Top 5 Mistakes People Make In Vending Business
Every year there are a lot of people who are investing in vending machine business. However, only few of them really succeed in the business. Some of them easily give up after a few months of disappointments. The good thing about the vending business is that when you only do a thorough research, you can easily find and learn the common mistakes of some vending operators. Here are the Top 5 Common Mistakes of novice vending operators that you dont want to get into when joining the vending industry.
1. Joining the business without doing a research in the market niche you want to serve. Since the vending industry is a very competitive business, knowing more about your market niche before diving in to the business will save you from having huge problems in the future.
Location. It is imperative that you choose your location that are high in foot traffic and is also accessible to your place saving you from unnecessary expenses like gas.
Products. Knowing the appropriate product in your chosen location.
Size. The size of the business you want to place your vending machines. You should bear in mind that the bigger the firm you want to place your machine, the higher the competitions are since they are the ones who generate high profits. While smaller areas or firms has less competitions but the income is also lesser.
2. Dont charge your products higher that the others. Charging high in your products may lose you customers and can cost you your location. Charge only what is appropriate to the products you sell and always consider the buying capacity of your market.
3. Delayed delivery of vending machine on new found locations. If you already have the location, do not delay in placing your machine. The longer you place your machine; it is more likely that youll lose the location to other vending operators.
4. Never purchase obsolete machines or machines that are very cheap but has many mechanical problems. This may save you a couple of dollars at first but will cost you several dollars in maintaining the machine in the future. However, if you really have no choice and start-up capital is really low and you have to buy this kind of machine, you should ask for service warranties and make sure that you can easily find and purchase parts of the machine whenever it will have problems.
5. Dont sell products that are not popular. Other people may think that unpopular brands are cheaper than the popular brands. This is not true. Popular brands are really cheaper most especially when you purchase in bulk or in high quantities. Products with unpopular brands are usually not sold in large quantities therefore the cost per unit is more expensive. Another good thing when selling popular brands is that you can take advantage of the advertisements these companies have.
Remember, the success of your vending business depends on how prepared you are in joining the industry. Its not a very hard business; you dont need a masters degree to succeed in this endeavor. It just needs some research and a little effort from your part.
1. Joining the business without doing a research in the market niche you want to serve. Since the vending industry is a very competitive business, knowing more about your market niche before diving in to the business will save you from having huge problems in the future.
Location. It is imperative that you choose your location that are high in foot traffic and is also accessible to your place saving you from unnecessary expenses like gas.
Products. Knowing the appropriate product in your chosen location.
Size. The size of the business you want to place your vending machines. You should bear in mind that the bigger the firm you want to place your machine, the higher the competitions are since they are the ones who generate high profits. While smaller areas or firms has less competitions but the income is also lesser.
2. Dont charge your products higher that the others. Charging high in your products may lose you customers and can cost you your location. Charge only what is appropriate to the products you sell and always consider the buying capacity of your market.
3. Delayed delivery of vending machine on new found locations. If you already have the location, do not delay in placing your machine. The longer you place your machine; it is more likely that youll lose the location to other vending operators.
4. Never purchase obsolete machines or machines that are very cheap but has many mechanical problems. This may save you a couple of dollars at first but will cost you several dollars in maintaining the machine in the future. However, if you really have no choice and start-up capital is really low and you have to buy this kind of machine, you should ask for service warranties and make sure that you can easily find and purchase parts of the machine whenever it will have problems.
5. Dont sell products that are not popular. Other people may think that unpopular brands are cheaper than the popular brands. This is not true. Popular brands are really cheaper most especially when you purchase in bulk or in high quantities. Products with unpopular brands are usually not sold in large quantities therefore the cost per unit is more expensive. Another good thing when selling popular brands is that you can take advantage of the advertisements these companies have.
Remember, the success of your vending business depends on how prepared you are in joining the industry. Its not a very hard business; you dont need a masters degree to succeed in this endeavor. It just needs some research and a little effort from your part.
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