At a glance, the vending machine business seems like a quick and easy way to make big money. Most vending machine suppliers and seasoned vending machine owners can attest. It has a simple business model. No fuss, you simply need a vending machine, proper stocking schedule, and regular maintenance. Does that seem a lot to you? Well, if it is, you’ve got more lingering questions that need quick answers.
Whether you’re planning to hop in the vending machine business or you need to know more about your existing machines, it’s great to be curious. After all, when it comes to starting a business, it takes more than just skill and planning to succeed. Try to ask as many questions as possible but don’t forget to ask these ten questions:
1. How long have you been in the business?
Years of experience is a great measure to speak of the company’s reputation. The longer a vending machine supplier is in business, the better. The length of years is indicative of the knowledge and expertise of the company.
However, this doesn’t mean that newer companies can’t provide the same service as well-established companies.
2. Which areas can you service?
Similar to the number of years, the areas in which a company can service is also a good indicator. Most reputable vending machine suppliers and dealers service several locations. This means that they can offer services across different states.
You can also ask about the customers they have in their accounts and check on their competitors. This will help you assess their competitive edge in the market.
3. What types of machines do you offer?
Most vending machine businesses offer the same products. However, many vending machine suppliers give you a competitive advantage. Whenever you’re choosing a supplier, ask them whether they have the specific machine to fit your requirements.
Whether you need a vending machine for your snacks, drinks, or coffee, or you want an elevator, touchscreen or even a customised vending machine, there’s a right type of vending machine for your business.
4. Do you use a Vending Machine System (VMS)?
As technology advances, more people can enjoy a different level of convenience. From getting a quick snack to fully automated systems, vending machines have developed over time.
Today, vending machine systems (VMS) are in most machines. These systems streamline the process and automate logistics to ensure that everything is well-accounted for. With this advanced software, you can keep up with route schedules, track inventory, and manage logistics. It also allows you to record and run details to handle your business even better.
With all the benefits that come with VMS, it’s paramount to ask your future vending machine supplier about such technology.
5. Do you have liability insurance?
Choosing a reputable company comes hard for everyone, especially with all the various choices around you. However, this is the deal-breaker question. Every reputable company stands by their products and services. That’s why a good company offers insurance for its products and services.
Since vending machines are out in street corners and public spaces, they’re prone to vandalism and property damage. With a liability insurance in place, you won’t have to worry about these things. The company will shoulder your machine against any damages.
6. What kind of profit margin should I expect?
High profits and good revenues usually depend on your location and products. On average, depending on the location, a vending machine can earn as little as $5 or up to $100 every week. This is based on the amount of traffic that crosses the machine.
While returns can be high, operational costs can significantly vary. That is why you need to assess the kind of product and stocks you put inside your vending machine.
7. What Should I Stock in My Vending Machine?
The products you stock in your machines makes all the difference. If you sell the right product, you’ll surely enjoy great revenues. However, if you sell the wrong product, your business might suffer. Always assess what your customer is looking for. Here are some of the most commonly stocked products that you should consider for your vending machine business:
Looking an afternoon snack? Be it in the subway station, or in a school canteen, everyone wants to grab a quick bite or drink. That is why chips, candies, and beverages are ideally top three favourites.
Candies and sweet treats are also great products to sell. Gum, chocolate, and mint are even gaining the most traction in vending machine sales.
Eating For Wellness
A lot of people have become more health-conscious. They give greater importance to health and fitness, shying away from junk foods and an unhealthy diet. Over the past few years, most vending machine suppliers see a significant increase in healthier snack purchases. This number is even expected to grow even more.
Wondering how you differentiate your business from the rest? Consider selling unique items. While you may argue that there is a limited market for customised and unique items, many people find it interesting to try something new from time to time.
Across the globe, many vending machines stock a wide variety of item – from OTC medicine, phones, champagne, and even live crab to gold.
8. Should I buy a brand new or pre-owned vending machine?
Buying any vending machine is the first step to take towards launching your business. It is a crucial decision that directly impacts the success of your business. It’s undeniable that the idea of buying something new and shiny is enticing. However, this is not an effective strategy for most starting businesses.
New vending machines tend to cost more. This means you’ll need a bigger capital to start your business, but this still depends. Newer vending machine models help build your brand, especially if you’re trying to offer unique items to your customers.
9. Do I have to buy more than one machine?
Many think that buying five machines or even ten will make them rich even faster. This is a huge mistake. One, two, or even ten machines won’t determine a steady profit. You need to start at a sustainable level – not too aggressive, not too timid.
Understand what works best for you and learn to explore your options. The best strategy is to grow your business and brand visibility. Through this, you can target customers and make them patronise your products even more.
10. Where do I get the right vending machines to achieve my goals?
In every business, quality matters. Better quality products help you achieve your goals. With dozens of vending machine suppliers in the market, you need to sift through the most reputable companies and only deal with them.
Some companies lure you into the vending machine business for the get-rich-quick scheme or the set-it-and-forget-it profits. Unfortunately, this industry is anything but that. Trust in a company with years of experience like TCN Vending Australia.
TCN Vending Australia is your best choice of vending machines in Sydney. For more enquiries and details, ask away. You can call us at 1800 959 910.