When a person starts any business, it is very important to keep his initial investment to a minimum. Hence it becomes important to adopt several cost cutting methods. This logic is also true when a vending machine business is started. Herein most of the initial investment gets tied up with purchasing the vending machine.
Of course this tying up of investment can be avoided by going in for a used vending machine. These machines can also be easily purchased either through
• Websites selling used machine or second hand goods and devices and
• Ongoing discounted sales of refurbished vending machines offered by manufacturing companies.
They are also available at a much lower price but they need to be thoroughly checked before buying. Some of the things that need to be minutely seen and checked are:
• The body of the used vending machine should be totally made of metal and should be checked for signs of any damage.
• The coin receptacle also needs to be checked to see if it is functioning properly. This receptacle has a propensity of getting jammed up and hence should be physically checked a number of times. Coins should also be inserted a number of times to check if it is functioning easily. This is very important since customers will definitely avoid a vending machine which is difficult to use.
• The size of the vending machine plays a very important role in the profitability of the business. Hence it is always best to go in for larger used machines.
• The actual location of the used machine should be checked to understand its utility and feasibility to the business.
Since advertising plays a very important role in getting visibility of the services offered b y a new business, it also takes up a big chunk of the initial investment. Herein advertisements should only be placed after thorough research so that they give you the desired results. Only then will it be money well invested.
Being conservative in the purchase of stock is also a good way of reducing the initial cost. Hence it is very important to understand the trend of the business by initially purchasing and keeping a small stock. The option of gradually increasing it to meet the growing requirements of the customers can always be availed off.
It is also better initially to personally handle the mundane yet necessary tasks. This will not only help a businessman who is a novice in this field, to understand the business better. It will also help to save expenses by way of salary which would otherwise have to be paid to the support staff kept.
The business of installing and running a snack vending machine has a lot of potential. Hence cost-cutting methods adopted initially will only help the business to grow. Once it becomes self-sustaining, the cost cutting methods can be slightly loosened to fulfil the demands of the business growth.