Vending machines are ubiquitous in shopping centres, hotels, universities and even apartment complexes. In fact, vending machine businesses tend to grow at an average of 12.8% every year. If you’re thinking about getting into the industry, this guide will provide some helpful tips. If you’re not sure whether a vending machine business is right for you, you can also check out our comprehensive list of side ideas.
Article Summary
We’ve done the calculations, crunched the numbers and double checked our results. Here are 4 recommended next steps for you to get started with your vending machine business.
- 1 – Determine why you want to start a vending machine business
- 2 – Lockdown a location (location is everything!)
- 3 – Invest time & money into finding a great vending machine
- 4 – Know and meet your legal requirements
At Lawpath, we want to see how we can take the guesswork out of your legal requirements. So if you’re still confused after reading the blog section, feel free to contact one of our expert consultants on 1800 529 728.
Getting started
Before the technicalities, you should know why you’re doing this. Have you found a location where a vending machine could benefit a lot of people? Or is there a particular line of products you want to sell? If you haven’t thought that far ahead, there are a number of benefits involved with running a vending machine business. These include:
- Limited rent and electricity bills
- No overhead fees
- Flexibility of locations
- Time saving
- No staffing costs
However, keep in mind there are other costs involved in running a vending machine business. These range from maintenance costs and leasing fees, to theft and competition both from vending machines and local businesses. There’s plenty of vending machines everywhere. Ask yourself, what makes yours stand out? If you are comfortable answering that question, you’re on the right track to launch your business.
The location
So you’ve analysed your vending machine business idea and decided that it’s right for you. Before you start looking for new state-of-the-art vending machines to deliver products, you need to secure a location for your future machine.
View the location yourself, and assess the key factors. Some of these factors may include the amount of foot traffic and whether people need your product. What’s valuable about a vending machine if there’s no one willing to buy anything?
The vending machine
Now you’re at the core of the business! This isn’t a place where you want to cut costs or rush any decisions. Make sure the vendor of the machine is someone you can trust in providing high quality machines. Trustworthy features include:
- Are the machines insured?
- Does the vendor have an ABN or ACN?
- What are the policies for support if something happens to the machine?
You get what you pay for. If you want your business to last long-term, consider spending a bit extra to make sure your machines are reliable enough to achieve your goals.
Legal requirements
Vending machines are no different than any other business. You’ll need to decide how you want to register your business, as a sole trader, partnership or company. Whichever structure you choose, you’ll need to apply for an ABN.
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You should also consider insurance for your business. Public liability and/or indemnity insurance are two types of insurance that can cover you if things go wrong. More information about business insurance is provided on our guides.
Depending on your business, there may be other requirements you have to consider. Food vendors in Victoria need to register their vending machines with their principal council. On the other hand, mobile food vendors should consider the wide range of legislative requirements which may apply.
The Australian Vending Association (AVA) is a body representing the interests of the vending industry. Whilst not necessary to join, they can help keep you up to date with important news in the vending industry.
Conclusion
Vending machines have a lot of potential to distribute products in different ways while being profitable businesses. They may be simpler to establish, but that doesn’t mean there isn’t a lot of factors to consider or legal requirements to stick to. If you require personal advice on your venture, you can contact a business lawyer for further advice.
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