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.
