Success in vending machine business, is the compilation of many small activities, each of which, done properly, seems to be insignificant. Your small activities in the Vending Business are the basis for all profits that you may or may not have. Mind your pennies and the dollars will follow!
This article is about foundation building, getting the basics, creating a system that is functional and profitable and will build long term success. I start with a broad analysis. Have you ever looked at your operation objectively? Ever stepped back and dissected every function of your business, challenged you assumptions about the business? This is where I start!
A vending operation has many components, is a dynamic distribution system, and can be as complicated or as simple as you would like it to be. I will put forth a few tips that might make you more efficient and more profitable.
Product Acquisition
Let’s face it, without product; you don’t have a vending business!
Let’s face it, without product; you don’t have a vending business!
How do you get product? Do you go to warehouse clubs, order from manufacturers, third party suppliers, purchase through co-operatives, and other methods? Each of these methods has advantages and disadvantages, and one must stay focused on profitability when purchasing product.
With this in mind, do you purchase from the lowest priced supplier, is cost your only consideration? This is where proper analysis is critical. If you can purchase commodity type products (Coke, Frito Lay, Pepsi, and Hershey’s) at a lower price, doesn’t it make sense to purchase from that supplier? The question is not as obvious as it seems.
Have you ever factored in your acquisition costs? What’s an acquisition cost? An acquisition cost is the total cost of purchasing product including labor, interest, referrals, scheduling, availability, and all other factors that might affect your ability to get product.
Credit: Larry Towner
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