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How to start a vending machine business in the UK
Vending machines can fulfil consumer needs at any hour of the day in the most convenient locations or where the products would otherwise be difficult to buy. Read on to learn about how to start and successfully grow a vending machine business in the UK
Vending Franchise Opportunities
Is owning vending machines a good business?
Do you know the latest research statistics provided by the Automatic Vending Association on the UK’s vending industry? If not, you’re missing a possible best-seller business opportunity. Automatic Vending Association’s research statistics report that vending machines in the UK sell about six billion items every year.
If there was ever a business that has a built-in market ready for you to provide products to, it is the vending machine business industry. The bonus in starting a vending machine business in the UK is you get to be your own boss, set your hours, and create a possible successful business destiny. When you drill down into the vending machine business model, you quickly realise why it’s so successful.
The most important thing you need to remember when you decide to start a part- or full-time franchise business is your success is based on your PR, marketing, and knowing your brand, products, and services.
Why should you choose a vending machine franchise?
Whether a gumball machine, candy machine, snack or soda machines, vending machines are in almost every public venue we visit. They are located in airports, convenience stores, business offices, movie cinemas, and more. Depending on what vending machine franchise you select, you can also sell items of your choosing, ranging from coffee, bulk candy to sandwiches.
This type of franchise business offers a vending machine owner a significant market share. You can run your franchise business on a part- or full-time basis. What you put into your business in time, effort and marketing are what you’ll get out of it.
If you identify your market based on products that are needed and wanted, then you can have a vending machine franchise that offers unlimited growth and potential. That’s because every vending franchise can have something within its vending machines that attracts attention and customers. How and what you choose to do with that attention is in direct correlation to how well you will progress, grow, and develop.
Franchising has come a long way in the UK, and while it still needs to grow in awareness, it’s lucrative rewards can be yours if you apply yourself.
How to grow your vending business in the UK
You have one primary objective when you’re starting a vending franchise business, and that’s to promote your brand and products to customers in your designated territory. Having a designated territory means you have customers that will want to use your vending machines. That means you have clients from day one of your business endeavour.
The vending machine industry has a market share of over £25bn and product sales that are projected to go in no other direction than up between 2019 and 2025. There is a growing demand for on-the-go snacks, drinks, and everything in-between that’s contributing to boosting product sales. Vending machines are the ultimate convenience when searching for food or drinks, which makes them extremely popular with consumers.
The vending machine business in the UK is one of the few businesses where you have no rent, electricity, or even staff if you can run everything yourself, creating the potential for a larger profit margin. That being said, you must understand the vending machine business process in the UK so you can determine if it’s the business entrepreneurship opportunity you’ve wanted to find.
#1 - Determining your vending machine products
By determining your vending machine products ahead of time, you’re setting up the business blueprint you need for growth. It also should determine the conventional products you want to provide.
The blueprint zeroes in on what food, confectionery, drinks, electronic equipment, newspapers and water products your vending machines will offer. Your market may be one that’s already been identified through your vending machine franchise contract. Since you may already know your market area or demographic population, you should select a product for your machines that best meets up with that customer base.
For instance, if you’re going to be in an airport, you might want to offer snacks, drinks, water, and anything a hungry and in a hurry traveller may require. If you’re offered a choice as to where you can place your vending machines, you might want to consider large office complexes, gyms and car dealerships that don’t already have any vending machines.
#2 - Your supplier is vital
A vending machine franchise is a one-time investment that enables cost savings by operating 24/7, 365 days a year. That has led to the vending machine industry to reap unprecedented market growth. But to be able to access that growth in full, you need to have a reliable supplier as part of your vending industry success equation.
You need to have the products that sell well and that you can get when customers want more. It doesn’t matter if you’re selling flowers in your vending machines or soda; your supply chain wholesaler needs to be reliable. Your job as a franchisee (vending machine operator) is to promote and provide this brand and product continually throughout your designated territory with exemplary customer care.
#3 - How much does it cost to start a vending machine franchise business?
Every franchise has various costs depending on their machines, products, designated territory, and the ancillary services they provide as a vending machine franchise business owner. An initial start-up cost can range from £20,000 to £40,000. That amount can give you anywhere from about five to 10 machines depending on the variables.
You have to remember that vending machine franchise businesses have very low overheads, with some of your primary business start-up costs being in transportation and petrol. Most franchises are designed to give you residual income if you’ve worked at least eight hours a week or more. Even working part-time at eight hours a week can give you a take-home profit of about £8,000 to £10,000.
#4 - Where should your vending machines be located?
The best way to succeed is to increase your customer base and bring on as many new customers as possible. Build up relationships with people in corporate buildings and try to place your machines where you’ll get the most customer traffic, repeat business, referrals, and good publicity. You don’t have to put your vending machines in typical and common locations like leisure centres.
You can choose to put your vending machines in courthouses or other governmental buildings. You can put your machines anywhere from schools to apartment buildings. Find the vending machine franchise that best meets your location needs and fits your best.
You know your territory better than anyone, so make sure you select a franchise that complements the designated area and the demographics you seek. The only person that can motivate you is you. You will get plenty of assistance from the vending service you have a contract with, but the bottom line is it’s up to you to make or break this business.
#5 - Get your machines and obtain a business licence
Requirements for a business licence can vary depending on the local council which oversees your designated territory. Sometimes you may also need a street trading licence or a peddler’s certificate.
It doesn’t matter what certification or licence is needed; you’ll have to pay a fee. The convenience of overseeing vending machine businesses cannot be overstated. That’s because if everything else is closed down, your vending machine is still accessible and providing quality products to customers.
It’s also good to have a personalised presentation prepared and ready to go if you need to pitch to a new location in your designated territory. It shows the territory building owners you’re serious, you’ve done your research, and you’re committed to succeeding.
Vending machine lead generation
You do need to ensure you’re developing vending machine lead generation. Vending machine lead generation needs to be ongoing because it never ends. You want to make sure your business model includes a combination of prospecting, finding new leads, and promoting your business brands and products to those leads.
If you can do that successfully and place your vending machines in qualified locations, your growth will be ongoing.
Your next step is the most important one
The next step you need to take on behalf of your vending machine business is one of the most important ones. That’s because with the right machine, stocked with the correct inventory in an applicable territory, you can grow and develop at a phenomenal rate. When you’re ready to enquire about what franchise opportunities are available to you, you need to reach out to What Franchise.
What Franchise can give you the latest vending machine franchise business news, business advice, vending machine franchises for sale, and an FAQ that can answer any questions you may have about vending machine franchises. Every business owner has different reasons for opening up their vending machine business franchise. At the same time, every franchise business owner needs a shared pool of information that helps them make the first steps forward.
You have nothing to lose but a lucrative future, so reach out and contact What Franchise today.