vending business
The question of how to start a vending business has been relevant for more than a year. The reasons for this are the low threshold for entering the business and the lack of an advertising campaign.
Capital investment: from 163 000 rubles
Payback of vending business: 6 – 18 months
What do you think unites shopping centers, cinemas, hospitals, offices?
All of these areas are considered excellent locations for vending machines.
Automated sellers are adapted not only to the sale of small goods with low cost, they also act as mini-producers (for example, coffee machines).
They quickly entered our lives and confidently took their place.
Because the question how to start a vending business, has been relevant for more than a year, and this is not at all surprising.
The vending business is especially attractive to newcomers.
There are many reasons for this: from a low threshold for entering the business to the absence of an advertising campaign (the benefits will be discussed in more detail below).
The vending business has many advantages, and the development prospects are quite bright.
What development trends and prospects does the vending business have?
The history of the emergence of the vending business has "gaming" roots.
Back in the distant 20s, the so-called one-armed bandits were popular - slot machines, which soon fell out of favor with the state.
The reason was simple - the entire cash flow from the devices was not taxed.
Therefore, they were hastily converted to other needs - the sale of chewing gum.
However, it is not the United States that now leads in terms of the number of “cars” per capita.
In America, there are 40 people per machine, but in Japan, the main (60%) trading operations are carried out on machines.
And one vending machine accounts for only 20 people.
In Russia, the level of popularity is much lower, so the domestic vending business has a lot to strive for.
The vending machine business that flourished on the territory of the USSR since the 50s was based on coins.
The devices of the famous sparkling water were especially popular.
But with the disappearance of iron money, popularity gradually faded away.
The current machines "use" mainly paper bills.
In the late 90s, second-hand machines began to be delivered from abroad, and, moreover, very different ones: for soda, chewing gum, newspapers.
But time has shown that the most popular vending machines are for selling coffee.
What are the pros and cons of the vending business?
The vending business has some features that can be called disadvantages:
Automatic machines often deteriorate or even break down.
Therefore, the entrepreneur must lay a considerable amount in the budget, for which the vending machines will be repaired.
We must not forget that this is also a simple one, during which you take into account the profit inexpensively.
To minimize this risk, it is worth choosing places where there is security surveillance: shopping and office centers, etc.
Machines need round-the-clock connection to the electrical network.
Any vending machines - gaming, for soda or shoe covers, require systematic maintenance.
You need to fill new consumables, wash inside and out, just check the performance.
Equipment suppliers may provide this service by agreement.
It matters a lot where exactly your vending machines will be installed.
Only in places of large concentrations of people or their active movement will you receive sufficient demand.
And some of them (such as shoe covers vending machines) can only be placed in specific places.
Beginners in the field of entrepreneurship may be frightened by gaps in the legislation of the Russian Federation regarding the vending business.
However, the difficulties with the design, if desired, can be solved if you understand the intricacies and design of the equipment.
However, the number of advantages of the vending business is still greater, which explains its high popularity.
- The vending business gives a stable income, which is almost not subject to risks.
- Entering the vending business requires a low investment threshold.
- An exceptional case - for the vending business, advertising is not needed at all!
- Machines can be quickly moved if the location has ceased to triple you or no longer brings the desired income.
- Such a personal matter as a vending business can be combined with other business options without any difficulties.
The vending machine will be sold at any time of the day or night (if it is located in an open area, of course).
At the same time, you do not need to hire a seller for this - an additional savings item.
For 7-10 installations, it is enough to involve only 1 person who will be engaged in filling water, coffee, cups (depending on the type of device), cleaning and minor repairs.
Vending machines are easy to install and register despite gaps in the law.
For example, you do not need a cash register.
How to open a vending business in a promising niche?
Indeed, now vending machines have been adapted for so many activities.
For a Russian person, familiar associations are vending machines for soda, coffee, and snacks.
But there are also absolutely unique use cases for automated sales.
And not only abroad, but also in Russia.
For example, in the office of Mosenergosbyt, a vending machine was adapted for the sale of energy-saving light bulbs!
In the future, several more were installed around the city.
After all, we all know how important (and more recently fashionable) to take care of the environment!
And in Spain they implemented an idea that would appeal to many Russians.
Local entrepreneurs have installed equipment in supermarkets that sells liquid soaps and powders “for bottling”.
The absence of the need to hire a seller and make beautiful containers made it possible to reduce the cost of goods.
And this created a great demand for the service.
In order for you to decide on the direction for your own vending business, follow these steps step by step:
- analyze the market in your region to identify profitable niches to start;
- watch your competitors - do they fully satisfy the demand in the vending category?
- study which places in the city are especially crowded - the success of a business depends almost 100% on the location;
- consider running several different machines at once (for example, install a duo of a soda and sandwich machine so that a person can have a full meal).
How to start a vending business?
After you have finished choosing the type of machine you will be working on, you can finally proceed directly to the implementation of the idea.If we reduce everything to a brief instruction, it will look like this:
The future businessman must choose between an LLC and an individual entrepreneur, and then register to conduct legal activities.
In addition, it is necessary to decide on the taxation system.
Machines can be bought as a single payment, or take a loan.
In the first option, it is also worth considering buying used equipment, especially if this is your first business and the business model still needs to be tested.
Like any other business, vending should be started with.
An example for financial calculations is given later in the article.
Analyze the prices and assortment of competitors, as well as the cost of the raw materials you use.
This will help you price your items.
For machines, you need to choose a place in accordance with the recommendations that will be given below.
Enter into an agreement with the owner of the territory, agreeing on a fixed monthly fee or a percentage of the proceeds.
How to open a vending business alone?
Usually, entrepreneurs immediately open a network of vending machines and hire a person to service it.
Beginners may strive to perform its functions on their own in order to save money.
If you intend to do the same, you should read the list of responsibilities.
As a rule, for a salary of 15-20,000 rubles, a hired person travels with a check several times a week.
During his visits, he checks how the machines work, cleans them inside and out, repairs them on site, or sends parts that need repair for service.
These items vary depending on the need.
But the list of these remains unchanged: to fill with consumables and take the money.
Theoretically, one person can safely do this work if he has a car.
But do not forget that even minor repairs require special knowledge.
At the same time, specialists are in a hurry to reassure you - if the equipment is purchased new and of high quality, you will not have frequent repairs.
It is enough to allocate $ 1000-1500 per year in a business plan to cover such a need.
But even a beginner can solve accounting issues on his own - you don’t need an outsourcing company, much less a full-time specialist.
How to choose a location for a vending business?
"Business is the art of taking money out of someone else's pocket without resorting to violence."
Max Amsterdam
Nothing determines the success of a vending business like the location of the vending machines.
The main rule is that there should be an active flow of people in this place.
But at the same time, it is important that people do not rush past this place at maximum speed (as at the entrance to the subway, for example).
But the schools are great.
After all, although students actively move along the corridors, they stop with pleasure to “intercept” a bar or a glass of coffee.
One negative side of this arrangement is the difficulty in reaching an agreement with the management.
An alternative to this option is office buildings.
Here the public is more solvent, and it is easier to conclude a lease agreement if competitors have not yet completely occupied the territory.
But the most popular option for the location were and remain shopping centers.
The management is open to any agreements, because renting space to entrepreneurs is their main goal.
And if the shopping center is popular, then the machine will accordingly have a large flow of customers.
Another significant plus of such a place is the presence of security and video surveillance.
How to start a vending business: starting investments
As mentioned earlier, the threshold for entering the vending business is relatively affordable.
The list of expenses is unusually short:
What monthly investments are needed in a vending business?
Unlike capital investments, in the table of regular expenses the list will be wider:
A few more words about the vending business,
its types, advantages and disadvantages,
you will hear in the video:
What are the payback periods for a vending business?
If we talk about vending machines for soda or coffee (which are the most popular in the CIS countries), then the average revenue from one is about 17 thousand rubles per month.
At the same time, the margin for one glass of drink is about 300%.
In addition, you can earn income by placing advertisements from partners, both on the equipment itself and on cups of water or other drinks.
With such indicators, the payback of the machine comes in six months or a year.
The figure changes depending on the correct choice of location, the quality of the carbonated water or coffee itself, the frequency of breakdowns or shutdowns for other reasons.
Experienced people suggest that a vending business should be considered as such only if an entrepreneur purchases 5-10 machines at once.
Therefore, having recouped the first investment, it is worth directing funds to scale the business.
No matter how easy and accessible it is to enter into vending business, yet it will also require constant participation from the entrepreneur.
You need to keep track of soda supplies, bring in cups and coffee, send broken parts for repair, look for new placements and compete with competitors.
But everything comes with experience.
So if there is a desire to open your own business and develop it, even a beginner will be able to open a vending business!
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