As a business with a future, profitable and requiring very little investment, the vending business stands out. By vending we mean any business that generates profits through vending machines, which today can sell all sorts of things:
Soft drinks, sweets, nuts, tobacco, ice and newspapers, although the business has also gone a step further, with unusually original vending machines that sell everything from used underwear to holy water and sex toys.
The vending business can take different approaches, which we are going to look at in detail.
Ways to get into vending
As a partner of a vending company
The company would assign you your area, and your job would be to place the machines in different businesses, reaching a partnership agreement based on a commission on the sales the machines generate.
By buying the vending machines
You buy machines for different products and rent them out to shops, venues and department stores, taking care of restocking them yourself or agreeing on a commission with the owner of the premises where you install the machines.
But since we are here to help with the entrepreneurial process, we will try to give you the best idea for turning vending into a highly profitable business of your own.
Imagine offering the same services as a grocery store, a bar, a tobacconist and a newsstand, and best of all, 24 hours a day. What’s more, you wouldn’t need to be on the premises or have employees, at least at first.
What do you need to start a vending business?
Here are the ideas:
1. Premises
Ideally in a central area with a lot of foot traffic. They can be your own or rented. The floor space depends on how many machines you plan to install.
2. Vending machines
You can buy them outright, rent them, or talk to the supplier about letting you have them in exchange for splitting the profits 50/50. You should carry out a market study and carefully analyse which option suits you best, since all three are viable.
3. Security grilles
Designed so that the machines cannot be damaged, while leaving openings so that customers can get the products out. That said, with a good security system these days, and trusting that users will be more responsible, this part might be unnecessary.
4. Product diversification
Find out about the new machines already operating in some countries, for example for magazines and newspapers, and many other products never before seen in vending machines. Learn about all of them so you can stand out.
5. Tables and chairs (optional)
It could also be a good idea to put tables and chairs in the shop so that customers can consume your products on the premises as if it were a regular establishment. In fact, as we explained in our article “The jobs of the future and the jobs that will disappear”, more than vending as such, this business model seems set to take hold on its own in many establishments.
Advantages of this business
- It generates profits 24 hours a day.
- It doesn’t need staff, except for cleaning and restocking.
- Vending machine suppliers offer a wide range of financing options.
- Low monthly costs: only the rent of the premises and electricity.
See also: What will be the most profitable business in the coming years?
Disadvantages of vending
Like any business, it has certain disadvantages. In the business idea we have described, the biggest drawback is probably that, as a business open 24 hours a day with no staff and without the owner on site, it can be exposed to vandalism. Then again, with certain security measures in place, the risks will be no greater than those faced by any other business.
Is vending profitable?
It depends on the type of product you decide to sell, the location, the foot traffic and the profit margin on the products.
I know of a 230 m² shop with 45 vending machines that makes a net profit of EUR 70,000 a year. You can imagine how much customer traffic it gets. Of course, in this entrepreneur’s case, he had to make a large initial investment.
Further reading
Featured image: Olybrius, CC BY-SA 4.0, via Wikimedia Commons.
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