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Anonymous

27 Dec 2019

Career

How do i start a vending machine start up and how much savings do i need to run this start up?

I am planning to purchase vending machines and put in different locations. What steps would i need to do so? :/

Discussion (2)

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Cedric Jamie Soh

27 Dec 2019

Director at Seniorcare.com.sg

Go do the maths and you can get a close estimate.

Go 1688.com or alibaba and look for vending machines (alibaba suppliers does not need to be from China, there are Singapore suppliers too)

Check out the price of 1, find out how many you need for your business.

  1. Cost of X vending machines

  2. Cost of 1 van (rental or outright purchase) to service these vending machines

  3. Technical service of the vending machine, estimate cost of 1 staff at least, or outsource to local company. (you do know vending machines break down and get abused often)

  4. Goods needed for each machine + 50% surplus in warehouse (you can't just order from supplier AFTER the goods are sold out, you will lose out at lot in profit)

  5. Costs per mth of renting a warehouse

As far as I am aware, ACE or whatever government will not give you grants for starting such a traditional business. You won't be able to get a bank financing too, because banks look at 3 years track records.

Means you do the step 1 to 5, and if you are so confident, then you can borrow personal loan or approach friends and familes for help.

How confident?

What are the locations you have found? What are the foot traffic?

What are the products that makes them USP?

Location:- do the owner charge you a rent? Or commission per count. In the first place, is the location friendly to allow a vending machine (most locations do not)

Whats the margin per product, how fast can the product sales go? What is the minimum contract to go before you are allowed to abandon location without paying compensation to the owner?

Loh Tat Tian

20 Dec 2019

Founder at PolicyWoke (We Buy Insurance Policies)

Do go to ACE At Ayer Rajah (Action Centre for Entreprenuers) before running the vending machine and setting up your company. I believe you would learn more and get some grants to incubate your business ideas.

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