7 replies to this topic

[TX_Eagle]

Hi all, I'm looking to get into vending and I have a few questions; and this forum seems to be a good place to ask them, and so I appreciate any answers that y'all may have.

I'm looking to get into vending for additional income, and may want to grow it over time into a substantial business. My questions mainly regard the realistic expectations that one should have with vending, and what is or is not common. Also, for these questions, just assume that one has the necessary start-up capital to invest into the machines (say $100,000).


What sort of expansion is realistic? I have read posts by people who say that they expand at a rate of one machine per year; I have no experience in vending, but is it that difficult that you can only do one machine per year, or is it a matter of personal choice? Is it possible to expand at a rate of a machine per month, or per week?

Can you earn $35 per week per machine, or is that too high?
Can you earn a significant amount of income from the vending industry, and how long do you reckon it'd take to get there, with the necessary capital?

Do any of you have employees? Any tips on that?

Is it better to buy an existing route and keep on buying routes, or expand from the ground-up?

Thanks for any answers. I know vending is work, and it's not just sit-on-your-couch, but I want to know what my realistic expectations should be. Is it possible to earn $250,000 a year from vending? $500,000? Or more?

[RJT]

I assume you are referring to full line vending with drink, snacks, food, coffee, etc??

If so you can make much more than you are even thinking if done correctly and you know how to land the accounts and retain them. Their are stand along accounts that bring in 100k plus but you are not likely to get these accounts in the beginning. If you did luck up and get one you most likely would loose it if you weren’t careful. If you are not ready for these type of accounts you will not keep them long.I would suggest start small and get yourself some solid advice from an expert. Their are small vending companies doing over 1 million a year with 6 to 10 employees. Biggest problem with employees is theft of product and money. We are a csah business and if you dont watch it closely they will steal from you.

Their is MUCH more to vending than putting some candy and crackers in a machine and pulling out cash....

A few rules to follow.

1. Don’t buy any “business opportunities” in vending.
2. Don’t get paid advice from anyone that sell anything other advice and guidance.
3. Buy used machines in the beginning but only buy the ones that are trusted in the industry and used by professional vending companies.
4. Have a business plan.
5. Be VERY CAREFUL buying existing locations with equipment. 98% of people pay to much for these.
6. Research, research, and more research.

[TX_Eagle]

Thanks for your response! Those were some great answers.

If I may ask, how quickly do you reckon a fella could expand per year? One machine? Or could you do 10 or more machines per year expansion?

I saw some red bull machines on craigslist for $1,000 each. Do energy drinks sell well?

And what are the "reliable" vending equipment companies? I read about Beaver, but what about for full-line vending?

[validatorman]

Be very careful as mentioned above when purchasing equipment. A good free source is NAMA which is the National Vending Association. They have a lot of info on their site.

[RJT]

Thanks for your response! Those were some great answers.

If I may ask, how quickly do you reckon a fella could expand per year? One machine? Or could you do 10 or more machines per year expansion?

I saw some red bull machines on craigslist for $1,000 each. Do energy drinks sell well?

And what are the "reliable" vending equipment companies? I read about Beaver, but what about for full-line vending?

With the right capital and leadership you could expand to one solid route in a year or two.

Stay away from specialty machines like the Red Bull machines and stick with traditional vending machines.

Top professional machines are:

Crane National
AP Automatic Products
USI
PolyVend
Dixie Narco
Royal
Vendo

A few other but these are the staple in the proffesional vending world.

Validator man is correct NAMA is the org for vending with some good resources and an excellent organization.

Not sure what part of TX you are from but their is one know rip off company that is from TX.

[TX_Eagle]

With the right capital and leadership you could expend to one solid route in a year or two.

Stay away from specialty machines like the Red Bull machines and stick with traditional vending machines.

Top professional machines are:

Crane National
AP Automatic Products
USI
PolyVend
Dixie Narco
Royal
Vendo

A few other but these are the staple in the proffesional vending world.

Thanks for the tips.

One more question: when you say "one solid route", how many machines are we talking about? At what point does vending get "serious"? 100+?

Does anyone one here have experience with hundreds of machines?

Thanks again!

[RJT]

Thanks for the tips.

One more question: when you say "one solid route", how many machines are we talking about? At what point does vending get "serious"? 100+?

Does anyone one here have experience with hundreds of machines?

Thanks again!

I DO NOT look at a "solid route" in terms of number of machines. I look at revenue. Like I said their are stand alone accounts that will do over 100k a year. So a "route" with 10 of these accounts would be a "solid" route. People get caught up in the number of accounts and that is NOT they way to look at vending. I look at revenue and not number of accounts and machines. The goal is the maximum amount of money made with the fewest number of accounts and machines.

I knew a guy that only had 72 accounts and did 4.6 million a year.He later sold the company.

Yes, I have managed a company with 5 routes, and hundred of machines. Also worked for a 5 route company as a sales manager. Both companies did over 2 million a year.

[Blue Moose]

With that $100000 in this economy you can purchase a lot of distressed vending routes. Distressed means a route that needs some attention but is worth saving. So many operators are getting out of the business because of the down turn. This is the time to take advantage of that event. Of course you are in one area of the country that is showing great signs of recovery. Don't spend your money on locators until you know the business. Once you know what kind of business makes money and what doesn't you can reach out to get some help. But you will need to market your business in your community. Make up some flyers. Pay to have some nice business cards printed up too. Just drop them off at businesses. Buy some snacks at your local Sams and staple some cookies with your business card to your flyer. Just hand it to the receptionist and say "Hi if you should ever need my service here is my information and a small snack." Also run ad's on Craigs List advertising your business.

If you want some free business leads get involved with Merchant Circle. It is a free marketing resource that will bring you some clients.

As said before vending is not just putting products in the machines (but this is a very very important part of the business). You will need to learn alot to turn that money into a successful business. Once you find a small route for sale in your area you will begin the learning process. One of the best ways to learn is to work with a local operator wanting to sell some spots. They will be great teachers.

Watch Craigs List and your Sunday newspaper for businesses for sale. If any of them have a 800 number stay away. If you are wanting to hire someone to run your route while you stay at your full time job, the route will be much less profitable but it can work if you are willing to wait for the income to grow as you develop your route. Try to hire someone with vending experience. If you go this route be sure you read up on your local employment laws. Many operators hire part-time employees as sub-contractors but the laws need to be understood so you don't get a fine.

Read these forums and check out vendiscuss too. Subscrib to Automatic Merchandiser, its a great resource. Also go to your local library to read Vending Times. Another good resource.

Also if you want to chat call 909-583-9068.

Poplady