Challenges Faced in Vending Machine Business

Challenges Faced in Vending Machine Business

When it comes to setting up a business, it is easy if you have resources. Managing it becomes challenging. There are a number of challenges that entrepreneurs have to go through. Same is the case in the vending machine business. Challenges faced in vending machine business can be due to operational inefficiency, technical failure, vandalism and rising rent. These points are discussed in detail below.

Let’s look at the challenges that are faced by entrepreneurs in vending business in today’s world:

1. Operational insufficiency

One of the most important challenges in the business of Vending machines is its inefficiency to operate. A vending machine without effective operation is valueless. Unlike tier 1 cities, tier 2 cities struggle relatively more due to operational inefficiencies. When we say operational inefficiency, we consider these major factors:

  • Operation

A machine is designed in such a way that the first focus on it is its operation. Often a Vending machine has a hard time operating. Many times due to inefficiency of working in the right manner because of its design. 

  • Refilling

As soon as the machine sees decreasing products, the other challenge is refilling it. The installation of machines at places that are not in reach with the Refilling partner becomes challenging. This makes business ineffective in operating. 

  • Inventory

Often vending machine operators have to manage the inventory prior. Having a complete stock all the time is not possible. This is due to the shortage of manufacturing of products. Not having an inventory on time makes business ineffective in running. 

  • Management 

It is very much needed to have proper management planned well in advance in order to avoid any failure in business. Having a proper management system however requires everything to be proper at every level. From installation to satisfying the end user, everything requires proper planning and proper management.

  • Tracking

Smart vending machines come with technical advancements. These machines have tracking systems available via artificial intelligence. But this becomes challenging as due to improper functioning of the machine it becomes hard to track the working of it.

2. Technical failure

mon failure in any machine. A vending machine is a technically advance machine that uses power. This results in technical failure.

  • Products and money getting Stuck

Vending becomes hard to operate. When it is unable to identify the money inserted, it either throws it back or gets stuck. Same is in the case of products that a machine dispense. When a machine is unable to identify the product that customer wants, it fails to dispense it. This becomes challenging for operators to operate effectively.

  • Repair and maintenance 

A vending machine requires proper care. One has to maintain and repair it timely to avoid any technical failure. This becomes challenging as repair and maintenance charges are high as well as requires a technical expert on time. 

  • Power cut

Power cuts are likely to happen at any place. As you know, a vending machine operates through electricity, not having power would lead to improper functioning of Vending machine. Also, some vending machines require 24*7 power where products it contains includes dairy, FMCG or grocery products. This makes it challenging for vendors to make a profitable business.  

3. Vandalism

Vandalism means causing damage to property. It is a most common factor that becomes a challenge faced in vending machine business. This includes:

  • Theft

Having a separate security to take care of a machine is an additional cost.  Nobody wants to pay that. But, in India, it is likely to see machines such as ATMs being stolen. It becomes a challenge for the operator to set up a Vending machine due to fear of theft.

  • Break

In India, there’s a constant fear of machines kept in public. It may be due to protest or even due to any natural calamity. One is not sure how good a Vending machine business idea is due to the following factors.

4. Rising Rent

Percentage of rent keeps on increasing every year. It might be fine to pay the initial rent. With time rent keeps on increasing. When business sees no profit, paying rent on timely basis becomes harder. This becomes challenging for the vendor and finally shuts the business. 


The easier it is to set up a vending machine business, the more difficult it becomes to operate. In order to run a successful vending machine business these are the number of challenges that an operator has to face. These challenges unless are able to overcome, makes it difficult for business to operate effectively. We can say these Challenges Faced in Vending Machine Business makes it difficult to run business effectively.

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