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.

With a vending machine business easy to begin and operate, it is referred to as having a low barrier to entry. This translates into the fact that anyone can start a vending business. Tons of people with a few spare bucks get into vending every year. The lower the barrier to get into a field the more competition you will have to compete against. I’m not saying that you can’t make it in vending, just that you will have to be that more dedicated than the next guy.

Vending machine business opportunities (biz ops) are to be avoided. A big biz op scam these days seems to be energy pills or gel. There are many others out there, but energy seems very popular recently. For the dear price of about $15,000, a biz op will get you equipment, get you in businesses and offer to help you with your whole start up. Biz ops make grossly exaggerated profit claims. Vending is numbers game. In vending, it is all about the numbers – tons of machines churning out a small monthly profit to get ahead. After losing lots of money to a biz op scam, some become disillusioned and quit the business. Tons of unused machines are sold by these frustrated people.

If you have been duped by a biz op, your options are few, you can complain through the Justice Dept., the BBB, or get an attorney. That money will more than likely never be seen again. It’s good to be informed when starting any business. The people that are pushing biz ops and promoting vending as a way to make easy money are not to be trusted.

When starting out in bulk vending or full line vending, have a workable business plan before you quit your job. It is not my intention to deter you from the vending biz, but instead, I am hoping to give you information that will help you on your business path. Most single heads make seven bucks on average. This is an industry average, not a guarantee. Venders don’t always make seven dollars. Personally, my machines are averaging five dollars per head. As you can see, a double head machine making $14.00 per month is going to require a lot of machines to pay your mortgage.

Please be alert to the possibility of locator problems. Locators help you by making lots of phone calls to zip codes you provide to help you get your machines placed faster. Sometimes you can hire a person to drive around and place machines. To get a machine placed by a locator using a phone is about fifty bucks. I have no experience with an in person locator personally, but it is about the same price. To expand your business more efficiently, a locator can be a real asset. Locators vary in their placement options. Some promise a certain amount per machine, some do not. Despite what you may hear, excellent locators can be found, the problem is finding one. A good way to find a locator service is on forums that are dedicated to the vending business. Other people in the business can help you avoid getting ripped off by unreliable locators.

The vending machine business is not a get rich quick plan. Vending requires a lot of time and commitment to be successful just like every other business. A lot of folks that start vending business will fail, but this doesn’t mean vending isn’t a viable business. Too many people are really not up to the challenge of managing their own business. With vending, you can start without a lot of cash. All you have to do is get a couple vending machines located, service them for a short time and you’ll have a good indication of how things work. One of the great things about vending is that you can do it at your own pace while keeping your day job. A plan to grow your vending machine business, based on your experience will be infinitely better than the impossibly dreamy goals others may give as their results.