Some trends of vending have developed by now, and spontaneous launching of business can cause loss of time and money, and finally business failure...

Many of businessmen launching vending business in 70-90-s did it spontaneously: without any business plans, market analyses, etc. They were impressed by the income and development of first vending machines’ owners. Most of them reached their purposes having made no analyses, and at the present moment they are the owners of large networks of vending machines.

But some trends of vending have developed by now, and spontaneous launching of business can cause loss of time and money, and finally business failure. That’s why you should choose market segments (market niche) with unmet customer demand and low competition. At that you should choose an actual and popular product.

In this connection we advise you to pay attention to the following basis conditions of vending business economy:

1) The choice of a vending-business direction (niche);

2) Market saturation (competition) analysis, analysis of the places prospective for vending machine locations;

3) The choice of vending machine manufacturer and supplier;

4) The choice of vending machine merchandise;

5) Sample profit calculation of the definite vending machines;

Choosing the vending trend one should take the following factors into account:

- the size of locality, trade infrastructure development, population welfare;

- the presence of competitors, the presence of related to vending businesses the degree of their development;

- vending-operator experience in the neighboring regions, states;

- market analyses of the used vending machines;

Let’s discuss the enumerated conditions in details:

The analyses of vending machines potential location, comparison of the places and their profitability on various conditions will help you to form the primary knowledge.

Choosing the specific vending business trend, it is necessary to take into account that different kinds of vending need different funds. Thus, for instance, launching work with mechanical vending machines demands ten times fewer investments than that with other sorts of vendors (electronic). Whereas according to some special reports the amount of seed money in case of electronic vendors is $30.000-100.000 for 10-20 machines, the opening capital for mechanical vendor business comes to $3.000-4.000 thousand dollars (also 10-20 machines).

It is important to emphasize the accuracy of the definite vending machines’ profit calculations. Making calculations (in addition to the cost of equipment) it is necessary to take into considerations not only the difference between acquisition price and selling price of stuffs, but also include impending drawings and payments:

1) fiscal charges;

2) Labor cost (in case it is planned) or petrol charges, depreciation and amortization expense;

3) Rent of space expense and other payments.

The following approximate payback formulae of the definite gumball machine (by months) can be used. Here we don’t have in mind minor expenses (labor cost, stuff delivery expense etc.). >>>

Companies frequently cover several vending trends at the same time, but it means that the business involves large funds and good experts at once. On the other hand when you have one route of vending machines already developed, it is much easier to put some other machines into operation. It is a typical situation, when a company covers different trends of vending one by one. For example, if you have already a coffee machines network, the following possible step is a snack machines net.