When you have decided that you do like the idea of recurring income with a vending machine business, the idea of being your own boss, losing the job you hate, and creating the time freedom for yourself, then it is time to decide on the options you have for getting started. There are three basic options to start a vending business: Build the vending route from scratch, buy an existing vending route, or buy into a vending business franchise. Let’s look into advantages and disadvantages of each. By reading through, you should be better prepared to get to the next step, selection of items to sell and the what outlets to work with.
Building a vending machine business from scratch
This way may appeal to you if you are looking to start a vending business and build your income gradually. Perhaps you do not have cash to lay down to purchase the entire route outright. Perhaps you want to test the waters first and start the business just to see how you like it, what is the risk/reward ratio for you, and to get a good judgement of whether this will be your way to recurring income or not. The pros of building from scratch are, no major cash outflows outright, and the ability to test the market and make the corrections as you go. The cons of this method are, spending money on overhead that is needed, such as your time to plan, time and money needed to drive around, without the significant initial return on investment.
Building vending machine routes from scratch makes sense if you want to be careful and if you seek to learn as much as possible in the shortest amount of time. Invest in books, courses, and training to gain confidence and know-how. And pay attention to what is happening with the vending machines Melbourne you operate, craft the operations manual and the business plan for expansion accordingly. Some of the materials I can recommend for this stage of the business are Vending Machine Fundamentals, which you can get at $2 discount through this link, which covers the process of building your own route from scratch, including writing a simple vending machine business plan, and Volume II available through this link which covers the further growth of your vending machine business. Why make mistakes that will cost you money when you can learn from the experience of others who have done the vending machine business and built vending machine companies before?
Buying into a vending machine franchise
There are several vending business franchise companies that you can pick from when you do not have the inclination to build a vending route from scratch, or when you do not want to bother with picking your vendors, suppliers, and maintenance staff. When you work with a vending machine franchise, it will be easier for you to start a vending business. Usually all of the above needed services will be suggested to you by the franchise. Many times, even the route will be pre-established as well, so all you will have to do is manage the route and collect the profits. These are the upsides of buying a vending machine franchise. One downside is that you are often locked into a contract, and that you are relatively inflexible in terms of picking the exact product that would be the most profitable choice for you, either from the perspective of what your markets like to buy, or from the perspective of what items or products you can get at a low wholesale price. The other downside can be that the franchise may require to purchase the products directly through them, and that they may impose a recurring franchise fee, so your cost of sales will be higher.