Is it worth investing in vending machines

What are vending machines

These are vending machines for the sale of goods and services. You have probably come across these at airports or business centers. The machine where you throw coins to get coffee, a chocolate bar or a sandwich is the vending machine.

Selling snacks and drinks is the most common format for such devices. But in reality, their potential is much broader. They sell fruits and socks, board games and prepackaged meat, umbrellas and bicycle parts. Vending machines of services do massage (those very chairs), clean shoes, charge your smartphone, copy documents, accept payments.

What are the advantages of business with vending machines

Vending machines are often cited as a great business idea with a low entry threshold. Sometimes it is presented as if it is enough to buy a machine, put it somewhere, and then only collect profits. This is not entirely true, but such a business has undeniable advantages.

Small start-up capital

It is not enough just to buy a device. You also need to find and rent a site for it, buy the filling, register a business, think about paying taxes and insurance premiums. But compared to many other business endeavors, it will not cost so much. It is enough to have a capital of 100 thousand or more.

Fast payback

On average, it is possible to get a plus in about a year - if there are no force majeure or, conversely, incredible events that will lead to crazy profits. This is a good indicator, although the idea is broken about it that it is enough to buy a vending machine for golden rivers to flow on you.

Small retail space

You do not need to rent a huge space, just a small patch in a walk-through area. If you're lucky, you can find a great option for a low price. However, many of these sites are already occupied, and you need to think about this in advance.

And the room does not need to be repaired. You just put your device in the rented location.

Small staff

You can do it on your own if you take on the duties of a service worker, a person who replenishes stocks of goods in a machine and takes money from there, and an accountant. You don't need salespeople, cleaners, or other employees.

24/7 work

This is the most profitable schedule, but only if the machine is available all day long. For a device located at a secure facility, which operates from 9 to 18 hours, this is not relevant.

No need for advertising

If you choose the outlet successfully, all potential customers will already know about your offer.

What are the disadvantages of doing business with vending machines

There are obvious things: a machine gun can break down, become a victim of vandalism, or be de-energized. It needs to be serviced, and the popularity depends very much on the location and demand for the goods.

But there are also additional, specific obstacles associated with the local market. In Russia, vending appeared later than in Europe or Japan, and went a little its own way. According to business tracker Viktor Isakov, there are several reasons for this.

People in Russia want to buy from people

As a result, airport check-in machines are less in demand than check-in counters. Hence, there is a lack of confidence in the quality of the product.

Victor Isakov Business tracker.

It is easier for people to buy from people, as for them it is a sign of a kind of guarantee. The subconscious mind thinks like this: “A person cannot sell a low-quality product. And what is there in this machine and how long is it there?"

Most vending machines in Russia are not equipped with card payment

This can be a serious obstacle. Many Using Cash and Non-Cash Payment Methods People use non-cash payment methods. Not everyone wants to put a large bill into the machine and get a handful of change. So, when making a purchase decision, a person does not always dare to make it.

Weather conditions impose their limits

In most of the country, street vending can only be seasonal. In winter, the demand for the use of machines decreases and the costs of their maintenance increase.

Russian vending is lagging behind in development

In Europe, America and Japan, automatic machines have gone much further. They not only sell, but also entertain customers. But these vending machines are too expensive for the Russian market.

What are the prospects for vending

Taking into account the trend towards automation of everything that is possible, vending projects will develop and surprise. But there are a few things to keep in mind.

Tune in for a long game

Those who expect quick profits should not get involved in vending. Buying a machine and living off of it will not work.

Victor Isakov

You can invest in vending if you are going to play for a long time. This is an option for those who have the resources to wait for such an increase in sales through vending machines, which will provide a stable 20-30% of net profit. Now this figure is much lower. At the level of 10% - both with the option of renting machines, and with the option of buying. I think that vending in Russia will show good payback and profit indicators in 3-5 years, not earlier.

Think about the vending machine network

It is difficult to live comfortably on the profit from one vending machine, even if it is installed in a very passable place. This means that you will need several cars and, accordingly, more investments.

Don't look for simple solutions

When thinking about vending, platitudes come to mind in the form of coffee and chocolates with cookies. People seem to make money on it, why don't you start. But you can also try to think ahead.

Alexander Kuzmin CEO of Retail & HoReCa (RusHOLTS).

The vending industry is developing in the direction of product complexity. For example, for catering, these are perishable goods. A simple example is to put into the vending machine not chocolates with a shelf life of six months, but baked goods, healthy snacks and even fruits.

Bet on IT

Development towards the complication of the product is possible if all logistics processes are impeccably built, and this is the work of IT systems.

Alexander Kuzmin

Vending is now understood as automated solutions, where a person pays himself and takes the goods he needs. And for example, in the coffee industry, I see no reason to invest directly in vending machines. The future here belongs to IT platforms for managing the coffee business, creating the Internet of things based on automated coffee points.

How to start your own business with vending machines

Come up with an idea. Any business needs to start with it. And here you should immediately think about what you will sell and where. For example, it would be logical to place an apparatus with protein bars near a fitness center, and with umbrellas at the exit from the subway in a rainy city.
Make a business plan.
Register your business.
Buy the vending machine and its contents.
Enter into a rental agreement.
Start working.