What is vending?
Vending is the sale of products through vending machines. It’s a relatively young industry that has experienced an extraordinary growth in the last years.
With qualities that can be easily adapted as in no other way of sale, this business’ current pace makes it ideal for young entrepreneurs and people who want to set up a self-employment.
The premises on which it is based – to have a machine and choose a location – make vending ccessible for most budgets, from the most modest (one or two machines serve as an additional income to another activity) to those who want to make a grand entrance into this business.
What is microvending?
It’s the sale of products through small vending machines. This type of vending industry has several advantages over the traditional vending (traditional vending refers to coffee, cans, snacks etc.). Some of them are:
- No need to store.
- No need of a van or other big means of transport.
- The machines can be operated by a single person.
- Because a larger number of machines is needed in a microvending business (at least 50), if a location is lost because the local where it is placed closes or otherwise, the business does not suffer.
- The investment is staggerer than in traditional vending and can be done gradually.
What is the business operational minivending?
The vending business is to put the machines in businesses, that are often restaurants, cafes, pubs, nightclubs, shopping centres, etc., and give a comission percentage to these locals from 0% to 30% depending on the products sold.
Do I have to make a large investment to start my business?
The investment is minimal due to the small cost of vending.
Do I have to spend a lot of money at once?
The investment is gradual and may done by making small contributions of money depending on the locations that are found for the vending machines.
How soon will I pay off my minivending or microvending business?
The amortization period is very short, in most cases of few months.
What if I lost a location?
As it required a medium amount of vending machines, any incident with one of them does not represent a significant decrease in the business.
Do I need to have technical knowledge?
Vending machines are very simple to use, so a knowledge of electronics, mechanics, etc. it isn’t needed.
Is a special vehicle needed to start this business?
Being the machines very small and manageable, there is no need for a special vehicle for transport or refills.
Is it difficult to place?
The placement of the vending machines is very simple, few tools are needed and they can be installed in a moment.
Do I need help to set them up?
Minivending machines can be placed by one person so no help is needed for their installation.
Do I need a warehouse?
It is not necessary, at least at first.
Where can I place the vending machines?
It is advisable to install the machines in any catering establishment, gyms, clubs, etc., wherever there is considered to be high sales potential for the product. Moreover, within the same establishment the suitable placements may change for every product. Perhaps in an establishment the vending machine is better next to the bar or in the entrance to the bathroom. Each machine has places where it is more convenient to put it. If it sells condoms, a very good placement is in the bathroom but this place is not good for a chewing gum vending machine.
What investment and profitability will I have?
Each person decides on the investment. The minimum is a machine and there is no maximum. There isn’t any business that has more flexibility than this one.
The machine is very economical and makes money very quickly. We estimate that between 2 and 9 months are enough to make it profitable. It’s difficult to find a business as profitable as this.
Do they suffer much vandalism?
We must distinguish between placing them on the street (outdoors), where the percentage of theft is higher, and indoors, where the percentage is minimal. Usually theft is unusual because the amount of money these vending machines have is usually small and the difficulty in the robbery is high.
Outdoors sales are higher than indoors, and that’s why sometimes it is worth the risk.
With how many vending vending begins to be profitable my business?
From approximately 50 vending your business starts to be profitable.
Do I have to register myself to start my microvending business?
This is an aspect that you should consult your tax advisor.
Is it true that my vending machines will make money while I sleep?
It is true that they can make money while you sleep, but it is a business like any other, do not be fooled. You have to work hard, especially at first, although it is true that when you have located the vending machines in good places it is very nice and simple.