Merits and Demerits of Planet Antares Vending Machine Business

Till date we have often been looking at one side of the coin and are only considering the positive aspects of vending machine business. Just as a coin has two sides, so does vending machine business. Similar to all other business models, vending machine has both merits and demerits. However, the merits of this business dominate or out beat its demerits thus making it very popular among business community.

Let us now look at both these aspects. To begin with, let us look at some of the benefits operators derive from taking up this business:

• Unlike other business ventures, vending can be started with limited capital.
• Operators have the option of starting this business either on a full time basis or a part time basis. In case you are already full time employee and looking for some additional income to support your family, vending is perfect for you.
• There is complete flexibility in terms of operations style, selection of products, working hours, kind of machine to purchase and the location you would like to install it.
• This is one of the very few business models that give you financial independence while letting you be your own boss.
• Profit margins are quite high. However, they are not uniform across all products and keep varying from one product to another.
• Purchasing a new vending machine is also pretty cheap and affordable by most entrepreneurs.
• One of the highlights of this business is that it does not ask for any specific knowledge or skill set. So, anyone can take up this business.
• Overhead and operational costs are also very low in comparison with most other business models.

On the other hand, the disadvantages or demerits of this business are:

• The ease of starting up this business is drawing more and more operators towards this business thus leading to severe competition.
• Chances for theft and pilferage are high especially when these machines are located outdoors.
• Replacement of parts is little expensive.