Machines and artificial intelligence one day will definitely replace humans in almost every field. We had already seen Jeff Bezos becoming the wealthiest person from Amazon.
Do you think that no one tried to beat amazon?. Do you think no one ever provides better services than amazon?. The answer is “No” a lot of people tried to beat Amazon; many people offered better services than it, but all of them failed because amazon was one of the first companies to start an eCommerce business. Recently in an interview, Elon Musk said that there are only two ways to create a billion-dollar industry:
#1 You need to first
#2 You need to be the best.
Being first is easy; you can quickly start a billion-dollar business, but being the best is one of life’s complex tasks.
This article will discuss the vending machine business idea, which will become more popular in the future and you can also earn passively from it. So a lot to know, a lot to discuss and without wasting any time, let us begin.
Steps to start a vending machine business
You will need many resources for starting a vending business, so now let us discuss some of them in detail:
#1 Deciding the business
First, you need to decide which type of products you will sell in your vending machines. You can sell some grocery items, you can sell some daily use items like cigarettes. You can sell some food items, you can sell clothes or any other category of product in your vending machine.
#2 Buying some vending machines
You need to buy some vending machines to start this business. A typical good quality vending machine will cost you about $4,000 in the United States or Rs 2 Lakhs in India.
If you buy a lot of machines in bulk, your cost will quickly reduce to $2,700 or Rs 1.3 Lakhs if you negotiate correctly.
#3 Dealing with shopkeepers or arranging some space
After purchasing vending machines, you need some area to place them. You can either rent some government or personal property or pay some amount to shopkeepers to put your vending machine outside of their shop.
I recommend you read all the points and make the necessary cost and revenue calculations before deciding.
#4 Hiring a person for filling vending machines
Apart from the above steps, if you want to earn passively from vending machine business, you need to hire a person to refill the vending machine.
You can deal with a shopkeeper who will fill the vending machine for you from time to time or you can hire a person who will fill the vending machine at the end of the day.
#5 Maintaining the supply
After that, you need to contact a supplier who will regularly supply all the products for your vending machine at the decided price to the person you have hired.
You must have contact with at least 4-5 suppliers so that in case of any event, you do not face any disturbance in the supply.
#6 Arranging electricity
After that, you need to arrange electricity for running your vending machine. You can take supplies from a company or government or place your personal battery to supply electricity to the vending machine.
If you sell cold storage things, then the electricity supply plays a significant role in your business.
#7 Manage its servicing
Everything, either machine or human, needs timely service for proper and efficient functioning.
So you need to do regular servicing of your machines if you want to use them for a more extended period. I do not think you should have any problem with making expenses on servicing because more servicing means more use of the vending machine, more use means more sales, more sale means more revenue, and at last, more income means more profit. So it is good for you if you have to make an expenditure in servicing for a short period.
It is best to do servicing at late night because very few people will use vending machines at night.
#8 Choose proper payment methods
On the other hand, cash payment is the only offline mode you can accept in your vending machine.
You should make both the options available but provide some extra 1-2% discount on online payments so that people will use the online mode of payment and your headache of collecting offline money will reduce.
#9 Reinvest the money
At last, simply reinvest all the profit which you made from the vending machine. Looking for reinvesting in business is necessary if you want to grow it fast and make more profits.
You can reinvest in buying new vending machines, buying some area for placing vending machines instead of renting them. You can hire your personal employees to service and refill the vending machines, which will help make a lot of money in the long term.
How to earn passive income from vending machines?
You might think that you may need to devote your time to managing some of the works, as mentioned earlier, but actually, you do not.
You can take some vending machine management services like vending group, managing and maintaining vending machines. There are a lot of vending machine management services and some will charge you some commission on every sale and some will charge you a fixed amount at the end of every month for managing your vending.
Suppose you do not want to take vending machines management services. In that case, you need to hire some loyal, dedicated and responsible employees if you’re going to earn the real passive income because passive income simply means income without any work, tension, and mental pressure. If your employees are not loyal, dedicated, and responsible, you will face a lot of problems, need to manage some work, and bear some tension every time in your mind, which is not a passive income.
So it is better to choose and hire good employees; otherwise, you need to work a lot to earn income from vending machines, and your main aim of making passively will fail.
How to make employees loyal?
Employees will become loyal to their work if you treat them like your family members. You also know that your mother and father will never do something wrong for you because they are your family members.
In the same way, if you make employees feel that they are a part of your family, they will definitely become loyal and dedicated to their work.
You can easily make them feel that by helping them in difficult times, ignoring their small mistakes and treating them in a pleasant and friendly manner.
Now let us summarise the article. Machines will take a significant share of human jobs in the upcoming future, so starting a machine-based business will be very profitable.
You need to decide the business, buy a vending machine, make a deal with a shopkeeper or hire a person, maintain the supply, arrange electricity, manage its servicing, choose proper payment methods and reinvest the money if you want to start a profitable vending machine business.
You can also take help from vending machine management services, which will help you earn passively from vending machines.
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Frequently Asked Questions
How much does a good vending machine cost?
A good vending machine will cost you about $4,000 in the United States or Rs 2 Lakh in India.
How many suppliers should I contact for items of the vending machine?
You should contact at least 4-5 suppliers for items of the vending machines.
How I can promote an online payment method in a vending machine?
You should give a special discount to customers on online payments for promoting it.