Things You Need to Know About Vending Machine Rental
Vending machines have come a long way in terms of technological advancements. Business creativity has led to exploring numerous investing options through vending machines.
When we think about a vending machine, we usually think of getting a bag of chips or a soda. But now, we can find unique vending machine business approaches.
Today, they are used for various food and non-food-related items.
How to Start Your Vending Machine Business?
Investing in a vending machine business is often taken for granted. But it can significantly improve your business cash flow. As it requires lower investment, vending machine business has a lesser risk of failure or loss. Your vending machine business can be a game-changer with the proper application and strategy.
It can be confusing to do the math and homework before actually installing a vending machine. Here we will unfold all necessary guidelines that will help you craft your business plan and get an estimate about vending machine rental in Singapore.
1. Define Your Business Object
The first step is to identify why you want to opt for a vending machine. There are two main options for increasing the business stream through a vending machine.
- If you have a non-product-related business, you can install a vending machine at the workplace for your employees. You can choose food and beverages to freshen up your workers at the company. It will help them cut down on fuel and save time going to a restaurant or cafeteria to get a meal. You can also install healthier eatery options for your employees.
- You can boost your physical presence and generate instant cash if you have a product-based business. The installment of interactive vending machines will leave a pleasant impression on customers.
2. Industrial Research
It is best to conduct industrial research on various vending machines and their rentals in Singapore. You must know about the rules and requirements for placing a vending machine to avoid any complications in the future. Talk to vendor owners about their experience, profit margin, and sales tax. Look for your potential competitors and analyze the standard of their vending machine quality.
3. Identify Customers and Location
Based on the product you have chosen, determine the target audience. Once you select your customer profile, you should think about locations where you can find the most of your potential customers. Your vending machine should attract customers who walk by them. For example, if you want to start a beverage vending machine business, you can place it near universities, gyms, or malls.
4. Permission and License
Once you have selected the location, ask permission from the landlord and apply for a valid license for vending machine operation in Singapore. Without authorization or a permit, you might be fined or have to shut down your business.
5. Find Suppliers
The installation of an old-style vending machine will have lower chances of profit margins. ReinVend Solution vending machines are state-of-the-art with advanced technology and an interactive interface. We understand the competitive market and assist our clients with transformational vending business strategies. From customized plans to installation and maintenance, we got it all covered.
How to Calculate Vending Machine Expenses and Profit?
Estimating the investment cost and expected profit margin is vital to analyzing the success of your business plan. Here are some of the essential factors you should calculate to ensure your profitable vending machine business.
Cost of Vending Machine
Vending machine rental can cost up to SGD3,000 in Singapore. Based on the type of vending machine you choose; the price may vary. You might get a good package if you select multiple services from the same vending machine supplier.
If you purchase the vending machine, it will cost around SGD10,000. Leasing options are also available that will charge you SGD8,000 per year.
An average rental for vending machine costs around SGD300 per month. The amount may vary according to power usage and electricity rate expenses.
The size of the vending machine may also affect the rental price. A bigger sized vending machine will require more space which can increase the cost of vending machine rental.
Rental of Vending Machine Location
Maintenance of Vending Machine
Every electronic technology needs regular maintenance for smooth functioning. Over time, the vending machine might run into a few tech issues like failure to detect money or vending door being stuck.
It is crucial to keep in mind these expenses. Regular maintenance can cost you around SGD2,000 per annual. Here, the quality of vending machines can be highlighted. Buying from trusted suppliers like ReinVend Solutions can reduce your maintenance cost.
First, you must register the business that can cost you around SGD350. Additional business services can increase your registration expense. Certain products require a license from Singapore authorities.
If your product falls under that category, you will have to apply for a valid license. It will cost you SGD195 for food license with one-year validity.
Business Registration and License Cost
Supply Chain and Product Restocking
A sustainable supply chain is crucial for the smooth running of your vending machine business. You must calculate the transport and labor fee for restocking the machine.
Weekly or monthly restocking can cost you SGD60/trip, depending upon the product.
Commercial insurance can help protect businesses in case of any adversary. There are many types of commercial insurance. Depending upon the insurance you opt for, it can cost you SGD1,000 for blanket insurance per year.
Once you have estimated the overall expenses for your investment, you have to get an idea of your weekly income from the vending machine. Location can play a vital role in increasing your profit rates. High volume sales are required to generate more significant revenue if your investment costs and profit are not much.
Your vending machine business can succeed with our trusted services and proven business strategies. With our expert team for consultancy, you can improve your business plan for tremendous success.