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Starting a Vending Machine Business
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Introduction to the Vending Machine Business
Feel like a soft-drink while walking down the street. What do you do! Look out for a vending machine, put in a coin and out pops the can. You have got what you wanted and someone who is possibly holidaying somewhere has made a profit out of it.
You could be this person who is holidaying and has just made a profit if this vending machine belonged to you.
The vending machine business is a 100% cash-only business with a nominal initial investment (if you are not going in for the bigger vending machines) and does not require previous selling experience of any sort.
Be your own Boss
Starting a vending machine business will make you your own boss. You will be the one who decides on which vending machine to buy. You will be the one who decides as to where the vending machine will be placed. You will decide as to what your vending machine will sell. You will be the one responsible for servicing your vending machine on time. Once you start a vending machine business you are the only one on whom the entire success of the business will depend.
A vending machine business will almost never go into a loss. But that does not mean that it will give you super-profits either. There are quite a few factors that will decide as to how much profits each of your vending machines will make for you.
Decisive Factors in the Vending Machine Business
The vending machine business is a very profitable one. But for it to be profitable there are the decisive factors that you have to take proper care of the moment you decide to start this business.
Let us assume that you have decided to start a vending machine business with just one machine that will sell cigarettes. You have a competitor who also decides to start selling cigarettes through a vending machine. Both buy the same machine and same brand of cigarettes. You place your cigarette vending machine outside a gymnasium, your competitor places his machine outside a pub. The competitor's machine will sell the entire stock even before your machine manages to sell even one pack. If both of you decide to remove the cigarettes and replace them with health energy drinks, your machine will finish its entire stock before your oppositions machine can sell even one drink.
In both of the cases the machines were the same and the contents were the same. But the sales of both were very different. Why? There is a very simple one-word answer to this. Your entire business will depend on this one word.
Location.
Yes, location. It is the most important factor in the vending machine business.
Starting Your Vending Machine Business
Vending machines are available in various sizes and models. Today almost anything can be sold through a vending machine. Soft-drink cans, gum, hot coffee, cold coffee, cigarettes, even hot-dogs and pizzas.
Visit a few established vending machine operators in your area and find out from where they purchased their machines and problems with the machines if any. This way you will be sure of buying your vending machine from a good source. Vending machines are available in a variety of shapes and sizes. Select the one that is right for what you want to start selling.
Start small. Go in for just one or two vending machines. Select a good spot for the machine/s and see how the machine performs for a month. You will also get a feel of the routine involved in running the business. Once you are confident of the way things should be done so that you get a good enough income, go in for more machines.
Try and place your machines where human traffic is constant. You want your vending machine to be visible to the maximum number of people. This is the only way sales will be good, and you will be able to make a decent profit per machine. There is one more advantage of keeping your machine where there is a constant human flow. Vandalism can be counted out. If you place your machine in some shady area, your machine will not make you much profits and chances of it being vandalized are more.
Places that you can place your vending machines are malls, busy street corners, movie theatres, in or outside pubs or discos, in or out of school premises, the list is endless.
Many are of the opinion that when you place your machine in a mall or similar place, just a mutual understanding with the owner will do. Possibly you may be allowed to place your machine and do business there for free or for a nominal share of the profits. It is always better to have the understanding between you and the other party on paper. Reason for this is that many businesses keep changing hands. Also staff keeps changing. It is always advantageous to have the permission and all details on paper.
What should I be carful of?
After reading all of this it seems that this business is real easy. Buy a vending machine, place it strategically, fill it up with what you intend selling, after some time remove the money and restock the machine. Theoritically yes, it is very very simple. Practically yes and no. It could be simple, it could not be simple. It all depends on how you go about it.
Remember that owning a vending machine business is not some sort of magic formula. It is not a money making machine as many advertisers will make you believe. Read most of the advertisments about vending machines and you will notice claims being made of average earnings of over $50 per machine per day. Many fall for this, dreaming of all the money they will make if they start with 10 machines. This does not happen. Many have been mislead by false claims and started the vending machine business only to find out that they were not able to cover even the cost of the machines after several months into the business.
Having the best location will make your business work. Making sure that the machine you buy has got a good reputation in the market will make your business work. Maintaining a fresh stock always will make your business work. Servicing your machines regularly will make your business work.
Avoid buying machines from manufacturers who make tall claims of earning big amounts from day 1. These people are out to cheat you. The quality of their machines will surely be substandard and service poor. Buy from a reputed manufacturer/dealer. It may initially cost you a bit more, but will be much more profitable in the long run.
Just be sensible when starting a vending machine business. Do not get carried away by advertisers who make false claims. If you get confused and can't decide on a certain issue, take advice from someone you trust. Before placing your vending machine on any street corner or outside a pub or any such place, always check with your local authorities. Find out what taxes and tax deductions for this business are applicable in your state.
So when are you starting your own vending machine business. I may just be the one who is walking down the street and wants to have a soft-drink. Yours could be the vending machine I have just spotted!
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