Vending toys can be highly profitable. I deal exclusively with toy capsules and have had locations that generate $2,300/month.

However, it is a tough business that requires great buying skills, and forecasting.

Here are some key pitfalls to be aware of...

1. Toy selection--90% of capsule toys are very slow sellers. Knowing how to pick'em is key. Check out your competition for clues.

2. Product life cycle varies widely. Some toys just will not sell, and then you are stuck with them. That's risky. Other toys take off and sell extremely well.

3. Most of the cheap toys do not sell. Stay away.

4. Not enough locations. What sells in one area, will be dead in another. You need scale to be able to shift them around.

5. Fad. Capsule toys are fad items. Kids are fickle. You need to change them often, and move with the market.

6. Buying too much. If you are not sure about a particular toy--don't top up your machines with them. Test them. If it goes well, continue to buy toys along that theme.

7. Careful with battery operated toys. In some locations they are great. But if you have too many...you can't store them long...the batteries will die. And who knows how long your supplier has been sitting on them? Never buy too many battery operated toys at one time.

Hope this helps.

Good luck.