22/10/2021

Whether the vending machine business is profitable or not?

News_Kinh doanh máy bán hàng thực sự có lời EN

One of the questions investors are most concerned about before starting a business with vending machines is whether the vending machine business is profitable or not?
Let's find out the answer together through this article!

Whether the vending machine business is profitable or not?

About vending machines

It can be said that the vending machine acts as a miniature grocery, convenient store when distributing food, drinks and essential items to consumers automatically without the intervention of the seller. Usually, the products sold in vending machines are not great value items so people often ask if vending machines are profitable. The fact is, vending machines can be highly profitable, if being structured properly.

According to VendTech Media, there are currently about 5 million vending machines in operation in the United States, and they rake in more than $7 billion in annual sales. In terms of profits, the snacks business alone generates $64 million in annual profits for vending machine operators. However, like other business models, in order to be successful with vending machines, investors must have a suitable business strategy to ensure that the business runs smoothly.

Factors affect the success of vending machines business models

The profit of a vending machine will depend on several factors: the model, the product distributed, the installation location and the price of the items. For example, a vending machine located in a hospital or school campus without a canteen will earn a high profit with huge purchases every day. While a vending machine is located in a mall where there are many other types of vending machines, the number of purchases will be relatively low because customers will be divided to buy at different types of machines.

The effective ways to start up with vending machines

There are two ways for the operator to start a vending machine business model:

Self-employment: for this form, investors buy a machine and operate the business by themselves. Although this form will help save costs, operators have to spend some capital to invest in: machinery, premises, inventory, maintenance, ..... and it takes quite a long time to bring their brand closer to consumers.

Cooperate with a vending machine company: with this model, investors will cooperate with an established vending machine company as the franchise solution. In addition to the vending machine is the hardware, investors will be provided with a source of goods, a management software system and use maintenance and repair services according to the company's franchise policy.

Although the second way may cost more, it will help reduce business risks with support packages from the machine supplier company such as: marketing, product sourcing, machine maintenance and so on.

In conclusion, vending machines are a potential business model with high profits when people are always in demand for food and drinks. In fact, this business form is not affected as much as other industries, but on the contrary, it is expanding, especially during the pandemic season, when contactless shopping is becoming more and more popular not only in Vietnam but also all over the world.

For advice and answers to inquiries about the vending machine business model, please contact Dropfoods, one of the most reputable vending machine suppliers in the Vietnam market through the following contact information:
 
Dropfoods head office: Unit 401 PVFCCo Tower, 43 Mac Dinh Chi Street, Da Kao Ward, District 1, HCMC . (Monday - Friday: 8:30 am - 5:30 pm)
Phone: (84) 28 6290 6066
Email: contact@dropfoods.com
Facebook: https://www.facebook.com/dropfoods