Are you looking forward to start snack or drink vending business?? Well, the business is lucrative but still needs prudence and business acumen. It can be easily managed with your full time job and can get good return on investment. Brain storming on the characteristic features of vending machines prior to business startup will help in proper planning and execution of the business.
Following characteristic features of machines should be checked:
Gross Margin: While drink machines earn good profit margins, the snack machines give comparatively lower margins. Even the combination machines give lower profit margins. So, check the profitability factor first.
Monetary investment: All the three types of machines are expensive and will demand heavy investment. So, check out your finances before plunging into snack or drink vending business.
Servicing details: All these three types of machines need more effort and time. In comparison to them, a simple candy bar machine is more profitable as it takes just 10 minutes to service it.
Uneasy to move machines: These machines are bulky and heavy. They can not be easily moved in case of relocation or other shifting requirements.
Frequent servicing: All these three types of vending machines need frequent servicing. This raises the maintenance cost and also affects the over all budget.
Revenue per location: Snack or drink vending machine gives more revenue per location when compared to combination machines.
Competition: You need to keep branded, non-branded and local area preferred products to rule out extra competition in the vending business.
Keep a check on machine theft: All these three types of machines are quite heavy and reduce any chances of theft. Still as a security measure, you should avail remote monitoring system on them.
Products with long shelf life: While drinks or soda products have longer shelf life, snacks do not guarantee good life span and often result in quicker refilling due to expiry concerns.
All these factors about the machines should be judged to check mirror point details about the vending business. These are small but significant aspects of vending machines that can make a considerable difference in your decision of the business. These must be checked while starting your business to calculate time, money and man-hours needed for your vending business.