Vending machines are a potential business model, especially in the situation that Vietnam is starting to enter the period of living with the pandemic. With the convenience but still ensuring limited contact between people, the purchase of goods through vending machines is expected to become more and more popular not only in Vietnam but also around the world. However, just like other forms of business, the vending machine model also has its advantages and disadvantages. Let's find out detailed information with Dropfoods through this article!
Advantages of vending machines
Low cost, 24/7 business operation
The vending machine is always operating, so it can sell at any time of the day. That means the machine operator can do business all day without having to worry about the cost of hiring staff.
One of the most attractive features of this type of business is low capital, entrepreneurs can start with cheap but popular product lines such as confectionery and soft drinks, they can already bring in revenue for themselves.
Easy to operate vending machines
The vending machine business is quite simple. Just choose the right model, sell popular items and install the machine in a high traffic area to be able to start a business with this model.
Additionally, with extended features, operators can check sales at home without having to go directly to the vending machine’s installation area.
Doing business with a variety of products
Vending machines with many different models, helping businesses to sell a variety of products from confectionery, drinks, fruits to other essential items such as personal items or masks, hand sanitizers,...
Besides, the operator can also combine business of many different items on the same machine such as soft drinks and snacks to increase their revenue.
Saving space to operating vending machines
With a compact design that only takes up about 1m to 1.5m, the vending machine saves a lot of space compared to conventional retail models. Businesses do not need to spend too much money in renting a location to place the machine and can still sell many items in schools, parks, hospitals, office buildings, potential places that many people pass by.
Saving time
Smart vending machines help operators control sales, hot-selling items and track inventory directly via phone or computer without having to go directly to the machine. This will give them more time to focus on developing their business model strategy.
Additionally, the expansion of the vending machine business model also contributes to eliminating street vendors, increasing the beauty, and building the image of a modern smart city.
Disadvantages of vending machines
Slow payback time
When starting a vending machine business, it takes time for a machine investor to find a location, install the machine, and generate revenue. Sometimes the profit margin is very small, so it will take some time before getting real profit.
Besides, the transportation of machinery also requires large vehicles or trucks. Ensure that resources are always available to get machines and products in and out of the transportation site.
Ensuring the machine's loading into machines and maintenance
Operating the machine can become burdensome, especially if there are many machines. If there are no resources to load and maintain the machine, the investor must hire a service company to perform these procedures to ensure the machine is maintained in the best way and can be repaired quickly because when a problem occurs, the machine has to temporarily stop working, which will lead to business interruption.
Especially with the colocation model, colocation businesses always require that they be filled regularly and operate efficiently, the businesses will face the risk of losing the location if they do not provide goods and complete machine maintenance.
Vandalism problem maybe happen
Vending machines can be a target for vandalism if placed in areas with poor security. Therefore, businesses are required to find safe locations, where there are many people to avoid being vandalized or stolen.
Besides, the vending machine also needs a regular power source to operate stably because the machine will stop working if there is a power failure.
Additionally, the vending machine has many limitations that cannot receive curved money and still suffers from some common errors such as the machine not returning goods, swallowing customers' money, leading to the situation that customers will lose confidence in the vending machine. Therefore, investors need to find optimal solutions to support customers the best.
If you are looking for a new, simple, potential business solution at the moment, a vending machine is a great choice. However, to be able to operate the vending machine in the best way, besides developing the advantages, investors also have to overcome the disadvantages of this business model, in order to build trust for customers and create business advantages for themselves.