Vending machines are often the ideal small business opportunity. You only need to restock the machines once in a while and arrange service when they have problems. This is far simpler and less time consuming than trying to run a brick and mortar convenience store or restaurant. It is also a very scalable business model, and you can scale up as you find more opportunities.
If you want to enter this kind of business, here’s an overview on how to get started.
Do Your Research
The first step is studying the market and doing your research. Whether you’re selling drinks or snacks, you need to understand the price of the items, the price of the typical vending machine you’re considering buying and the going rate for renting space. This gives you a minimum price you have to charge per item at the average rate of sales in order to break even.
You should learn where the kind of vending machines you want are typically located as well as unusual locations that may generate significant cash flow. For example, vending machines that act as charging stations may be found in hotels and airports. Soda vending machines are found nearly everywhere, but you could earn a higher profit margin if you locate your vending machine where there are people desperate for a drink because there are few alternatives.
Secure the Vending Machines
There are several options for securing a vending machine. One is buying it new. An easy method to buy a vending machine is to go on a site like justnowvending.com.au that connects vending machine business owners to clients. They allow you to buy a machine that’s already active and you can negotiate a price with the vendor. Or, you could also go directly to the supplier or a big box store that sells them to entrepreneurs.
And then there’s the option of buying used. The hard part here is finding the vending machines you want. There is also the risk that they need to be repaired or refurbished. Another risk is that the machines are outdated, failing to offer the payment methods your customers want, or coming with design flaws. Hence, you should make sure you’re on the lookout for that.
Set Up the Vending Machines
Verify that you’ve signed the contracts already giving you permission to place the vending machines in various locations before you install them. Once all the legal paperwork are done, you can install the vending machines and stock them.
Check up on the machines and regularly restock their inventory while collecting the money. Take the time to notice the item that sells the most and shift the product mix instead of restocking on a regular schedule. After you were able to accumulate a number of machines and understood the restocking schedule, you could consider hiring someone to take care of this task.
Vending machines are an excellent way to generate nearly passive income. The business itself is easily scaled up or down based on your desired income level, whether you want two vending machines in front of your store or a hundred machines generating steady cash flow.