Dear Interested Customer
Many Thanks for your interest expressed in vending machines. Firstly Vending is not the "silent salesman" purported in many advertising blurbs. It is a business that requires strict control and proper procedures in place if one is to generate decent profits.
I offer my advice to you as we not only sell equipment, but run and operate 200+ units in JHB & PTA and hence I understand the pitfalls.
The entry into vending must be considered as a 3 to 4 year commitment as the economy of scales dictates long term profits, whilst margins can become a little tight, you have the advantage of setting a trend from day 1 and educate the consumer to understand that items purchased from a vending machine are definitely going to be slightly more expensive than the local supermarket. Vending has no recession and generates steady cash income from day one, it is an industry that is always evolving and with it, one finds oneself always raising the bar. eg Initially you may be satisfied with a site that generates a turnover of R 3500.00 per month, with a visit every week, however as you progress, you start to move your equipment around and your expectation levels go up. Ultimately you never find 10- A Grade sites, but you grow into it.
The single biggest trick in vending is in the BUYING of your stock and how you schedule your service visits. Small does not = Cheap? Whilst you will certainly be able to find cheaper combination vendors on the market, ask yourself about "stock holding capacity" & service costs associated with more frequent visits? After you have answered that question, now think about the repercussions involved. A decent sized machine has the ability to both work in a smaller location (as you will service less frequently) & of-course when you do find the location that has 300+ staff, your machine is adequately positioned?
OPTIONS - Drinks
Either you position yourself as a "DRINKS" only vendor and concentrate on acquiring sites that will consume drinks in the required quantities and specialise in this sphere.
- Minimum product selection - perhaps 7 different brands
- Easier stock control
- More machines can be serviced on a daily basis
- Drinks vending is certainly the easiest option when it comes to vending.
- In our market (obviously a different climate) sales of drinks drop approximately 30% in the winter months, whilst overheads remain the same.
- Your access to the top end locations becomes increasingly difficult as more operators enter the industry and begin to vie for locations by offering the facilities managers etc - Both drinks and confectionery.
- Limited sales in winter
OPTIONS - Combination Vendors
- Combination Vending machines is definitely the correct path to proceed as you get the sales in summer and winter, as well as the fact that you make more money as vending is an impulse buy and while the customer is at the machine they are more inclined to make 2 purchases as opposed to one. Hence more spend.
- Combination machines are more competitive as whilst your opposition can only offer 1 item you are in a stronger position to get sites with a total solution. I am not ruling out can vending but each site will determine the correct application. “The correct equipment for the right application”. Beverage Vending is suited to blue collar environments whilst combination vending has a multitude of applications.
- More revenue generated
- Larger stock holding, more product lines, more control.
- More expensive equipment
- Less machines serviced per day, as it takes longer to re-fill and merchandise.
Sites and Site Selection
- High Schools, Universities, Polytechs, Technikons and most learning institutions are good sites but they are also very open to abuse and vandalism, and one has to put a cage around the machine from the outset.
- CBD areas are a good starting point and nice and central ? I think ?
- Department of home Affairs and all public buildings where people are standing in queues. Receiver of Revenue etc.
- Call centres
- Mid income office blocks, regular steady income.
The next major decision is to decide on NEW OR RE-FURBISHED?
As soon as you have decided on which route you want to pursue, we can then decide on type of machine, quantities & or new or re-furbished. We are able to import full container loads of new machines, should you wish to pursue the new option, obviously full container loads are cheaper.
In closing may we take this opportunity of ensuring you that by choosing The Vending Company you are partnering with a company that thrives on challenges and relishes New Projects by combining our solid infrastructure experience and ability coupled with entrepreneurial flair to guarantee success. I trust this meets your requirements and look forward to being of service to you.