A vending business is an excellent option for people who are looking for a small home based business. A vending business can be started quite easily with a minimum of hassle; there are no franchise fees, no need to rent a property and no need to hire an employee. In fact, it’s so easy that some people even get their children involved or even set up a route specifically for their kid to run. It’s a great way to teach kids about responsibility, finances and the fun of being entrepreneurial.
The vending business is comprised primarily of bulk vending and full line vending.
Bulk Vending
Bulk vending is selling unwrapped “bulk” candy out of machines. Some of the more popular candies that are sold out of bulk machines are: peanut M&Ms, regular M&Ms, Mike & Ikes, Hot Tamales, peanuts, trail mix, Reese’s Pieces, gumballs and Skittles. Small children’s toys such as temporary tattoos, jewelry and key rings are also considered a part of bulk vending.
Typically the vending machines used in bulk vending are comprised of heads or separate compartments for each different type of product. Bulk machines are usually mechanically simple; they usually don’t have electric features such as bill/change acceptors or refrigeration. These coin operated machines are designed with a simple spring mechanism that returns to its original position once a coin is inserted and the product is dispensed.
Pros
- Machines are inexpensive
- Machines are easy to work on
- No special skills are needed
- You don’t need any special equipment like a new vehicle
- You get to be your own boss
- You have the freedom to set your own schedule
- Machines can be moved by one person
Cons
- Fully loaded machines are heavy
- Good locations are hard to find
- You need a lot of locations (400+) in order to make a decent living
- It takes a long time to get a route established
- There is a lot of competition
- Some people consider vending a less desirable or respectable job
- The machines get broken and stolen
Full Line Vending
This part of the vending business is the selling of packaged goods out of machines with packaged snacks and soda being the largest portion of this business. Other items such as cigarettes, condoms, feminine hygiene products, ATMS, and Redbox movie vending are all variations of full line vending.
The machines used in full line vending are more sophisticated than those used in bulk vending, plus they are a lot larger. These machines commonly require refrigeration and they also have electronic bill changers so electricity is usually required. There are some simple full line machines such as those used in laundry mats or bathrooms that are very simple in design and similar to those used in bulk vending, but for the most part this is the exception rather than the rule.
Pros
- Full line machines will usually make a lot more per location, so you will need a lot fewer locations
- Less product waste (sodas and packaged snacks have a longer shelf life
- People perceive full line vending as being more professional
- Even though it’s still a very competitive field, due to the machines being more expensive and difficult to move, it may be slightly less competitive than bulk vending.
Cons
- The machines are expensive
- The machines usually require electricity
- The machines are very heavy and difficult to move
- A larger truck (possibly with a lift gate) is required
- Due to the fact that the machines have refridgeration and electrical parts, they’re more difficult to work on
- Full line machines need to be serviced more frequently than bulk machines