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 a 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 a business with vending machines

Vending machines are often cited as an example of excellent 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, purchase the filling, register a business, think about paying taxes and

insurance premiums. But compared to many other business endeavors, it will not take much. It is enough to have capital from 100 thousand.

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 that it is enough to buy a vending machine is enough for golden rivers to flow on you.

Small sales area

You don't need to rent a huge premises, a small patch in the through passage is enough. 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 a point successfully, all potential people will know about your offer. clients.

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 related specifically to the local market. In Russia, vending appeared later than in Europe or Japan, and went a little its own way. According to business coach 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.

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? "

Victor Isakov, business coach

Most vending machines in Russia are not equipped with card payment

This can be a serious obstacle. ManyUsing cash and non-cash payment methods people use non-cash payment methods. Not everyone wants to shove a large bill into the machine and get a handful of change little things. 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 cost of their maintenance increases.

Russian vending is lagging behind in development

In Europe, America and Japan, 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

You shouldn't get involved in vending for those who expect fast profits. Buying an automatic machine and living off of it will not work.

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.

Victor Isakov

Think about the vending machine network

It is difficult to live comfortably on 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 coffee and chocolates with cookies. People seem to make money off of it, why don't you start. But you can also try to think ahead.

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

Alexander Kuzmin, CEO of Retail & HoReCa (RusHOLTS)

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.

Vending now means 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.

Alexander Kuzmin

How to start your own business with vending machines

1. 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 at a fitness center, and with umbrellas at the exit from the subway in a rainy city.
2. Make a business plan.
3. Register business.
4. Buy a vending machine and its contents.
5. Enter into a rental agreement.
6. Start to work.