Way OT-Any of you guys own a vending machine?

[Bridger]

Anybody here have candy/toy vending machines set up around your area? I am thinking about getting into it. Since there probably won't be an overwhelming amount of replies, does anybody even have an opinion about this?

[rjohns94]

Hi, I have 5 of them. Each are four candy quarter machines. I have them set up at JHU in the building I work in. Exposure is good and I fill them from candy I get from SAMs club. Not sure what type of questions you might have but I would be glad to answer questions. The profits of my machines have gone to the adoption of children in Ethiopia via Compassion international. All proceeds go to that organization. The 5 machines each produce about $35/month profit.

[Hobie]

I used to run one for my armory. Questions?

[Bridger]

Here are a few to start:

1. Any tips on best places to put them?

2. How much did that machine make a month ya think, Hobie? What did it vend?

3. I am considering slowly acquiring a fleet of these. http://www.candymachines.com/Single-Sta ... 10C34.aspx I just wonder how long it would take to make the machines pay for themselves so that what money I made would be profit.

I know these questions are sorta vague, but any input is appreciated.

[Rusty]

There is a guy on the radio that has a syndicated radio show that originates in Atlanta on WSB 750 AM named Clark Howard. Check his website at clarkhoward.com and see what he lists as drawbacks. He is a consumer advocate type guy and has experiences in all kinds of areas. One thing I have heard him warn against is to watch out who you buy your machines from. Check around and see if you're getting a good price on them.

[Hobie]

Here are a few to start:

1. Any tips on best places to put them?

2. How much did that machine make a month ya think, Hobie? What did it vend?

3. I am considering slowly acquiring a fleet of these. http://www.candymachines.com/Single-Sta ... 10C34.aspx I just wonder how long it would take to make the machines pay for themselves so that what money I made would be profit.

I know these questions are sorta vague, but any input is appreciated.

I think we cleared about $50 and actually it was two machines, one snacks and one sodas. Put it where the foot traffic passes and/or near offices/gathering places. Gun shop boss man has one soda machine outside with nothing really around and makes about $35 a month on average, more in summer of course. The big downside is they constantly have to be serviced both to remove the tempting change within and to ensure that there is product to vend. Snack machines need FRESH product and you have to get rid of that which doesn't sell. BE RUTHLESS!

[Old Ironsights]

How about one that dispenses ammo?...

[pharmseller]

Bridger,
My family owned the largest (at the time) independent vending company in Oregon. When I got out of grad school I became the sales manager, in charge of our route drivers and all product purchasing. Over the prior years I held every job in the company, from gofer to manager. The only job I didn't have was president.
I got calls nearly every month from people trying to sell their machines. It wasn't worth it. Many companies sell machines with the notion of grossing big bucks with little effort. We've all seen the ads. We called it "Blue Sky" vending.
Most people don't know how much work goes into making a dollar from vending. The Blue Sky folks talk about all the cash you gross, not net. Sure, buy bulk candy from Sam's or Costco. What do you net per sale? Divide the cost of your machine by your net per vend and you get your number of vends just to break even. What happens if/when one of your machines breaks or gets vandalized or stolen?
Many locations require a commission as well. Nothing is free.
The magic is in the financial details. Make sure you know ALL of your costs before getting into vending.
Figure in your non-product costs to get a true net.

Gross Sales
less Cost of Goods Sold
less commissions (if applicable)
less gas
less vehicle wear and tear
just for starters

Most people also make the mistake of pricing their time at zero. Add up your true net sales and then divide by the number of hours you spent to generate the net. That equals your hourly rate. Most people make far less than minimum wage.

Crunch some numbers and get permission to place your machines before you buy them. You might find that you can do better with your money elsewhere.

P

[rjohns94]

What Pharmseller says is true. I bought my 5 machines used from a friend who made no money at all. I have kept exact logs and receipts from the purchase of the machines through now. The machines took just over two years to pay for themselves. My expenses were only limited to machines and the items I put in them. I don't pay commission for the location, and the gas does not matter because its at my place of work. The time is minimal for those 5 machines because I am already there. The company that sells these machines will "place" them for you for a "small" fee. When I was looking, I was looking at high volume areas with a captive audience. I wound up placing them in the college environment for those reasons. I would not recommend this to make money - just not worth it. I actually bought them to help out my friend and then decided to use the profits for a charity. All expenses get written off (cost of machines, depreciation and cost of candy and contributions) which is where I actually make out. I have a small business which encompasses the candy business, book sales, and engineering solutions for industry. The write offs come through it.