Recent news to set the vending industry aquiver is George Osbourne’s announcement that a new pound coin will come into circulation in 2017.
The new coins, which will have 12 sides, will be issued by the Royal Mint and an attempt to fight the growing problem of counterfeiting. Although this will be a welcome change for many industries, it is likely to be a cause for concern for vending machine operators. So what advice can we give? Well, in the immortal words of Douglas Adams, “Don’t panic!” because there are going to be more positives than negatives.
According to recent article in The Telegraph, there are an estimated 45million counterfeit pound coins in circulation today and it is on the increase. Although not inhibitive, counterfeit coins have been responsible for revenue loss for many vending operators, particularly with the mechanical coin operated machines such as tower and bulk vendors which are unable to weigh the coins electronically. The new design of coin should therefore be a welcome change and in the long run will mean decreased losses across the board.
The most obvious concern is going to be the cost incurred by the need to convert existing machines to accept the new coin. Fortunately for vending towers (and bulk vendors), the cost of conversion should be kept to a minimum as it will be a simple case of changing the coin carrier plates inside the mechanisms rather than the whole unit. More information about the dimensions of the coins will no doubt be made available prior to them coming into circulation to give people time to adapt and as we have two years to prepare for this, some forward-planning for the expenditure will help cushion the blow.
But let’s not forget the positives that will come from this and weigh the initial costs against the long-term savings that will come from not having to filter out counterfeit money from your takings.
Although it is not yet confirmed whether the coins will operate in shopping trollies, we do expect that the change will also help reduce, if not eliminate, the problem of trolley tokens being used in vending towers.
Your vending supplier will be able to advise you as more information becomes available but we will keep posting with updates so be sure to check back for further advice.
Over recent years, healthy eating has become a buzz phrase that has become more and more popular in many sectors. With media campaigns and celebrity chef’s extoling the importance of a healthier diet and lifestyle, as a nation we are certainly becoming more educated in our snacking habits.
One of the key targets of these campaigns is snacking between meals and what to snack on. So today we are going to ask how does vending fit into this new awareness and how appropriate and effective are healthy vending options compared to the more traditional confectionary and savoury snacks?
Firstly, let’s be clear that the purpose of this blog is not to negate either side. It is of course important to be health-conscious and to eat properly. It is also important however to understand the reasons that we snack and why we enjoy things like chocolate and crisps. The purpose of being educated is to be able to make informed decisions. What we are going to look at here is healthy vending as a business option compared to the more common types of vending that are available.
Light and dark german beer in big mugs and bowls with salty snacks and nuts, autumn beer festival concept, dark wooden table, top view
Stress-snacking.eu states that there are several reasons that we snack: it could be hunger, or it could be that you are low on certain nutrients, it may be triggered by stress or boredom or it could even be through a desire to celebrate or reward yourself. How often have you treated yourself to some chocolate or candy when you have finished a task or when you have felt your energy levels were low? Continually opting for unhealthy snacks when you are hungry is of course going to have detrimental effects on your health. On the other hand, having the occasional munch on some candy isn’t going to be sending you to the hospital any time soon. If a snack is available to you and convenient to acquire, you are more likely to take advantage of it.
Impulse and convenience of course! Since the advent of the first vending machines such as gumball machines and bulk vendors, people have been drawn to them because they are there and they have the impulse to use them. True, vending machines that supply sandwiches, for example, are meeting a specific need to a degree but think about where they are usually placed: stations, hospitals and colleges… situations where you are likely to get hungry and it will be some time before you can get home or to a shop. If we are talking about some Skittles or a small tub of Pringles, however, you are more likely going to purchasing them on impulse.
At home, you have choices – you could have some cereal or a piece of fruit or you could have some chocolate! When you are out and about or at work for example, your options are more limited but let’s not blame vending for the choices that are being made. When was the last time you went out for a drink? Did you buy some peanuts or a packet of crisps across the bar? Did you really need them or did you buy them simply because you fancied a snack and they were available? We make these choices based on desire and we know that they are not the healthiest options. Have a think next time you go shopping about what snacks you put in your trolley – are you stocking up your “naughty” cupboard as well as your fruit bowl?
Starting a vending business has one key motivation behind it – to generate an income. So as with any business, you need to think about what products are going to sell the best and what opportunities you have for venues where your products are likely to sell. We have looked at appropriate venues for vending machines before and one of the most common factors is matching your products to your market. For example, you wouldn’t put a toy vendor into a site where children are never present! So with healthy vending snacks, you are going to want to place your machines where people are going to be more conscious of what they are eating and the choices that they make: health clubs, gyms, schools (the awareness in schools is going to be through official policy more than the child’s choice). Consider this: when you go for a pint, you don’t usually find yourself fancying a fruit salad or some carrot sticks.
The point here is that yes there is a market for healthy vending but that market is going to be more specific than sweet or crisp vending. You can make money from it but you would need to be very conscientious in terms of where you would be placing your machines.
There are some other important considerations if you are thinking about including healthy products in your vending machine business: for example, the shelf life, packaging and waste and the convenience of the actual product: would you need a spoon to eat it for example?
If you are starting a vending machine business and want to include healthy snacks, it would be worth finding out first what possibilities there are in your region first – try getting in touch with the local authority to see if you can offer the service to schools and colleges in the area. But never limit yourself to one thing.
And remember that it is your customer that is making the choice, not you!
www.oxforddictionaries.com defines “wealth” as follows:
1. an abundance of valuable possessions or money
2. plentiful supplies of a particular resource
3. [in singular] a plentiful supply of a particular desirable thing
In truth, “wealth” means different things to different people.
Firstly, a vending franchise is not going to make you a millionaire so let’s put that out of our minds. Most people in this current climate are generally looking for something that will provide a steady income and a healthy balance between work and quality of life. So really wealth can be considered on two levels.
In terms of how much money you can make from vending, you have to ask yourself some basic questions to determine the best route for you:
We have already seen in other posts that vending is by comparison a low-cost start-up. Cost of equipment is key to this. Non-electric machines like Tubz towers are cheaper to purchase and can potentially mean starting with a higher income once they are all active. This can then help lead you to expanding your business sooner. If you are looking to acquire a business loan to start out, be very sure that the costs of the loan won’t negate the profits from the machines.
Only you can determine this as everyone has different living expenses. Before you commit to anything, be clear in your mind what you need to earn and then what you would like to earn. This will define whether a vending franchise is right for you. Avoid over-burdening your business.
Vending is a flexible business but you will still need to invest some time to make it work. This will be determined by how many machines you have, the area that you cover and your other commitments.
Compare vending to a retail or restaurant franchise for example and the costs involved in opening a second venue. Some vending concepts such as tower vending have the benefit of many suitable locations in any region and with the choices available, it is much easier to scale up your business with relatively little cost.
Make sure that you have taken into account all the costs involved – are there franchise fees? Cost of repair? Fuel costs? As we have discussed before, vending does have low overheads but they still need to be considered. Decide what profit margin you are prepared to accept on your products after wholesale price, venue commission / charity payment, fuel and so on. Keep in mind also the VAT threshold – most vending machine operators stay below the threshold to avoid additional costs (go to http://www.hmrc.gov.uk/vat/ for more advice and information).
Expansion? An extra revenue? A legacy for your children?
The other important question that you need to ask yourself is: What do you want the business to do for YOU? One of the most attractive factors of a vending business is that it allows more time for you to spend on what is really important to you, whether that’s time with the family, the freedom to work on other projects or pursue other interests. It means that you don’t have to be tied to a desk, you can be your own boss and still earn a steady income. That sort of wealth is immeasurable.
We have talked about the benefits of franchise businesses before, and mentioned that one of the most significant advantages is the established brands that you are working with.
In this post we are going to look at why established brands are such an advantage for franchisees, and then explore the brands on offer from Tubz.
Franchises give you the opportunity to offer well known and well loved products to a market that already likes them. A new business has to work hard to promote itself and its products, especially if they are selling products that people are not familiar with. They have to develop a following from scratch and this can be incredibly difficult.
Selling recognisable goods is also advantageous because it means you have to do very little marketing for your franchise, if any. If the brands you are selling are already popular and advertise themselves, this leave little for you to do, other than take advantage of their popularity and make some money!
If, like Tubz franchisees, you sell famous sweets from known brands, there is an immediate trust in your products. This is a fantastic benefit and one that should help you make a lot of sales.
Tubz deals with trusted brands, and products that are known and loved across the UK and beyond. These popular brands include:
For more information on vending products follow this link. The popular products and established brands offered by Tubz are one of the secrets to our success, and that of our franchisees.
If you are a young person and you are wondering what to do with your life, you are certainly not alone. It seems an increasing number of people are leaving school, college and university without a solid career plan. This is no bad thing necessarily, but of course you probably want to start earning money as soon as possible so you can begin your own independent life. With this in mind, in this post we are going to discuss starting a business franchise and why this could be a great opportunity for you.
A good reason to consider a franchise is the current job market. According to the media things are picking up, but this is a gradual improvement and it is still very difficult to find a job – more so for young people with little work experience. Previous experience is not required to start your own business franchise and the numbers of franchisees in their early 20s and even younger are increasing in the current climate.
Rather than searching for an elusive job, you could start your own business from scratch. The risks of this plan are considerable, though. Most brand new business unfortunately do not succeed, and even though you may have the enthusiasm and drive to push your enterprise forward, you may lack the knowledge of how to do this. A franchise allows you to run your own concern, with the benefit of a great support network.
A franchise is a shrewd way for a young person to get into business, as they can seek guidance and help from their franchisor. This means that you can be your own boss but still ask for help if you need it. Plus you will be trained in everything you need to make your franchise a success when you first invest.
The problem with many franchise opportunities is that they are only opportunities for people with many thousands of pounds. Of course young people don’t often have this kind of money lying around, but at Tubz Brands our franchises are available from as little as £2,499 + VAT.
Another appealing fact about franchises is that you do profit from your own hard work, and the better you do, the more money you make. Most young employees earn just a basic salary, or perhaps an occasional bit of commission, bonus or overtime. With a franchise you are in charge of how much you earn, so this is a great opportunity to make some serious cash.
