How and When to Start a Vending Business

The business of vending machines covers two main sectors, the private sector which is the machines that are installed in small and medium sized companies that render service to the workers. In this sector the unquestionable top leader vending machines is the coffee one. And the public sector, those vending machines located in big commercial malls, shops or leisure places that provide a great range of products such as: dolls and toys vending machines, snacks vending machines or food vending machines among others.

We must also distinguish to different vending business models:

Direct exploitation: you buy the vending machines and you exploit them with the engagement from your part to buy a certain product amount. It is advisable to study the market, to find the location for the vending machines taking into consideration busy places or streets and then to chose the product. Before starting a vending machine business it is important to know the steps you must follow to get all the licences. In Spain you will need the business tax, the exploitation tax the location tax and for the vending machines that sell food the person in charge of handling food machines must get a carnet drew up by the public health department.
The success of this business model is determined by the number of contacts you have for installing a great number of vending machines, their location in busy places and the selection of products.

If you own a business premise you can expand your business by installing vending machines making the most for example of the façade. Another option is to reserve a space of your shop and install vending machines that diversify products selling.

How and When to Start a Vending Business

Renting exploitation is also an alternative. In that case the owner or the distributor will be in charge of the vending machine exploitation and the leaseholder will earn a percentage commission on the product sold. It is recommended to compare prices between distributors and manufacturers. A snack vending machine is profitable if a minimum of 15 snack units is sold per day. At this point is very important to know the post renting service, professional maintenance cost, vending machines repair and move etc.

Vending business sector shows a great increase under franchise. The 24h shops are premises devoted to exclusive vending sale that is a self-service shop. If you are an entrepreneur and wishing to make your shop unit profitable, franchises themselves will be in charge to do a feasibility plan for you, undergoing for example a training cycle, they will meet the costs of insurance and breakdown, the brand, the installation of top-branded vending machines. In exchange you will have to pay a monthly fee which is 100% tax-deductible. For this kind of business it is estimated that the period to write off will be from 6 to 18 months.

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