I have been asked on many occasions about all the ‘hype’ about ‘bulk’ vending machines that people see all over the internet. The ‘bulk’ machine sellers will tell you that their machines are the best, have the highest profit and empty rate. The ‘bulk’ machine sellers like to sell these machines because most of them are manufactured in other countries like China for very low prices and their sales markup is huge. These sellers pay incredible amounts of money every month in pay per click fees to be in the top pay spots on the most popular search engines. They will tell you how their machines empty at about $300, believe me it is not that easy. The machines might do quite well if they are located in a bowling alley, a bus station or a shopping mall, but in the real world many people locate these machines in small, out of the way places. Unless you are operating ‘capsules’ the food or gum in the machines will probably get ‘stale’ before it is sold. The sellers of these machines tell you about the ‘vast amount’ of locations available, but in fact many commercial or industrial locations do not like these type of machines because they cause a mess or vend gum that people drop or discard when they are done chewing it. We have been selling vending machines for over thirty years. Years ago we used to sell ‘bulk machines’ as well as ‘mechanical full size units’. We no longer sell either of those items due to the fact that when our customers would buy them, they would become unhappy with operating them very quickly. Usually within about 90 days from their purchase, most customers would ask to ‘trade’ these machines back to us towards full size commercial grade machines. By being around for over 30 years we have learned from these lessons and that is why we now only sell refurbished commercial grade machines. We still get customers to this day that buy these ‘bulk’ machines from online sellers and find they are not making enough money to earn a living. Many of our customers have small routes with 50 to 100 machines and are able to make a nice living and we have part time customers with as little as a few machines that earn enough to supplement their paychecks from their full time jobs. How many machines you need to earn a living depends on how good your locations are but that is also true of bulk machines as well. A full size can soda and snack machine has the potential to empty out at $800 to $1000 for the pair and a lot more people drink soda, eat snacks and candy every day than chew gum or buy capsule toys for their children. According to a survey in a vending industry related magazine sales of vending products in a recent year were over 20 billion dollars for soft drinks, almost 9 billion dollars for snacks, and confections, but less than 1/2 billion dollars for all bulk vending combined. The ‘bulk’ sellers tell you that it is hard to compete with the national soda makers, such as, Coke, Pepsi, etc. This is not quite true, since these large companies do not operate snack machines and they only carry their own brands. By owning your own machines you can ‘cross brand’ and operate multiple brands in your machines as well as providing snack machines that these soda makers do not operate. These huge soda companies also have huge overhead due to the high wages they pay their route drivers etc. I have seen small vendors take over some of the locations that the bottlers basically didn’t want and make them into good locations for a small vendor without the large overhead.
– HERE’S THE FACTS –
These ‘bulk’ machines ‘Do Not’ make change for dollar bills like commercial machines.
These ‘bulk’ machines and lightweight combos can be easily stolen from a location due to their light weight versus commercial grade machines that weigh from 700 to 895 pounds each.
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.
We hope this answers your questions about bulk vending machines and the profit they make.
Thank you Vending World, please visit our website at www.vendingworld.com
Branching out and beginning your own business is, in itself, a risk. Leaving behind a steady paycheck and the lack of responsibilities associated with being an employee and not an employer has another set of risks. You, however, want to be in charge of your own destiny, to write your own future, to set your own hours and to be the boss. These are noble callings and mean you are self-reliant, motivated and have a mind for business.
Rather than just running out and immediately starting your new vending machine business, you need to strongly consider what are the risks and rewards associated with this new venture.Any new business, as previously stated, has a degree of risk.A vending machine business can have incredible rewards, and you are willing to risk what is necessary to make it.
One of the first risks you are likely to encounter is buying machines. Used vending machines, while cheaper, may not have some of same anti-theft protection as a newer, recently built machine. The products and the money inside are a quick way for unscrupulous individuals to earn some fast cash, and this leaves you, the owner, on the hook for the repair bills and replacement product.
The chances of your machines running low, out of or lacking a particular product are always a problem. You must be willing and capable of filling your machines quickly. This may mean no vacation; holidays or weekends off because at any time you may have to service and fill your machines.
Choosing to hire an employee or employees to assist you will present a new set of risks like insurance, bonding and employment taxes. When you own your own business, the only person you will realistically be able to trust and be assured to get the job done right is you.
This is not to say you cannot start a new business and be very successful. All businesses will have some degree of risk involved, but no business ever began because someone was too scared to step out and begin something new. There is not one business that did not get started without someone willing and able to take a risk.
A vending machine business has the opportunity to be very lucrative and profitable. The margins of profit are high when you consider the amount of work involved. Do your homework; calculate the risks and step out. It may lead you to greatness.
Author Bio: Victor McNamara works at Vending World. Vending World is a leading distributor of used vending machines. They have been selling vending machines since 1968 and can fill almost all of your general vending machine needs.
Vending Machines business is 100% against Cash only business. All you just need is a nominal initial investment and it does not require any degrees or previous experience either. The success or failure of this business is you. You don’t need anybody else in the Vending Machine Business other than yourself. You are the boss and you alone will decide as to what kind of a vending machine you need, what do you want to stock and sell and where do you want to place the vending machine.
Vending machines can be seen in many places. They are usually somewhere, which is traversed heavily by many people. You will note that they are in bus stations, train stations, office buildings, and even shopping malls. They will either have a variety of goods or one type. They are so diverse that they can either give you a cold beverage, a tasty snack and even a hot meal. There is no limit to what is available in them.
The vending business is not new at all. It goes back for many centuries. Can you imagine as far back as the 1 A.D. did you know that the first was created in Alexandria, by an engineering phenomenon from Greece. He designed a vending machine that operated by dispensing holy water. This could be found in the Egyptian temples. It was also controlled with coins.
It was truly way ahead of its time. The concept was not changed until the industrial revolution period where there were now electrical alternatives. Then since then, the early 19th century, people would be able to see these new and Refurbished Vending Machines almost everywhere. Books and postcards were also dispensed from these machines. It was round about this same era that these vending machines were introduced to the American market. In New York, gum dispensing machine was a great invention there. Since then, you could not go about the urban areas without seeing one. As well as the books, you could get food, stamps and cigarettes.
This is certainly a multibillion dollar industry; did you know? Because of this, they are continually being advanced in their technology. Did you know that they even have wireless capabilities? Their communication systems have been built like that so that the companies can quickly and easily track inventory, when they need to be refilled and monitor any other activity going on with them. You can be certain if you manage to move one, they will find you in a jiffy. Because they do use electrical power, alternate sources are being employed like hydrogen fuel-cell machines.
Yes, this is a great and invigorating concept; but so too are the diversity in the products that are sold through these new or refurbished vending machines. The innovation certainly doesn’t stop as every year there are new concepts. The great minds just keep on churning out new ideas. Japan and US are certainly leaders in this. You can get pizza that is fresh, or even small weird and wonderful trinkets in Japan. Truly, one has to wonder if there is anything that cannot be sold in a vending machine.
What is offered in vending machines will vary about the world. If you are considering using these machines and going into the vending business, then certainly you must understand that there are factors to consider.
You will want to put them somewhere, that a lot of people will go by them, and buy from them. You are looking for maximum profits from your investment. So it is common sense to place them where there are a great many people. Many of the options that come to mind, might already be occupied by other vending machines; but that does no t limit you to not thinking outside the box and being innovative in choosing a location. When you go about your day to day business, just look around see where could use a vending machine.
You will want to talk to everyone and anyone who will give you ideas and suggestions. This will range from friend and foe; to family and business connections. Try to network as much as possible. Out of your networking you might connect with a business that is looking to have them installed on their premises.
Dedicated Monster Energy brand vending machines sell more products due to brand recognition. Monster Energy brand is now the #1 energy drink in many states and outsells all of its competitors by a huge margin. This machine screams that ‘Monster Energy’ is in the machine to any potential customer that walks by it. These ‘official’ 2009 Monster Energy graphics are produced in limited quantities making the cost of the machines a little higher than regular corporate logo machines. Our customers that have purchased these dedicated Monster Energy machines have told us that the increased sales of energy products more than makes up for the higher price of the machine. These machines can be set to vend standard 12 oz cans any even 20 oz bottles with minor shim conversions as well as the 16 oz energy drinks.