What do you need to pay attention to when starting a vending machine business?

Writer： Zhongda vending machines Time：2022-11-22 17:02 Browse：℃

Vending machines are typically a combination of commercial and real estate projects, where a favourable location can bring in better traffic and crowd out competitors. Whether the epidemic will break out again or not, the market for unmanned retail has become just what it needs to be, so what exactly is the profitability of unmanned vending machine operations? What do we as ordinary people who want to enter the vending machine industry need to know?

1.Choose the right product

The type of product to be sold determines the design structure, distribution and expansion methods, profit structure, development path and vending machine operation and maintenance costs.

Currently, vending machines on the market mainly sell beverages, but there are also various forms of vending machines. Examples include self-service ice cream machines, jukeboxes and other types of vending machines. As the market and technology become more sophisticated, the future of vending will be based on meeting the needs of consumers, taking on more diverse forms, covering a wider range of consumer categories and extending to self-service. But for the broadest and most basic operators, the simple spring-loaded vending machine is the best entry product and the category to roll out quickly and maintain a large share of profits. Those special-purpose vending machines are, on the one hand, more expensive and applicable to fewer scenarios with a large investment; on the other hand, routine maintenance and stocking, etc., are more onerous, while operational success is more difficult. Therefore, spring vending machines are the most universal type. Whether you are a newcomer to the industry or a veteran with more operational experience, the operation of spring vending machines is essential.

2.Optimising the strategic layout

Currently, most layouts in the vending industry are in a competitive phase. Point layouts are relatively regional, with multiple points laid out in certain areas, and without macro planning and precise layout. Firstly, the layout of the vending machine must be in line with the company’s growth strategy. And the first thing you need is a plan before you can do that.

Secondly, the layout of the vending machine must be in line with the advantages of the vending machine itself. The vending machine is low cost, small and flexible, so it is more suitable for placement in relatively confined areas such as factories, schools, parks, hospitals, office buildings, petrol stations, etc. These areas are densely populated and highly commercialised, and can be used for the convenience of people.

Therefore, it is important to consider factors such as user acquisition costs, proximity and usage scenarios, rather than choosing a location based solely on the amount of foot traffic.

3.Improve supply chain integration
The short shelf structure of a vending machine means a higher return rate and purchase frequency is required, so a well-integrated supply chain is key to increasing sales. If vending operators want to diversify and scale their product range, they need to make their vending machines smart, improve their supply chain capabilities through big data and other technology, and run granular operations to maximise product margins.

4.Profit model design

Currently, vending machine operators make their profits from three main sources: firstly, from traditional retail sales, i.e. merchandise, secondly, from equipment sales, and thirdly, from value-added services such as advertising. In the early stages of a business, when sales are small, operators usually need to rely on value-added service revenues to increase their profits. However, as a company matures, it should still rely on its main business to generate profits. After all, sales revenue is the basis for a stable and sustainable company.

These are the issues that need to be taken into account when starting a vending machine business, and we welcome you to come to our official website to ask us for more advice on vending machines.

Guangzhou Zhongda Smart Technology Co., Ltd. is a vigorous innovative company, focusing on the research & design, manufacturing & selling of Intelligent Vending Machines with more than 5 years experience in OEM of vending machine. We have experienced R&D team, energetic sales team & skillful workers plus our strict quality control system and good after-sales service, Zhongda vending machines are very popular since being launched in the market.