. Profit Margin of a Breathalyzer Vending Machine Business
Just like any vending machine, once you pay off your initial investment, the ensuing sales are practically 100% profit. Apart from fairly minimal maintenance costs, there are no hidden fees associated with owning a breathalyzer vending machine. Note that the average breathalyzer test costs the owner about $.06. If you’re charging $2 a test, 94% of your revenue is profit. That’s close to a 100% profit margin.
a. How do you intend to grow and expand?
Our plan at City Equalizer is to seek additional supplier relationships with large bars and restaurants and also customize our machines to suit their needs. We believe this would enable City Equalizer to supply machines to renowned upscale bars and allow them to brand the machines with their product lines.
b. Where do you intend to expand to and why?
At City Equalizer, we intend to target businesses that serve alcohol and have a certain societal responsibility to do everything within reason to prevent customers from driving drunk. Owing to that, we intend to expand to some of the drunkest cities in the United States. And they include;
- Missoula, Mont.
- Grand Forks, N.D.
- Racine, Wis.
- Janesville/Beloit, Wis.
- Milwaukee/Waukesha/West Allis, Wis.
- Lincoln, Neb.
- Iowa City, Iowa.
- Corvallis, Ore.
At City Equalizer, our exit plan will involve passing on the business to the children of our three founding members. Note that this business exit plan is ideal for us since it doesn’t require too much involvement of external parties and it is also one of the most straightforward options when done right. We plan to put together a well-considered plan, supported by a strong family governance structure, to provide the tools necessary to shepherd the business through the generations.