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 use a simple pull dispenser, but most full line machines are more advanced.

Pros

• Although the machines aren’t as cheap as bulk machines, they are still cheaper than starting a lot of other more traditional small businesses
• You get to be your own boss
• You get to set your own schedule
• You need a lot less locations than with bulk to make a decent living
• Less competitive than bulk

Cons

• The machines are very heavy
• In order to move these machines you will most likely have to hire someone, have someone help you or be very strong and have a truck with a lift gate
• Even though it’s less competitive than bulk, it’s still hard to get excellent locations
• Machines are complicated; it would definitely be beneficial to know how to do electrical work and refrigeration
• The machines have to be serviced more often than bulk machines

Conclusion

Some people like the flexibility of moving machines on their own, while others prefer not having to service so many different locations. There are pros and cons to both sides of the vending business, so which side of the vending machine business you pursue is simply a personal choice.

I should probably start with a general definition for people that are entirely new to vending. Full line vending consists of generally larger machines which vend a variety of products including soda, snacks, sandwiches, condoms, and cigarettes. This is by no means a full list as I could probably fill a sheet with things that could be considered full line vending.
 
Bulk vending machines are usually much smaller machines consisting of one, two, or three “heads” or compartments for loose (“bulk”) candy.
This includes gumballs, M&M’s, peanuts and even capsules containing tattoos, key rings, and other such kid toys.

For the sake of this article I’m not including vending amusements which are crane machines, fortune teller machines, and kid’s rides like those found outside of big box stores. It’s been my experience that most people don’t specialize in vending amusements but rather roll it into their primary vending business.

Now that we know what we’re discussing here’s a general overview.

Full Line Pros: Since the machines are more expensive, there is a little less competition. You can have a lot less locations and machines for the same amount of profit.

Full Line Cons: With full line vending the machines are much (MUCH) heavier and more difficult to transport. They usually require electricity to operate so that may limit where you can put the machine. The machines are big so it’s a little bit more of a commitment to get one placed. If a manager OK’s a placement and then the owner comes in the next day and overrides his decision you are not going to be happy. More full line vending companies have placement contracts then do bulk vendors; this contract usually covers what percentage of your profits you give to the business owner. Full line machines are more expensive so starting out is going to cost more. Full line machines typically need to be serviced more frequently, once a week or every other week depending on volume. Since the machines are both mechanical and electrical they are more difficult to repair.

Bulk Vending Pros:  Compared to the full line machines, the bulk machines are virtually light weight, plus they can fit in a car. No electricity is needed for most bulk machines. (There are some exceptions to the electricity rule such as the really fancy lighted, spiral maze gumball machines that you may have seen around.) The equipment is cheap and easy to repair. The machines are small and can be placed virtually anywhere. It’s less of a “perceived risk” or “commitment” to the business owner to place a very small machine rather than a bigger one. The machines need to be serviced a lot less than full line machines. A typical cycle for servicing is 30 – 90 days, mine are on 45 – 60 day cycles.

Full Line Cons: Because the equipment is cheaper you will have much more competition. To make a decent living you need LOTS of machines. Although the machines are light compared to full line vending, they are not exactly light, about 60 lbs. when full of candy. Spend a day moving and placing these all day and you’ll feel it.  Machines can be very easily stolen.

As I read this, it seems I listed quite a few more cons for full line vending than bulk vending. Although this was not my intent, perhaps I am biased as I chose to do bulk vending myself. My own personal reasons for choosing bulk were primarily based on transporting the machines and not feeling like I have the ability required to work on the machines. If you choose to go with the full line vending, it’s a valid choice just not one that I thought was right for me. And also there is no hard and fast rule that says you can’t do both full line and bulk candy. It does seem that people tend to specialize in one or the other, but you can pretty much do what you want, as it is your business.