Pros and Cons of the Vending Machine Business
One of the things that make the vending machine business so attractive is the very same thing that makes hard. It’s a business with a low barrier of entry which basically means anyone with $100 and a dream can start a vending business. This in turn means lots of competition. Does this mean you can’t compete and make a living at it? No, but it does mean you’ll have to work smarter and harder than your competition.
Vending is not a get rich quick scheme. You can make a decent living by growing your vending machine business slowly over several years or investing a large amount of money upfront to get started, but whichever route you choose it will not be easy. This does not mean it can’t be done, but I warn you to have realistic goals and not believe the hype that some people are selling. I’ll cover more of the hype in the biz op section of this website but suffice it to say that if it sounds too good to be true, then it probably is.
The vending machine business allows you to be your own boss, set your own hours, and schedule your day however you like. This can be a blessing or a curse depending on your temperament and abilities. Not everyone is cut out to be their own boss. Some people are lazy, some are disorganized, and some don’t play well with others, only you can judge for yourself whether you have the personality traits that are suited to an entrepreneurial endeavor. At the very least, you will need to have good time management skills, be self motivated, have general book keeping skills, and some limited people skills. If you have this and a dash of common sense, don’t let me talk you out of anything. But if you don’t see yourself in this description, proceed at your own peril.
With vending machines, your machines are always working even when you’re not. This is generally considered a passive income stream and is one avenue to building long term wealth and security. At some point in the future you may want to hire someone to service your machines and this is an option that can further increase your revenue streams.
Vending is a numbers game; this is very true in bulk vending, but less so in full service vending. By this I mean you will need a lot of bulk vending machines to make any decent money. What’s a lot of bulk vending machines and what is decent money? Consider that an average bulk vending machine makes $7. per month per head, so a triple machine is expected to make $21 per month. Mind you, this is gross not net. Add in anywhere from 20%-35% cost of goods and you get a general ball park. And this is given as an industry standard for bulk, not everyone will achieve this goal. My experience is that $5. per head is more likely.
I’ve about covered the basics on the pros and cons of the vending machine business. I’ll be adding more topics and information as I develop this website. I’ll be covering biz op scams, full line vs. bulk, how to buy an established route, and whether to go with new or used equipment. Plus anything else I think might be helpful.
If you’re thinking of starting up your own vending business, make to read the articles on buying used vending machines, buying an existing vending route, coffee vending, coin operated machines and getting your vending machines on location.
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