One of the questions investors are most
concerned about before starting a business with vending machines is whether the vending
machine business is profitable or not?
Let's find out the answer together through this
article!
Whether the vending machine business is profitable or not?
About vending machines
It can be said that the vending machine acts as a miniature grocery,
convenient store when distributing food, drinks and essential items to consumers automatically
without the intervention of the seller. Usually, the products sold in vending machines are not
great value items so people often ask if vending machines are profitable. The fact is, vending
machines can be highly profitable, if being structured properly.
According to VendTech
Media, there are currently about 5 million vending machines in operation in the United States,
and they rake in more than $7 billion in annual sales. In terms of profits, the snacks business
alone generates $64 million in annual profits for vending machine operators. However, like other
business models, in order to be successful with vending machines, investors must have a suitable
business strategy to ensure that the business runs smoothly.
Factors affect the success of vending machines business models
The profit of a vending machine will depend on several factors: the model,
the product distributed, the installation location and the price of the items. For example, a
vending machine located in a hospital or school campus without a canteen will earn a high profit
with huge purchases every day. While a vending machine is located in a mall where there are many
other types of vending machines, the number of purchases will be relatively low because
customers will be divided to buy at different types of machines.
The effective ways to start up with vending machines
There are two ways for the operator to start a vending machine business
model:
Self-employment: for this form, investors buy a machine and operate the business
by themselves. Although this form will help save costs, operators have to spend some capital to
invest in: machinery, premises, inventory, maintenance, ..... and it takes quite a long time to
bring their brand closer to consumers.
Cooperate with a vending machine company: with
this model, investors will cooperate with an established vending machine company as the
franchise solution. In addition to the vending machine is the hardware, investors will be
provided with a source of goods, a management software system and use maintenance and repair
services according to the company's franchise policy.
Although the second way may cost
more, it will help reduce business risks with support packages from the machine supplier company
such as: marketing, product sourcing, machine maintenance and so on.
In conclusion, vending machines are a potential business model with high
profits when people are always in demand for food and drinks. In fact, this business form is not
affected as much as other industries, but on the contrary, it is expanding, especially during
the pandemic season, when contactless shopping is becoming more and more popular not only in
Vietnam but also all over the world.
For advice and answers to inquiries about the vending machine business
model, please contact Dropfoods, one of the most reputable vending machine suppliers in the
Vietnam market through the following contact information:
Dropfoods head office:
Unit 401 PVFCCo Tower, 43 Mac Dinh Chi Street, Da Kao Ward, District 1, HCMC . (Monday - Friday:
8:30 am - 5:30 pm)
Phone: (84) 28 6290 6066
Email: contact@dropfoods.com
Facebook: https://www.facebook.com/dropfoods