Cost Cutting Secret Of Profitable Vending Business

Income-Expense= profits .. All of us are aware of this simple equation. But how does this work? There are several methods which can maximize profits. One way is by minimizing your costs/expenses.

It is a tough challenge for most businessmen when it comes to reducing business expenses. A healthy profit margin ensures quick growth and survival in the long run. A stabilized business will be able to withstand all the tough times in the business. Let us look at various strategies required to reduce overhead cost.


• Jot down clearly all your business expenses: Keep a track of all your regular weekly and monthly expenses. Close monitoring will help you identify abnormal rise in expenses easily.
• Always purchase a new vending machine whenever you start a business. This reduces your maintenance cost.
• Try to handle small repairs your self. This would put a check on unnecessary overhead expenses.
• Inventory control: Be careful with your inventory and avoid unnecessary wastage and theft of stock.
• Always purchase stock in bulk. Large quantities can be obtained at lower unit cost.
• Check your advertising costs: Costs incurred for setting up of sign boards need to be checked. This helps you in identifying if you are spending too much on advertising.
• Use appropriate dispensers: Adjust the quantity of product you dispense by using exact dispensers. This would prevent unnecessary wastage of the product. For instance if you are using a vending machine to sell candy, then dispense only that portion that is sufficient to fill a child’s hand.
• High product prices would mean low cash flow for the vending machine operator. Try to cut other expenses to compensate on high product cost. But never compromise on the quality of the product.
• Try to visit check the performance of the machine regularly. This will help identify any break downs or service requirements in the initial stage itself. This will also help you cut down your servicing expenses.
• Plan your vending route in such a way that you will be able to cover all your vending machines to check their performance without wasting any time.

It is a universal fact that expenses have sky rocketed in the recent past. The only way to maximize profits would be by cutting down all unnecessary expenses. Planet Antare’s Business support team educates vendors about how to cut down costs in vending business. Planet Antares also manufactures state of the art vending machines, designed for enhanced performance.