Like all businesses, vending needs investment in capital and operating expenditure. Buying a vending machine and the first stock is a capital expense that you need to make upfront before making money from your machine. For a small business looking to expand or a first-time investor, the capital expense can be prohibitive. This is where financing helps. Working with a reliable financing partner can help you get the vending business going or drive its growth without worrying about cash for capital. But that is just the tip of the proverbial iceberg. Financing can do much more for your vending business.
Leapfrogging the capital hurdle
Financing options democratize the vending business. As discussed earlier in this article, It empowers small or individual investors to enter the vending industry. Small businesses can leverage finance to accelerate growth. Such broader participation in the vending business results in a perfectly competitive market driving value for all stakeholders.
Scalability translates to profitability
The vending industry is a numbers game. The more the machines, the more significant the number of transactions and the higher the cumulative profits. Under ordinary business circumstances and similar installation locations, investors can multiply their earnings by deploying multiple machines. Financing can help achieve that.
Liquidity in vending equals success
Like all businesses that experience a quick capital turnover, in the vending business, “cash-is-king.” Liquidity drives the risk appetite of the business owner, allowing novel products, promotional campaigns or any other initiatives that can catapult the business to the next level. Financing options help prevent locking up valuable cash in capital expenditure.
Driving customer experience
The primary value that a consumer derives out of a vending machine is convenience. Operators who continuously invest in delivering the best experience for customers stay ahead of the competition. Upgrading the machine with peripherals like touch screens, cashless payment systems, UV disinfection systems and components that guarantee successful transactions can improve the customer’s experience. Such components can be procured and deployed using financing from reliable partners without choking under the weight of capital requirements.
Cost of ownership
Vending machines are electro-mechanical equipment with several moving parts. Such pieces of machinery undergo wear and tear over their life. Maintaining the machines through timely replacement of parts and replenishment of consumables is essential for the long life of the machine. Technology keeps evolving over the life of the machine. Investors need to manage obsolescence by investing in contemporary technology. All such maintenance and upgrades can drive up the cost of ownership. Financing can help tide over challenges due to the cost of ownership.
Finding the right financing partner
The benefits of financing your vending business are clear. From buying to owning and even upgrading vending machines, financing can help make business decisions that drive growth and profitability. However, the key to realizing the full benefits of financing is working with the right financing partner. A financing partner who understands vending is more likely to realize the potential of the business they are funding.
The partner needs to be a reliable firm that can work with your vending machine manufacturer to ensure timely disbursal. This will ensure that you can buy and deploy machines on time and realize profits quicker. Lastly, your financing partner who is willing to finance beyond just the procurement of machines can make a big difference. Partners who can help you upgrade and maintain your machines throughout life can help your business go a long way.
Financing options with eVending
When buying machines from eVending, you can leave financing worries to the experts. eVending and Inland Finance share the 90+ years of legacy and reliability of The Wittern Group. Together, they help you select the best machines, finance their purchase and commission them.
You can download a printable application form and fill it out and fax it to apply. Digitally savvy business owners can also apply online here. Our financing team will process your credit application and suggest flexible finance tenures ranging between 6 and 48 months. You can choose to hold payments for the first 90 days and invest cash from your business back into it. With so many attractive features, making your first steps or growing your existing vending business is such an easy decision to make.
To know more about how we can help you finance your vending business, call us at 1-866-958-4501 or visit us here.
Financing a vending business Like all businesses, vending needs investment in capital and operating expenditure. Buying a vending machine and the first stock is a capital expense that you need to make upfront before making money from your machine. For a small business looking to expand or a first-time investor, the capital expense can be
The vending industry growth curve is set to break free in 2022. The country is wading out of a couple of years of constrained social and business activity. Public spaces are opening, and travel is slowly returning to normalcy. There is a growing need for convenient access to products or supplies. This, combined with novel applications and emerging technologies, make vending an attractive industry to be in.
Industry reports indicate strong growth in revenues from the vending industry in 2022. This report from a leading analyst places the estimated revenue for 2022 at $8.9 billion. As the mobility constraints from 2020 are being released, the industry has nowhere to go but up. This is evident from the graph.
Another report states that while the industry will grow at 0.8% year over year since 2017, players have increased by about 3.5%. This is a clear indication that small single machine owners have increased. With low barriers to entry and minimal bandwidth requirements, the vending industry has become a neat side hustle for many.
10 Technology Trends in 2022
The vending industry is not just growing in revenue in 2022. Still, it is also expected to further the progress in technological advancements. Some of these technological advancements are discussed in this section.
Contactless and Cashless
We may return to handshakes and hugs with people we know sometime in the future, but interacting with vending hardware has been forever changed. Users want minimal contact with surfaces. This is not just about hygiene any longer. The convenience of cards, digital wallets, and NFC payments means a lesser need for liquid cash. This also eliminates the chances of misplacing, losing, or stealing money. Growing disposable income in the hands of millennials will translate to increased cashless transactions. Vending machines must be ready to receive them.
Electronic payment systems come with added benefits. Solutions like Greenlite Vending consolidate transaction summaries to analyze machine sales. Users can use the tool to check machine status and run over-the-air updates for software. Such solutions also trigger alerts about machine health and transaction details. They not only allow the user to transact without contact, but they also allow the operator to manage the machine remotely.
Contactless payments can reduce the chances of physical interaction with the machine, but one still needs to select the product and collect it. UV systems can irradiate the contact areas before and after a transaction to ensure 99.9% of the viruses and bacteria are killed or inactivated.
eVending uses UVend Technology to disinfect touch panels, delivery doors and payment interfaces with ultraviolet rays. Its proximity sensors ensure clearance for user safety before initiating irradiation. Ultraviolet light is not in the visible spectrum, so UVend Technology uses blue light to alert users that sanitization is in process.
As the number of small players increases, there will continue to be a demand for machines that can sell anything. Combo machines that can sell beverages and snacks are preferred over single product machines. Configurable machines that can sell products of different sizes, shapes, and weights will become the rage.
The growing awareness about personal protection and social hygiene is shoring up the demand for PPE equipment and supplies. The challenge will be in the form-factor of these products. A latex glove box will be very different in shape and form from an alcohol based sanitizer bottle. Super-conscious users will continue to drive the demand for versatile machines selling PPE supplies. eVending helps this issue by offering PPE supplies through our Sani-Center PPE Vending Machine.
Machine owners can optimize their visits to restock the machines if they have prior information on what has been sold and what has not. Remote monitoring features on the machine can help achieve that. They can also find out about machine breakdown and other “machine status” related information as it happens.
Responsible and Sustainable Refrigerants
The refrigerants in vending machines selling snacks and beverages are changing fast, too. R290 or Hydrocarbon based systems are quickly replacing the R410A systems. R32 systems are not as energy-efficient and eco-friendly as R134a making the latter a more economical option.
All the technology advancements discussed earlier are not just for new machines. Leading vending machine manufacturers have developed modular systems that can also be retrofitted to legacy equipment. This can modernize your existing machines without spending on an entirely new machine. Of course, not every feature can be retrofitted. Please contact your sales representative if you have any questions.
2022 is going to be an exciting year for the vending industry. It is not just because people are going to be more mobile and interact more with vending machines. It is more so because the emerging technology trends will level the playing field. First-time machine owners and small vending businesses can now invest and differentiate faster than established businesses. On the other hand, established companies will have to consider buying new machines, upgrades, and retrofits to stay relevant in a dynamic market.
If you are excited about carving your slice of success in the vending industry or growing your vending business in 2022, eVending can help. If you want to know how we can enable your success in the vending business in 2022, call us at 1-888-979-9858.
Industry trends The vending industry growth curve is set to break free in 2022. The country is wading out of a couple of years of constrained social and business activity. Public spaces are opening, and travel is slowly returning to normalcy. There is a growing need for convenient access to products or supplies. This,