Whenever you’re planning to start a new business, you always aim to have everything down pat. The last thing you want to do is make mistakes that can significantly impact its future success.
As you invest in a vending machine business, you need to talk to reliable vending machine service providers that understand your needs and requirements. Having an excellent and experienced team by your side can help you gauge and assess the factors that can help grow your business.
However, dealing with novice vending machine service providers is entirely different. Like you, they’re new to the industry. This means that they can make common mistakes, such as:
1. Inaccurately Calculating Profits and Costs
Projecting higher profit yield is among the most common mistakes of novice distributors. They promise higher payback than one that might be attainable in real life. Some even say that you can receive a return of investment within half a year or even shorter than that.
This highly optimistic approach may lead to budding business owners investing more than they could. So, it’s important to understand the timeline of your cashflow. Sometimes, payback can even be less than the 6-month period since a lot of factors come into play. That’s why it’s important for vending machine service providers to be upfront when setting expectations.
You can calculate the expected profit yield by comparing the amount you invested on the machine plus the profits between the amount written in the customer agreement. After which, you can ask the company about the total cost of ownership from training, software updates, maintenance, inventory, and more.
2. Endorsing Outdated Machine Models
Vending machines are popular not just because they offer convenience but they streamline the process of purchasing goods. With most vending machines offering cashless payments and a variety of options nowadays, every vending machine business owner has to compete for their target audience’s attention.
To do so, you need to select newer vending machine models that offer better quality and security. Stay away from service providers that provide older models since these may not look as attractive and compelling to your desired customers.
3. Installing Faulty Pay Systems and Defective Bill Validators
One of the most essential components of a vending machine is its payment systems, like the bill validators, coin mechanisms, and card readers. When they don’t function as they should, you can lose potential customers since they would end up ignoring your vending machine instead of purchasing products from it.
Installing faulty payment systems can lead to customers paying without receiving their desired product or vending machines refusing to accept payments. Either of which can be a very frustrating experience that discourages customers from patronising your products. That’s why it’s imperative to deal with service providers that guarantee top-quality vending machine solutions.
4. Putting Vending Machines in All the Wrong Places
Like in any other business, finding the right location is important. If you want to make money with your vending machine business, you must scout for the best location. Most service providers will help you find the right market for your products.
However, in some cases, new service providers won’t take the time to conduct a thorough location analysis which defeats the purpose of having an eye-catching front display. Take note that a bad location is one with limited consumer traffic and high competition. So, you must avoid these types of location and discuss the best options with your service provider.
5. Selling Low-Quality Products
When building your brand or business, it’s best to trust household brands than cheaper, generic versions. The front display should be attractive enough to encourage customers to check out your products and make a purchase. That’s why all your products should be enticing enough to attract customers; you can stock all-time favourite snacks, like chips and nachos, or thirst-quenching drinks, such as sodas, cold bottles of water, or juice boxes.
6. Failing to Keep Up with Maintenance Schedules
High-quality vending machines will still not be as successful as you’d expect it to be without proper care and maintenance. Most customers choose to purchase in vending machines that are spotlessly clean, so you will surely gain more profit if you keep them clean.
A dirty or broken vending machine does nothing good for your business. In fact, it can even ruin your reputation. Always remember that every vending machine business relies on the customer’s trust and willingness to purchase.
7. Being Inattentive to the Current Trends
The retail industry is constantly changing. With innovative marketing strategies on the rise, businesses should be quick to adapt to different trends to better their business. Whenever you’re talking to vending machine service providers, be sure to ask about the programs on how they deal with trends and how they plan to help clients improve as well.
The best service providers are always honest, reliable, and most especially adept with the current market. Be keen to notice whether the company you’re dealing with is certain about future trends and can provide concrete plans.
8. Offering Inefficient Support and Repair Services
Round-the-clock customer support and repair services are essential when looking for a vending machine service provider. It can spell the difference between a reputable provider to a shoddy one. Every time you talk with potential providers, don’t hesitate to ask about their support and repair services.
Trust the Best, Talk to TCN Vending Australia
When it comes to vending machine solutions, TCN Vending Australia is the country’s leading brand. Every vending machine is specially designed to suit all your needs. With decades of experience in the industry, we have since catered to the vending machine needs of clients in the country and even in New Zealand.
We take pride in creating energy-efficient and cost-effective range of vending machines, including elevator vending machines, coffee vending machines, touchscreen vending machines, combination vending machines, and custom vending machines.
So, what are you waiting for? Start your vending machine business by partnering with the best. Find out more about our products and services today by calling 1800 959 910 and speak with our friendly representatives.