How to implement the idea: vending business
Business on vending machines is passive earnings, at which you lose the cost of employee salaries and practically do not pay for rent. Finding out how to turn a dream into reality.
Vending business (Vending machine) is a business built on the work of vending machines, that is, stand-alone machines that serve to sell various goods. Initially, these were snacks and drinks, in the future, many companies added to the list of goods sold and other products, such as various electronic gadgets, chargers and even lottery tickets.
In general, the types and groups of vending machines are vast. They can be divided into two main groups: devices that trade in certain goods (from beverages and snacks to covers from cell phones and contact lenses) and devices that provide services (from paying for mobile communication to paying for parking spaces). It is almost impossible to list what vending machines are selling now – these are hundreds and thousands of products and services.
What are the main advantages of vending business? First of all, the real financial advantages of the vending business are based on saving semi-fixed costs – mainly saving on salaries and deductions from the salaries of the staff and savings on renting retail space. Secondly, you become the head of your own business and can plan your time and manage your earnings. Thirdly, you help people who can receive goods in the place where they did not exist before.
So, if you have shown interest in the vending business, first of all you need to understand its advantages as compared to investing in another business. One of the arguments “for” is that in the world the volume of the vending business already exceeds $ 42 billion and its growth rates are really high.
But the personal goals that you set for yourself are also important, as the investment strategy you choose will depend on them. For example, personal goal might be to get more free time. Then your investment strategy can not include the purchase of several dozen vending machines, and their independent maintenance – you simply do not have enough time to service such a number of devices. If your goal is financial well-being and passive income, then your business model still needs to include personnel costs. And, of course, you must take into account the amount that you have to invest.
How to implement the idea: vending business
Where to install vending machines
The next important point in building a vending business is the choice of location for the installation of automatic machines. In fact, this is one of the key points of business success in vending machines. Considering the location for each device, it is necessary to consider not only the permeability, but also the need to obtain this service for customers in this particular place. For example, a vending machine that sells snacks, installed next to a large grocery retailer, will be completely ineffective. As the apparatus, selling, for example, coffee. Visitors move away from the box office with their hands full of purchases and it is physically inconvenient for them to approach your phone even over a cup of tea or coffee.
On the other hand, a device that sells healthy foods and drinks, for example, offering fresh juice, would be quite appropriate near the fitness center, especially if the fitness center does not have its own bar.
So location, location and location again! Let’s look in detail at the factors that will provide you with the best rates of profitability. First, the main thing. Vending business is successful in places with good pedestrian traffic. The most simple examples are an office center, a higher education institution or a school.
Suppose you chose the location of the machine. Now you need to establish contact with the owner of this room or territory, and he needs to ask the right questions. Here is a sample list of things to ask:
What is approximately night and day traffic at a given point? Pay attention to the night traffic, since it is at this time the consumer is the most difficult to get the goods.
What will be the cost of renting retail space and connecting to the power grid? And if you put one, or three, or five machines?
How secure is this point, are there video cameras and will additional security be provided?
Try to find owners of vending companies that have already established their points in this place or similar. Of course, the owners will reluctantly make contact with a potential competitor, but if you succeed, a positive response to this location is a guarantee of success for your business.
What to sell in the vending machine
Next, we will focus on another important factor – the choice of products for the trading apparatus.