Vending Machines – Kings and Queens of Revenue Streams
No-one needs a second invitation to make more money. So this is probably the only heads up a business will ever need. Second revenue streams are the king biscuit of today’s balanced books: without them, things can look a little shaky; with them, everything tends to end up distinctly profitable. And of all the second revenue streams in the world, vending machines are the royalty.
Why? Because they’re everywhere – and they can sell anything. All a vending machine is, after all, is an unpaid sales person nailed to a wall. It holds stock of vital stuff, like toothpaste, condoms and sanitary products; it takes money for that stuff; and no-one has to pay it a penny beyond what it cost to buy in the first place. That basically means its life salary is paid in a week and everything else it takes (barring the cost of stock) is pure profit – the ideal model for the second revenue stream.
So how much profit are we talking about? Well, decent sized vending machines (say, ones with between two and four columns for stock items) can retail for under two hundred pounds. That practically makes hiring the things (which is not only much more expensive but requires an endless cut of the profits they make) an act of insanity. Why hire (which also means someone else has control over the stock held and sold) when you can buy for much less and sell stock out of the thing without having to give away some of the action?
Personal products type vending machines, of all the sales opportunities in the world, are the single greatest impulse buy generators one could imagine. They tend to be installed in toilets, which means they have a captive customer base (everyone needs the loo at some point) who are crucially introduced to them at a moment when: a) they have nothing better to do than read the list of wares and b) they’re doing something directly related to the need for personal products. It’s like coming into a toffee-addicts convention with a box of toothpaste and a picture of a decaying mouth. Vending machines in bathrooms hit every potential customer at the exact moment in their life when they are most likely to want to buy the items they contain – and, because people use bathrooms regularly, they also get them more than once. Statistically, a customer frequently using a toilet where a personal product vending machine is displayed will at some point put some money into it. That’s the power of repeat suggestion.
All this – and no rental, no stock dictation, and no charges. The only possible drawback to purchasing and running one’s own vending machines is that if they break (and everything does, at some point or another) no-one comes to take them away and replace them. But then a machine that cost so little to buy in the first place has probably paid for itself a thousand times over before it breaks.
The second revenue stream – the icing that can stabilise a whole cake – is one of the most important tools available to a business in a recessionary country. Vending machines, sitting proudly on the walls of the ladies’ and gents’ toilets, are the kings and queens of that tool box: licences, practically, to print money. Without having to pay a soul. Fantastic.
About the Author
Personal Products, is the UK’s leading supplier of the widest range of personal care products including washroom vending machines for sale at affordable prices. For more information please visit http://www.personal-products.co.uk/vending-machines.html.
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