Updated: Sep 28
Running Vending machines is not easy. One can own a few machines pretty effortlessly, but if one has to grow this business and footprint, how to go about it? Here are the steps:
There is a lot of information available online and hence, one obvious idea is to look at Internet
Look for players in your region, know what kind of offices and other crowded locations. Also, work out names of suppliers of the vending machines. Multi-storey buildings are a good target.
2. Understand that running 2-3 machines is different from running more than 10 machines. We will need some work on:
- Where will I Source from, what are the margins at scale
- Who will do the Machine fillings regularly
- Finding locations for these machines
- Where will I Store the stocks
3. Understanding the Costs involved
- Do I need some support staff for filling these machines. What are the costs per hour?
- What are the Storage Space rentals? How much space I need? Usually 10 sq feet is sufficient for a machine.
- Calculate Fuel costs, depends on how far stock needs to go.
4. Expected sales projections
Average sales per machine may change on a larger base of vending machines. So when we project the sales, we may not be accurate. We need to take a range of 25% up or down.
Once we get these calculations on a paper, we can start with the project. We can still make corrections as we go. In this journey, we need to keep an eye on how to keep improving sale per location.
Product mix and service standard can result in sale going up in multiples in retail. Thats where the excels effort needs to go later.