There are several issues that need to be dealt with if you are running your own vending machine business. It is essential to understand the nature of problems that you may face.
- Right place: Placing the vending machine at the right location is the key factor to ensure that your vending machine business is profitable. Suppose, you decide to buy a toy dispensing vending machine and place it outside a pub. On the other hand, your competitor also buys a toy dispensing vending machine and places it outside a children's park. In this case, your competitor would definitely earn more than you. Your competitors' machine will sell the entire stock even before you manage to sell one toy, because your machine is not at the right location. Location plays an important role in the success of the vending machine business.
- Increasing competition: The fact that there is a very low initial investment needed in order to start a vending machine business is a major factor which is responsible for increasing business competition.
- Increased liabilities: Being a sole owner of the business, your responsibilities would increase. You will be responsible for the service of the vending machine on time. Initially you will have to maintain the stock and regularly service the vending machine. As you start getting revenue, you can hire people to help you. Maintaining fresh stock and regularly servicing the vending machine is necessary to make your vending machine business work.
- Vending machine cost: Apart from the cost of vending machine, there are several other hidden cost factors like license fees, maintenance of the machine, insurance, and advertising cost. Therefore, it is advisable to start with the basic vending machines like gum ball dispensers, sticker (tattoo) vending machines, as they are cheaper as compared to the electronic vending machines that refrigerate drinks or warm snacks.
Incorrect selection of the products and wrong location can cause you severe losses, thereby not generating the desired revenue from the vending machine business. If finding a location, buying a vending machine and getting it placed, seems like a long procedure for you, then you can opt for other vending machine business opportunities, like buying a vending machine business for sale. You will find many online advertisements for vending machine businesses for sale. But, be careful while dealing online, as these advertisements may rip you off.
Vending machines are not magical machines. It is a passive business, this machine works even when you are not there. But this does not translate into a reprieve from responsibilities on your side. Ensure that before starting vending machine business, you understand the vending machine business pros and cons and think over the business properly.