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.
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UNDERSTANDING DOLLAR BILL VALIDATORS ON A VENDING MACHINE
Many people that buy vending machines don’t realize that the dollar bill validators have to be serviced on a regular basis. Dollar bill validators have rubber parts, such as belts, tires or wheels that wear out or slip over time. A good comparison as to how long these units will last is to compare them to the tires on your car. Do you drive 5,000 miles a year or 25,000 miles per year? The more you use these units the more wear that occurs on the rubber parts. Another factor is what environment or type of location these are used in. If you drive your car down a dirt or gravel road the tires will wear out much sooner than if you drive on smooth asphalt, the same principal applies to the rubber parts in the validators. More about this later when we discuss the types of locations.
HOW LONG DO THEY LAST
Based on our data from repairing hundreds of bill validators every year we have found some overall trends. The average life of all bill validators has proven to be about fourteen months in an average location with medium volume. We have large vending companies that bring in validators for repair in as little as five months in high volume accounts. We have had small vendors bring in validators for repair after three years in a slow office type account with low volume. Once again the above numbers are only averages based on ‘all’ validators returned for repair over a period of time.
TYPES OF LOCATIONS
Locations that seem to be ‘hard’ on dollar validators can include but are not limited to laundromats, metal grinding facilities, paint and body shops, stone or masonry facilities, work areas with spray booths or other airborne matter. Locations that are ‘easier’ on dollar bill validators usually include offices, retail outlets such as auto dealerships, pet stores, department stores etc. You do not want to choose a location based on the wear and tear on the dollar bill validators. Many of the locations that have the most wear and tear are also some of the best locations.
Many of our customers purchase cleaning cards in an effort to extend the life of their validators. These cards do not reduce wear of the rubber parts. The way these cards work is to clean the dirt and grime that might build up on the belts and other rubber parts. When this buildup occurs it makes the belts ‘slick’ and therefore they do not grab the bill properly. While I have never personally used any of these cards we do have customers that buy these cards from us by the box, so I can only assume they work. I was told by one customer that using a card can extend the life of the validator up to one month. I have learned that if you use these cards make sure to buy the ‘non alcohol’ type cards, as they will not harm the surface areas of the belts and will not ‘fog’ optical sensors.
TYPES OF VALIDATORS, MAKES AND MODELS
There have been many types of validators made over the years. Here are some of the more popular types and the pros and cons that we have found with these units.
Ardac, USA15/3. Pro; this compact validator opens easily to clear the bill path unlike other makes of the same vintage that do not. Bi-directional acceptance. Con; small drive belts that come off the drive wheels easily if the customer tries to cheat the unit by pulling on the bill after it has been inserted. Weak drive motors on the earlier units go bad quite a bit of the time and are very expensive to replace. Accepts $1 bills only.
Maka (now called Conlux) NB10/15 model. Pro, validator opens easily to clear the bill path unlike other makes of the same vintage that do not. Bi-directional acceptance. Good bill acceptance rates. Con; accepts $1 bills only, except its age, many of these units still in service functioning well. Mars VFM1/3. Pro, bi-directional acceptance, VFM3, high level, low level interface. Snack bezel allows use in many snack machines. Con; validator does not open to clear bill path, should jam occur the validator has to be partially disassembled to clear the jam. Due to its age the magnetic heads have become worn on many of these units and causes them to have poor bill acceptance rates, accepts $1 bills only.
Coinco CBA2. Pro, long belts give the unit a very long life. Con; one way acceptance, validator does not open to clear bill path, should jam occur the validator has to be partially disassembled to clear the jam. 110 volt, Single price only interface.
Coinco BA30. Pro; validator opens easily to clear the bill path unlike other makes of the same vintage that do not. Bi-directional acceptance. Quick bill acceptance. Flash codes to diagnose trouble with the validator. Dual interfaces, can use with 24 volt MDB machines as well as single price units. One of the most popular dollar validators ever made. Con; when new would accepts $1,$5,$10,$20 bills, due to its age and the board being non upgradeable it now only basically accepts $1 bills.
Coinco Mag50, similar to BA30. Pro; validator opens easily to clear the bill path unlike other makes of the same vintage that do not. Bi-directional acceptance. Quick bill acceptance. Flash codes to diagnose trouble with the validator. Dual interfaces, can use with 24 volt MDB machines as well as single price units. Con; when new would accepts $1, $5, $10, $20 bills. Due to its age and the board being non upgradeable it now only basically accepts $1 bills, unless made after around 2003.
Coinco Mag Pro, similar to Mag50. Pro; validator opens easily to clear the bill path unlike other makes of the same vintage that do not. Bi-directional acceptance. Quick bill acceptance. Flash codes to diagnose trouble with the validator. Dual interfaces, can use with 24 volt MDB machines as well as single price units. Flashing lights give visual appeal. Con; when new would accepts $1, $5, $10, $20 bills, due to its age and the board being non upgradeable it now only basically accepts $1 bills, unless made after around 2003.
Coinco Bill Pro. Pro; validator opens easily to clear the bill path unlike other makes of the same vintage that do not. Bi-directional acceptance. No control box for flexible mounting. MDB splitter harness built it. Most Bill Pro BP2 units can be updated to take the newer $5 bills. BP4 models can be updated to accept $1,$5,$!0,$20. Con; weak drive motor, minimal flash codes.
MEI VN2000 series validators. Pro; very reliable bill acceptance. Bi-directional acceptance. Compact size with soda bezel installed. Validator opens easily to clear the bill path. ‘Flash Port’ models can be updated to accept the new $5 bills. This unit has now become the new standard of the industry. Con; separate power harness, expensive kit required to install ‘snack’ style bezel to replace VFM3.
Conlux NBM3000 series validators. Pro; very reliable bill acceptance. Bi-directional acceptance. Validator opens easily to clear the bill path. Flashing lights on the newer models. Most of these can be updated to accept the new $5 bills. Built in splitter MDB harness. Con; a little noisy when accepting bills, large bill box too deep to fit many soda machines.
We hope this article has given you more information about your bill validators and helps you in choosing units that are right for your vending machine needs. If you are currently using any of the older validators mentioned in this article that have major cons and have them fail, you might decide it is worth it to move up to a newer, more reliable style of validator.
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.
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.
Thank you for visiting Vending World on
the web. Many other sites sell only new mechanical machines. This is because new
‘commercial’ grade vending machines are very expensive. We only sell refurbished
‘commercial’ grade vending machines. We do this because most locations do not
need new machines. Our rebuilt machines sell for 20% to 50% the cost of new
vending machines. Are you thinking about buying ‘low cost combo machines or bulk
vending’? Please see our new users pages before you buy. Compare our commercial
grade equipment for the vending machine business.
We are a top nationwide distributor of refurbished vending
machines. We have been selling vending machines since 1968 and can fill almost
all of your general vending machine needs. We are the largest seller in
California, In total sales of used vending machines, refurbished vending
machines, wholesale vending machines and vending parts from 2005-2010. If you
need more machines than we have ready please contact us, we have hundreds more
machines that just need to be refurbished.
vending business can be a great way to make extra money in an all
cash business. Many people make beginner mistakes and loose money in
the business. One common mistake that many people make is buying
brand new machines. New machines are great for very large,
established vending companies that have huge locations. For the
average small vendors new machines don’t make any sense based on what
they cost. What many of our successful small vendors do is to buy
quality refurbished machines at a fraction of the cost of new. There
is much more profit in vending 12 oz cans than vending 20 oz bottles.
small vendors start with can drink machines. These units produce the
highest return on investment. Locations with over 40 to 50 full time
employees could warrant a refurbished snack machine as well as a can
on the amount of employees in the location you could consider a multi
price can/bottle machine. These machines are higher priced but can
vend the highly profitable energy drinks as well as cans.
If you are a new to vending be sure to check out our new users page.
Over the years many people have gone into the vending business and had
great success. Many have made it into a family run business and have
done it part time or full time and have been able to quit full time
jobs in many cases. The vending business is unique in that it allows
you to start out with a small investment and let you grow at the pace
you can afford. Every time you add another machine to your vending
route it is like adding another store location to your business.