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The Risks of Operating a Vending Machine and How to Avoid Them

2022-05-13 Page view : 136 views

Operating a vending machine is a small investment with a venture capital of 10,000 to 100,000. The higher the input cost, the higher the reward, but also the higher the risk. Although vending machines have good profitability. But there are some small risks. So, what are the risks of operating a vending machine? How can we avoid these risks?

1. Profit risk

Smart vending machines mainly make money in two ways. The first is profit and the second is advertising expenses. But the key to supporting profitability in this space is choosing the location and product of the smart vending machine. Especially sensitive to the flow of people around. You can make money even with low margins, and a high-traffic ad business can run smoothly.

How to avoid this risk:

If you are new to vending machines, it is recommended that you ask others for more experience or learn operation ideas. For the first time, only one vending machine is used for trial operation, and after finishing all the processes, you can copy the successful experience, and carry out the operation of multiple vending machines, and then go to the overall planning. If you place multiple vending machines at the beginning, the input cost is high, and the inability to control the balance of payments will bring risks.

2. The risk of vending machines being put on the market

There are locations where you can indeed make money, but for various reasons, local laws, venue policies, and unsupported electricity, these venues may not allow you to continue placing vending machines, and you will lose money.

How to avoid this risk:

Before purchasing, first determine your product, and then go to the local venue to discuss cooperation and make legal inquiries. When signing a contract with the venue, it stipulates the right to operate for a few years. To avoid going back and forth for various reasons, find some other placement locations. For example, if you are discussing business with a certain university, you can contact several other similar universities. So the vending machines can be quickly moved to other universities when they are not allowed to operate there.

3. The risk of disputes between buyers and sellers caused by product quality problems

You must pay attention to the safety of popular products such as beverages and snacks, and buy them from legitimate manufacturers. You cannot sell inferior products, and you must pay attention to the shelf life of the goods. I saw a message earlier that a customer was suing the operator for buying expired products at a convenience store. If the customer’s body cannot be harmed by the quality of the product, the dispute can be difficult enough for the owner of the vending machine to deal with.

How to avoid this risk:

Master the official channels for purchasing goods. Regularly check whether there are expired products that cannot be sold, and replace them in time.

4. Risk of smashed and stolen vending machines

Even though this rarely happens now, limited by the quality of some people, vending machines do have the risk of being smashed and stolen. Especially when vending machines are placed in crowded places, it can be said that all kinds of people will see them. Someone literally smashed a vending machine just to get a few bucks for a free drink. Some people even destroy vending machines just because they are in a bad mood today.

How to avoid this risk:

Equipping the vending machine with a high-definition camera can turn on the alarm function of the vending machine. After a vending machines camera recording has been vandalized, it can be reported to the police for processing. Afterwards, the operator’s loss can be recovered along with the profit when the vending machine is smashed and stolen. You can also buy vending machine insurance; many insurance companies are now in this business, if you are damaged while running a vending machine using their insurance business, and the damages incurred can be covered by the insurance company.

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