Is a Vending Machine Business Right For You?

Vending machines are big business. But this does not mean a vending machine business is right for you.

According to the Bureau of Labor Statistics, about 48,000 people work in the vending machine industry, with about 18% of those owning their own vending business. At one time I was both an employee of a vending company and the owner of my own vending company.

My Personal Experience

As an employee of a vending company I had a regular route where I serviced about 100 food and beverage machines. On any day I would normally have to deal with machine maintenance issues, customer refunds, expired food, and being asked to get my machines off the property, that day.

As an employee I took all of this in stride. It was just a job.

Several years later I decided to buy an existing vending machine business. I then learned just how hard it was to get machines placed in profitable locations. I also found out how expensive those "little" maintenance issues were. For example, to replace a dollar changer was going to cost me several thousand dollars. The sales at that particular location did not warrant that kind of expense, so I had to pull two snack machines and one drink machine to allow another vendor to come in.

I also dealt with vandalism on numerous occasions. At one time I got a call from my local airport where I had placed a phone card machine. I was informed that my machine had been broken into. I lost over $300 in inventory and about $100 in cash in that one incident.

Challenges To Success

There are essentially six challenges you will face in your drive to make money with a vending machine business:

1. Getting your machines placed in profitable locations

2. Maintaining and servicing your machines

3. Loss of product due to theft and spoilage

4. Labor and vehicle expenses associated with servicing machines spread around town

5. Liability issues related to machines and food products

6. Vandalism of machines

If you can generate enough profitable sales to cover these expenses, plus the value of your time, effort, and capital risk, then the vending machine business may be right for you.
Keep in mind that there are companies that specialize in locating and servicing your machines, but their fees may not be realistic based on your projected sales and profits.

Making A Decision

I'm sorry I may sound a bit negative about the vending business, but believe me, I speak from hands on experience as both an employee and owner in this industry. The idea of making money from your little profit centers spread all over town sounds great--but reality bites.

Do some solid research in this business before you jump in. At the very least, go to work for a vending company for a while and see what's involved. I have about 75 free articles on home business you can read at the site listed below.

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