A Complete Guide to Vending Machine Business
One of the goals of a businessman is to expand his start-up for more income streams. Various business strategies are considered and applied for a profitable business.
The business expansion also increases customers’ trust and reliability of the brand.
Concept Behind Vending Machines
Vending machines have a long history that has indeed strengthened the physical presence of a business. If you are unsure about starting a vending machine business, here is a complete guide that might change your mind about investing in it.
A vending machine has significantly improved over the years, but the model’s idea has remained unchanged. It automates the distribution of products/goods and can increase cash flow for business models. Some traditional vending machines are coin/cash-operated, while the payment method has now been digitized to a QR scan. Considering installing the vending machine in Singapore might seem outdated, but it has proven benefits that cannot be denied.
How Vending Machine Can Improve Your Business in Singapore
Unlike earlier, vending machines are not just for beverages and food distribution. The ideology of vending machine business has expanded to various business models. We can see different vending machines in Singapore offering masks, t-shirts, toys, stationery, and more. Whatever business model you choose, vending machines will bring out the same benefits for your business growth.
Here we will discuss why vending machines can boost your business sales.
One of the reasons to invest in the vending machine business is its low cost and maintenance. It does not require a considerable amount for installation and operation. However, there are specific prerequisites for starting a vending business in Singapore. You will not need to hire an employee to sell your product. You will have to pay a very minimum amount for power and maintenance.
Vending Machine Installation and License
There are a few prerequisites that are to be fulfilled to operate a vending machine business in Singapore. Depending upon the product, you might be required to have a license for vending installation and operation. Any food product that requires temperature control and food processing within the vending machine must attain a license from Singapore Food Authority.
The license fee is $195 per year.
Can You Use a Single License for Multiple Vending Machines?
Yes, the Singapore government allows the installation of multiple vending machines using a single license. A detailed business proposal must be discussed during the license application, informing the authority about the usage of multiple vending machines in Singapore and their location of placements.
The location of vending machine business can play a significant role in a successful business. It is important to identify your target audience and locate where you can find them the most.
Ideally, it is recommended at places where you can find the most traffic with nearby institutes like offices, schools, malls, and theatres.
Before installation, you are required to ask permission for placement from the landlord of your picked location.
Importance of Location for A Profitable Vending Machine
Difference Between Vending Machine and Conventional Retail Shop
With knowing some exceptional advantages of vending machines, how are they different from the conventional retail shop? Both business models have their pros and cons. The suitability of the business model depends upon your budget and business goals. Here are some key differences between the two:
- Space: One of the key differences between the two is space. A vending machine is portable and requires less space while a store has a larger area for placement of different products. But with a larger space, a conventional store has the option to display a greater amount of products while a vending machine has limited space for products.
- Investment and Maintenance Cost: Investing in a vending machine is much cheaper than a retail shop. For the maintenance of a retail shop, it will include more power consumption along with greater rental as compared to a vending machine.
To successfully kickstart your vending machine business, it is vital to choose professional vending machine providers. ReinVend Solutions excel in providing transformational vending installations and operations in Singapore. We enable our clients to generate revenue 24/7 through our automated high-quality vending machines. With eight years of industrial experience, we can suggest the best customizable solutions for your successful vending business start-up.
Along with the vending machine, we offer our technical support and cashless options for your customer’s ease. You can generate sales reports, inventory tracking, and video analytics for a better understanding of your potential customers.
We envision enabling our valued clients to automate their business and lower the hassle of employment management, increased cost management, and stress of maintaining business strategies.
RVS is your one-stop solution for your vending machine strategy. Connect with your expert team to explore endless growth opportunities for your sustainable business.