Vending Machines

[Acorn Sigma]

Does anyone know about this business?

It seems like some moderate fixed costs up front, but good margins.

~AS

[elus2]

Time intensive and requires good placement of a decent number machines to be successful. Unfortunately many people are late to the game here. It helps to have contacts with local business owners or developers that specialize in strip malls and other high foot traffic locations to split profits with in exchange for the right to place machines on their property.

In terms of what equipment to buy there are lots of fancy ones that prevent theft in various ways. There was someone on this forum who mentioned that he ran a lot of machines in California. Try to do a search of the thread history for vending machines.

Like many well established business models don't expect to make above normal profits unless you've got some highly specialized competitive advantage

[lamboruns]

has to be some money in it..the mob in NY and other places have their hands all over it

[BradleyT]

Along similar lines, how hard is it to sell at large events?

At events like Ozzfest or Brewers games there's the $7 beers, the $4 hot dogs, the $4 bottled water, $3 16oz bottled soda, etc.

[candyman718]

[ QUOTE ]
Time intensive and requires good placement of a decent number machines to be successful. Unfortunately many people are late to the game here. It helps to have contacts with local business owners or developers that specialize in strip malls and other high foot traffic locations to split profits with in exchange for the right to place machines on their property.

In terms of what equipment to buy there are lots of fancy ones that prevent theft in various ways. There was someone on this forum who mentioned that he ran a lot of machines in California. Try to do a search of the thread history for vending machines.

Like many well established business models don't expect to make above normal profits unless you've got some highly specialized competitive advantage

[/ QUOTE ]

I have been in the business my whole loife and this is extremely accurate.

[candyman718]

[ QUOTE ]
has to be some money in it..the mob in NY and other places have their hands all over it

[/ QUOTE ]

And this is not.

[spex x]

[ QUOTE ]
Along similar lines, how hard is it to sell at large events?

At events like Ozzfest or Brewers games there's the $7 beers, the $4 hot dogs, the $4 bottled water, $3 16oz bottled soda, etc.

[/ QUOTE ]

These events are usually looking for innovative products. If you've got a good product, it shouldn't be too difficult to get in. BUT, they're not going to let you open another beer tent. You've usually got to add some value in terms of variety. Many events charge very high rents though - I've seen as high as 17% of gross. I guess that is why beers cost $7.

[Misfire]

I took a stab at honor boxes several years ago (selling pieces of candy for a quarter each on the buyer's honor). It's a lot of work getting them placed in good locations. Having an advertisement for a charity helps a little. Rural areas seemed to do best, but that made it hard to keep them in a concentrated area. The margin was very good, but the maintenance was a lot of work (driving around, collecting the money, refilling the boxes). It got old after a while and I decided I had better things to do with my time. To make a living at it, it would have taken about 200-300 boxes.

[spex x]

[ QUOTE ]
Does anyone know about this business?

It seems like some moderate fixed costs up front, but good margins.

~AS

[/ QUOTE ]

Maybe consider those DVD vending machines. Those seem poised to be hot in the next few years. You'll still have a hard time placing them probably.

[IRuleYouHard]

There is this gas station in my town (around 500-600 people) that is hardly ever open. It also has no vending machine outside and there is nothing in the whole town. My question is...how should I approach the gas station owner about letting us put our machine outside? What would be a good amount of profit to offer him for letting us use his space/electricity?