Online Vending Machine Business Overview
Starting a business is never easy, but it's always exciting. You'll need to have a great business idea, some working capital, and staff to help you run the business. Depending on the type of business you want to start, you may have to also rent a business premise, install furniture and fittings, and procure inventory. If the idea you have is to start an online business, however, you can skip this part as you won't need to have a physical shop. Keep reading to learn how to start an online vending machine business.
The Offline Vending Machine Business
Anyone with some decent savings can own a vending machine. A few thousand dollars, or at least ten thousand dollars with some companies, can get you a decent vending machine. If strategically located and restocked regularly, the vending machine can generate a lot of money, so it's good business. Airports, train stations, commercial buildings, schools, and other high-traffic areas are perfect for vending machines. It is important to note, however, that there are some drawbacks to owning offline vending machines. First, the capital investment is high. Secondly, you have to restock the vending machine regularly to ensure no product goes out of stock. Since there is no way of knowing if your vending machines are fully-stocked, you run the risk of losing customers to the competition. If you have dozens of vending machines, it can be difficult to keep track of inventory and have the units restocked regularly.
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The Online Vending Machine Business
The online vending machine was designed to address the challenges associated with offline vending machines, particularly when it comes to stock-taking and maintenance. These vending machines are linked to a central hub that keeps track of dispensed goods and stock remaining. These machines can place a request for a refill automatically. When running an online vending machine business, it is easier for you to determine what product needs to be restocked in a particular machine as well as the number that's needed. At any given time, the delivery team knows which product is required and where it is required.
Advantages of Online Vending Machines
i) Improved Service Time
Online vending machines make use of telemetry, which allows machines to report sales and operational data in real time. This means that it's easier to keep track of inventory automatically. As a result, operators know exactly which machines need service and the exact products to bring with them. This helps to improve service time by around 30%.
ii) Improves Customer Service
With offline vending machines, operators usually wait for calls from customers complaining about a faulty vending machine. This is eliminated with the use of online vending machines as compressor status, coin jams, and other types of malfunctions are reported automatically to the operators for corrective action. The result is improved customer satisfaction.
iii) Better Accountability
Online vending machines keep track of cash and cashless transactions. This means that both operators and employees know exactly how much cash and cashless transactions are expected from each machine. This helps to boost accountability.
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