This article will focus on the vending machine business, what is it, How to start a vending machine business with minimum investment and with no experience.
The information provided will be useful to anyone looking for an interesting way to make money. Remember that any job is fast. Therefore, reading the article is worth starting right now.
Vending Machine: Overview, Advantages, and Disadvantages
So, what does the concept of a vending machine include?
Such machines were invented a long time ago, but now the way to make money using vending machines has become the most relevant. This is explained very simply – the pace of modern life is constantly growing, technology is constantly improving.
Today, leisurely tea parties in offices in the middle of the day are rare. Most employees donate a full meal to save time; quick snacks.
In such a situation, vending machines where you can buy snacks, drinks, and coffee are very popular. That’s why there are more and more trading devices – they are being installed in education and healthcare facilities, shops, sports complexes, train stations, and other crowded places.
Anyone can enter vending machines, it is enough to have money to buy a vending machine. Also important: Choose a device that will be in demand in a particular location.
The following machines are in great demand:
- vending machines for the sale of soft drinks;
- tea and coffee machines;
- small parts sale devices;
- machines where you can get snacks ( for example, chips, chocolate, etc.);
- payment terminals;
- musical instruments;
- slot machines.
The vending profit is not limited to anything, provided that the correct location for the installation, as well as the type of device, is selected.
However, don’t assume that sales will be a way to get rich instantly. As with any business, there is competition and taxes.
Naturally, vending has several features – both positive and negative.
Advantages of Vending Machine Business
Among the advantages of such a business are the following:
- High liquidity – If needed, the machine is easy to apply with the business.
- The devices are easy to control and their maintenance usually does not cause problems.
- The vending machine saves a large amount on hiring employees – One specialist is enough to service a large number of machines.
- Lots of free niches.
- Design simplicity – no need to issue licenses and certificates.
- Relatively cheap rent since the device takes up a small area.
- Vending machines can operate 24 hours a day, seven days a week. Unlike people.
- There is an opportunity to combine this business with catering.
Despite the vending machine’s numerous advantages, it has a few drawbacks.
Disadvantages of Vending Machine Business
By cons include:
- Starting a business just by purchasing one device is not profitable. In this case, the payback period will be huge. Experts do not recommend believing the claims that the machine could start making a profit within a few months. In fact, repayment is achieved at least in a year.
- Often, owners of vending machines are faced with acts of vandalism. The most frequently placed machines are on the street.
- It takes a lot of effort from the owner. Some people think a vending machine is a passive business. However, this is not so – much a fundamentally wrong statement. In any case, the businessman will have to perform several actions – buy, install, and configure equipment, register a business. Later, the devices will need to be serviced.
The main types of vending machines (devices): a machine for food products, non-food products, services, gaming (entertainment) devices.
Steps for Starting a Vending Machine Business
Absolutely all lines of business have their own nuances, vending machines are no exception. First of all, you will need it, as at the beginning of any business activity. initial capital. In the absence of your own funds, you will have to look for options for attracting borrowed funds.
When money is found, it’s time to start a business straight away. To minimize errors and speed up the process, step- by -step instructions for using it have been developed by experts.
Develop an Idea for Vending Machine Business
First of all, you have to choose what kind of vending machine a businessman would like to make. Based on this information, it is determined that the equipment installed on the target audience will be designed.
Most of the machines are geared towards young people whose ages could not reach 40 years. They are busy during the day and spend the evenings in entertainment venues. Many startups are already working based on sales equipment (What is the starter, we wrote in one of the previous materials).
Remember, most success in sales depends on success. machine installation locations. First of all, it is worth considering the possibility of renting in most permeable places.
The most attractive places to install vending machines are:
- shopping and entertainment complexes;
- railway and bus stations;
- educational institutions;
- sports facilities.
Having a business is as successful as possible, he will have to do some serious work before installing the machine. It should include the following:
- analysis of the demand for goods to be sold through the device;
- assessment of competitors’ presence;
- infrastructure work at the planned installation site of the machine;
- price analysis.
It will also be useful to find out how much profit can be made from similar devices.
The seasonality factor is important when deciding to organize a business that sells drinks through the vending machine. So, in the winter, through a vending machine selling hot beverages is increasing by about 40%.
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If you install a device similar to an educational institution, the snow will fall in the summer almost 0. Therefore, another way you have to look for the warm period is to use the equipment. A viable option is to transfer it to mass events.
The most important stage in the organization of any business is the preparation of a clear plan. In this case, you need to know which expenses have to endure.
The table below shows a similar calculation using a vending machine.
Expense table when organizing a business using a coffee vending machine:
|Expense item||Required amount, rubles|
|Buying a coffee machine||80 000 – 200 000|
|Salary of the employee servicing the device||About 25,000|
|Consumables and raw materials||20 000 – 30 000|
|Rent a place to install the machine||7 000 – 10 000|
From 200 000 rubles to 80 000, you will have to spend in this way to open a business just to buy a vending machine. These one-off costs are largely determined by the type of device chosen.
In addition to one-off expenses, sales are also monthly. For businesses in coffee machines, their size is about 60 000 rubles every 30 days. It is important to understand that these calculations are approximate.
In addition to the type of sale an entrepreneur chooses, costs are affected by:
- area of activity;
- the location of the machine;
- The solvency of the people who make up the target audience.
By purchasing several machines, you must pre-arrange a rental in the same area of the city. In this case, the cost will be lower than the transportation cost required for equipment maintenance. When purchasing an important vending machine, check availability in the service center installation city.
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You have to buy devices that are intuitive to manage. The very complex interface can scare those who have never bought anything with such machines before. This means that the number of customers can significantly decline.
Legal Record of A Sale Transaction
The procedure for posting a sales business is usually straightforward. This is especially true for those who have performed a similar procedure before.
From a legal and accounting point of view, a business is easier to organize and run. individual entrepreneur (IP). We wrote about IP registration in a separate material.
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You can also open an LLC if you plan to hire a large number of staff.
It is important to determine the tax regime in advance. To sell in calculations, you can use imputed income, a taxation patent system, and a simplified tax system. We have also been described in a separate publication on IP taxation.
Equipment and Installation
When purchasing vending machines, it is important to carefully study the suppliers’ offers.
When purchasing vending machines, you should consider some nuances.
When choosing a vending machine dealer, it is worth considering:
- equipment cost;
- level of care;
- Availability of service centers in the village.
It will be useful to review device owners’ feedback and talk to businessmen in your city.
Profit depends a lot on the competent selection of an attached vending machine.
Entrepreneur, remember that any machine requires connectivity. to the grid. Also, in some cases, it will be necessary to decide on the possibility of connecting equipment. with running water.
Maintain the Machines
Once the equipment is installed, configured, and tested, you should find a professional to maintain it.
Some beginners who want to make money try to do these things themselves. Often such decision dysfunction automatic machines breakage and other troubles. therefore better to hire a specialist who serves well in such a job.
You should also consider. Later, when expanding the network of vending machines, the businessman will not have time to serve all of them independently. The entrepreneur should be busy with updating on product variety, bookkeeping, and advertising. It is better to delegate service work to the devices to a specialist.
Therefore, if an entrepreneur starting a sales business follows the instructions above, it will not arise that he will have problems starting a business.