Want to open a Vending Machine business? Unaware about the start or how effective is it to invest in it? Does Vending Machines Route a Good Investment? In this blog we will discuss all your queries related to how vending machines route a good investment for entrepreneurs today in detail.
Vending Machine Business- A Smart Solution
Where everybody is coming up with great and unique business ideas, vending machine business comes as a smart way of getting entry in the business world. Vending machine business is a route to good investment. This type of business has low risk and generates high returns. The initial amount required to invest in it is lower. In return, the amount of profit generated is so exciting that it makes it a good and reliable investment.
How far can a vending machine route a good investment
The growing demand for vending machines is expected to increase in the near future. According to Indian Economic Times, market share of vending machines is expected to increase 14.9% CAGR till 2026. Companies like Reliance, Vodafone, Times Internet, E&Y, Snapdeal, and many other big brands have already installed vending machines in offices. This will enable the business to occupy a good market share. Investing in such a business is profitable and comes with benefits one has never imagined.
Investment needed to set up a vending machine to route a good investment
Initially there is a minimal set up required in order to install a vending machine. Vending machine business does not necessarily require a huge investment. For instance, in order to open a supermarket, a hefty sum of money is spent with no assured ROI or lesser, as the case may be. The initial cost is so huge that one has to think and re-think about such an opening. However, the initial set-up cost of the vending machine is somewhere around Rs. 1.5-2 lakhs only.
Route to Good Investment
A business with great return on investment is a perfect business for entrepreneurs today. Vending machine business has proved to be one of the most profitable businesses so far. In order to make it profitable,
Following are the things one should keep in mind. This includes:
- Choosing a perfect location
Setting up a vending machine requires a well-planned location. This is important because a place with increasing footfall would attract more customers. Always look for the best location in order to achieve the purpose of generating high revenue. Location is everything in a vending machine business. Your location will only determine the success of your business. In order to turn your investment into a profitable investment, location is everything you can bet on. For instance, vending machines installed at offices, schools, and hospitals prove to be one of the best locations.
- Quality service
Setting a vending machine is not enough. Imagine it this way, you own a business of textile which does not satisfy your customers due to lack of quality of cloth you use. This makes them keep on complaining. In order to not be able to deliver the desired quality, your business graph goes down and hampers your growth. Same is the case of vending machines. A vending machine operator must be aware about its refilling. He should know the kinds of products to put in. He must timely update the machine to avoid any technical faults. A vending machine must be neat and clean.
- Giving its customers a convenient payment mode
Today, smart machines have replaced traditional machines. The only thing that would make your customers come back is how user-friendly the machine is. With so many different payment modes present today, you never know what a person carries. Giving the customers a convenient mode of payment option would make the machine highly operational. Choose the payment mode wisely as per your target audience. They must not go back for the sake not being able to use payment mode.
Types of Investment that routes to good investment for vending machines
- One time Investment
A one time investment includes starting a business with no added cost to pay later. Everything takes place at the same time including purchasing of vending machines. Business comes in handy with readily available operations like in-built technical software, digital screens, products for service, applications as well as payment mode.
Such investment with respect to vending machines include Machine cost and Franchise fee, which is somewhere between Rs. 1.5 lacs to 2 lacs and Rs 5000-7000 /-, respectively.
- Monthly Investment
Monthly investment basically includes every fee paid in each month for the operation of business. This includes refilling cost, warehouse cost, SaaS charges, payment gateway charges, etc. Other than that, it also includes electricity fee, insurance fee, and daily maintenance fee.
In order to make this business profitable, one has to figure out the type of investment he is comfortable with. A proper selection of the type of investment one makes would determine the profits. Vending machine business provides low risk and good returns in future. That’s how vending machines route a good investment. Vendify suggests going with a one time investment plan as it provides a convenient way of making business decisions. Vending machine business proves to be a route of good investment.