How to Start an Eyelash Vending Machine Business: Financing
Want to learn how to start a lash vending machine business? This article breaks down the process in a few easy steps.
It’s no secret that vending machines are versatile product dispensers. From soda to crisps, they serve up products for customers no matter the time or location.
One typical product that’s been gaining in popularity to sell in vending machines is false eyelashes. If you’re interested in getting into this business, you’ve come to the right place.
To start a lash vending machine business, you’ll need to:
- Choose the type of vending machine you want to operate
- Scout suitable locations to host your machine
- Secure the financing you need to buy your machine and stock
- Get your vending machine from a manufacturer, wholesaler, or retailer
- Stock your vending machine and operate it as necessary
However, there are a couple more factors you’ll need to consider (like rent and taxes) to ensure success.
We cover these considerations and more in the article.
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Step-by-Step Guide to Start a Lash Vending Machine Business
Let’s discuss each in detail below.
Step 1 – Know Your Lash Vending Machine Start-Up Costs
When starting any business, the first step during the research stage is to get a complete picture of your start-up costs. Doing so will help you determine how much capital you’ll need to get the venture off the ground. At this step of the process, it’ll become clear whether your savings will suffice or if you need to get a loan.
The bulk of the cost of starting this business will go into buying the vending machine and your initial inventory (your lashes). It’s possible to get your business up and running with $2,000. You can purchase a refurbished or used vending machine for about $1,200-$3,000 and use the difference to buy the lashes that’ll be dispensed.
Newer vending machines are more pricey and will set you back between $3,000 and $10,000, depending on the machine’s size and features.
Step 2 – Take Stock of Recurring Expenses
Aside from the money used to buy the vending machine and initial inventory of lashes, you’ll also have to contend with recurring expenses. Recurring expenses are costs you’ll incur daily, weekly, and monthly to keep your lash vending machine business running.
Rent
As a vending machine owner, you’ll pay rent to the premises owner of the site you decide to locate your machine. Usually, proprietors collect between 5% and 25% of the sales made.
Taxes
Also, you’ll pay sales tax on any revenue your machine generates. The amount payable differs depending on which state your business operates in.
Maintenance
Every once in a while, your machine will need maintenance. If you don’t know your way around a set of tools, you’ll need to contract the services of someone who is and pay good money for it.
Step 3 – Secure a Site
It’s a good idea to start scouting for suitable locations to put your lash vending machine while researching your start-up and recurring costs. When choosing a site for your machine, some important considerations include the amount of traffic the area receives from your customer demographic and how safe it’ll be from theft and vandalism.
Some good places to locate a vending machine that sells eyelashes include:
- College campuses
- Shopping malls
- Train stations
Once you’ve settled on a location, you’ll have to approach the proprietor of the premises and strike a deal.
Step 4 – Choose Your Vendors
You’ll need to do extensive research when looking for a vending machine and eyelashes vendor. The following are tips and considerations to make the process a little smoother.
Never Go With Your First Option
It’s better to shop around at different vendors before settling on one, as you’ll be able to compare prices to determine the best deal for you.
Also, having a backup vendor will come in handy if your first choice disappoints you.
Pay Attention to Reviews
If you’re ordering your lashes from online marketplaces, it’s a good idea to investigate what other customers have experienced when dealing with them. The easiest way to investigate is to look at the reviews left by the vendor’s past customers.
Local or International
If you decide to purchase from a vendor resident outside the states, you’ll have to factor in additional costs like shipping, freight forwarding, and insurance. Also, expect to wait 30-60 days (minimum) for your machine to arrive if you go with an international vendor.
Step 5 – Set the Price for Your Lashes
Once you know how much it’ll cost you to buy the vending machine and lashes and what it’ll cost to rent out a site and maintain the machine, you’ll need to price your product.
You’re getting into business to make a profit, so you’ll want a healthy margin after your recurring expenses have been sorted out at the end of each month.
At the same time, it’s important to set a price that doesn’t turn away customers. Keeping in mind that your vending machines will compete with online marketplaces like Amazon and eBay, it’s good to investigate how much your competitors are selling their lashes and use those prices to guide your decision.
However, note that your online competitors don’t have the same recurring costs (particularly rent and maintenance) as you, so only use their prices as a guide.
Step 6 – Get Financing and Launch
Once you’ve chosen your vendors, secured a site, set the price for your lashes, and gotten a good grasp of your costs and profit, you can use this information to get a loan from family or friends or draw from your savings to start the business.
Conclusion
Starting a lash vending machine business is entirely doable if you have a good handle on the start-up and recurring costs that go into it.
Also, once you’ve secured a site and chosen your vendors, it’ll be easier to set your prices, attract outside financing, and launch. Best of luck!
Did you find this article helpful? For any queries, let us know in the comments below and we will try our best to help you out!
Also Read: How to Use Beauty Vending Machines: For Sale (BUY NOW)
