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Are vending machines a viable business?

 
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hurricaneamy

posts: 1

Jun 09, 2009 10:01 PM ET    Quote  Report Abuse
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Is it possible to make money with vending machines? Any success stories out there?
besthealth

posts: 277

Jun 11, 2009 10:09 AM ET    Quote  Report Abuse
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I`m sure there are many success stories. However, it depends on who is telling the story. The pitch man who wants you to purchase the machines? Of course you will hear loads of great successes. I would advise you to do some research - think of where you would like to place your machines; call and inquire from those sites of interest and see if they are interested in your business. Depending on the feedback - you will have a better idea of how you should proceed. Placing your machines can be quite a task especially in corporate and government/state businesses. If you can get them placed in a few small businesses (gas stations, beauty salons, churches, private medical practices) then you may be better able to get in with the bigger companies. My brother and a very good friend both ventured into the vending machine business and both have been stuck with the machines trying to place them. Interestingly, neither of them know each other but they are facing the same dilemma. I think they were caught up in the sales pitch of the meeting they attended which gave great numbers.

Good luck!!!!!



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Take each day, mold it and make it yours.......

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WebJunky

posts: 549

Jun 11, 2009 11:50 AM ET    Quote  Report Abuse
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awesome answer besthealth....

on the surface they sound very good.....but in reality i have heard the same issues. restocking, paying rent space, placing them, damages, maintenance, someone to go collect and refill daily, etc.

that said, i absolutely love the concept of the red box, the DVD vending machine. genius! the manufacturer that is, prolly not so much the owner of individual machines here and there lol.


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WebJunky

posts: 549

Jun 14, 2009 10:14 AM ET    Quote  Report Abuse
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phanio,

whilei i disgaree with your initial point (as some business plans or models are just doomed inherently from the get go), you do make a very good point of building a stream of income and feeding it into a long term investment such as rental housing. that is exactly what i do. see investing is a long term game. you won`t become rich overnight.  if you want to become rich, focus on increasing the top line, by adding income streams or growing existing ones. i have started and sold websites and currently operate three highly profitable ones.  since costs are minimal to run the business, i take a lot of the proceeds and invest in rental housing. with the current market, making $300-500 monthly cash flow on a house/condo is not difficult (plus you build long term equity and reap the tax advantages). excellent point 


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aliciag

posts: 1

Jun 19, 2009 10:27 AM ET    Quote  Report Abuse
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My husband and I own our own snack/soda vending business and it has definately proven successful to date.  The most important thing is not to buy a vending machine until you have secured a location for it.  Also, there are so many distributors of used vending machines that only cost a fraction of the brand new ones being pushed by sales persons.  Make sure you shop around before you make the purchase.  Make sure that your location will be a profitable one based on # of employees/visitors that will have access to the machine and the type of work that is being performed.  For example: factories, colleges, hotels and rehab facilities are much more profitable than a small to medium sized office.  If you stay ahead of the game and watch your profit margin closely- you will do very well (we sell everything for 2x the amount we purchased it for).  The only down side to the business is that it is very much a physical job.  Hope this helps a little.
WebJunky

posts: 549

Jun 19, 2009 4:46 PM ET    Quote  Report Abuse
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alicia,

want to shed light on how many vending machines it takes to live an "ok" lifestyle? by ok i mean basic necessities and just a tad bit more to shove into savings....
 


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Jordon

posts: 1

Mar 09, 2010 12:23 AM ET    Quote  Report Abuse
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Just joined this website so bare with me as this is my first post. I was searching for information about vending and came across this topic. I started a small vending route myself about 5 months ago. First started by simply browsing though the business section on craigslist and noticed someone selling 'two candy vending machines in location $100 each' Was interested in this concept as it had never crossed my mind before. Long story short, I ended up buying those machines and so far have added to about 15 machines making ~$30-$50 (gross) each per month. I also just bought my first Snack/soda machine about two month ago and signed a contract with a company to place it in their break room. It's currently making about $500/month (gross). So far things are looking up, and from what i can see vending has the potential to be fairly profitable especially if you get a larger size route going. I look forward to added to mine as soon as I save up money and clearly see my profits.

houstonVijai

posts: 52

Mar 09, 2010 8:29 AM ET    Quote  Report Abuse
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I am going to pitch in from my experience. I used to own 3 routes 4 machines total - 3 soda machines and 1 snack machine. I am a software developer and been searching for opportunities to start some business and came across vending business from seminar I attended. They were selling the machine for $3000 a piece and which is smaller than usual vending machines. I did some resarching about that company and stayed away from them. If you are talking about small vending machine which they sell at seminars for $3000 a piece, don't ever buy them and get in the business.

After my research, I bought real vending machines which you see at office locations from the outside for $800-$1000 a piece after finding the route. I actually found my own route by talking to my regular auto repair shop and found another one from the guy whom I bought the machine. So it was a good business but time consuming if you don't plan well. It takes alteast 1-2hr to service routes. So if you are looking to do as a parttime, you need to put your time in to consideration and family situation to make a decision. If you are planning to do full time and expand like JORDON did, it is really a worth business to venture. But be wary of getting machine not more than its worth or pay your return back. I ended up selling the business after 1 and half year for reasonable profit. So it was worth an investment for me both considering time and money.

nevadascul

posts: 651

Mar 10, 2010 7:35 PM ET    Quote  Report Abuse
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Just my two cents worth.  The company I work for just had four machine pulled from two different locations. Both locations initially looked good.  There were all kinds of people milling about the areas where the machines would eventually be placed.

The first machine, a snack vending unit, was located in the lunchroom of our building. But, the rout owner soon found out nobody was buying snacks.  They already had their own food.

The other three machines ( two soda and one snack vending unit ) were pulled from the front lobby of an urgent care medical clinic.  The route owner found out to late that sick people generally are not interested in food or sodas.

Bottom-line, research the locations thoroughly before you place a machine.

Also, your losses on a machine that has been vandalized or burglarized include much more than product.  Be sure to include parts and labor for the repair.  The clock on labor rates starts when the service tech is dispatched to the location.  The clock stops when the tech puts your machine back into service.  This time could include the cost of taking your machine to his shop to fix it.  And, then bringing your machine back.  All of this is billable time for the service tech.



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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.
MarkThompson

posts: 1

May 24, 2012 11:03 PM ET    Quote  Report Abuse
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Yes, sure  my friend joy recently start a vending machine business, and he is satisfied with his business. He is also giving me  advice  me to open this business.

[url=http://www.difreshusa.com/]vendor machine business[/url]



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