The first consideration to start a business is always cost related. How much capital are you willing to invest in your business? Most businesses would have an estimated amount you need to invest in. Not for vending.
Vending owners can set up their own company even with just five machines. There are no limits except the amount of time you want to commit to this business and the capital you are interested to put in. On top of that, there are also some cost-related things to consider.
Cost of the Vending Machines
There are a variety of vending machines in the market. From the basic gumball machines to advanced food warmer machines, you need to choose machines most suitable for your market. Before you delve into a particular type, ask yourself what type of foods attract your consumers most? Where would you like to place your machines in? Are you specifically selling to children, office employees or gym goers? It is important to assess your market and find the types of machines that's best for you.
Cost of Your Stock
After you have selected your machines, you need to think about the products to fill them. The cost of filling up these machines depends on the products you will be purchasing. Simple snacks such as gumballs, candies and drinks can be very affordable when purchased in bulk. You should scout around for the best deals in various grocery stores often.The other option is to find a supplier whom will provide you with a good price for your bulk purchases. This can be helpful if you are purchasing items that cannot be found in the market easily.
Cost of Rent
Many business owners do want something out of the deal from those who place their machines on their properties. This is only fair, particularly with machines that use electricity. Luckily, many business owners don't charge a lot for this, and a lot of them won't ask for any money up-front. Instead of charging a flat rate, business owners will typically agree to a percentage of the sales, so machine owners usually don't have to worry about paying for anything until they start making a bit of money from their machines as well.
Cost of Marketing Materials
When you have completed calculations for the business operations, you need to think about marketing. Everyone needs to market their business, especially when yours is brand new. You need get the word out. You need to attract prospects. You need locations for your machines. How can you do this?
There are many tools out there that can aid you. Start by doing research on your prospects and ask yourself what channels would benefit you most to find them. Is it a website, Facebook, LinkedIn or just a physical pamphlet and newspaper advertisement? Think about how these tools will build credibility and enable your prospects to connect with you.
With these four considerations in mind, take some time to build your budget for your company. Whether you start with five or twenty machines, proper planning will empower you to succeed in the vending industry.