Merits and Demerits of Vending Business

Vending industry has been sky rocketing since its inception. This industry has always been in the lime light for giving huge employment opportunities to several new and upcoming entrepreneurs. Before you jump to conclusion and take up this business, let us learn more about it. There are several benefits associated with this business. Few of them are mentioned below:

• Absolutely Zero employees: Vending does not require you to employ any sales personnel. Your machine is your salesman and takes care of everything.

• Complete cash business: In other businesses there is every possibility of running into bad debts. But since vending is a complete cash business, you can generate revenue right from day one of installation of the machine. Since all transactions take place through cash there will not be any issues with credit card acceptances etc.

• Start up cost: This business does not require huge floor space and your major investment goes into purchasing the machine. Hence start up cost is less when compared to other businesses.

However, as every coin has two sides, so does vending business. The demerits or disadvantages of this business are mentioned below:

• Repairs and breakdowns: In case you purchase a used or refurbished machine, they are more prone to repairs and frequent break downs. It is advisable that the operator knows how to fix minor problems. This will prevent inoperative machines for a long time and thus prevent you from losing customers.

• Location: Identifying the appropriate location may not always be possible. More over areas with high customer traffic have huge competition. This can have negative impact on your sales and profitability.

Hence it is very important that operators keep these aspects in mind and carefully plan their moves to make vending a big success. Contact Planet Antares staff for complete guidance on starting your own vending business.