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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.
I disagree, his post showed exactly what could happen in the business (good and bad). Boss grabbed handfuls of cash but so did the repairman. Broken trucks also add to the equation of startup costs.
have a friend whose family ran a vendign amchine busxiness for deacdes. he said it more a case of large companies which rent the machines now to owners of peoperty located on and owners owning their own now.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by City Guy997S
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.
I don't know where you find those machines, certainly not around here. Just last night I felt like a candy bar or something while waiting at the airport, and the cheapest thing in there was those little bags of chips at $2.15, candy bars were $2.50. I would expect them to have credit card readers soon if only for the high prices.
Why didn't your friend buy them on eBay for 300 bucks to start with?
Probably the same reason people don't buy time shares from individuals trying to sell them, there's no fast talking salesperson telling them what ever they want to hear. You can pick up a timeshare for pennies on the dollar if you buy from one of the people who purchased them from a timeshare company in the first place.
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.
I personally would talk to some businesses in advance and asking the leasing agents/owners of the buildings if it is OK to put a vending machine(s) in there. When you get a "yes", then you can buy the machines afterwards.
That was great advice in the last paragraph to save money on the machine investment. I think starting with maybe two machines and see how much they bring in first before you decide whether to make it a full time venture is a good idea.
I have often thought of doing that business when I am about 60 years old (only 7 years away) because it may take longer to get hired on somewhere and if the machines are profitable maybe will only need a part time position (if even that).
I am sure you will find a few places to put them if you live in a moderately populated area. Good luck!
I personally would talk to some businesses in advance and asking the leasing agents/owners of the buildings if it is OK to put a vending machine(s) in there. When you get a "yes", then you can buy the machines afterwards.
You really need to know your market and mistakes can be very costly. I asked a vending machine guy once when they were replacing the Soda Can machines with the soda bottle machines why they were doing it, He said most people prefer bottles, they out sell the can vending machines. Not knowing this little piece of information could tempt you into buying a used soda can vending machine, when a bottle machine would be a far better choice in the long run.
Here is what i would reccomend. Start small in this business. Start with candy and stickers. Why you say well mainly because the machines and the product are cheaper and if you do get burned you are burned for much less. Not to mention you can repair them yourself and not have to worry about getting a repairman. I like the candy vending machines that vend candy for .25 or .50 and then sticker machines. When you are just starting out you need to go and talk to business owners directly because this is your business you need to know how to do all of it. I typically offer the 15% of the take or they can donate it to charity and there is a charity sticker on the machine it cuts down on people asking for refunds etc. because it's going to charity. The best way to place a machine is go around to your local businesses and look for machines that are dirty and untaken care of and just old. Then talk to the owner and explain to him how your new in business and you understand how important it is for your machines to stay clean and in working order because they are in his store etc. Trust me you will get placements.
You really need to know your market and mistakes can be very costly. I asked a vending machine guy once when they were replacing the Soda Can machines with the soda bottle machines why they were doing it, He said most people prefer bottles, they out sell the can vending machines. Not knowing this little piece of information could tempt you into buying a used soda can vending machine, when a bottle machine would be a far better choice in the long run.
I had looked into this opportunity for awhile, but ultimately had more profitable and faster ideas to proceed with, but I did learn that can machines are higher profit for the operator, but bottle machines bring in more volume.
The biggest problem with this industry is the LONG wait time until you actually start making money. The only way this can be a real career for you is to have 50 or 100 machines all making money. And if you don't go into the business with major money up front, you'll need to wait 4 or 5 years of turning all your profits into new machines before you can stop building up your infrastructure and actually earn money.
This is a great college level business, but sadly I did not think of it until after college.
Here is what i would reccomend. Start small in this business. Start with candy and stickers. Why you say well mainly because the machines and the product are cheaper and if you do get burned you are burned for much less. Not to mention you can repair them yourself and not have to worry about getting a repairman. I like the candy vending machines that vend candy for .25 or .50 and then sticker machines. When you are just starting out you need to go and talk to business owners directly because this is your business you need to know how to do all of it. I typically offer the 15% of the take or they can donate it to charity and there is a charity sticker on the machine it cuts down on people asking for refunds etc. because it's going to charity. The best way to place a machine is go around to your local businesses and look for machines that are dirty and untaken care of and just old. Then talk to the owner and explain to him how your new in business and you understand how important it is for your machines to stay clean and in working order because they are in his store etc. Trust me you will get placements.
I just want to point out that it is easier to start out in soda/beverage machines first before moving onto snack machines. Beverage machines are cheaper to buy and you can sometimes get Coca-Cola or Pepsi to even let you use a machine free just so they can expand their product. Beverages are also more "essential" than snacks.
If a person is coming off a vigorous workout, it's really tough to not drink anything, but most can have the willpower to not eat anything. If anything, when you're all hot from a workout, the last thing you want to do is eat.
Location is very important. I live in a University town and I see lot of student types using vending machines near Swimming Pool, Gyms, Apartment Complex Office, Hotel Reception, Laundry machine room. If you have a chance to own vending machine inside University, Airport, then its a good deal but you will need to put up a quote and fight with other bidders.
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