Have you ever thought of a vending machine business?  For this business you need a truck or mini van.  You establish a vending route with machines in various locations.  You service the locations on a schedule such as once a day or once a week.

Types of Vending Machines

Some examples of vending machines are snack, soda, coffee, ice cream and popcorn machines.  Machines can be bought new or refurbished from companies such as American Vending Sales in Addison, IL.  You can also buy them from Sam’s Club.  Companies like Coke and PepsiCo will furnish free machines as long as you stock them with only their products.  Repair services for these Coke and Pepsi machines are free as well.    

Where to Place Machines

The hardest part of the business is finding places to place machines.  There are several large vending machine companies and they have the lion’s share of the business.  So sharpen your sales skills and start knocking on doors and dialing the phone.  Sometimes you can get leads by reading your local newspapers.  A new store may be opening in your area.  That store may have a break room for its employees. You want to have at least 75 potential customers in one location to make it worthwhile to put machines there.    

Most places have existing contracts with building owners.  However, these contracts can be broken if the building is not satisfied with the present service.    

For additional leads, Contact commercial realtors; go to networking events or join your local chamber of commerce.    

Products to Put In Your Machines

You can purchase snacks such as chips and candy from wholesalers.  They deliver or you can pick, up the product.  Bottling companies will deliver to a designated location.  Sam’s Club and Costco sell products which are suitable for vending machines.  For example, Costco sells 30 count boxes of Frito-Lay chips and 48 count boxes of Mars Snickers candy bars.    

Storage of Products

When you are just beginning your business, you can store the products in your house or garage.  Make sure the storage temperature is not too hot or too cold.  You don’t want your candy bars to melt or you’re pop to freeze.  As your business grows, you will need a warehouse.  Some people don’t have storage. They pick up product at Sam’s Club, put it in their truck and distribute it all on their vending route.    

Safety and Security Issues

Try to place your machines in relatively safe areas.  High crime areas cause vandalism. Machines in highway rest areas and machines located outside invite more vandalism than machines located in office buildings.   

Invest in a safe.  Bolt it inside your truck.  Be diligent when pulling, counting and transporting cash.  If you are in a permanent location such as a warehouse setting, consider an armed car service.  It is worth the cost when you are dealing with large amounts of cash.    

Working Environment

The work is very physical.  You have to lift and carry cases of pop.  You may be standing for hours while filling vending machines.  Consider the amount of driving you must do.  You have to be able to get along with customers and building contacts.  You must handle complaints and solve problems in a timely and courteous manner.  If a machine gets vandalized in the middle of the night, you will have to go fix the problem in the middle of the night as well.    

Repairing Machines

Companies specialize in repairing vending machines.  It typically costs $75.00 per hour for labor plus the cost of parts.  If you like to tinker with machines, you can fix many minor problems yourself.  Repair companies offer free phone tech support.  You can also pay to attend seminars which teach you about machine features and how to trouble shoot for, and fix problems.   

Trade Organizations

Trade organizations exist in the vending machine industry.  The most well known is NAMA, the National Automatic Merchandising Association.  It hosts trade shows in major cities.  At these shows you can see the newest machine innovations and the hottest products on the market.    

Conclusion

The vending machine business makes money if your machines are in the right locations.  Conversely, your business will suffer if your machines fail to produce high sales volume.   

Moreover, the current inflationary/recessionary economy is squeezing the business from both ends. Commodity costs such as coffee, sugar and chocolate are constantly rising.  Consequently, you must raise prices for your customers.  At the same time, people are cutting back on snacks to save money.  You must look for creative ways to sell products from vending machines such as phone cards or DVD’s.    

Hope this information gives you “food for thought”.  I have been in the vending machine business for twelve years.  I own my company since 2006.  Check out my web site at http://www.snacksonstate.com