I bit the insanity bullet. Now in the vending business.
 

First off no I did not buy some franchise BS, nor some get rich quick online/offline scam. Just sort of lucked onto someone who had started such a business whom he purchased the machines from a "franchise schmuck" who did nothing with them. This guy got started in March, busting his ass since he was in the banking/mortgage business but got laid off. Anyways he got a new job, one that was pretty damn strict about not allowing people to run outside businesses.

Anyways the PL reports looked OK. Some of his costs could be cut still. Most importantly was that 26 out of his 29 machines are already placed and been in place since March to May. After asking about after May, it turns out and is easy to see that is when his wife took ill and it just sapped his will to expand. So he monitored the machines very well, just did not try to place more.

Wife will handle the cold calls, service of them, etc. I just will play bookkeeper and keeping eye on lowering costs, etc. She is also one hell of a salesperson anyways, plus knows a ton of business owners thanks to her previous ownership of a landscaping company.

Share time over. Anyone else deal with this sort of thing? Comments, issues you had, that sort of thing?

Oh not expecting this to make us rich. Just eventually another good passive income source, assuming she tires of selling.

What are you vending?a lot of leg work but can be lucrative.as you know location is key

A good friend of mine has been in the vending business for a couple decades. He and I frequently talk business for the fun of it.

From all he told me, the main tip that stuck was that the success of your business will be made or lost based on the quality of the people running your routes. You have to find someone who is mechanically inclined, reliable, able to work without constant supervision, and above all else, completely honest. Before he found the crew he has today, he spent most of his time supervising employees and dealing with lost revenue from equipment failure, product shortage, break-ins, and skim. Now, he has reliable people following written instructions and schedules, and spends half his time on the other side of the country from his machines.

If your wife will run the routes, hopefully all that will be a non-issue, so good luck with the new business.

Right now strictly candy & nuts.

no personal experience but I have come across some unique and interesting vending machine/products recently.
Good Luck!

Bike tube vending machine:
http://www.rideyourbike.com/vendingmachine.html

Bike Parts:
http://springwise.com/transportation...for_bicycle_p/

Organic Products:
http://www.springwise.com/food_bever..._goes_organic/

Fruit:
http://springwise.com/food_beverage/lofresco/

Farmers produce:
http://springwise.com/food_beverage/regiomat/

Shoes:
http://springwise.com/fashion_beauty/rollasole/

Bathing Suits:
http://springwise.com/tourism_travel/bathingvending/

Pizza:
http://springwise.com/food_beverage/...ding_machines/

Upscale Luxury Items:
http://springwise.com/retail/utique/

ever seen the ones in airports that sell ipods/psp's/etc?

A guy I used to work with bought some ATM machines and has been doing very well apparently. Went from driving a broken down van to a hummer.

Did pinball machines for awhile,that's where you either be mechanically inclined or hire a good mechanic.constant maintenance and upkeep is always required on em

nope, but the more you think about it there really are quite a few non traditional products that could be sold thru a vending machine..I think placement might be key in those types of machines, especially if you have a "captive buyer" like at a hotel, airport or some isolated location.

Not about interested in buying assorted types of machines just because. No rush for expansion. Even when some machines like the baby products machines I know would kick ass in the mall, I know better.

First step is to place the remaining machines. Then I will get a few more. I have calculated it out and it would be best if I could get 50 active machines ASAP. Then I could get my candy costs down a great deal due to volume purchases.

Then I may concern myself with other machine types. Small steps. Plus much less risk getting into say machines that distribute small toys, or bar machines that spit out tampons, pads, condoms, and lube instead of trying to get into soda machines or other high end ones.

Here is an article about Sex Toy vending machines:
http://www.guardian.co.uk/uk/2006/ma...gillan.uknews2

and the company featured:
http://www.tabooboo.com/vendingmachines.html

ZERO interest in adult products.
I am finding it harder day by day dealing with this industry and things that remind me of it. I still have plenty in me. Yet it is winding down.

Wow kind of weird to write that. I just do not want to have one remind me of the other in any way.

congrats on expanding!

I hear ya man...I'm down to just a dozen or so adult sites.. everything else is mainstream now..

:thumbsup

after you place all your machine constantly look for better locations.

1. 5+ story office buildings with shared break rooms, hard to get with only candy/nuts, you need soda and sometime it is good to partner with a coffee service to get these accounts.

2. stay away from outside locations

3. manufacturing with 200+ employees, hospitals, community colleges, 24hr large laundry services, seasonal fruit/vegetable packing plants (depends on your area of the US), large car dealerships.

The high-end Mercedes dealer ships you can put very high priced items like starbucks iced coffees, macadamia nuts, Godiva chocolate bars, - soda machines sold the shit out of sparkling waters (tried to get wine and beer at one time).

get in tight with the office managers a month or two before your competitors leases are up on choice locations. Make sure they know they will be able to pick out at least 25% of the items. Later one you can explain that some of these are not selling and you need to try other things. Also provide them a list of eveything you offer for their employees to vote on. If you can't get in the door leave a few lists laying around their break room if you can get in or know someone that works there and have them leave it laying around, you might get a call. Offer a company paid pizza party for lease signing bonus. Marketing is tax deductable.

WATER MACHINES, I wish I would have got in on this a long time ago. Simple water and electric hook-up. All you have to do is clean it when you empty the quarters and change the filter when your xxx gallon rate has hit the filter change mandate by the county you live in or state regulations. Also the UV lamps are pricey but the profit margin kicks ass.

1. Trailer parks with over 700+ trailers, 55+ communities they will never buy soda or candy but they will buy water (gallon/ and jugs). Just beat Glacier's payout to the owner or homeowners association.

2. small chain or regional discount grocery stores (5-10 stores), again just beat Glacier. Don't bother with the big boys they lock them up on contract nationally.

3. RV/camping parks

4. certain convenience stores on the outskirts of town and near apartment complexes and high density suburbs

5. by accident I found that strip malls with a major anchor store like K-mart, Publix (grocer in my area), homedepot, etc. Do not try to get it outside the main store buy contact the nearest small store franchise or private owner just next to it. Struggling clothing stores, shoe stores, jewlery, etc. Once you tell them what they could expect as a monthly shared income they will be happy to let you place your machine. This will start slow but continue to build up. People will just make a special trip out to get all their water containers filled and if they do not have to wait in line inside a major grocery and just pull up and park almost next to the machine they will always use your location. Just like the person that drives around the parking lot trying to get that closer spot.

anyway hope this help in some small way.

Debbie N.

also, follow the coke and pepsi trucks around. These account can be stolen by offering both products in non-lease coke and pepsi machines. Don't bother trying to get your inventory from the local or district bottler, they want you out of business.

also, follow your competitors truck around. Pretend you are casing a joint or are a private dick just for fun. If they have older machines and a grubby worker you have a good chance at getting the account.

how old are your machines? are they from BJ's, Sam's, Costco, or a major vending company?

hopefully they are not the hand cranked small machines or your screwed and limited to inside of Tires Plus waiting rooms.

26 machines have been used since march and at worst were bought in October. 3 machines are still new in box.

Yes they are small machines, well not single head etc. Far from screwed regardless. Of all of the currently placed machines (all indoor), only 1 has any sort of profit sharing involved. Every other machine gives zero cut to the business, nor have they since March.
Also again hard to be screwed when each machine has been generating a fairly decent positive cash flow that will pay for what I put out in under 6 months assuming I do nothing, and just run as is.

I am pretty sure you are in Florida if I remember correctly. Here is pretty different and one area that is just about beyond impossible to get into is water. Aside from a few local spring companies holding dominance, few have issues with the quality of tap. We are in a mountainous area that has places pretty known for its water.
Even the pay per gallon with filtration units are owned by off shoot companies of the spring water companies. Though those units are few and far between, which relates back to the quality of the tap and or those who get home/office delivery.

I know I can venture into standing soda and candy machines. The smaller placed machines are already a foot in the door to that. I also know even though we have a Pepsi plant here and then a Coke distributor, I do know their cuts involved with profit sharing and free use of the machines. I could jump into battle with them at locations, yet currently there is no reason. I can pick the battles and when we wish to expand into other machine types.

I do know that I will be getting two stand up dual soda/snack machines within 45 days or so. Since after the family has gotten word a friend of the family wants to swap his machine in his laundry mat, and my wife's uncle was about to start looking for such a machine for his office at his rock quarry. Well it services employee's and then also those buying bulk gravel and such.

PS not being dismissive of your post. Had been fiddling with doing this on and off for a couple years. Done crap loads of research, particularly in the area local to us. Just never bit the bullet for one reason or another - most often either time, or issue with jumping in with zero placements.

ASM, people let you place the machines for free? Interesting.. .

Lots of investment for the machines.
And they have to be serviced every day.
Don't know if I would want to run such a biz.

I also had a friend in this business and this was the same deal. There is more labor then you first think. His were soda pop machines so they are heavy and the stock was heavy. Maybe not an issue for you.

ASM.. Good for you.. Its actually a good business to be in. Here is some more food for thought.. ATM Machines.

Not that hard to do.

Congrats hun!

When I owned retail stores I would make about $75.00 profit per day from soft drink vending machines used by customers and employees.

The machines were refurbished from Coke/Pepsi and we would buy cans when on sale from convenient food stores, K-Mart, etc.

In some ways it was a pain in the ass but over the years it really added up. Free money in my case.


.

If I was dealing in soda or the larger candy machines, perhaps. I know when we had a soda machine that we placed outside of our comic shop. Before in store gaming was allowed. It only needed servicing about once a week unless someone went on a Mountain dew run. Fixed that by giving two slots to Mt. dew and getting rid of the super weak seller.

Have 29 machines right now. Still a few need to be placed.
None of them will need to be serviced every day. Looking at his spreadsheets and after attending the route with him twice (wife did). Even with him being very anal about keeping everything fresh, thus only half fill several of them. It still only takes 2 full route servicing per month.

Eventually we will move into other machine types. Again placement is key and with certain types such as ATM's it is pretty cut throat.

Soda can and does take much more work. You need lots of stock. Thankfully many of the newer machines require less on site work than before and have better fraud measures, plus other features that make them less prone to other issues.

I will not be doing any heavy lifting. Which leaves the wife. With what we are in now, aside from moving or placing a machine (dolly and van). Very little lifting.

On the hidden plus side. Couple years back I under the influence of both hospital freedom and a shit load of narcotics. Ended up financing a brand new ford econoline van. Was going to make it 100% handicapped accessible. Silly me could of bought a fully accessible customized mini van with 100 times the features for less money. So currently we have this brand new van. It does have hand controls. Have yet to add a lift or the other mods. Now over 2 years old and still less than 3k miles on it. I actually think its between 1900 and 2600. Just drove it back and forth to the airport for those conventions the previous year or so. Otherwise this thing just sits and eats up a big ass financing fee (I do pay extra), required insurance, and non op registration.

Come Tuesday I will fix the registration and that can now be the business vehicle. Zero personal usage so less paperwork. Plus I could actually add a lift to it and still have that be a business expense. Bigger machines would need a lift.

So as an added element I finally found a fucking valid use for that damn van and it will save me money each year. After sitting there for years costing me money and pissing me off each time I look at it.

Congrats man. At first reading your post I was like "oh man he is making a mistake" then when I read that your wife is going to run it I really like the idea.

2 years ago I took "porn money" and opened a warehousing and logistics business. Its small for that kindof business. 12k sq foot warehouse, 1 forklift, and 2 semi trucks and trailers. I did this to diversify and have another income stream but I didnt realize just how much it would take away from my online activities. I now have my wife running the office, and my brother running the day to day stuff but even with that I find myself having to pay way too much attention to it and spend too much time there. In fact im here now! :[

Way I look at it is, is this business making me as much money as if I never would have had to take my 100 percent interest off of adult? The answer for me is a close one, possibly yes, possibly no which makes me kinda not happy.

Owell, I could be flipping burgers. :)

Good luck and congrats! Hopefully my story gives you more bases to cover.

good luck on your new biz :thumbsup

If you are looking to get into the ATM business let me know.

Here is my site: www.atmexperts.com

Your friend provided good information. Maintaining the machines is number one on the list..due to ordinary equipment failure as well as the additional problems of break in/vandalism.

before porn i've worked in warehouses and factories and there is one thing i can tell you about vendors that blue collar people love.. if they consider the input of the people buying the shit. we would always request items get stocked because it was never the same, when the dudes would do it they sold a lot more every time. another place the vending guy wouldn't do it and everyone thought he was a knob. load your machines to cater to the requests of the places employees/people who will use the machine, you will get them for sure. for the right prices/supplies those machines empty themselves

I'm going to come steal all your nuts and candy, and give them away for free from my machines.

Realized I quoted you to reply then spaced it after my van rant.

As always many of the smaller candy machines work the whole charity angle. You join up with St. Jude's, American Cancer Society, etc. They give you the stickers and such to put on your machines. Some even have little signs that are made especially for vending machines so attachment is very easy.

The business owner can technically write it off for being there as I have been told - looking into that now but would never offer them tax advice anyways.
Then as the machine owner/operator you send in a monthly fixed donation to the organization you have chosen. It actually feels a bit scammy though as they just want a dollar a month per machine to participate. I mean I do get the whole thought process that they are probably on tens of thousands if not hundreds of thousands of machines. It just still feels cheap. Especially when those donations are tax deductible.

Business wise I will have no qualms about giving up percentages, even on charity machines. I have this driving issue to reach a certain total of places machines that would guarantee enough turn over inventory wise that I can qualify for free shipping or other bulk discounts which helps the margins on all of the machines.

Interesting stuff. I have a few mainstream things lined up too, one of them being Italian ice carts. :pimp

There's a guy who lives on a corner lot near my nephew's junior high school and he has 3-4 machines against the back wall of his garage. Before and after school he cranks open the door and cleans up.

A while back I saw him out there re-stocking and asked him how much he made off them - he told me during the school year the machines pay his mortgage and utilities.

Fucking genius.

i noticed there are more and more of those around. ive seen a few that are from "Best Buy" selling shit like cameras and ipods. I sat in the LA airport for 2+ hours a few weeks ago and didnt see one person buying anything out of it.

I almost got into this a few years back with a friend. after looking at the possible ROI, it wasnt really worth the investment. the idea we had was to get places to sign exclusive contracts with us and that they wouldn't place their own ATMs for X years, but it was against the TOS of the ATM companies to do that.

I have a friend who him and his wife are in the merchant services business. they go into restaurants and get them setup on using credit cards and they get a %. Most places have such thin profits that they cant afford to pay 5% to a credit card company

shit i want to do vending machines too

The typical non electrical machines do not have much equipment failure, and thanks to the addition of adding a clutch to the spinner, it greatly reduces vandalism by people attempting to reverse spin your crank with a wrench.

Bookmarked it to take a good look latter. As I said no plans on quick expansions, especially into high end (expensive) machines. Without even looking I would presume I could get hundreds of my current machine type versus 1 of those.

Yeah, I already have his spreadsheets that detail what people like, but more importantly things that are a "do not stock". Like nuts for instance - which will require special cleaning if a new machine is brought in, plus also alterations in the route to ensure you have not handled nuts before visiting that location.

Nice business, here it would be very seasonal. My brother did coffee carts pretty early on. Made a killing with his kiosks in the malls. Problem he had was the locations he worked made a killing, the locations that were hired help made much less and had tendencies to be low on cups versus sales, etc. Which we all know is giving free ones away. For myself that would be to much work and not passive enough. Unless of course you landed some great workers. I do know just about all types of carts can make a killing, even with super crazy city rents if your on the streets.

Now we have looked into food service trucks/trailers. These would work the fair circuits we have here, and we have a whole lot of those without even venturing that far north or south in California. Again would be lots of travel for them, would need solid employee's. Yet I know they make a killing too. Was chatting it up with one owner, one of the few that did breakfasts as well as lunch types. They specialized in "English/Scottish" food. Bangers, Shepard's pie, that sort of stuff.
At a smaller event he may only do 200-300 breakfasts, at an event like the Scottish games, he would do 1500-3000 servings of breakfast alone. Roughly 5 to 8 bucks a pop without drink. Just was crazy thinking about it.

It is all location really. Schools are a whole new matter though. Especially since they now demand healthy food as per law. Caused many contract issues and quick swaps. Still can be gotten into by any size company thanks to bidding and other Government adjustments such as a woman owned business.

Yes...location...location...location. I once knew the manager of a busy...busy service station. During the summer months it would have 14 employees on duty during the day shift. It had 6 vending machines...selling the typical items...sodas...coffee...candy...chips...cheese and crackers...etc. He said that the six machines took in about $12,000 per month during the summer months and dropped down to around $2-3 thousand a month during the winter months. Of course these amounts are gross amounts.

New ATM's run for about $2200 including shipping, installation, programming and onsite training. Used you can get a great machine for around $1500.

We also offer other deals like our 50/50 deal where we supply the machine, you load the cash and we split the surcharge 50/50.

We also offer free placements where we provide the machine and stock cash and offer you and the location a smaller percentage of the surcharge. Typically it would be $.50 per transaction to the location and $.50 to you the distributor (locator).

Hit me up at penrod *at* atm experts dot com if you have any questions.

I will keep you in mind for sure if we stumble across a place where we could situate one.

Actually I know at least 2 fantastic places, yet would not have the balls nor trust to place them there. That is just something that suck ass around here. They are not bad area's just very isolated - which typically would sound like the wrong place, yet they would have plenty of traffic.

Like I said, have you bookmarked, have the thread bookmarked. Pretty sure I will be ranting or whatever off and on for some time and gfy is where I dump such thoughts or bitches.

Even though you said email for questions etc. Did have a couple that are not super important but does have me curious.

They require phone lines and electricity. Any of them capable of wireless (mobile) phone useage? There could be a very good location, but it moves and would be seasonal. No chance of landline.

Sure can. There is a company out of Canada that makes wireless modems for atm units.

We use them for special events and for locations where a phone line just won't work.

Their website is www.dpl.ca

Let me know if you have any questions about placements. I can email you a checklist we use to qualify a location.

Good luck.

Here's the chance for anyone on the East Coast wanting to get into the biz or anyone wanting to expand.

Anyone interested but out of the area hit me up maybe we can work something out.(not mine but I'm very close)

http://washingtondc.craigslist.org/n...419724326.html

Does not look like any even are placed, and they look pretty old too.