Should we invest in vending machines?

- Jul 20, 2018-

Should we invest in vending machines?


How to invest in vending machines?

Vending machines are a quick return to business. A single coffee maker can take anywhere from four to six months to complete, and a mini KTV may be faster than an orange juice or ice cream maker. But retail has very little economies of scale and is a linear business, so we need to replicate this profitable unit on a large scale. This, however, is the advantage of the vending machine: compared with a 100-square-meter store, it will be easier to complete the channel BD, lower the cost of the channel, and easier to enter the long tail high-traffic areas that cannot be covered by the store, such as office buildings, communities, subway stations and so on. Moreover, the process of channel landing will be faster and more flexible.

 

What's the worry about investing in vending machines?

To determine whether the vending machine is suitable for entrepreneurship or investment, we should start with the basic logic of the retail format. Most of the vending machines are still selling fast food items such as drinks and snacks, with gross profit of about 40.49% (according to the first half of 2016 earnings report). This kind of machine, isolated person and article, can not touch article, and still need to pay first to get commodity, this is worth mentioning, the key sometimes coin is put in, commodity can not fall out, the guest is in a hurry to kick a foot, it drops a lot of commodity again, make the person be in tears and laughing.