Beauty vending machines are leading the way in the vending machine business. We know this because some of us use them frequently. These vending machines provide an opportune moment for users to view and select beauty products without waiting for service or ordering online. Beauty vending machines are here to stay. If you are starting a beauty vending machine business, this is an excellent time to craft your business plan. A completed plan will guide you like a roadmap for the next several years, so let’s get started!
Step 1: Research the Target Audience
In order to properly place your vending machines where the most likely customers will notice, you’ll need to consider who your customers are and where they congregate. Offering beauty products means most women will stop by, and men will also, if not to buy beauty products for their own routines, but to buy a gift for someone they love. In this manner, determining a demographic customer may take extra work. Spend some time observing who approaches your beauty vending machines, who makes purchases, and who may return again. These comprise your target audience.
Step 2: Analyze the Competitors
As soon as you have a regional area outlined for placement of the beauty vending machines, check out any competitors who might entice your customers away. If any exist, check the prices and goods offered to compare against yours. Determine if the competitor offers any special values or unique services to customers. And, note the general condition and inventory on hand inside the machine. If there are few beauty products stocked, this competitor is not a threat.
Prepare a demographic competitor and check regularly to observe behavior and challenges set before your competitor.
Step 3: Determine the Scope and Size of the Business
The geographical locations and quantity of the beauty vending machines will determine the extent of the marketing strategies that can be employed and the amount of revenue that may potentially be collected. By calculating the expected revenues, you will be better equipped to make further decisions regarding purchases of equipment, supplies and overhead expenditures.
Step 4: Create the Business Plan
Your beauty vending machine business plan is much like a roadmap for the first five years of your beauty vending machine business. When complete, it will contain several segments that outline your financial forecast, analysis of competitors, demographic of customers, marketing strategies, operational plans, and other needed areas of business. With the completed plan, you may approach investors, lenders, banks and other financial institutions for startup funding, if needed, and you may use the plan as a presentation tool. This is especially helpful if any funds are required upon startup.
Step 5: Secure the Beauty Vending Machine Locations and Contract with Location Owners
Before placing the beauty vending machines in position, you’ll want to meet with the owners of the locations to negotiate pricing and create contracts. Ensure there are electrical outlets with appropriate wattage available and working and clear the vending machine area of any debris or trash. Position the machines in place and you’re set to begin collecting revenues. Establish a regular daily routine initially to collect cash, provide maintenance and restock inventory items. After an initial period of observation, you may be able to cut back to bi-weekly checks, depending on the location and amount of cash collected.
Step 6: Establish a Pricing Strategy
A beauty vending machine business will need to initially estimate pricing based on cost of goods, contracted location costs, and set up expenses. However, during a specified amount of time, the metrics that will measure the performance of the vending machine can be used to calculate profits and determine if the pricing strategy needs to be altered. If, after measuring, the net profit margin is low, costs will need to be increased or the cost of goods will need to be negotiated lower. It is always a better option to retain the higher price points rather than starting a shift toward lower pricing. This helps keep the long-term growth plan in place.
Establishing a beauty vending machine business can be a challenge; however, it is a convenience for beauty lovers everywhere and, with good locations and regular restocking, provide profits that will ensure long-term growth and success.
