This is a question that will be asked early on by anyone considering vending as a business option. Let’s come away from the fact that Tubz Brands are a vending supplier and try to answer in an unbiased way.
Vending is not a get-rich-quick concept. It takes time and investment to get a vending business started and to start turning a profit. True, with most types of vending you can recoup your investment sooner than other business start-ups but if you believe the hype that it is all plain sailing, you are in for a surprise. If you do some research on other people’s experiences you will read about success stories and failures. Look into this. Why was one person successful when someone else wasn’t? Vending is like any other business: it requires commitment, diligence, patience and enthusiasm to make it work.
Vending also requires a knowledge of the market. What products to sell, what type of equipment, where to place them. A more generic product will allow you to be able to secure a wider range of locations for your machines. The more specific your product, the more restricted you will be with options so choose wisely. When starting out, opt for a product type that is going to appeal to a wider range of customer. By doing so, you will be able to establish a foundation for your business sooner. Once you have a bedrock of located machines, you will then be able to turn your focus to other types of vending. Multiple vending machines meeting different needs in one location is a good way to go as it reduces the costs incurred such as fuel and helps maintain longevity with each venue.
The more complicated the machines, the more cost will be involved. Ask yourself these questions before committing to a purchase:
How much can I invest and still allow some cash flow?
How much space will I need to store the machines(s) before I find locations for them? Would this require renting a storage unit for example?
How easy are they to manoeuvre from one place to another – will I need to purchase a larger vehicle to do this?
How much does it cost to repair? Anything mechanical will have parts that wear out. How easy is it for this to happen and is the cost of repair inhibitive?
How much is the stock to purchase wholesale – what margin will be left after selling it at a reasonable price?
What degree of loss can be expected (and acceptable) through stock wastage (or theft, if that is a consideration)?
What is the devaluation? How easy is it to sell the machines further down the line?
Here are some positive factors with vending that you won’t necessarily enjoy with running a shop or store:
If you have static premises, you have to bring the customer to you – this costs money in terms of marketing and advertising which has no firm guarantee of success.
Some vending machines are relatively easy to relocate, in effect taking the product to the customer. This will require some time and expenditure but this should be a fraction of what is required for increasing business with a shop or store or indeed other types of “mobile” enterprise. If you have chosen your concept well, there should be a good range of options in terms of where you can place your machines.
A vending business doesn’t necessarily require premises that will incur business rates. In many cases, vending can be operated from home with just a small amount of storage space needed.
Staffing: vending machines act as silent salesmen so, depending on the level to which you expand your business, you will have little or no need to employ staff, avoiding all the various implications that that can bring.
Working hours – to some extent, vending allows you to choose the hours that you work, Most of the venues where you place your machines won’t close at five in the evening, for example.
You are to some degree trusting strangers with your equipment. You are not present to be able to keep an eye on your machines so choose your venues wisely. If a venue has a reputation for questionable clientele, is it worth taking the risk?
If one of your machines develops a fault, there are potential sales lost in the time that it takes you to get there. A good way to minimise this is to plan your route and locations properly – if you have to travel too far, the greater the loss. Of course, the advantage of vending is that you are looking for multiple sales across a number of locations rather than just one so it isn’t going to be as inhibitive as you might first think. Always ensure that your contact details are readily available so that you can be notified quickly. A quick response time will also keep the venue happy and minimise the risk of them asking you to remove your machine.
You may have to remove a machine at short notice – venues can close for example or management can change which can affect whether or not your machine can remain there. Be prepared for this and make sure that you have a pro-active attitude to relocating your machines. You could make use of a professional site finder which can be costly if they are freelance. You will build up experience and skills in doing it yourself and the outcome can be more rewarding. If you are affiliated with a vending supplier, they may have a site finding service available which could come at a lower price. There are pros and cons to both.
There are so many different vending concepts that it can seem like a whirlwind of choices but remind yourself that vending is already a viable business for many people. There are also companies and suppliers that specialise in each concept who can help with advice. You are not alone in your choices. See what other people have been doing, where they have tripped up and where they have succeeded and use this to your advantage.
You’ve seen the ads, you’ve scoured the internet, you’ve probably seen vending machines in many of the premises or venues that you frequent and at some point you have probably asked yourself if there is actually any money to be made with them.
There are many types of vending machines to choose between when considering starting a vending business and the further that you look into it the more choices there seem to be.
If you are reading this blog you have come across vending towers and are at some level interested in finding out how to generate a profit from them. So let’s look at some of the benefits of Tubz vending towers over other types of equipment and how to make them profitable.
1: Cost. Vending towers are by comparison one of the least costly ways to get started in vending. As purely mechanical units with no complicated parts and electrical components they are cheap to purchase and incur low maintenance costs. The parts are interchangeable so it is very rare that you will be replacing a whole tower. With parts ranging from 60p to £25, upkeep and servicing comes at a fraction of the cost of larger chilled units for example. And of course brand new Tubz vending towers come with a two year guarantee giving you more confidence in your purchase.
2: Should I Buy Second Hand Vending Towers? Buying second hand towers is certainly a cheaper way of getting started but it does carry risks. In most cases there are no guarantees on the condition of the equipment and if you aren’t careful you could end up spending more than you had originally planned by repairing them and making them safe and serviceable.
3: Storage and Transport. As the towers and stock are so conveniently sized, the advantage is that you don’t have to be spending out on storage or business units which can eat into your profit margins. If you have a spare room at home or a garage that is cool and dry, you have all that you need. Neither do you need to invest in a van to service your round. If you have a car with reasonable space in the back, this will be in most cases ample for your needs. The majority of Tubz Brands operators use their regular cars and to good effect.
4: Market. Tubz Brands offer a wide range of popular branded and un-branded snack products, packaged under licence and to strict hygiene standards. web contacts Snack vending has a much wider market both in terms of age and potential venues. The more people that you can reach and appeal to with your products, the more likely you are to see the levels of sales that you require. With the towers themselves being compact and convenient, they are also suitable to a wider range of sites which means that you can build up your route in a relatively small radius to begin with. This helps minimise your costs in fuel and time.
5: Product supply. Being able to ensure a regular and reliable supply of product is important. Shopping around with wholesalers is a time-consuming and often frustrating process. There is nothing worse than not being able to acquire your most popular product lines! Buying in larger quantities than you would like to maintain an average product cost and stock level can be riddled with uncertainty and requires much greater outlay. And that is before you have even considered re-packaging the product into the right containers. Choosing a supplier that can offer a reliable supply of bespoke and proven products takes away that risk. Tubz Brands are able to source their products quickly and easily and are able therefore to provide you with stock in more convenient quantities. When you are starting out, cash flow is particularly paramount so less outlay more frequently is going to going to help in this cash-rich industry.
6: Choose the Right Supplier. Choosing the right company to work with is important. If you can, go and visit them at their main premises, check out their facilities, meet the team. It will soon become apparent if they are able to substantiate their claims.
7: Do the Work! Tower vending is a simple but effective business concept but it still requires the effort to make it work so don’t expect a completely easy ride. You will profit more if you do your best to get the most out of your sites. Keeping the towers clean and re-stocked regularly, monitoring sales of each product line and meeting demand, labelling your towers with product stickers to advertise your products, having a good relationship with your sites… these are all intrinsic in making your towers work for you.
So with some investment, enthusiasm, hard work and common sense, you can make money with vending towers. Of course, the Tubz team are on hand to give you the support and advice that you need to make it work.
For anyone looking to start a new vending business with Tubz Brands, there are of course important questions that need to be asked. To help, we have put together a list of some of the more common questions with some straight-forward answers.
Q; How far will I need to travel for my sites?
A: We will initially start from your home postcode and look at a 5 to 10 mile radius to see what there is available. We always work by the first half of the postcode as otherwise the search criteria will be too specific (this includes when we source data). At no point do we dictate an area to you – this is something that we will discuss and agree on together.
Q: What is the typical site for Tubz? Can you give me some examples?
A: Anywhere that there is a good footfall, a Tubz tower has a good chance of performing because vending works on an impulse purchase basis. We will try to give you a cross-section of sites but to give you an idea, Tubz sites range from pubs, social clubs and nightclubs (licensed premises), through to the other end of the scale with places such as shopping centres and leisure centres and anything that comes between. Sites that have a captive market such as office environments are also productive as the towers are meeting a specific need and providing a convenient solution.
Q: How do Tubz Brands find the sites for my Tubz vending towers?
A: Tubz Brands has an IN-HOUSE team of telemarketers and don’t provide site finding services for any other company. Telesales is the most effective way of providing this service and allows us to “cover” a lot more ground than anyone working on foot … and at a fraction of the cost.
Q: What is the 15 point check list that you use to qualify sites?
A: The checklist includes the important questions such as how many customers the site has on a daily average basis, how many staff on shift and on site at any time, whether they sell any similar products, whether they have other vending on the premises, opening hours, whether they have events, where the tower would be placed on the premises and so on.
We also ask some site-specific questions. For example, if it is hotel, how many rooms they have, is there a bar or facilities that are used by the public, what is their average occupancy and so on.
Q: Can I find my own sites for my Tubz towers?
A: You are of course welcome to find your own sites. It’s YOUR business! You are also more than welcome to provide us with a list of suggestions for us to try for you.
Q: Do I own the towers or do they remain your property?
A: ALL of the stock and equipment that you receive in your business package is yours to own and remains your tangible asset. We have no claim over anything that you purchase from us. You are welcome to sell the equipment if you so desire.
Q: What monthly or annual fees are involved?
A: We do not charge any franchise, license or management fees. You simply pay for the stock that you need, when you need it along with future site finding and possible expansion.
Q: What about maintenance & insurance costs?
A: With Tubz towers, there is minimal cost in repairing them. The towers come apart piece by piece so no complicated moving parts are involved. The towers come with a 2 year guarantee covering parts & labour.
We keep a full stock of available parts, the costs of which outside of the guarantee are negligible.
You will need Public Liability Insurance as you will be dealing with the public. We can put you in touch with a recommended company but you are of course welcome to shop around. Speak to one of our account managers for more advice.
Q: Once I have my machines sited by Tubz Brands, does that site then become mine and you cannot site other ‘franchisees’ there?
A: Site protection amongst Tubz operators is something that we take very seriously. So long as you adhere to the terms and conditions of the operator contract, the site is yours for the duration.
We take every step possible to ensure that the site does not already have a tower selling Tubz products and it is a key point in our site-finding checklist.
Q: If I enter into this business and for whatever reason I then decide that I want to leave, can I sell it?
A: Ultimately, it is your business and should you wish to sell or terminate it (or even take it to another area should you wish to move), then you are free to do so but please do consult us first as we can help. We do not charge for this, as some franchise companies might. Tubz Brands can put you in touch with some other operators who would be interested in purchasing your round.
Q: How long after an order is placed do you deliver?
A: Delivery of stock is very reliable. We strive to have orders with our customers the next working day.
Q: If the site under performs why charge for relocation if you have done your research properly?
A: By qualifying the sites, we know they hold the best potential. There are however factors that can affect the sales beyond Tubz’ control. For example, the operator keeping the towers clean, making sure they are stickered-up properly, that they are not left half empty and are serviced regularly, making sure the tower is kept in a good position in the site… to name a few.
Something as simple as a change in management in the site can affect sales but the advantage of Tubz towers is that they’re easy, relatively hassle-free and inexpensive to relocate (consider what it would cost to try to increase business for a shop or retail premises!)
Q: I have a full time job – will this restrict the growth of my business?
A: If you are prepared to be flexible and put in some hours in your spare time, then no. All businesses require extra effort to get started and to make them work so be prepared for that. Most sites are accessible outside of office hours and once the towers are installed, you will be visiting them at most once a week. The Tubz concept is designed to fit around family and work commitments.
Q: How soon can I get started?
A: As soon as you’re ready! We are here to help you make an informed decision and we will be with you every step of the way.
We hope this has helped answer some of your questions and look forward to speaking to you about how a Tubz vending business can benefit you.
Tubz Brands are pleased to announce that they have been appointed as a NIVO supply partner.
Established in 1988, NIVO is a vending buying group with over 280 vending members and more than 100 supply partners. The combined annual vending sales through NIVO are worth in excess of £51 million. Tubz Brands are very pleased with the new alliance which with it brings greater reassurance for all of our customers that they are working with a respected and firmly-established market leader.
This latest development is just one of many that Tubz Brands have implemented in 2013 and is only the start of an exciting year ahead for the Tubz family. Continued investment into improving the service, product range and assurance of quality that Tubz Brands can offer will reach far into 2014. New developments will be posted as they happen so keep coming back to find out how we are working hard to look after you, the Tubz operator.
For more information about NIVO, please follow these link:
http://www.nivogroup.co.uk/about-us.asp
http://www.nivogroup.co.uk/supply-partner-details08.asp?id=258
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On the surface, vending seems like one of the easiest businesses to start and for the most part, it is.
There are however some important considerations to be taken into account to ensure that you start your business effectively and are able to maintain your success.
Here we will look at the key things to look at before you start.
With such a wide range of vending options that are available these days, it might seem like a minefield trying to choose which type of machine (and product) is right for you.
Starting any business is going to be dependent on start-up and maintenance costs. The more complicated the equipment, the greater your costs are going to be. Choosing a machine that is not only going to be relatively low-cost to acquire but also to maintain is going to set you in the right direction. Non-electronic, simple coin-operated machines can provide you with just that. Vending towers are one such option – with uncomplicated, interchangeable parts and low purchase price for new machines, you have the option of entering this exciting industry with a relatively low investment level at the beginning.
What type of machines that you choose will also determine where you are able to place them. This is key in providing you as many options as possible within a certain “patch” or area. The heavier or bulkier your machine is, the more specific you will need to be in where you choose to place them. Machines such as vending towers require no electricity supply which is one less obstacle for you to overcome. We will look at locations further on.
How easy are they for you to manoeuvre? Ease of relocation will again give you much more flexibility and control over your business.
Vending is an impulse purchase concept. Try not to select product types or particular product lines based on your own preferences. Remember that your customers’ choices can be as varied as your customers themselves!
Choose a product that is going to have as wide an appeal as possible.
Age-specific products need very careful market-placement.
Products with more generic appeal will provide you with a much wider target market and so more options in terms of locations or “sites”.
One thing that we all have in common is that we eat. Snacking in the UK is worth billions of pounds a year and snack vending itself can help tap into that.
Take advice from companies and established vendors, do your research.
Choosing a reputable and reliable supplier is important. Choosing a company like Tubz Brands for example will give you confidence in your product: Tubz Brands package their products to exacting and hygienic standards and are an established brand within the industry. With an unrivalled level and range of stock available on next-day delivery, you will be able to maintain an excellent level of service to your customers.
When choosing a supplier, find out if they operate their own vending round. Can they show an understanding of the industry from the vendor’s point of view or are they simply a wholesaler?
Having the right locations or “sites” for your vending machines is just as important as having the right product and concept. Here are some tips:
FOOTFALL! Vending is an impulse purchase so you need to make sure there are going to be enough people seeing your products to see the level of sales that you require. This can be comprised of customers, staff or both.
Public environments with high footfall are of course going to be the first option that you will consider. In any one area, there are going to be a limited number of “high-end” sites such as shopping centres and sports venues. So diversity is the name of the game. Snack vending is applicable to many different types of environment ranging from licenced premises and social clubs through to retail environments, offices, activity centres, and so on.
Specify why your products will sell in a site – is there a specific need for your products? Will there be a conflict of interest between your vending machine and the site’s own business interests? Is the product appropriate to that environment?
Where will it be placed on the premises? Will it be easy to access by customers?
How easily can you access the premises – are there parking costs for example?
Offering a cash commission to your sites is an effective way of doing things and can help maintain site longevity. 20% for snack vending is an acceptable level for fixed-price equipment such as snack towers. Charity however can also generate more options in terms of companies that will accept the towers on site. A well-known charity or one that is relevant to your product will help.
Decide what “angle” you will go in with to keep it simple but always prepared to be flexible – the focus is getting into the site and making it work!
Official endorsement from a charity will help.
Working with established company that is already partnered with a charity saves you the negotiation!
Go to www.tubzbrands.co.uk to see how partnering with a charity can be very successful.
Starting any business takes time. With vending much of your time is spent on finding sites and when you are new to vending, this might seem overwhelming.
Companies such as Tubz Brands can offer a site-finding service that is low-cost and will help take much of the leg-work away from you. Telesales site finding is low outlay and with a comprehensive service, you should not have to be running up costs making the arrangements.
If a site-finding service is provided by the company that produces the product, they will have a much better understanding of the market focus.
As you gain more experience and confidence, you might like to try finding sites for yourself. It can be rewarding to see the fruits of your own efforts!
Avoid complacency! Servicing your vending towers on a regular basis will generate more sales. If you leave them until they are empty, you are not getting the best out of your sites.
Treat your vending towers as shop windows – keep them clean, well-presented and attractive.
Start at a pace that is best for you. Starting small can provide a foundation on which to build your business and expand at a rate that is comfortable to you. Larger investments for more machines can bring other benefits so make the decision that is right for you. Tubz Brands can help you choose which investment level is right for you by providing a number of different start-up packages to choose from and by spending time speaking to you about your specific needs.
Accept that you will need cash flow to begin with and another source of income until your business is established. Try not to place too much pressure on the business from the outset. Take your time and tweak your business until YOU are happy with it.
As you expand your business, the more cost effective it will become in terms of stock purchase, time and travel. So be progressive and maintain momentum!
And of course ENJOY YOURSELF! Have some fun with your business. Make it work for you.
These are just a few tips and pointers to help you get started. Tubz Brands will be posting more advice and tips over the next few weeks so keep checking back here for updates and further advice. Or why not get in touch and speak to one of our experienced team for an informal chat? Go to our contact page to find out how.
