The vending business is broken down into two main categories: bulk vending and full line vending. Both types of vending are usually pursued as small home based businesses and they are usually run by individuals. Some people may have a partner or run a vending route as a family business, but with bulk and full line vending; usually these are small businesses and not corporate run operations. There are a wide range of vending machines available, but generally anything that doesn’t qualify as bulk is classified as full line. Some types of vending machines that are more typically run by corporations include ATMs and Red Box movie vending.
The main beauty of the vending business is that it is one of the few businesses that is within the reach of most people. Most business start ups require a large initial investment and require the new business owner to fully commit their time and energy to the new business in order to get it off the ground. This type of commitment usually creates a substantial risk because not only does it require investing a lot of money, but you will usually need to give up your job in order to start your own business. This is not the case with running a vending business, the machines are fairly inexpensive and it’s easy to start a route part time while still keeping your day job.
Bulk Vending
Bulk vending is the selling of “bulk” products out of machines to consumers. The term “bulk” simply means the products aren’t wrapped; the customer just gets a handful of product delivered right into their hand. Bulk products include M&Ms, Mike&Ikes, nuts, trail mix, gumballs, Hot Tamales, Reeses Pieces, and Skittles. Also included in bulk vending is small children’s toys such as temporary tattoos, jewelry, key chains and other small novelties.
The vending machines used in bulk vending are very mechanically simple machines with a simple spring back mechanism. Most of these vending machines don’t require electricity and are easy to work on.
Pros
- The machines are very inexpensive. Brand new they cost only $125 – $300 depending on the amount of heads.
- Simple machines.
- Easy to get started.
- You can start part time.
- It takes very little money to start a small route.
- No big vehicle needed.
- Machines can be broken down for transporting.
Cons
- It’s a very competitive business.
- It’s hard to find profitable locations.
- When fully loaded, the machines can be heavy.
- You need a lot of machines in order to make a full time income. Each machine only averages $7 a head.
- Most people never get to the point where they make decent money. The failure rate is high.
- Establishing a large route takes time and money, so if this is your goal, you may need to stay at your job for quite awhile while you do vending part time.
- Some people consider vending demeaning or trivial work.
Full Line Vending
Full line vending is the selling of packaged snacks and drinks out of vending machines, products include chips, crackers, candy bars, soda, ice tea and water. There are other categories of bulk vending such as feminine hygiene products, cigarettes and laundry products, but snack and drink vending is the biggest part of full line vending.
The vending machines used in full line vending are usually much more complicated than those used in bulk vending, they usually require electricity, and some also have bill changers and refrigeration.
Pros
- Compared to other businesses, it’s still fairly inexpensive to get started. You may be able to find decent used vending machines for $1,000 – $2,000, while brand new ones are much more expensive.
- Full line vending machines make more per location than bulk locations.
- Compared to bulk vending, you will need less machines and locations in order to make a full time income.
- Servicing is easier because you will have fewer locations.
- A full line route can be run part time while keeping your full time job.
Cons
- The machines are very large and heavy; most people will require help moving them.
- Although it’s less competitive than bulk vending, it’s still very competitive.
- Since the machines require electricity, plus some have bill changers and refrigeration, this makes them harder to work on.
- It’s hard to get profitable locations.