Are you thinking about purchasing cheap vending machines? Then you are in the right place. It is not surprising why vending businesses are popular. That is because of their high potential for profits with little effort, allowing you to run a business effortlessly.
Indeed, the vending machine industry is mainly self-sufficient. Once installed, simply feed the machine with the necessary items and sell it to passers-by. After that, restock them regularly, collect your money, and repeat the process.
What to do next?
Despite these advantages, this type of business has some disadvantages for both the owner and the customers, impacting the business’s goals. You need to understand the benefits and drawbacks of a cheap vending machine to help you prepare to face any challenges.
To put it simply, the vending machine business can be profitable if you know what you’re doing. Here’s why:
5 Pros of Buying Cheap Vending Machines
When you invest in a vending machine, you will reap the following benefits:
Advantage #1: Easy to Find
One of the major benefits of buying cheap vending machines is the ease of finding them. Simply scrolling through a legitimate online market leads you to auction sites or websites where you can find brand new and used vending machines at low prices.
TCN Vending is one of the most reliable vending machine suppliers for online websites. We will deliver your chosen machine to you anywhere in Australia. When you see your device in our showroom or on our website, it will arrive at your location in 3 to 5 working days.
Advantage #2: Realistic Start-Up Cost
Compared to the start-up costs of businesses that require a physical location, a vending machine business has an affordable entry cost. You can purchase a traditional cheap beverage vending machine for as little as $3000.
Yet, note that the cost of the machine varies depending on its type. The more cooling system it requires, the higher the costs. For example, if you choose the convenience of a combination vending machine, the machine will be more expensive because it requires a dual-zone refrigerated cabinet.
Advantage #3: Consistent Income
Vending machines generate revenue even while you sleep, making them one of the best types of passive businesses. It requires little participation while still providing a steady income and long-term savings stream, churning out weekly sales.
To ensure that a vending machine leads to an excellent passive income, consider the following:
- Invest in a high-quality device at a reasonable price.
- Improve your cash flow by keeping accurate inventory records.
- Combine your products with those of your target market.
- Rely on a well-established machine repair shop.
Advantage #4: Diverse Choice of Inventory
A vending machine can sell anything. You can sell everything inside a customised vending machine, from common foods and beverages to electronics and sports. And the products you choose are determined by your goals and your willingness to take risks in the business. So, the possibilities for your products are limitless.
Advantage #5: Flexible Payment
Customers no longer need to prepare bills and coins to get something from a vending machine. Thanks to technological advancements, many vending machines now accept contactless payments, and customers can pay faster, more conveniently, and in a more sanitary manner.
Indeed, you can include security features in your vending machine payment options to never worry about failed checks or credit card fraud—a win-win situation for you and the customers.
3 Cons of Buying Cheap Vending Machines
This type of business also has entrepreneurial disadvantages. Here are some significant drawbacks of investing in vending machines:
Disadvantage #1: Increased Competition
As previously stated, one of the advantages of vending machines is their low cost. However, because they are widely available at an affordable rate, more people will attempt to venture into the vending business.
And, yes, you will be up against the stiff competition. That is to say, you should understand how to improve your vending machine so that your target market chooses you over the competition.
Disadvantage #2: No Active Theft Prevention
Theft and vandalism are also significant disadvantages of having a low-cost vending machine. But how could this be? The following are some of the reasons why this business is risky:
- Some vending machines do not have 24-hour security.
- If there is no active theft protection, cameras can only record what is happening.
- Most thieves target vending machines because they are overflowing with available products and cash, especially those with cash collecting machines.
- Because of their accessible location, vending machines are a common target for misbehaviour by some.
When this happens, you want to repair the damage as soon as possible. However, knowing that repairing a vending machine can be prohibitively expensive, do you think it is worth constant repair? Others recommend buying new vending machines rather than sending them to repair shops. So, if you do not invest in security, your vending machine is always vulnerable.
Disadvantage #3: Burdensome Stocking
A large number of vending machines allows you to generate more sales. However, the greater the number, the more likely you will restock your products in various locations, which will be quite burdensome and tiring.
Clients expect vending machines to dispense the correct products. In other words, having the inventory they seek is critical to maintaining your sales. And if you do not follow the proper stocking procedure bespoke to your business, you will have no customers.
Start Your Business with TCN Vending!
If you want to venture into a cheap vending machine business, look no further than TCN Vending. Backed by years of research and experience, our team offers you a wide variety of vending machines suitable to your preferences. At TCN Vending, you can never go wrong with our vending machines!
If you’re still unsure, contact our helpful customer service team. We’ll get back to you as soon as possible! Call us at 1800 959 910 or send us an email at enquiries@tcnvending.com.au. More profit with TCN Vending machines!
