Owning Vending Machines

Yeah, I'm in that game.
It's all real money.... unless you get the newer ones and take credit cards. Still real but takes longer. And leaves a paper trail. Not implying that you'd be scheming to report your total earnings to the IRS or anything.....

What you wanna know tho? I'll share my experiences and opinion.


Anybody on here ever dealt with vending machines. Drinks, snacks, ect? Any real money in that?
 
What's the price range of a start up vending machine, one that sells snacks. I have a good spot I can put one but don't know where I can get a good deal on a start up machine. Should you go with quality on your first one or start out with something less expensive?
 
white guy at work started a service with those peanut and m&m machines. Said the biggest customers were the car dealerships......
 
Damn, hold up fella's.
I had a lot of shit typed up and the fucking screen refreshed
and cleared all my text and images.

Will retype in a second... going to reboot.
 
Been doing this since 2005. It's good... a little bothersome. It's not my only gig... so I gots to make time for it.
But when the machine is working there are no problems except
for those who want something that ain't in it. Or if the machine does phuck up.. you get the calls and they expect you to be there in like an hour... I give them a day.

I'm gonna keep'em and pass'em on to my son as a route he can maintain. I tried to get mine in a certain radius... but this Atlanta and shit is spread out. Last thing, all the machines are located in a place I can get to on the weekends.... Allows me to keep my daily going.

Get product is a pain in the ass. And if you go for 20oz sodas be prepared to pay for them shits. Direct from Coke or Pepsi is murder cause they want minimums and constants. So I phucks with a local warehouse and get'em for about 70 a bottle. So I can price them at 1.25 and sell'em all.
Most of the popular stuff you can get from Sam's Club... but as you'll see it ain't cheap there either... in fact you pay the same price everyone else pays, cept you reselling so you don't have to pay tax......"Directly"

When I started I was like Imma put all the good shit in it... then after I took a loss on the no sales... I just stick with Candy Bars, Chips, cookies, and gum in the snack machine.
Coke, Gatorade, Energy Drinks, etc in the soda machine.

I know this don't really set you off for doing your own thing yet. But it might be better if you throw some questions at me.

I get my machines used... from Classifieds, Craigslist, and Ebay.
Now I'm only fucking with the Automated joints with bill and coin accepters. I started out with them Mechanical ones, but you gotta put them in secure spaces that are pretty small. Serving an office of only about 20 to 30 people.

I'm going to put some pics up of the machines...

Some machines even have credit card acceptance readers... but you gotta pay a monthly for the service and then a transaction charge to the processing company. So I stick with cash.

Here in GA we have Vendors Supply and Vindstar they supply the Coffee and convenience store industry. But they have minimums and will only deliver... and then not to a residence.. You gotta have a office/warehouse. One day out the week you can go there and pick up.. but like I said I maintain a J O B.

Aight more to come... with photos.

Post your questions up. I got more info... just not real good and just typing without direction.
 
See that part is all about your negotiating ability. Imma put it like this:

Vending is quite similiar to slangin them thangs.. Cept you ain't got to kill your comp....well
you shouldn't kill them.... dead... more like take their business out with yours surpassing them.....

So if you mastered the King's English and have a basic understanding of personality traits you should be able to at least talk to someone about placing a machine at their location.

1st thing you do is scope the place out... you know like Casing the joint.
2nd does it have any machines? how about a convenience store? Restaurant?
3rd find out who to talk to... ask the maintenance guy first or security. Then move up.
4th Have a business card and maybe a brochure or flyer of your machine.. If used, just put
together something nice and get it printed in full color (laser, not ink jet)..... only get as many
as you think you'll need. don't have to be 100 or anything.....
5th Be prepared to talk about compensation/commission. I don't mention commissions at all
I usually try to sell the convenience of having the machine on location and then I'll throw in low prices. Also see if they want to subsidize the cost... this works when your going into a private company that owns the property. If they do want something for your machine being there, don't offer per sales commission, negotiate for a monthly stipend.
6th Find out what product your audience wants. I put the machines in, then place a magnetic
white board on each requesting desired item..... I found that out the hard way...

If you really want to take your business to the next level start looking at larger facilities.
Conference centers, parking lots, schools etc.. For these you wanna be registered as a business
at least. You'd be surprised at how easy it is to just incorporate... but for those that just want
the business in their name... just register with your county/city business office.

I got some questions I'll post and answer.
Got more post them.


i was thinking bout this. my main thing is how do you get the buildings? do you work out a deal?
 
If you really want to take your business to the next level start looking at larger facilities.
Conference centers, parking lots, schools etc.. For these you wanna be registered as a business
at least. You'd be surprised at how easy it is to just incorporate... but for those that just want
the business in their name... just register with your county/city business office.

I got some questions I'll post and answer.
Got more post them.

I should have elaborated on this a little more.
This is the part I am working on... I really feel phucked up behind this.. cause you know the saying
"Slow you Blow" well I did.... I'm here in Atlanta and when the new Atlanta Station went up with this massive underground parking lot... it didn't have any convenient stores or anything... and even now it only has like a full line grocery store that closes at 10 pm and maybe one other convenient store........ but anyway.. I wanted to get some machines in there... took my time about and now.. I see machines all over the phucking place...... you might be thinking well a larger
company prolly just went in and........got it.
Well in the business world... the big companies don't always win or move that fast.... You have just
as much of a chance to get into a business as the next man... you just got to have your shit on point. If you go in half stepping you gonna get stepped over or on.
But anyway...... All you have to is have your business legit... get some cards put up a good image of yourself.. and know what your talking about. It's only candy, cookies and soda... so how hard can it be. The maker of those products already advertise and market it for you.... you just gotta sell your potential client on your excellent service.

so here is the part everyone wants to know!!
For big contracts... You don't have to own the machines first... Go in there and put your best foot forward... if you get it, give them an estimated time frame that you will begin delivering machines.

Now you got 2 options...
1. put together a quick financial statement. How much you estimate you will make... do this by determining how many customers will frequent your machine... find this out before you even go in trying to get the contract..... anyway.... you can also get basic metric from the Veding Machine maker...... 10 customers a day will yeild this:::: 100.... 1000.....
Then you put on the cost of the machines...... Divide that by the term of the loan... say 36 months
Then show how your sales will exceed your expenses.... You gotta include the cost of product too
case of candy is about $14.00 yeiding $36.00 if you sell for $1.00 each... if lower use those numbers. Soda is about $16.00 to $18.00 a case and energy drinks are $27 to $30....
If you can show a profit over time... you'll get the loan..... even if you show a loss for the 1st year. This is a synopsis of the process... to give you an idea of how easy it is.... You will get a loan... it may take a few tries but it will happpen.
Plus you'll own your machines outright in the end.........so after the loan.. your profit increases even more.

2. Here's the best way! Got your contract in hand..... Contact Coke, Pepsi, and any other large beverage maker in your area. Tell them you want xx number of machines.... that's it!!! They'll ask you where and how long... tell them you have a contract for 5 years min.... oh yeah and make sure that if you do get a contract with a facility.. you negotiate for a minimum of 5 years on location.
They give you the Machines for FREE!!! yup For FREE. you just have to commit to their product only in their machine and to a minimum purchase... right now Coke is about 80 cases a month.... That's why I was saying you have to scope out the place to make sure you can move that many... but if it's a big contract with a good number of machines... you'll do over 100 cases a week.
Same thing with Pepsi and the RC cola folk here in Atlanta...oh yeah and Water Machines too

Once you got that deal with them you can get ones and twos for your other locations for free too.
And what I like best about these... is ... they are NEW machines and they Service them for all maintenance!!!
The drawback/catch! You gotta have a place to have the soda's Delivered, you gotta fill up the machines... Can only place one brand product.. hurts if you placing only one machine on location and want to put in other flavors.

Snack Machines are a little harder.... you can lease them... but I don't know any companies.. placing them for you.... Lance used to brand some... but I don't see them anymore and I had to buy mine....

Aight
 
Started with these in 2005:
Would only recommend these for small locations..... beauty shops... store front offices... I strongly suggest it be a secure location as these machine are easily vandalized.

combination1.jpg


Funny shit is... I used to be one of the Vandals... used to scheme on ways to get in vending machines... in fact, damn... I think I posted a way to get free drinks from the new coke machines back in 2003 or 2004... but like I said..... Business is like the game... Shit you used to do ain't what you do now. right.

Brochure
Code:
[URL]http://www.seagamfg.com/brochure/9-5combo.pdf[/URL]

This is the kind to own if you want to different kinds of beverages in one machine:
sp735rlg.jpg

I'm not endorsing any one particular manufacturer... Since I get most machines... Used.. I go for the price and functionality of the machine.

These are cool too... replaces the mechanical combos...

sp430rlg.jpg


More to come....
 
1. How do I go about purchasing a vending machine?
New: Beverage Dixie Narco http://www.dixienarco.com/comSite/Products/tabid/55/Default.aspx
coke5800_lg.jpg


Used: http://www.usedvending.com/refurbished-vending-machines.php

New Snack: http://uselectit.vending.com/Equipment/Cold__Frozen_Food/Alpine_VT5000/index.asp
image002.jpg


Used http://www.vendweb.com/Specials.html

2. How should I go about finding places for them?
I answered this above, but I'll touch on it again.
Just scope out places that look like it could use one.
Even places that have one.... watch it see if it's serviced
regularly.
Then get your game up and talk to someone... come correct and you'll be surprised at how receptive people will be.

3. How do I make money from them?
Um.... it's the old supply and demand concept. Put product in the machine the people want and they will pay for it.
Me, I don't overprice my shit... I keep it less than or about the same as any nearby grocery store. In more secluded places I only charge a dime to a quarter more. If you do the high price game they only buy out of desperation and your total sales will be low.

4. Where are some places where I can have them?
Any place there is power to run them... Shoot I've even seen them on Trucks.... at major events a guy pulls up in a 18 wheeler and sets up and during the event you can just walk up and buy what you want.
Looking for a picture now.

5. Am I the one responsible for refilling them?
If they are your machines, yes you are. Unless you hire someone to do it for you..

6. If one malfunctions somewhere, am I liable to pay people back whatever money they lost in the machine?
Yes, only if you want to offer great customer service.
I also put the almost expired stuff on the table for free. about 2 or 3 bags of chips and cookies... no biggie...


7. Do I have to set up a business in order to have vending machines? (set up a tax id number...etc)
You don't have to.. but to get in some places you need to provide proof of business.... to get in the warehouses... to get people to believe you are serious... it's very easy to do ... don't pay anyone to do it... just go down to your clerks office and do it yourself. Tax id you do over the phone nowadays or online and get the number almost immediately. To open a bank account for the business you need business license.... and you will need a bank account cause the bank may turn you away if you come in with mad change and a personal account.


8. Whats the earning potential of vending machines?
It's based on numerous things... location, price, ownership, purchasing etc..

More to come.
 
Watch out for all those ads about vending machine businesses.
They want to sell you machines and then tell you they will get you placement... then they take forever or put you in lousy places.

Get your own placement first then get the machine.

Also check this info:
Buyer Beware Of Flooded Vending Machines

Just like the used car industry, it is very important for buyers of used vending machines to look out for vending machines that were in the flood waters of the hurricane disaster.

These machines may start popping up on the market at very good deals but in fact be a nightmare waiting to happen.
Many of these machines have been sitting in water and the flood water has creaked into the insulation of the machines.
Things to look for are mildew around the foam installation and smell the machine cabinet to see if it has a odor of mildew.
Many of the machines can be very dangerous as the wires may corrode and cause problems if not fires.

We have received calls from sellers who claim to be selling machines for insurance companies that have paid off the claims that the bottling companies have filled.
The rights to these machines seem to be with the insurance companies and they are trying to sell them off.
They may sell them to different outlets and then you will start seeing them pop up on e-bay and other used vending machine websites.
We are not saying all machines are out of the flooded waters but as always be careful of who and what you buy.

<-- click for examples of scams
 
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Next thing will be liability insurance.

Yes you should get some... it's very low cost and protects most of your assets if a machine falls on someone or causes some kind of injury....
Get more if you want to be covered for someone breaking into your machine.
 
Tha's music bulk vending... I don't phuck wit dat... that's mad work and if you get a bunch of stops... you out all day. and with the price of gas nowaday, that shit eats
into your profit quick...
I did some research on them and I think each machine can yield around $25.00 and the price is usually fixed. Which means if the price of the product goes up you make less.

But I know a sister that does this full time... I think she may be a stay at home mom...
but she has like 100 of these and she says sees about 900 to a 1000 some months..
but not all the time.... so for her it's worth it. She does while the children are in school.


white guy at work started a service with those peanut and m&m machines. Said the biggest customers were the car dealerships......
 
Yo, my bad.... I almost ignored your question here and you started this thread...
Price of a startup snack machine with coin and bill validator is about $300 or more...
Brand new, them shits go for about $2500.

If your location is upscale go with a nice machine that won't give you problems.
They some out now that guarantee delivery... it's basically a LED beam that the products breaks when it sits in the catch bin. if nothing drops they can try again....


What's the price range of a start up vending machine, one that sells snacks. I have a good spot I can put one but don't know where I can get a good deal on a start up machine. Should you go with quality on your first one or start out with something less expensive?
 
Don't think small, if you got one location... find out if they have any others..
see if they will let you do this one as a trial with another going in about 30 to 60 days.
if so, go with decent machines......
You can even customize the machine to fit the decor of the environment you going in.

Remember when I said you can get big contracts... well if you good at negotiating, you can talk your way into full vending rooms... That is where you supply about 3 to 4 machines in one room and get to set it up anyway you want...
Put in a flat panel tv and a table with some chairs....
soda machines 2
snack machines 2
food machines 1
coffee machines 1
ice cream machines 1

the possibilities are endless and is only limited by your imagination and ability to negotiate.... getting the money is easy .... when you have contracts in hand...
Shoot..... get a big enough contract and you can PM me..... we might be able to do some bidness together.

Check this last piece out....
What you vend is also limitless.... You see DVD's now... you get those machines for about 5 to 7 g's... go with a franchise and the cost could be higher or lower...
Branded machines... Red Bull, MM's,
Machines that dispense IPODS, ProActive, anything...
basically they all Snack Machines with slight mods to accomodate the packages...

You can price items as high as you want on the new machines..... but if you go with high price items you better get that Credit Card acceptor.

I can see it now... Up Top, in the weed spots... be plain boxes in machines in the back of the stores... you insert a 20 in and your box drops.....
Hmmm I wonder how the cops would handle that... prolly have to wait to see who
fills it up... but then the store would be closed so......... nah I'm staying legit..



What's the price range of a start up vending machine, one that sells snacks. I have a good spot I can put one but don't know where I can get a good deal on a start up machine. Should you go with quality on your first one or start out with something less expensive?
 
I use vendingworld.com. They are out of Cali and the freight is expensive but they are a good company.

You are getting a lot of good info in this post. The only thing I will add is gatorade machines are good because it's nothing to double the price you pay from a wholesale club, make a good profit and still charge reasonable prices.

I get gatorades from Sam's for .52 each and I sell them for $1.00 at my rent free locations and $1.50 at the locations where I pay rent.

The little cheese and peanut butter crackers are good too because I get those for .17 cents and sell them for .50. That's almost tripling your money. The key is location and quantity. You want a lot of machines in good locations and it can quickly become your only hustle.
 
Mane you got me excited i can't even sleep thinking about the possibilities with this hustle! I appreciate ya unselfishness.
 
Just some more of my opinion and thoughts here. Will post up some links soon. Just have to fish through it all.

For all those that have the gift of gab.... I suggest you start hitting these drink manufacturers up. Arizona Tea out of Brooklyn is ripe to clean their image up... They already provide refrigeration to some stores to carry their products... I say someone compose a nice letter spelling out the benefits of branding their own vending machines. And see if we can't get a few of those.

Oh yeah, and check this out..... I just came up with another idea..... If anyone does this.... why not post back up here how we can eat too. I'm putting the idea out but I don't really have the time to pursue it... but if someone does get it going.. .come back and post up so we can get it next.

Check it..... Get a deal with the Airports... put Machines on the inside of the terminals that contain Deorderant, Toothpaste, etc... That wouldn't be a conflict with the other businesses in the area as most do not sell this stuff. Think about it.. .all you need is like 1 or 2 machines in each terminal.. no hourly wages, TSA ain't got to worry about folk carrying on the wrong shit.... make your prices competitive but reasonable....
You can use the current Snack Machines on the market not mods needed... But again, if you good with words.. you might want to approach.. Gillett, schick.. Colgate, mennen to see if they want to sponsor/brand a machine... It's like wrapping a bus... get your shit paid for 2 ways....

Tha's it for me right now....
Let's keep this going.....
 
Thanks for the info. What are some of the drawbacks of owning vending machines? It sounds a little too good to be true.
 
What about Vendstar 3000's?

i'm looking into buying a guys locations and machine 25 locations for $2900?
 
Good, good, good info. Negroes are truly sleeping on not only your information, but your ideas! Excellent post man.
 
I'm not getting into vending machines, but I can appreciate the free info being given by im704. Very interesting. Seems like an honest, detailed account. Don't sleep on the info if you want to get into this.
 
I just stumbled across this post. I am not interested in a vending start up but man the info that im704 put out is golden. Nice post.
 
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