A vending machine franchise is a great business opportunity. It can be a source of income on top of the salary you get from your regular full-time job. But before you explore into this, there are some things you need to consider first. In this way, you will not put the money you invested to waste.
Where will you place your vending machine?
Location is vital to ensure success in a vending machine business. The best place to put it is wherever there are a lot of people. Your safest bet is an office since employees need their snacks. They place vending machines on every floor or even get office healthy snack delivery. You need to obtain permission from buildings and establishments on where you want to set the machines.
You also have to consider the people. For example, you have a toiletry vending machine. The most appropriate place for that is a public bathroom. Candy machine? You put that where lots of kids could see it and get tempted to buy.
Keep in mind too that it needs to be in a secure and decent place. Vandalisms won’t make your machine pretty and might turn away buyers.
How much are you willing to invest
The cost you will invest in a vending machine franchise depends on different factors. It will also take a few months before you see a return on investment. If you don’t have enough money for this, there are other great ways to invest. But if you’re pushing through with this one, here’s what you need to pay for:
- Franchise Cost
The initial payments are for securing the franchise. It will depend on the terms and rates offered by the franchiser.
- Restocking Cost
Once the vending machine is in place, people will start buying. When they do, you need to restock those items. You also have to track which ones get consumed fast, so you can estimate how many needs to be restocked on each product.
- Maintenance Cost
Setting aside money for repairs is essential. You need to keep it clean and make sure it works fine. A dirty and trashy-looking machine won’t attract anyone.
Will you regularly check your vending machine?
Maybe you do have the money to invest but do you have the time, patience, and willingness to do regular visits on your vending machine? As the owner, you need to maintain its quality as well as the contents.
For perishable goods, you need to arrange them so that the ones closer to their expiry dates will be bought first. It’s also helpful to them if you provide contact information on it. You will never know when they might need to report some issues. Settle any complaints or refunds with courtesy and professionalism. This way you will reap the advantages of owning a franchise and don’t get any bad reputation.
Who is the manufacturer?
In any business, reputation is significant. If the company has a good image, you have a higher chance of success. Researching the brand names of those businesses is essential. You need to know if they are reputable and can be trusted.
If the brand is well-known, then they could be a potentially profitable venture. Of course, check the company’s worth and if they have an established market. They should have a good business plan and marketing strategy. It’s also helpful if they provide some training.
Another good reason to know more about the manufacturer is to make sure that they don’t have run-ins with the law. See if they have any past or pending legal cases. You need to make sure that you are dealing with a good and honest company.
Are you getting new or second-hand vending machines?
You should inspect all the vending machines that you will purchase. It should all be operational. Make a thorough inspection to ensure that you are getting your money’s worth. It will cost you more than what you should pay for with dysfunctional vending machines.
There’s a few faults or defects that you may find on new ones. What you need to examine are the second-hand machines. Look for any scratches, dents, rust or anything that decreases its quality. It’s essential that they are in a good condition.
If you have read through everything you need to consider before investing in a vending machine franchise, you can now make an informed decision if you are pushing through.
