In Brisbane Money Talks and Vending Machines Deliver

Vending machines are just that, machines that vend products (mostly delicious sweets and soft-drinks) for our convenience. But how do they actually work? What are the little known facts about our Vending Machines in Brisbane? We’ve all wondered to ourselves about the local vending machine but we’ve never asked anyone about it before.

According to the Business Dictionary, “a vending machine is an electronic machine used to dispense a product to a consumer after a certain amount of money has been put into the machine." There is a lot of literature on the benefits of vending machines for entrepreneurs and business owners alike.

By far the number one question is whether or not a vending machine can make you money. A vending machine can give small business owners real extra income without cost. Most vending companies do not charge for placing machines in a business, and they split the proceeds with the small business owner. Vending machine providers generally do not allow a small business owner access to the money collection vault and reserve access to approved vending machine mechanics. These individuals visit on a weekly, biweekly or monthly basis. It is very important for profitability that vending machines remain stocked. If your machine runs empty, money will be lost, and that is a guarantee. To avoid an empty vending machine it is important to realised that all vending locations will have a different usage. These fluctuations can be determined by season, whether its freezing cold and an iced cold drink is the last thing on someone’s mind or scorching hot and everyone is dying for a coca-cola, or demographic.

If you are considering investing in a vending machine make sure you weigh up the initial investment costs and the ongoing expenses you will have to pay. The initial investment when running a vending business includes the cost of the machine and the initial stock to fill it. Machines can be bought new or refurbished. The initial investment required within this industry can fall anywhere from the low thousands to the hundreds of thousands of dollars. Did you know that a gumball machine is considered a vending machine?

Ongoing vending machine expenses may include, general liability insurance and the cost of keeping the machine well stocked. Monthly rental or commission payments might need to be paid to the business owners where you place your machine. This is not always an expense vending machine owners incur. These location royalties can range anywhere between 5 and 10 per cent and sometimes up to 20 per cent. Transaction fees are not something you will necessarily take into account, but if your machine takes card, then you must expect that there will be transaction fees.

The amount of servicing a machine will need is dependent on several factors, including where the machine is located and how often it is used. Maintenance expenses include the cost of the parts that you have to purchase and of course the labour costs. Make sure you have a warranty. Distributors and franchisors typically will offer at least a limited warranty to cover issues that arise from normal usage for set number of years from the purchase date. Even if your machines are in good running condition, it’s wise to have regular maintenance checks to help prevent larger problems in the future.

If you would like to find out more about installing a vending machine in your Brisbane office, contact Benleigh Vending systems on 1300 629 153 or visit their website http://benleighvending.com.au/.

Become a Vending Machine Entrepreneur in Melbourne

Owning a franchise allows you to go into business for yourself, but not by yourself. One of the more obscure franchise ideas has been to own and operate you own vending machine business. A fun and vibrant Melbourne based idea, is helping people to become their own boss.

A franchise provides franchisees with a certain level of independence where they can operate their business. The franchise exists as a business arrangement where the developer or owner of a business concept grants others with the licensed right to own and operate a businesses based on the original business concept, using its trademark.

A franchise provides an established product or service, which may already enjoy widespread brand-name recognition. This gives the franchisee the benefits of a pre-sold customer base, which would ordinarily take years to establish. A franchise increases your chances of business success because you are associating with proven products and methods. Franchises may offer consumers the attraction of a certain level of quality and consistency because it is mandated by the franchise agreement.

A clear outline of franchise benefits is listed below.  An established brand and proven business concept and operating model Established operating policies, procedures and standards Lower statistical risk of failure Immediate momentum on opening through established brand equity of the franchise Established customer base of the franchise Shared marketing costs with the franchisor and other franchisees Support in difficult times from the franchisor; On-going product and service innovation Increased buying power via the franchise group Easier to obtaining finance from banks and other lenders The increased chance of a successful sale of the franchise upon exit  Franchises offer important pre-opening support including site selection, design and construction, capital, training and system support and management. The flagship or controlling franchise will continue to provide training; national and regional advertising;  operating procedures and operational assistance; ongoing supervision and management support;  increased spending power, and access to bulk purchasing as the business progresses. 

One downfall to owning a franchise is that if another one fails or makes dismal market errors than there is the risk of damaging the system-wide image. If you are considering such a venture, make sure you do your research. Plan ahead and thoroughly investigate the market in order to reduce any risks to your investment.

The ‘intelligent’ vending machine market is growing rapidly, as the need for LCD and touch screen displays, cashless payments, voice recognition and digital signage increases. According to Intel, there are over 18 million vending machines installed worldwide. The industry report by Frost and Sullivan Research Services Intelligent Vending Machines Market (2011) outlines some key vending machine market trends. “Global shipments of intelligent vending machines are forecasted to grow at a 49 per cent CAGR from 2010 to 2016.” What’s more “Cashless payment via mobile phones with near-field communication is expected to increase sales per transaction.” The report summarises the vending market with this statement. “The vending machine has become a symbol of the world’s quest for convenience, operating 24 hours around the block, seven days a week.”

Follow the advice from Australia’s number one independent vendor at Benleigh Vending systems. Located in Melbourne, you can contact them on 1300 629 153 or visit their website http://benleighvending.com.au/.