Question

Ram and Shyam are two friends who have started a business of manufacturing and selling low calorie snacks in small packets. Ram wants to use vending machines for

dispensing their product as he feels that they have a promising future in retail trade of low- priced consumer products, but Shyam is not of the same opinion as he feels that they also suffer from certain limitations.” Briefly explain any four reasons why Shyam is not ready to sell their product using vending machines.

Answer 1

The following are the disadvantages of vending machines because of which Shyam is not ready to use vending machines.

i. Initial investment in a machine is very high. 

ii, The machine requires regular repairs and maintenance. 

iii. Since the stock holding capacity of the machine is limited, it required frequent loading of stock. 

iv. The coins or tokens used for this machine are required to be collected periodically. 

v. Consumer cannot feel or see product before buying & do not have opportunity of returning unwanted product. vi. Special package have to be developed for machines.