Tips For Intending Participants In The Vending Industry

Firstly, we recommend you deal with Australian Vending Association members.

Almost everywhere you go, whether in Australia or overseas, you are bound to se them: coin operated vending machines dispensing food, beverages, snacks, cigarettes, newspapers, personal care items, stamps, chewing gum, petrol, etc.

To some this may look like an easy way to make money. Why not let the machines do the work! All i'll have to do is fill them up and collect the money! Like everything else in this world, it's not quite that easy. However, because vending seems easy to the layman, there are a few that want to make your desire "to get rich quick" into the ways and means that will make them "rich quick"!

Automatic vending is a BUSINESS and like all other businesses, it needs a professional and business like approach. Beware of the "Part Time Business" ads we have all seen in the papers at one time or another. You know the kind of advertisement referred to: "Work only 1 or 2 days a week in your spare time and make a fortune" type of ad or "Spare Time Income, No Selling", etc. Of course some ads set out in these terms are genuine opportunities, but some are not. It's up to you to sort them out. Some advertisers state that they are very selective in their appointment of "suitable applicants", can supply easy finance, etc. Once again it's up to you to decide which advertiser offers a genuine opportunity to improve your financial situation and which one only seeks to get your cash - one way or another.

As a general rule, no genuine company or individual will object to you making a few enquiries about them, from other users of their product for example or from Trade and Business Associations.

Before we go any further, ask yourself these questions.

• Are you willing to work long hours, day or night and at weekends, mostly on short notice, if required?
• Are you thorough?
• Can you handle money matters efficiently (both your own and others)?
• Do you have or can you arrange credit at your bank?
• Can you organise yourself and stick to a schedule?
• Do you remain calm when things go wrong?
• Do you really want to be your own boss
• Can you handle peopleIf the answer to any of these questions is NO, don't go any further!

If the answer was YES please review these tips from AVA members.

Quality of site.

Critical to the profitability of the site.

Whom is/will be responsible for the site ? What happens if the site is unsatisfactory ? Who pays the cost of machine relocation ? Be wary of inflated volume projections. There are few reputable statistics available in Australia on automatic vending.Depending on products vended, most quality sites are taken by existing vending companies.

Supply of machines.

Will the availability of machines be consistent?

Should machines be leased or purchased? Can one supplier meet the demand? Does this include preferred pricing? What technology is / will be available? How will this affect the business? Obtain quotes from suppliers to gauge pricing parameters.Does the manufacturer's guarantee cover all parties?

Training.

Large amounts of time taken up with sales and 'PR'.

Need to find sites, promote service, handle enquiries and/or complaints. Programs are often non-existent and if available, should be comprehensive.Requirement can be extensive, depending on equipment and product type.

Technical Support.

Who is responsible for repairs and maintenance

How complicated is the work? (e.g. electronics, mechanical, refrigeration) Is there a requirement for qualified technicians? Who pays for the technical support?What is the level of service required at sites? (e.g. 7 days per week / 24 hours per day).

Supply of product.

Will the availability of product be consistent ?

Obtain several quotes from suppliers where possible. Pricing usually cheaper if one supplier used consistently. Brand names required as no-one on hand to sell product.Is product bought or on consignment ?

Financial Information.

Conduct a proper, full P & L on figures available.

Check financial authenticity if possible. Consult an accountant or solicitor before commitment. Vending can be a profitable cash only business.Beware of inflated profit projections.

In Summary.

You may need to understand your equipment products, market and customer to be successful. Do your homework!

Be wary of 'Get Rich Quick' or 'Work Part Time' offers. Generally as in all businesses you get back what you put in. Ask for proof and authenticity of any figures presented. Ensure continued supply of machines and product. Ascertain quality of machine sites.Ascertain how technical support is serviced and at who's cost.

Good Luck !!! Join the Australian Vending Association for on going support.