The vending machine business has proven to fit into any economic circumstances. Although it started as a means of quenching one’s thirst or hunger quickly, the vending industry has grown beyond getting drinks and snacks in a jiffy. Starting a vending machine business in the UK may not be as difficult as you think, all you need is to identify a need, loopholes in the existing vending machine business, and the right information. This article gives a clear guide on how to start a vending machine business in the UK.
Vending Machine Business UK
What started as a means of getting quick snacks for people who had little time to spare has presently fit into a major sector of the economy. According to the chief executive of Vending and automated Retail Association David Llewellyn, the vending market recorded a rapid boost of about 367% after the pandemic. Although this number keeps increasing over time, technology such as receiving change, paying with a smart app has also attributed to this growth.
Vending machine business is another means of generating income by entrepreneurs in the UK. One of its astounding benefits is its ability to function 24/7 without the owner having to sit around it as in a store or mall. Do you desire a means of earning extra income without quitting your present job or closing down your business? Are you a college student who longs for extra cash? Then you may have to check out a vending business in the UK.
How To Start a vending Machine Business UK
Starting a vending machine business in the UK is not a rigorous job, however, you are expected to pay close attention to three things. These three keys to a large extent will determine the success of your new business. They are Products, Location, and Franchise.
Starting a Vending Business
The vending machine industry offers entrepreneurs a wide range of opportunities but hey, there is a catch, the Key Rule. If your vending business must be successful, then you will have to follow these rules. Starting a vending business without paying keen attention to them may lead to a fruitless effort as well as a waste of time, energy, and money invested.
Rules Guiding The Vending Business
#1. The Product
Do not start a vending machine business without researching the product you intend to sell. Is there any use in putting up a product that people will not buy up for sale? You definitely will not like getting to your machine location to refill stock, only to discover it is still stuck with your product. What need will you be meeting with your vending business?
BBC reports the story of Mr Smyth, a dairy farmer who started the first milk vending machine in Ireland. Amidst the lockdown in 2020, Mr Smyth identified the need for fresh milk even in the country’s present circumstances and came up with a solution. His milk shack comes in a litre and a half a litre, recyclable containers amidst diverse flavours. The first rule is paramount to the outcome you will receive. Get a product that people are in dire need of, run background research on it and proceed to the next step.
#2. The Location
A good product in the wrong location still equals zero sales. Just like the saying goes, doing the right thing at the wrong time doesn’t make it right. Product and location ought to receive keen attention. This is because both hold the key to the success of your vending machine business. Having identified what people need or a loop in an existing vending business, your vending machine will have to be placed where the people who need your product are. Where they can easily access the machine with ease. The second rule is simple, situate your machine in a highly populated environment.
#3. Franchise
No one can underestimate the power of leveraging. It saves stress and opens up opportunities. That is why we recommend franchises. The vending industry is now competitive. Moreover, it may appear to be practically impossible to start a vending machine business on your own. Especially if your interest lies in the food and beverages aspect of it.
It might be challenging to develop your brand name and distinguish yourself from existing competitors. However, starting a vending machine business with a franchise saves you from this stress. This is because, instead, the franchise headquarters will provide you with all of the support you need, as well as the branding that comes with a well-known brand, so all you have to worry about is making money and developing your customer base. That appears like a seemingly good deal, rather than starting from scratch. You can check out the diverse franchising firms available online.
Cost Of Starting a Vending Machine Business
Do you intend to start a vending machine business? Then the major expenses you should be bothered about are the cost of getting the vending machine itself as well as the cost of the cost. Back to our story, reports read that Mr Smyth’s milk shack got his pasteurization equipment and vending machine for between €50,000-€60,000.
However, the cost depends on the type of products you intend to sell. For instance, a candy and gumball machine costs below €2000, snacks and soda machines can also be gotten as low as €1500 and above.
The cost of your vending machine depends on the size of the machine, the mode of payment, as well as the functions of the vending machine.
Aside from the cost of the vending machine, the cost of stock is also another challenge. However, you can reach a consensual agreement with suppliers for good deals.
How To Successfully Run a Vending Machine Business
#1. Decide on the type of Product and Vending Machine
Anyone who desires to start a vending machine business wants to make a profit, and if you must, make a profit, you must know the product you want to put up for sale and go for the product vending machine. A machine that dispenses candy will not be used for Mr. Symth’s milk shack.
Types of Vending Machine
1. Specialty Vending
This is a vending machine that is built to dispense items different from the regular snack and beverage machine we see always. Examples of such machines are Lash Loft in Newcastle, that dispenses eyelashes, Perfume from Russia’s perfumatic; or even the one that gives accurate descriptions in pharmacy stores.
2. Food and Beverage Vending
The food and beverage vending machines are the most common around you.
They are the regular snacks and soda vending machines we are accustomed to.
3. Bulk Vending
Though operated manually, this particular machine is mostly found around stores.
#2. Location
Location and products are the major keys to making money with a vending machine. Make sure your vending machine business is located in a place that is highly populated with people who need and want to buy the products. If it requires paying for space, please do so and get a payment receipt.
#3. Know something about Machine Maintenance
Knowing how to fix little problems that may emerge with the machine is also important. It will save a lot of stress and expenditures.
#4. Get License
Every business industry has rules and regulations binding it. If you want to get into the food and beverages vending industry, make sure you are familiar with their regulations and get the relevant license. People get to trust you when they know it is safe to buy from you.
#5. Monitor Sales
Monitor your sales and come up with other possible means of improving your customers’ needs.
#6. Look Out For Insurance Policy
Look out for an insurance policy that covers small businesses. That way, you are safe should a major fault develop with your machine.
Conclusion
Although over 5 million vending machines exist, the growing population and the desire to live without difficulties make the vending machine business industry a profitable one. This means there are still opportunities within this field to be maximized, like Mr. Symth of Wholey Cow milk shack, will you identify and seize them? I sure hope you will.
Vending Machine Business FAQs
How profitable is a vending machine business?
Are vending machines profitable? Yes, vending machines can be profitable. The average vending machine earns $35 a week, but vending machines that are well-stocked and placed in safe, high-traffic locations can generate over $400 a month.
Are vending machines a good side business?
Automatic merchandising isn’t for everyone, but owning and operating a vending machine can be a good business. Being able to retrieve the money you make and restock your machines easily is the key. “Then you only work probably three days a month, basically on the whole gig,” said Ausmus.
Can you put a vending machine anywhere?
What do retail stores, cinemas, factories, airports, college campuses, movie theatres, hospitals, arcades, skating rinks, supermarkets, restaurants, offices, warehouses, tourist venues and other recreation centres have in common? All of them are perfect locations for vending machines.
How much electricity does a vending machine use?
A vending machine uses anywhere from 7-14 kWh daily to cool beverages, which can average $250-500 a year to run. Slash your operating expenses with these low-budget options. Calculated using one machine using 10 kWh daily / 3,650 kWh annually and a $0.10/kWh electricity rate.
