Vending machines are a good investment when one is planning to start a new business and does not have a particular product or service on sale. Everyone feels hunger pangs at any given point, and these installations come in handy always. The basic factors to ensure are that the vending machines are stocked with popular products and placed at locations where maximum people can have access to it. However, there are several drawbacks involved in starting such a business. Some of these include:
- High costs while getting started
The process of running the business might sound feasible, but it requires a hefty capital. The cost of a high-quality new vending machine on sale is approximately $3,000. The price goes further up if you want a cooling unit attached to stock chilled beverages. The location you select is significant to your business. So, if you want a highly populated location, you may have to pay a percentage of your earnings or a particular amount to the owner of that place.
- Lack of security
Just like stores and other businesses, vending machines are at the risk of getting robbed; but, they are even more vulnerable since they are meant to be accessible.
Operating several vending machines at the same time can be tiresome, and you will need to plan how to keep them stocked up every day. The transportation of the items you place in each machine will cut into the costs and it is not possible to overcharge for the products either. You might even face a maintenance issue with one or more of them, which needs to be fixed before they can run again.
More often than not, certain products may not get sold for days or even weeks. This depends on which area your machine is in, and the preferences of the people frequenting it. Proper market research needs to be done before you stock up the vending machine, otherwise you might suffer a loss.