Is Vending machine business failing in India? This question can be a subject of debate in the vending Industry. Before starting any business, we all look at its growth. how the industry is growing, how the economy is charging the industry, what other players are doing in the same industry, and many more things.
A business is just like an infant, in the beginning phase, you should not expect results from it. It will take time to grow and become a successful business.
Developed countries like the United States, Japan, and Germany have identified the increasing demand for vending machines and are producing more and more vending machines every year. In Japan, there is one vending machine behind every 23 people. After covering common machines like snack and juice vending machines, they are covering different types of vending machines like cigarette vending machines, car vending machines, cotton candy vending machines, etc.
Currently, in India, the vending machine industry has been steadily increasing for the past two decades. Vending machines are available in almost every corner of the country. In addition to this, the vending machine industry is also growing in other locations such as Tamil Nadu, Kerala, West Bengal, and Andhra Pradesh.
In India, there are lots of cases where the small vending machine business has failed.
Why is this happening? It took me a while of introspection to understand this, and as a result, I came to the following factors, which are why the vending machine business is failing in India.
Let’s discuss them one by one.
How to Plan for a Vending Machine Business:
There is a famous quote by legendary investor Warren Buffet, that says, “An idiot with a plan can beat an expert with no plan.” Business is not a short-term game. People always expect more results from their businesses. Planning is key in order to achieve these results. While planning for business, you will learn about many things. A business canvas model says a lot of things about your business, 60 years ago, there were more than 20 business models to understand the growth of the business. In 2005, with the help of 400 business professionals, Alexander Osterwalder came up with a business canvas model. This model is compatible with all types of businesses, and it is also compatible with the vending machine business model. It can also be considered as a business map.
Try to make your business a canvas model, After creating a business canvas model, you will be able to understand desirability, feasibility, viability, value, and sustainability.
Don’t worry, we have already made a business canvas model for your business so that your business won’t come under vending machine business failing scenario.
How to Scale Your Vending Machine Business:
Every business wants to grow and expand, It also wants to spread its wings to cover most of the area, but it won’t be possible without the efforts of the business owner. In this vending industry, some people start with only one vending machine, and after 10 years, they are at the same level. This simply means that they have not focused on the scalability of their business. In case of vending machine business, scalability depends on the total number of vending machines.
Successful vending machine businesses have expanded well, First, they targeted their own city, where they started, as they already knew the location of vending machines.
Earning from a vending machine and reinvesting that profit in the same vending machine business is the best way to scale. Here, reinvesting can be anything; it may be buying a new vending machine for a new location, hiring an employee to manage the inventory of your machines, or taking a consultation call from an industry expert.
Does a vending machine accept online Payments:
Earlier it was not possible, but as we are moving forward toward technology and a digital system, vending machines have the capability to accept payments online.
By updating the option to accept payments, you are actually providing flexibility to your customers in terms of paying. UPI is the most common and famous mode of payment, and it has over 10 crore active users on monthly basis.
In the year 2016, the Government of India announced demonetisation. It was the first time that businesses and consumers realized the power of online payment. You also have seen some recent fintech apps in the last 5 years. This shows how much our country is bullish on finance and technology.
If your machine is not accepting payments through other modes, then your vending machine business will suffer a lot.
Business is also about keeping your products and services relevant to the market. In every business, you have to understand and analyze what the markets are demanding.
Failed vending machine businesses captured by big players
The business world is all about competition. Those companies that are offering products and services in the same niche are always trying to compete with each other. They also follow the same business model. Their approach to acquiring customers is different. Some businesses failed to do so, due to which they were captured by other competitors. The same happens in the vending machine business. Big Giants in the Same Industry captures the small business by doing these they also get their customer base and increase the size of the market share.
How Vendify can help?
Vendify can make your vending machine smart and can convert your existing machine into a smart vending machine business. No matter how large or scattered your vending machine business is, Vendify’s software can track and monitor all your machines on one screen. Data and analytics are emerging currencies in the 21st century. With the ERP of Vendify, you can easily analyze your vending machine business and forecast your sales. If you want to know more about Vendify, feel free to contact or mail us.
Final Words
If a business is not going to sell definitely it will fail in future. not just the vending machine business, but every business needs sales, and they are keys to any business. Those who are not able to sale through their vending machine are going to shut down the business, which means they have not focused on sales.
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