Hi new here and new to the biz. Well almost new.

[elhefe7886]

So me and my mother have recently talked about starting some kind of side business to bring in some extra cash. I'm strongly considering vending machines. I feel like there is a ton of apartments in my area that do not have machines and think this would be a good market to tap into. I guess where my question is would be what's a good machine to start with? I'm looking at some cheap ones from craigslist or am I better off with something newer because of maintenance? I saw the futura combo machines and I think they are gorgeous and everything I'm looking for but at 4000 they are way out of my price range. I found someone on Craigslist who says they have them brand new for 1500 but they seem like a scam. I am an electrical engineer so I am very handy and can probably do most repairs myself. I would love to be able to have a machine I can monitor remotely (via the internet) any suggestions on something that would be good to start with under a 1000? Any brands I should be looking for? Any help would do. Thanks guys.

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[Sweetird]

Hello, I am new also my advice read all the older post this was quoted by a veteran on the board "please, please don't buy anything unless it is made by Automatic Products, Crane, National Vendors, GPL, Dixie Narco, Vendo, Royal, or USI/Wittern Group. Anything else and you will regret". Also the the older threads gives you advice on combo machines, the older posts give you advice about placing your vending machines in apartment buildings because of the risk of your machines getting vandalized.

My advice is read the older posting, it may take a while but it's very informative.

[elhefe7886]

Hello, I am new also my advice read all the older post this was quoted by a veteran on the board "please, please don't buy anything unless it is made by Automatic Products, Crane, National Vendors, GPL, Dixie Narco, Vendo, Royal, or USI/Wittern Group. Anything else and you will regret". Also the the older threads gives you advice on combo machines, the older posts give you advice about placing your vending machines in apartment buildings because of the risk of your machines getting vandalized.

My advice is read the older posting, it may take a while but it's very informative.

Thanks! That's a huge help.

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[Sweetird]

Thanks! That's a huge help.

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You are welcome I am still learning and besides we are all here to help each other. Also I read that you really don't need new machines if you could find good quality used machines.

[AZVendor]

Sweetird is correct in that there is a large amount of information previously posted urging vendors to avoid imported machines due to lack of factory support, technical help and parts availability.  You will see lots of machines on CL, Ebay and on internet websites that are flashy, with credit card readers, with internet monitoring, that might include locations, may suggest US support/manufacturing, that boast of how much money you will make and basically promising you the moon.  If it's too good to be true it probably is.  Those suppliers are preying on the unknowing and the human tendency to like what they hear.  Beware, you already think Futura machines are "gorgeous".  You're falling into the trap of beauty before substance.

 

You will be better off if you use equipment made in the USA, with a couple of exceptions, because those manufacturers do provide technical support and parts support.  There are also many factory distributors across the country that represent and support some of those lines as well as some aftermarket parts distributors for the major US brands.  

 

The reality is that the most cost effective way to operate vending machines is with single product machines, specifically starting with soda only.  If you're looking at apartment complexes, soda will be easier to deal with.  You want to learn one type of machine first and all the ramifications of operating them before jumping into snacks or other vending.  Soda machines are easily available as used in every market - some for good prices.  Don't get caught up in technology (might be hard since you are an engineer), keep everything simple until you completely understand the industry.  Technology, while very helpful in the right scenario, is very expensive to implement and does not give a good return on your investment that you need when starting out.  Learn the business the old fashioned way first, then add the technology later if you still see a benefit.

 

The apartment locations and other public locations will be exposed to vandalism and steps can be taken to mitigate it, but thieves are all around us.  It's not a matter of if, but when a public machine will be vandalized.  Since you are looking at CL, use the keyword "vending" and you will see lots of machines and maybe a location or route for sale from time to time.  After reading past postings in this forum, when you see a machine you're interested in, post the model of the machine or a link to the ad and we can evaluate it for you.

[Vending How Chris]

I wanted to add to what AZ said about starting with a single machine. Soda expires between 2 months to a year depending on whether or not its diet and chips expire within 2 months. A soda machine has a lot larger of a buffer for expired product so they are much more forgiving to learn with, especially if your location is slow.

In general, your profit margin is so low when you figure in all your fixed costs that you'll be underwater if you spend too much money on the machine itself. Instead of a sexy machine, go for a cheaper but solid machine like the ones described above.

[moondog]

Yep,

 

Soda only accounts are the best way to get started - less inventory, less waste and probably more profit.  It generally requires at least five snack machines before you can manage your inventory effectively.

 

All of this stuff has been "chewed and rechewed" in this forum so spend some time reading before opening your wallet.

[elhefe7886]

Thank you all! I will report back with any machines I may be looking into now that I have all this awesome info.

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[Walta]

I do want to discourage you but I want you to be realistic.

 

Fact of life

 

1This is tuff and very completive business and you need volume to turn a profit.

2 Combo machines do not hold enough product to operate profitably.

3 Newbie operators are not likely to get high sales volume locations.

4 If you can buy a machine less than 1/3 of its new price it is likely obsolete and new parts are unavailable.

5 You are unlikely to earn back the money you will spend on equipment in the next 3 years even if you buy used.

 

Please do the math before you spend your money.

 

Walta

[elhefe7886]

I do want to discourage you but I want you to be realistic.

Fact of life

1This is tuff and very completive business and you need volume to turn a profit.

2 Combo machines do not hold enough product to operate profitably.

3 Newbie operators are not likely to get high sales volume locations.

4 If you can buy a machine less than 1/3 of its new price it is likely obsolete and new parts are unavailable.

5 You are unlikely to earn back the money you will spend on equipment in the next 3 years even if you buy used.

Please do the math before you spend your money.

Walta

On average what would you say a soda machine profits a month?

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[elhefe7886]

What I'd like to do is start with one soda machine in the building I live in. My idea was to place it near the laundry room and if possible I would like the machine to work as follows.

If you put a 5 dollar bill in and buy a 1 dollar drink it will dispense 4 dollars in quarters. But if you don't buy a drink and just cancel it will give you your 5 back.

The purpose of this would be to intice people to buy a drink in order to get change for the laundry. Is this even possible?

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Also there is about 80 people in my building.

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[AZVendor]

Since this is your first machine, why don't you concentrate on being a soda vendor and only providing soda and change from that without regard as to how people get change for the laundry machines that you don't own.  Keep it simple for yourself.

 

You would need a multiprice machine that can be programmed for force vend.   That prevents people from using your machine as a bill changer.  Then you want to set the "escrow" option to "return last bill."  You will also need a 4, 5 or 6 tube coin mech to hold enough quarters.  If you still experience quarter starvation in your machine then you can turn off the $5 acceptance.   If the laundry equipment takes $1 coins, just use a coin mech that gives dollar coins as change and then you will not wear out your coin mech as fast, but you will have to obtain dollar coins at the bank to refill your coin tubes.  Paying $4 in quarters constantly will wear the mech out very quickly.