June 17th, 2011
Vending Machines can be a great business opportunity even for the average person. Why? Well one reason is that it does not take a huge amount of startup capital nor does it require great technical knowledge or business sophistication. Basically, you can purchase a refurbished soda machine for under $3,000 and stock it with inventory for a couple of hundred dollars or less. Refurbished machines differ from used vending machines in that they have gone through a complete overhaul and testing process. These will save you a lot of money verses buying new.
After purchasing your machine there are virtually no more large costs. Of course you will need to re-supply your product inventory and there are small costs such as electricity or an occasional repair but typically vending machines will be placed at a location the vender doesn’t own so the operating costs such as electricity don’t usually figure in. However, in this case it is normal for a percentage of sales to be shared with the actual location owner.
Probably the most difficult factor of the business is choosing the right product mix and the placement of the machines themselves. Areas where there is a lot of foot traffic are usually the best. Another great thing about the business is that it is not time intensive. Once a location is set up and the machines installed and stocked, all one needs to do is service the machines on a schedule that’s appropriate for the location. If it gets lots of action then maybe once a day would be necessary although you may need to service a location only once a week or even less depending on how fast the inventory moves.
At times a vending machine may suffer from worn out mechanisms and therefore it would be wise to have a relationship with a vending company that offers vending machine parts as well as service in your area. Global Vending Group is proud to be able to provide both for our customers. After you’ve placed your first machine in a profitable location and have gained some experience then the next step is to scale the business by adding more machines in more locations. We hope you have found this article to be of value and if you have any questions about the vending business please contact us and we will be happy to help.