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I was thinking about this(softdrinks and snacks). Anyone have information or advice about costs and how to select locations? negotiation advice on leasing with property owner? Thanks.
Careful, companies that sell snack machine try to make you think it's easy to start your own snack machine business. The reality agreements with other business have been long since been written. It's almost impossible to get your machine into a business with an existing vender contract. I personally know someone who invested twelve thousand dollars of there own money to buy four coffee vending machines. He was eventually able to place one of them in a train station, but was never able to place the other three. He tried to sell them back to the company he purchased them from, but they only offered him $200 per machine. (He spend four thousand dollars each!). I was able to sell two of them, brand new in the box on Ebay for about $300 each, that's after they sat in storage for years.
Do yourself a favor, look elsewhere then vending machines to start a business. And if your still looking to get into the field, only buy used machines from private parties. Chances are you be able to pick up a brand new machine for pennies on the dollar, from someone else that had dreams of there own business before cold hard reality wised them up.
Careful, companies that sell snack machine try to make you think it's easy to start your own snack machine business. The reality agreements with other business have been long since been written. It's almost impossible to get your machine into a business with an existing vender contract. I personally know someone who invested twelve thousand dollars of there own money to buy four coffee vending machines. He was eventually able to place one of them in a train station, but was never able to place the other three. He tried to sell them back to the company he purchased them from, but they only offered him $200 per machine. (He spend four thousand dollars each!). I was able to sell two of them, brand new in the box on Ebay for about $300 each, that's after they sat in storage for years.
Do yourself a favor, look elsewhere then vending machines to start a business. And if your still looking to get into the field, only buy used machines from private parties. Chances are you be able to pick up a brand new machine for pennies on the dollar, from someone else that had dreams of there own business before cold hard reality wised them up.
Or, maybe you can place the machines in....Independent Grocers/Co-ops supermarkets. Works for me pretty damn well
i bought 30 machines new and another 20 used. this business did not work for me. I tired a placing company to place them and they were always like living in their car. I had got ripped off my one. Companies tell you that you can choose where but then the person they send out just goes into the stores for you and makes the sales pitch.
Another person who did the placeing for me would tell the business owner that it will only be a month, i did not know they said this until i got a call a month later telling me to remove it.
My advice is to start small, buying used from craiglist, then give it a try. I spent over 10K on everything. wound up selling the machines dirt cheap. Ohh, some businesses close down and your machine dissapears.
I thought about doing this before. Then I thought a little harder and realized something... Everywhere that I thought would be a good money making spot was already occupied. Makes me believe the market is a bit saturated as it is. If I could find one cheap used machine, I might test the waters, but it's quite a bit of hassle for what amounts to residual income.
I thought about doing this before. Then I thought a little harder and realized something... Everywhere that I thought would be a good money making spot was already occupied. Makes me believe the market is a bit saturated as it is. If I could find one cheap used machine, I might test the waters, but it's quite a bit of hassle for what amounts to residual income.
If I were doing something like this, I would target NEW construction sites for commercial buildings. I'm talking right at the moment you see the foundation being dug. I would try to get in right at ground zero, be the first in line. I would also keep my finger on the pulse of new commercial construction plans and developments in your local area. Economic Development Associations,etc would have the info you're seeking...take it one machine at a time. Secure the spot first than get the machine.
Last edited by Ron.; 01-03-2012 at 05:34 PM..
Reason: spelling
Careful, companies that sell snack machine try to make you think it's easy to start your own snack machine business. The reality agreements with other business have been long since been written. It's almost impossible to get your machine into a business with an existing vender contract. I personally know someone who invested twelve thousand dollars of there own money to buy four coffee vending machines. He was eventually able to place one of them in a train station, but was never able to place the other three. He tried to sell them back to the company he purchased them from, but they only offered him $200 per machine. (He spend four thousand dollars each!). I was able to sell two of them, brand new in the box on Ebay for about $300 each, that's after they sat in storage for years.
Do yourself a favor, look elsewhere then vending machines to start a business. And if your still looking to get into the field, only buy used machines from private parties. Chances are you be able to pick up a brand new machine for pennies on the dollar, from someone else that had dreams of there own business before cold hard reality wised them up.
why didnt your friend buy them on ebay for 300 bucks to start with?
Before you get into this business I encourage you to work for a company first!
After owning a bodyshop and a floral supply I thought about a vending machine business. I got a job working for a local business(well established, 20+ys in business). It was rumored he was in financial trouble and wanted to sell. He had 5 trucks, 3 filled vending machines, 2 sold product to stores and filled displays.
I went to work for him without telling him I was interested in buying. GOOD THING...here is what I found and things you should look out for in buying any business.
Its a cash business and almost every day when I got back the owner was waiting and after I counted out the money he would grab a handful.
He was on cod with most suppliers, he had not paid his bills on time.
The 5 trucks were all different, some were old Snap on tool trucks(way overbuilt for what we were hauling) and others were overloaded.
In the 6 months I worked there my truck broke down at least 3 times, and had to be towed.
No inventory control was used, although there are various systems available.
2of the drivers called off at least 2 times a month. Always said they would make it up on the weekend...what did the customers think.
Employees signed their paycheck then were paid in cash...the bank was tired of bouncing checks
The man who maintained the machine was taking money out of the machines when he repaired them...a long time employee and the owner would not hear of it.
These were just a few things I found out about a seemingly well run profitable business.
This is more an indictment of your boss rather than the vending machine business itself. So I'm not sure how helpful this is for the OP.
Quote:
Originally Posted by unclebuck50
Before you get into this business I encourage you to work for a company first!
After owning a bodyshop and a floral supply I thought about a vending machine business. I got a job working for a local business(well established, 20+ys in business). It was rumored he was in financial trouble and wanted to sell. He had 5 trucks, 3 filled vending machines, 2 sold product to stores and filled displays.
I went to work for him without telling him I was interested in buying. GOOD THING...here is what I found and things you should look out for in buying any business.
Its a cash business and almost every day when I got back the owner was waiting and after I counted out the money he would grab a handful.
He was on cod with most suppliers, he had not paid his bills on time.
The 5 trucks were all different, some were old Snap on tool trucks(way overbuilt for what we were hauling) and others were overloaded.
In the 6 months I worked there my truck broke down at least 3 times, and had to be towed.
No inventory control was used, although there are various systems available.
2of the drivers called off at least 2 times a month. Always said they would make it up on the weekend...what did the customers think.
Employees signed their paycheck then were paid in cash...the bank was tired of bouncing checks
The man who maintained the machine was taking money out of the machines when he repaired them...a long time employee and the owner would not hear of it.
These were just a few things I found out about a seemingly well run profitable business.
I suspect vending machines are going the way of the payphone.....I honestly couldn't tell you the last time I used one! The vending machine prices are even cheaper than buying at a 7-11 but ($1.19 candy bars, $1.09 cans of soda). I think the more people want to use credit/debit cards will also affect vending machine sales.
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vending machine business
