Times change – and vending machines are becoming relevant. Along with the development of the service sector, the vending business is emerging. Statistical data once again confirms that the development of vending is directly related to the level of urbanization.
Continuing the vending topic (vending – a method of retail sales through machines) that we started in the previous issue of Azerbaijan Business magazine, we would like to further develop the idea of its application in the realities of Azerbaijan. As we noted, Azerbaijan began applying vending trade at least 100 years later than the rest of the world. As a result, the opportunities to earn income from a simple machine with a working principle known since ancient times remained out of focus. The “money for goods” mechanism was already used in ancient Egyptian temples. Special devices were installed there to enable the exchange of “money for holy water” without the participation of priests. Naturally, there could be no “escape from the cash register” in such temples, as the human factor was absent. Realizing this advantage of the earliest vending machines, modern entrepreneurs began using vending machines extensively, earning billions in revenue.
Even if we do not take into account the nine-digit turnovers – the highest indicator of a successful business – starting business with just one vending machine is not a bad beginning. At the very least, it is an alternative to small-scale retail trade or taxi services, which require hiring one or more salespeople. In general, vending machines (vendors), even when operating with a limited selection of goods, are far more profitable, as they do not require additional expenses such as paying wages to hired workers. Moreover, such workers are not always easy to find. And who can guarantee that hired salespeople will fully comply with all the ethical standards and requirements you demand?
Another issue: employees can get sick, miss work for valid or invalid reasons, or sometimes show dishonesty in sales to serve their personal interests. A machine, however, is a programmed mechanism and therefore free from many human-related negative behaviors. In addition, unlike a salesperson, a vending machine can be placed in a convenient location and operate under supervision 24/7. Another advantage should be noted: in areas with heavy crowds – train stations, airports, hotels, student canteens, etc. – there is often no space to install a sales counter. But vending machines, which require only 2-3 m², can easily be installed there, enabling successful sales of cigarettes, phone cards, coffee, etc. Moreover, if we are talking about reliable manufacturers such as Spain’s Azkoyen (AzVen is the official distributor of Azkoyen in Azerbaijan), then there is no doubt that your business will be stable and profitable.
The Executive Director of “AzVen” LLC, Mr. Coşqun Cəbrayılov, provided detailed information to Azerbaijan Business magazine about the features of the vending business.
C.C. – “AzVen” was established in 2006. I can confidently say that AzVen is the pioneer of vending activity in Azerbaijan. The company’s main operational principle is the development of vending as a new market in our country. As the official distributor of the famous Azkoyen brand, AzVen supplies vending machines, installs them free of charge, and provides service. In addition, we import ingredients specifically designed for vending equipment directly from Spain. Thus, AzVen offers customers a full spectrum of services.
AB – Why vending machines? Agree that even if the concept is not completely new, it is still unusual for Azerbaijan.
C.C. – Correct. People may be familiar with vending machines theoretically, but practically this is new. Today, worldwide vending business turnover reaches billions. International vending networks operate hundreds of thousands of machines. For example, in Japan, South Korea, and many European countries, one vending machine “serves” 20 – 40 people. Besides being highly profitable, this business reflects modern technological advancements. In this respect, Azerbaijan is a promising environment for their application.
AB – Who is your target audience? Who will be the main buyers of your products?
C.C. – AzVen plans to cooperate closely not only with large companies, airports, bus and railway stations, hotels, business centers, healthcare institutions, and educational facilities, but also with individuals wishing to engage in private vending business.
AB – How many machines are needed to start a vending business?
C.C. – You can start this business with just one machine, but to achieve higher profit and recover investment quickly, we recommend installing several vendors. Look – a single machine can generate €100 to €1000 per month. Now calculate how much income you would get from a network of 10, 50, or 100 machines!
AB – What types of equipment do you offer?
C.C. – We offer a wide range of vending machines for hot and cold beverages, cigarettes, phone cards, and snacks. These familiar-looking machines are highly capacious yet compact – the size of a regular refrigerator. All devices are equipped with self-cleaning systems and coin acceptors adapted to national currency. These coin acceptors were specially designed for us at the Azkoyen plant. They not only accept coins but also accurately return change. This is an excellent feature for a “salesperson.” In general, we offer various types of machines, each with its specific function. For example, our coffee machines come in two types: those that prepare soluble coffee and those that grind beans fresh.
AB – What about traditional tea?
C.C. – Of course. Not only black tea, but also green tea, plus lemon, mint, chamomile tea, etc. All of these can be purchased from hot beverage vending machines. For example, let me introduce the Veneto model from our hot beverage lineup. This model is designed mainly for lovers of classic espresso coffee. To ensure full flavor retention according to classic recipes, this model is equipped with a grinder that freshly grinds beans before brewing.
AB – Suppose a beginner entrepreneur has only one coffee machine – what can they offer to customers in summer?
C.C. – Since last year, the Veneto model is offered with a cooling module – meaning customers can now enjoy not only real coffee (not substitutes!) and hot drinks, but also milkshakes and iced tea.
AB – Excellent! I guess in the era of information technologies, vending machines can also calculate earnings…
C.C. – Absolutely. The Veneto model has several useful features – self-diagnosis and self-cleaning (programmable by timer), power on/off timer, programmable alternative pricing list, replaceable front panels, programmable free bonus portions, etc. The machine can record transaction data and transfer it to a laptop, a portable printer, or an electronic key – enabling owners to access any information remotely – including product types and quantities sold, money accepted, and change returned.
AB – Who will provide warranty service? Will you need specialists from the “manufacturer’s home country”?
C.C. – Our specialists, who received special training at the manufacturer’s plant in Spain, are fully capable of providing both warranty and post-warranty service independently, without foreign consultants. Therefore, everything is very clear – no problems. If you want to start a small business and have researched all possibilities, ask yourself: “Why not vending?” Consider: to start a taxi business, you must invest at least $10 – 12,000 in buying a car. Adding increasing fuel prices and the oversaturated taxi market on one side, and a monthly income of $400 – 500 on the other, it is obvious that your expenses will take a long time to recover. Now apply the same calculations to a vending machine. The numbers are completely different. A single machine (which costs twice less than a car!) can bring $500 – 1000 per month – meaning your investment will be repaid within 8 – 10 months.
For example, a coffee machine has a capacity of 700 cups per day. If you are just starting and find this machine expensive, you can choose a smaller model from AzVen’s range – with a capacity of only 210 cups! This machine can even be placed on a desk. At this point, it is worth recalling – with slight modification – Churchill’s words: “Socialists think earning profit is a sin. I believe the real sin is to suffer a loss.” Indeed, there is no need to suffer losses – there is a way to make money. Entrepreneurs starting a business! Buy vending machines and… count your profit!
Vending machine models offered by AzVen:
• “Veneto” — hot beverages
• “Lugano” — hot beverages
• “Tempo M” — hot beverages
• “City Lz” — hot beverages
• “Palma-B” — cold beverages
• “O.ce-4” — cold beverages
• “Palma-Mz” — cold beverages and snacks
• “Palma-H” — snacks
• “N-Series” — cigarettes and phone cards
Historical facts:
In the 17th century, a machine selling tobacco for pipes was installed in a pub in England.
The first vending machine in Japan was installed in 1904 – it sold stamps and greeting cards and was attached to a mailbox.