Vending, like all businesses, takes hard work and capital to be successful. Essentially, vending businesses are retailers, and a number of key factors will dictate whether you are successful or not. We can help you:
Location, location, location
Where will you locate your retail outlet (vending machine)? If the location has good passing traffic or is accessible by many staff (of the lessee/of nearby businesses?), the likelihood of your outlet being successful is increased.
Security of tenure
How secure is your location? Will you be there in three months; three years?
How much rent do you need to pay, if any? – Good high-traffic locations will generally attract higher rent than locations where the machines are offered as a service to the staff.
Quality of equipment
Does the quality of the equipment you offer meet the expectations of your location? While you can install older machines in smaller locations, busy, high-turnover locations require the best you can offer. If you don’t offer the best equipment, your competitor will.
Will you run promotions?
Statistics show that vending machines that run promotions sell considerably more products than other vending machines.
How will the consumer pay?
Will you offer credit card facilities and tap and go?
What products will you offer in the machine?
Good retailers ensure that they tailor their product range to their customers’ needs.
How will you replenish?
Where will you store your inventory? How will you transport the product, especially in summer? How often will you replenish the machines? These are all steps you need to consider in order to ensure you are efficient at operating your business.
How will you replace locations that do not work?
Unlike bricks and mortar retailers, vending machines can easily be picked up and moved to another location if the current location is not viable. Who will find new sites to replace poor sites?
How will you repair your machines when they breakdown?
As a retailer, you make money selling products. How quickly will you respond to machine breakdowns?
How well capitalised is your business?
Do you have the capital/borrowings in place to operate and grow your business. Many businesses fail, not because they don’t make good sales, but rather because they are not adequately capitalised.