If the right steps are taken, running a vending machine business can be a profitable venture. There are certain procedures that should be set up to ensure that your system is secure, before starting in this business.
Vending machine business is not always a good investment
Vending machine business is an important part of the overall economy and is responsible for a lot of jobs. Vending machines are very useful in many different situations in our daily life, from office buildings to public transportation stations. They have become an integral part of our society and we rely on them for a variety of products and snacks.
To start a vending machine business, you will need money to purchase the machines themselves as well as starting capital for stocking the machines with inventory.. It will cost anywhere from $4,000 to $20,000 to get started with 10 machines or less. The larger your operation gets, the more you can save per machine on average. It takes approximately $500 to stock each vending machine with inventory.
Vending machine business is not always a good investment, because it has its own risks associated with it. This article is aimed at helping individuals understand the risks involved in starting and maintaining a vending machine business so that they can weigh their options before making this type of investment
Repair and Replace When Needed
The vending machine business is not without its risks. If you choose to go down that road, you have to be prepared for the following:
Vandalism. Unfortunately, vandalism happens even in the nicest of neighbourhoods. You’ll need to be prepared to clean up after it and, if necessary, repair your machines. If it happens often enough in a particular location, you may have to reconsider whether you want to continue doing business there.
Theft. Theft is another unfortunate reality of the vending machine business. It can be costly, especially if it involves cash. Insurance can help mitigate the cost — but it’s best if you can avoid it altogether by watching your machines closely and installing security cameras or alarms on them.
Breakdowns or malfunctions. Like any piece of equipment, a vending machine will eventually break down or malfunction. You have to be able to repair and replace your machines when that happens.
Expired or Unhygienic Products
In a perfect world, all vending machine operators live up to their responsibilities. They keep the machines clean and stocked, they make sure they are legally positioned and compliant with local regulations, and they don’t sell products that are expired or unhygienic. However, some operators intentionally or negligently violate these rules.
When you run a vending machine business, these risks are part of your job. When you operate a vending machine, you’re taking on the responsibility for all of its contents. If an operator sells expired products from your vending machine, then as far as the public is concerned, you did it.
Here’s what you can do to minimize these risks:
1) Verify the sanitation and expiration dates on each product before loading it into your vending machine.
2) Get liability insurance to protect yourself from lawsuits (and from theft).
3) Get references from your supplier before signing any contracts with them.
Locations Can Be Risky Too
Most vending machine entrepreneurs don’t consider the risk of their business before getting started. They think it’s a simple business where you just buy a few machines and put them somewhere, and then come back later to collect the money.
Actually, the location you choose could be a risk too.
The problem is that getting into a bad location (which happens more often than not) can lead to very low profits. If your machines are making less money than expected, then you may have to spend more time servicing them. And if you’re spending more time on your machines, you’re probably also spending more money as well in gas and other related costs that are associated with travelling to your vending machines.
If you’re going into the vending business, it’s important to recognize what the risks are so that you can minimize them and protect your investment.
If you are interested in starting your own vending machine business, call 416-819-2163 for more info