Questions we asked ourselves at first
When you think about vending machines as a way to “invest” your money, you begin to wonder what the possibilities are.
When we first started, we asked ourselves the following questions:
- What market are we catering for ?
We had to identify the type of clients that we will be targeting. When we recognised our market, we knew what products would be best to suit their financial needs.
- What products to get ?
Once we recognised our market, we knew more or less what their spending budgets would be.
We looked for products that were easy to put a decent mark-up on the cost price. Once we located the ideal products, we then located a few outlets that were able to supply us.
- Where do I find a reliable vending machine ?
When we started looking for a reliable vending machine supplier we had some difficulty. There were many different variables that we had to take into account. After a lot of research, email inquiries, and meetings – we found our reliable brand and supplier.
- How much can we expect from a machine ?
We had an idea of what type products we would stock our machines, as well as what specific vending machine we would need for each individual location therefore we had to do the following:
- Calculate how many items the machine can take.
- How much it will cost to fill the machine.
- How much the machine will turn when all the items are sold.
- Find your Net profit. Your net total should be the minimum profit per month. Your net profit will be dependent on how often the machine is refilled per month.
Once we had answered those questions, we started to look for a location that had the clientele that we were catering for. We simply approached the facilities that matched our target market and began to ask questions.
When we felt certain about the prospective locations (if you do not feel certain about a location, keep looking) we made sure we understood our risks and rewards and went forward with the installation process.