Are you interested in vending machine business model? How to give it a start? Don’t worry. We give you all the keys to knowing how the vending machine business model works so you can start your vending machine business from scratch.
Vending Machine Business Model: 7 Steps On How To Start
Vending machines are all those that, through a payment, offer the customer the desired product or service; Chewing gum, coffee machines, snack and drink machines, Covid product machines, feminine wipes or condom machines, and tickets. A multitude of devices and products and the costs of the machines are very different.
Operating Models Of Vending Machines
What is the operating, business, or exploitation model like? This is one of the questions you ask me the most. Ownership is the most common model, as it is the most profitable.
You acquire the machine, and you are in charge of looking for a place where it generates good sales. You carry out the complete operation of the business (purchase of supplies, replenishment of products, withdrawal of currency, cleaning, and maintenance).
The ownership model for the operation of vending machines is the most efficient way to earn money, integrally managing the procedure—both for entrepreneurs and companies that want to have this service in their facilities. Logically, the customer must be trained to learn the handling, operation, and maintenance. It is very simple.
Ownership Of The Vending And Operation By Third Parties
Many companies (and some entrepreneurs) contact because they do not know how the vending machine business model works. They want a machine, but they do not know how to take care of the operation.
Decide What To Sell Before Starting Your Vending Machine Business Model
You must be clear about what you want to sell since, depending on the products you decide to put on sale, you will need a machine that meets its conditions. And depending on the type of machine, the cost varies a lot.
The vending machines that sell the most are the Combi or Mixed machines for snacks and drinks. These machines have the lower half with refrigeration (for drinks) and the upper part at room temperature (for snacks and…). They sell more than just a snack or drinks by offering snacks and beverages.
Coffee machines are an excellent alternative since they are cheap and their usefulness is also much greater, around 90%.
Decide What To Sell According To Your Budget.
Although it may not seem like it, your budget is a limitation when starting in Vending since, if you are limited, you will have to start with the type of machine that suits your needs and that, at the same time, can bring more profit.
If you don’t have too much capital, we recommend starting with a mini-snack or a coffee machine.
Types Of Vending Machines By Cost:
It is not the same to have a budget of $5,000.00 as one of 120,000.00. For example, a good chewing gum, which can be around $6,000.00, can make you between 500 and 1,000 a month, installed at a good point. A combi machine for snacks and drinks is more than 35,000.
The simplest Coffee machines models, which we recommend you start with, start at around 30,000.00. These usually work with the inputs in powder and a jug of water. We also tell you that coffee is the product that will leave you with the most use. Between 80 and 90% of what the client pays is your utility.
Snack machines and drinks and beverages are the best sellers and have a higher cost. You can only sell snacks and products that do not require refrigeration. And not just chips, you can also sell face masks, disinfectant gels, cell phone accessories, books, t-shirts, pharmacy products, and electronic cigarettes; they are versatile to sell almost any product.
Collection And Telemetry Devices
Payment devices are also a limitation when choosing which products you want to sell. If, for example, you want to sell perfumes, a machine that only charges in currency are not going to work for you.
Decide Where To Locate Or Install Your Machine.
The choice of location of your machine is the main factor for the operation’s success. You must choose where you install your machine to have the desired sale, and your venture is a success.
Permits Needed To Install And Start A Vending Machine Business Model
Wherever you want to install, you should talk either with the owner (for example, a grocery store), with the administrator, or the person in charge of leasing (of a commercial or corporate plaza).
Permits are not necessary. Only an agreement is normally reflected in a contract where the conditions appear.
So start with the one whose investment you can support, and as you begin to win, invest your profits in increasing the number of machines.