The Vending Machine Business is a lucrative business for beginners who would want to start at low cost, low maintenance, and low requirements. Vending machines have become popular as it has become a good source of convenience at times when wholesale is not possible and at times when instant needs arise. Let’s read on to explore the advantages, disadvantages and the requirements of the business.
The Advantages of a Vending Machine Business
There are a lot of advantages when going into a vending machine business. You don’t need extensive business experience. It is a very good business for starters. Since consumers compel on vending machines out of need and out of impulse, there is no need to create a working manpower force, but instead, you can do both the servicing and the managing for the moment while you are still starting your business.
You enjoy flexible working hours. You own your time, you manage your time. You can choose to work full time, or this can be a part-time business, or even manage as an absentee owner. And at times when you have to be away, your business remains open 24 hours a day.
You put in low overhead cost. Generally, a vending machines business require only minimal maintenance and almost zero cost for human resource. Due to the low overhead costs, one can sell vending machine products at very competitive prices.
You are assured of an excellent return on investment. No risk of losing through recession, as consumers are compelled to retail purchases when times are hard. There is immediate cash income. Before the goods even go out to the hands of the customer, they pay it before they get it.
And let’s not forget there are a lot of good financing options being offered by industry leaders for start-up vendors.
The Requirements of a Vending Machine Business
Right location: The location has to be a place where you have control over competition. Its either a place that you own and nobody else can put in a vending machine but you. Or, it may be a place where you have a contract of becoming the sole vending machine provider. The location has to be secure from theft and vandalism. The place has to be somewhere where your machine is secure from damage due to pest and people. It has to be either a place where individuals are well educated or it has to be a place that has free security people and/or equipment’s like security cameras.
Right selection of products: One key to the success of a vending machine business is having the right products sold at the right location. A gumball vending machine would be more saleable in a park than in an office. While a toiletry vendo would not sell that much inside a canteen compared to that when it is in wash rooms and rest rooms.
Regular servicing: A vending machine needs maintenance in terms of cleanliness, presentability, and freshness of products. It has to be cleaned regularly. Attractive paint and machine durability should be checked and maintained at all times. Products should be kept fresh and available at all times to maintain good reputation for consumers.
Cost and revenue management: There has to be a periodic accounting of income and profit against the cost of the investment and the cost of operation.
The Disadvantage of a Vending Machine Business
There is only one disadvantage in a Vending Machine Business. You will have to comply to all the requirements because if you don’t, then, you don’t have a business at all.