Publisher's Synopsis
This essay sheds light on the critical mistakes that can financially devastate a vending machine business and also elucidates effective business growth strategies for growing a profitable vending machine business. There are a myriad of critical mistakes that can devastate a vending machine business. First and foremost, vending machines business owners need to ensure that their vending machine inventory remains stocked at all times. Vending machine business owners that do no replenish depleted vending machine inventory will hemorrhage money by loosing sales revenue and comprising the trust of their customers. Customers expect vending machines to be properly stocked and the vendor risks loosing the customer's trust when their vending machine is devoid of inventory. Customers have an expectation of reliability from business owners and it is up to vendors in this context to perform their due diligence to ensure that inventory levels do not run low, especially for desirable vending machine items. Vendors that have inventory management issues may also want to invest in leveraging a vending machine management system. "Once you have 5 to 10 separate vending machines, it is probably a good idea to invest in a vending management system to help you stay on top of your inventory remotely. Depending on the technology in your machine, your vending equipment may come pre-programmed with management software, which you can use to streamline operations, record inventory, and track revenue" (Spencer, n.d). These inventory management systems can help vendors efficaciously manage vending machine inventory. Moreover, vendors can also place their contact information on each vending machine so that customers or location owners can contact them if an issue of inventory depletion emerges. In order to preempt inventory issues from being brought to fruition, vendors must constantly track their inventory levels and not be neglectful about prudently managing their inventory since the vending machines need to be stocked to drive sales and win over customers. A second dire mistake vending machine business owners can succumb to making is not embracing change as deemed necessary for the longevity of the business. Vending machine business owners that have infinitesimally profitable vending machine routes or unprofitable vending machine routes should make an earnest attempt to secure new vending machine locations their target market frequents. Keeping vending machines at relatively unprofitable locations in which there is very little inventory turn over causes the vendor to forgo earning a substantial amount of potential revenue in the long haul. This is because, the vendor could generate far more sales revenue if the vending machines were to otherwise be transported to popular locations the target market frequents. It is incumbent that the vending machine business owner cuts their losses from having a vending machine stationed at an unprofitable location and subsequently makes an earnest attempt to secure vending machine locations that have a high volume of foot traffic from customers apart of the target market. A third calamitous mistake vendors make is not changing out unsold, unpopular items and even expired items. In order to maximize profitability, vendors need to sell desirable items and rapidly turn over inventory. When vending machines are cluttered with undesirable items it impinges on the profitability of the vending machine business since sales volume is minimal. Moreover, when customers buy expired products that should have been removed from the vending machines it also causes a vendor to potentially loose a repeat buyer. Furthermore, brands succumb to negative brand recognition and negative word of mouth when customers are dissatisfied with their products. When vendors are selling expired products, defected customers will deter prospective repeat buyers from utilizing the vending machines by sharing their abysmal vending machine experiences.
