In this increasingly busy world, people are looking to spend as less time as possible on mundane time-consuming tasks. Standing at a supermarket checkout counter is one of them. A slow-moving queue or a less efficient staff member can make it a cumbersome experience.
Alternatively, purchasing from a vending machine is a hassle-free process. All the available products are visible and can be ideal for satiating your hunger with a quick meal.
Managing a vending machine can be a lucrative side hustle or even a full-time job. If you are looking for information on how to start a vending machine business, you have come to the right place!
Setting Up a Vending Machine Business:
Starting a vending machine business involves very little capital. All you need to spend initially is the cost of the machine itself, the products that go into it, and the cost of leasing out a location. The leasing cost will be minimal due to the compact physical footprint of the vending machine. If you decide to take over an existing vending machine business for sale, be sure to check the equipment’s condition.
Formulating a Business Plan:
Before you proceed to invest, it is imperative to chalk up a vending machine business plan to gauge its profitability, target audience, risk factors, etc.
The summary section has a concise idea of your business idea and strategy and has a brief outline of facets of your business. Writing a good executive summary is vital, particularly if you are angling for funding.
Be sure to highlight the choice of products, target demographic, locations, and pricing strategy.
While doing a competitive analysis, be sure to reach your competitors well. You should evaluate and observe what’s working for them, their mistakes made, and how best to use the data to stand out from the competition.
This is a vital inclusion in any business plan. Detailing a comprehensive SWOT analysis will help formulate better strategies once your venture gets off the ground.
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A solid financial plan is a prerequisite for the success of all business ideas. Work on the capital you need – whether you will be self-funding the venture or will you be considering external sources to invest in your business.
Consider Repairs & Maintenance
As vending machines are usually in public places, the odds of them being subject to both vandalism and theft are high. Unpleasant as the thought is, you should take into account this prospect and make a provision for it in your business plan.
Cost of Setup:
Purchasing a vending machine will require you to invest INR 1.0-1.5 lakhs. Additionally, there would be some recurring monthly charges which are detailed below:
Refilling Fee: This would set you back between INR 10-12k per month.
Storage Cost: A warehouse will need to be leased for product storage and will cost INR 5000 – 6000 per month. Payment Gateway Charges: Utilizing a payment gateway will cost you depending on the service provider. There are various options like UPI/RazorPay and Netbanking. Transaction fees vary on the medium of payment.