Pros
- Bulk vending machines are relatively inexpensive
- You don’t need any special skills or education to get started
- The machines are mechanically simple and easy to work on
- Vending allows for a very flexible schedule
- No more boss or co-workers
- Bulk machines can be moved by one person
- It’s a home based business
- There are minimal business expenses (no lease, no vehicle, no employees)
- It can be done full time or part time
- A vending route can be built slowly with little to no risk
- No need to quit your current job until you’re ready
- Used vending machines are cheap and relatively easy to find
- You have the option of hiring someone to run your route
- It’s a business that’s great for people of all ages (get your teenager or retired dad involved)
Cons
- You need a lot of machines and locations in order to make a full time income
- Good locations are few and far between
- Although bulk machines can be moved by one person, when loaded with product and attached to a stand they can be heavy and awkward to move
- Building up a route from scratch will take a significant amount of time and money
- Due to the low barrier of entry, vending is a very competitive business
- Not everyone views vending as a respectable job
- Machines get stolen and broken
- Locating machines never ends, even once a route is established you’ll still frequently need to relocate machines
- You’ll need a garage or spare room for all the equipment that slowly starts to add up
- Gas prices are going up, so this will also drive up operating costs
There’s no doubt about it, you can make a decent living in vending, but it’s far from easy. Whether you start by growing your vending machine business slowly over several years or by investing a large amount of money upfront to get started, either way you should expect a long hard road. This doesn’t mean that 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.
In vending, your machines are always working even when you’re not, this is generally considered a passive income stream and passive income is considered one avenue to building long term wealth and security. An additional benefit is that at some point in the future you can hire someone to service your machines; this would allow you to increase your revenue streams even more. Keep in mind though that “passive” is a relative term and generally applies to businesses and investments that have already been built up and established with considerable time and effort. The “passive” part of the equation comes on the back end, not on the front end.
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 just over $12 per month per head, so a double head machine is expected to make $25 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 $7 per head is more likely, especially when first building up a route, because initially you’ll have a lot of underperforming locations.
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 a variety of vending related topics including 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.