Hi,

I’m new to both this forum and the bulk vending business.

I'm gathering information to open my bulk vending operation. I plan to start in early 07 with 5 triple head machines placing them locally myself. I will probably support a charity to help in placing my machines. My goal is to add to my fleet over time and eventually progress to either novelty/amusement vending or snack and soda vending.

I have found a machine vendor locally that distributes a 3 head machine. The machine is steel, very sturdy with plastic canisters. The cost seems reasonable for a new machine at $125.00. The two outside canisters are set up for candy, the center one is for gumballs.

Reading through the posts here it seems that a decent income per machine is about $30.00 per month. If that is the gross revenue per machine what is the net? I’m thinking that the machine will hold about $30 worth of candy/gumballs. If my assumption is correct then there isn’t a net return – the machine will just support its product.

What am I missing here? The object of being in business is to make money. How can a vending route be profitable at $30 a location if indeed the cost of goods is $30.00?

As far as other business things:. Do any of you carry liability and or theft/vandalism insurance? Is insurance worth looking into? It would be a terrible tragedy if a small child was hurt because one of my machines accidentally toppled onto them – it would be a legal nightmare for me should that happen. What price is piece of mind?

About locators – The concept seems good to jumpstart a business. However it seems that those companies that are so called locators leave a lot to be desired. From what I read most are downright scams. Are there any legit locators and are they worth the fee charged to jumpstart my business. My guess to place 5 machines it would cost about $300 or so. If my assumption on the cost of goods above is correct then a locator fee really puts you in the hole! Once again – how is this business profitable?

Do any of you draw up an ownership contract with the location that states the machine is owned by <insert name>company and not the property of the location business? Just a thought if the business closes or is sold. At least you would have proof of ownership to your machine.

What about charities? Which seem to benefit both the charity and vendor the most. Is there a list of charities that sponsor vendors? I know of a few – Make a Wish, Hugs not Drugs, and Missing Children.

Just some questions I have while doing my due diligence before entering this business.

Thanks in advance for any and all replies. I’m looking forward to gaining some insight and knowledge in the bulk vending business.

Best regards,

Mike
Sugar Plum Vending

Hi,

I’m new to both this forum and the bulk vending business.

I'm gathering information to open my bulk vending operation.  I plan to start in early 07 with 5 triple head machines placing them locally myself.  I will probably support a charity to help in placing my machines.  My goal is to add to my fleet over time and eventually progress to either novelty/amusement vending or snack and soda vending.

I have found a machine vendor locally that distributes a 3 head machine.  The machine is steel, very sturdy with plastic canisters.  The cost seems reasonable for a new machine at $125.00.  The two outside canisters are set up for candy, the center one is for gumballs.

Reading through the posts here it seems that a decent income per machine is about $30.00 per month.  If that is the gross revenue per machine what is the net?  I’m thinking that the machine will hold about $30 worth of candy/gumballs.  If my assumption is correct then there isn’t a net return – the machine will just support its product.

What am I missing here?  The object of being in business is to make money.  How can a vending route be profitable at $30 a location if indeed the cost of goods is $30.00?

As far as other business things:.  Do any of you carry liability and or theft/vandalism insurance?  Is insurance worth looking into?  It would be a terrible tragedy if a small child was hurt because one of my machines accidentally toppled onto them – it would be a legal nightmare for me should that happen.  What price is piece of mind?

About locators – The concept seems good to jumpstart a business.  However it seems that those companies that are so called locators leave a lot to be desired.  From what I read most are downright scams.  Are there any legit locators and are they worth the fee charged to jumpstart my business.  My guess to place 5 machines it would cost about $300 or so.  If my assumption on the cost of goods above is correct then a locator fee really puts you in the hole!  Once again – how is this business profitable?

Do any of you draw up an ownership contract with the location that states the machine is owned by <insert name>company and not the property of the location business?  Just a thought if the business closes or is sold.  At least you would have proof of ownership to your machine.

What about charities?  Which seem to benefit both the charity and vendor the most.  Is there a list of charities that sponsor vendors?  I know of a few – Make a Wish, Hugs not Drugs, and Missing Children.

Just some questions I have while doing my due diligence before entering this business.

Thanks in advance for any and all replies.  I’m looking forward to gaining some insight and knowledge in the bulk vending business.

Best regards,

Mike
Sugar Plum Vending

<{POST_SNAPBACK}>

Wow, lots of good questions. Check out my Free Blog at
http://bulkvending.blogspot.com
I have developed it to provide some of this information free. I will add some articles based on your questions. No I do not get insurance on the machines. Yes it does take awhile for the machines to break even. That is with any business you would start. As far as your example of Candy Cost vs Sales you have to remember that a gumball is about 2cents and you will sell if for a Quarter. If you empty that machine you are going to have a substantial profit. Also all machines will not do $30. Most average $15-20 per month. Some you will only have to service once per month or every other month. Some will be more often as you track them. You will want to relocate your slow moving machines or bottom 10% to continue to increase your averages.
I hope this free blog will help you.

Your more intelligent than most, usually people make all the mistakes then they ask for advice. I don't hink your math is correct sounds like your talking about a 1800 brand gumball machine if it holds gumballs in the middle. Either way a bag of candy, m&ms or other wise usually cost you around $6.00 if your wheels are set correctly you should return about $24.00 and Gumballs 1" should cost you about 3cents each so it is pretty hard not to make money at that kind of markup. As far as locators there are some good ones aqnd some terrible once but any vendor will tell you if you want to really make it in this business you have to learn to locate yourself because after they give you locations eventally they fall off for many reason, business closing, new owner so on so you really need to locate yourself at some point. Check your facts on the machines do yopu know what brand they are?