Today’s fast-paced world makes it pretty hard for us to find time to go to the grocery store and buy food, snacks, drinks and other items that we need on a day to day basis.
That is why the invention and development of the vending machine business has become very popular. Many companies and institutions are looking for investors that will bring this invention into their offices.
That makes the vending machine business very sought after and consequently – very profitable. Since this business idea is on the rise, vending machine loans have become more available than ever. Keep this in mind in case you need funding once you decide to start this business.
But, before you decide to start a vending machine business of your own, you will have to make a few decisions and take a few steps that are essential for kick off:
1. Products
Food and beverage vending machines are the most common but also the most risk-free. In other words, you cannot go wrong with this type of vending machines. They are needed practically everywhere – in every office, school, university, airport, hospital, etc. You may also tailor them to match the needs of the people depending on their location. For example, schools may need vending machines that offer healthier food options. We also have bulk and specialty vending machines that require a more targeted audience. For example, bulk vending machines make more sense in malls and recreational centers while specialty vending machines like the ones selling tobacco cannot be placed in schools and hospitals.
2. Location
Subsequently, you have to decide on the location where the vending machines will be placed. When starting a business like this you have to make sure that the machines are in your vicinity because you will probably be the one that will have to refill them or repair them if damages occur. If your business expands, you can hire people to do this for your and also cover more ground.
3. Vending machine
After deciding on the first two steps, it is time to buy your vending machine. The most common way to get a sense of the prices and available options is to do an online search. Direct manufacturers offer the largest selection of vending machines that are equipped with the newest technology. However, they are also the most expensive. A more affordable option would be secondary market sellers or offers on customer to customer platforms. This may require more browsing time but it will save you a lot of money in the end.
4. Inventory
Last but certainly not least, you have to stock your vending machine so it can become operational. From there on out all you have to do is restock it or repair it if needs be.
Advantages and Disadvantages of vending machine business
However, starting a vending machine business like any other business has its advantages and drawbacks. Some of the advantages are:
1. Starting this kind of business has very low costs. You can buy a used vending machine for a very low price and stock it with some essential products that are bound to sell. If it doesn’t work out at least you won’t be left with huge losses and without your main income job.
2. The business itself is very flexible. You decide where the machines will go, when they will be restocked and what kind of products they will sell. It offers a kind of freedom that not many other businesses do.
3. If your business grows, it will be very easy to expand and buy different types of vending machines. Once you learn how the industry works, choosing different locations and products will become much easier.
Some of the drawbacks of this type of business are as follows:
1. There is a lot of competition in the market. Vending machines are getting more and more popular, so the best locations for them are usually a battle ground for competitors. On the one hand you don’t want to be in a location where there are a lot of other vending machines, but on the other you don’t want to end up in a place where there are no customers.
2. There are some unexpected costs that derive from theft and vandalism. Vending machines are an easy target when it comes to this so you have to make sure they are put in a safe location – which can oftentimes be more expensive.
Conclusion
All things considered, all successful business ventures require a little risk. If you have the time and the will to start a new business, a vending machine business might be the right choice for you.