New users to vending information

If you are new to vending please read this page:

Here's The Facts:e large overhead.

(1) These 'bulk' machines 'Do Not' make change for dollar bills like commercial machines.

(2) These 'bulk' machines can be easily stolen from a location due to their light weight versus commercial grade machines that weigh from 500 to 800 pounds each.

(3) When people are hungry they want more than a 'gumball' or a few nuts. They want a 'full size' candy bar or bag of chips, etc.

 the locations that the bottlers basically didn't want and make them into good locations for a small vendor without the large overhead.

The benefits of having an all cash business.
Vending is the perfect cash business. There are no bad checks, credit risks, accounts receivables or other collection problems. Vending is the largest cash business in the world. When your machines are placed correctly they are paid for in a matter of months, not several years like most businesses. The vending industry is a growing industry that is developing at a very high speed. The vending industry is now considered as one of the most lucrative business opportunities in America.

Your new business has immediate cash flow without lean years. Bulk machines versus 'Real Commercial Grade' Vending Machines. for a small vendor without the large overhead.
Your income starts as soon as you place your machines on location. People have used vending machines day in and day out through times of recession, as well as times of inflation. According to surveys from national trade magazines vending continues to grow at the rate of over 10% per year and with no end in sight. The business can be started with a small investment and can gradually be expanded to almost any income you desire. While other businesses have failed due to the poor condition of the economy, higher interest rates, a slower real estate market, vending has continued to thrive. People in the industry say they expect 2006 to be the best year yet for the vending business and small route operators.

Having a year-round business.
People drink beverages, eat candy and snacks every day of the year, in every city in the United States.

• Vending machines do not cater to one type of person, everyone consumes food on a daily basis.

• Vending is virtually recession-proof and nationally advertised products are always in demand.

Vending makes the ideal family run business.
Vending allows you to involve members of your family in a business with some major advantages. You can work with your children in an environment that lets you teach them good business practices and work ethics. If you have teenagers with a drivers license they can restock machines and the younger children can help count the money.

Having a business gives you flexible hours with lots of time off.
Once you have your vending machines are on location, they do most of your work. They are always on the job, displaying and offering your products for sale 24 hours a day, 365 days a year. Once you drive to the location it takes an average of 20 minutes, twice a month to restock products and collect money from the average full size vending machine.

• Vending machines do not demand higher wages and require only re-stocking of fresh supplies on a regular basis.

You have a business with no personal selling required.
Vending machines do the selling for you, allowing you to work smarter not harder. Vending machines are always on the job, they are never late for work, they never take coffee breaks or call in sick. Vending machines do not insult your customers or give away your profits. Vending machines do not take bad checks, expired credit cards. They collect cash at the time of sale and then deliver the product immediately.

• You have a business with no rent, utilities, etc. to pay.
  With a small route you can work out of your home, instead of an expensive office. Your machines are placed in business locations that already have customers and they pay the overhead. You are your own boss and can work at your own pace.

Having a business with no employees to pay.
By filling the machines yourself there are no employee wages to pay along with all the other employee based taxes or employee insurance.

New machines versus reconditioned.
We used to sell new machines as well as reconditioned. We no longer sell new for the following reason: According to a recent survey of vending operators about 93 out of 100 potential vending accounts do not make enough revenue to warrant the cost of new equipment. New machines are great if you have high volume accounts, but most people do not have these accounts. Typical cost on new 'commercial grade' machines run as: Can drink $3100-$3400, Snack $3500-$4300, Cold food $7000-$8500, as you can see quite high compared to used or refurbished. Priced with mech and validator, typical options, vendor pricing, not including sales tax or shipping in some cases. Please remember 'anyone and everyone' can call their machines refurbished but what does that really mean? Please see our machine ratings page for what we actually do to our machines. Many of our competitors don't even 'clean or paint the inside' of the machines.

If you set up a new account with a 'NEW' can drink, snack and cold food machine it you would have to gross almost $600 per week to pay for the equipment is 1 year or less. Based on 50% gross profit on item vended.

By comparison if you purchased a B or C-rated can drink machine you would only have to gross $30 per week to pay for it in one year. If you set up a new account with a reconditioned can drink, snack and cold food machine it you would only have to gross about $190 per week to pay for the equipment is 1 year or less. Based on 50% gross profit on items vended.

It hot climate areas of the country we have heard of vending operators paying for their can drink machines in as little as one summer in the right location. Remember the key to success is to make your money stretch as far as it can. This is why you should only buy what you need for the location. If it is a small account do not buy an expensive machine. In many factory or industrial warehouses you can use a B or C-rated model.

- START SMALL AND GROW AS YOU CAN AFFORD IT -

Many people start in the vending business without much knowledge. This can hurt you financially if you are not careful. All of the machines that we sell are full size, commercial machines. There are many machines that are made that are small, countertop or mechanical coin acceptance. These machines are fine if you are a housewife looking to make a little extra money on the side. We used to sell those type of machines and no longer do. The main reason is that people who were serious about vending would out grow these type of machines in several months. There are two main problems with the small mechanical machines. One problem is the machine does not make change or take dollar bills. The second problem is that the machine will 'work you to death'. Most of these machines hold under 100 products and can only gross $40 to $50 at a time, if the entire machine empties out. This is only the gross, the profit is less than 1/2 of that amount. A full size commercial machine on the other hand usually holds 350 to 600 products and empties out at $250 to $500. Remember you spend the most time driving to the location so you might as well fill 500 products as soon as 50.

If you are just starting you might want to start with CAN drink machines. These are the easiest, most trouble free machines to start with. Basically you just load cans in the machine with most machines holding between 6 and up to 10 flavors of drinks. We offer 'B' rated, refurbished can drink machines starting at $695 each (sometimes with rolling sale items we have these machines as low as $595 each). Click on link to see some of these machines. If the locations that you have secured are small or industrial type these $695 machines should do the job for you in many cases.

SNACK machines are the next best item to operate. They require a little more work because you are filling 30 to 40 different products. If merchandised properly these machines can have high returns.

FOOD machines would be my last choice for new vendors. They require almost daily filling due to spoilage of food items. You should only consider operating FOOD machines if you have an extremely large account.

Many people use cold food machines turned to a lower temperature instead of frozen machines due to the fact that cold food machines are usually more reliable and do not require a microwave to heat the food.

Industrial locations-These are nice because the machines are considered a courtesy for their employees. Because of this fact many industrial do not ask for or require a commission. Usually 10 people or more is good for a lower cost machine. Many of these machines can be located in warehouses so a $695 or less machine is usually sufficient.

Car dealerships-Most always are good locations but require refurbished equipment to be competitive. Usually you would need an 'A' rated, probably a $995  machine in a large high image dealership. These type of locations usually request commission of at least 10%.

Misc. Retail-Usually good locations but require refurbished equipment to be competitive. Could maybe get by with a $695 machine or $995 if location is a little upscale or in their waiting area. These type of locations usually request commission of at least 10%. These may include: Lube and tune, tire stores, auto parts, brake shops, etc. try to make sure that they have a waiting room and people waiting for their cars, etc.

Apartment Buildings-Most always are good locations but require refurbished equipment to be competitive. Make sure that machines are secure in these type of locations to prevent break ins. These type of locations usually request commission of at least 10%.

Mobile Home Parks-Most always are good locations but require refurbished equipment to be competitive. Make sure that machines are secure in these type of locations to prevent break ins. These type of locations usually request commission of at least 10%.

Suggestions for possible vending machine locations:

These are general guidelines, please make up your own mind as far as equipment that you purchase for your locations.

So. California vendors, need food/snack supplier for your products? Try:

Locating your vending machines

We used to operate vending routes so we have quite a bit of experience in this field. We eventually had to stop and focus on sales of machines. Vending can be a very profitable and long term business. Many people like vending enough to make it a lifetime career. We hope that information on this page has been of help to you in your decision to start in the business of vending.  If you do not have luck with the locating companies listed below you can try placing your machines yourself:

(1) If you currently work at a job try there first, many times an employer would rather have an employee do the vending service.

(2) Make up a proposal of your business with brochures etc, and then presenting them to new or existing locations.

(3) Go to your friends or relatives and offer them an incentive payment to get you into location where they work or know someone.

(4) Get a list of new businesses that have applied for a business license from your local city of county. Many cities and counties sell these lists at a reasonable fee. Once you have the list solicit in person or mail a proposal to the location prior to opening. Emphasize that you are a smaller company and that you can provide better service than the national vending companies. This is true in most cases and large vending companies lose accounts to smaller companies all the time due to poor service and the fact that they only offer their brands.

(5) Try targeting a certain type of business (such as motels) and send mailers with your brochure and stress the smaller vendor approach.

(6) Watch for 'out of order' vending machines, talk to the store owner, if this is a chronic condition they may give you a try.

(7) Thinking a little larger? Try a bulk mailing service that will insert you ad or brochure with many others from different types of businesses.

Locators

hTop Notch Locating

hBlue Moose Locators

nNationwide Locators