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the real deal with vending?


devster
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I was talking to the woman that manages my moms office building. She said that she has known people in vending and they've had a hard time making profit in the last few years. I'm looking at bulk more than I am at full line but is she correct or just has a bad example?

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I'm not trying to say that its a bad industry. Its just that I have one machine on the way and i'm trying to decide if I should pick up 6 more that I have available. I'm a little bit nervous but I guess that happens to everyone when there trying to start a business.

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Devster,

Here is the thing..Depending on what you paid for your machines and the other cost of goods, taxes, licenses,etc...     You should be able to get your machines paid for and be "making a profit" within a year +/-  If the locations are producing quarters this should be the case.     Not a bad business since the buy in can be minimal.

Now compare that to any other business venture..the upfront cost is usually large, you have to have $$ in the bank to live for a while so that the business can get established..oh and when the gov't calls for the fees, licences, etc..they want thiers..wether you have made any money or not...

As any in this forum will tell you, it is all in the location..and the nay sayers will ruin you if you let them...

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I think with the down turn in the economy now bulk vending definitely has its place!  Its a psychological thing with alot of people IMO.  They would rather spend a quarter than a dollar for candy. Makes sense to me. ( no pun intended.... ;) )
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devster--

Jay-son makes a very good point. The start-up costs for this business are minimal compared to other businesses.

I wonder if everyone else has heard negative when talking to family and friends about starting up in thsi business. I heard the same from a well-meaning relative, who "read in an article somewhere that if you invest in a vending business, you will lose money."

You are in the right place to test the waters because you will get solid information here from people who are doing it, not reading articles about it. There are many successful full-time vendors here and plenty of newbies (including me) who share up-to-date information.

Also, there's no rule that you have to buy several machines. You can start with just one. Buy it, place it, and give it a few months to see how you like it. The deals on machines will always be out there when you're ready to buy more.

Try placing just that one yourself. You might surprise yourself. Check out the Vending 101 tab on the homepage for the thread on introductions and scripts, and tons of other excellent information for starting out.

If you're stressed about it that means you're excited about it, so go for it! We'll be reading your post about your first placement before you know it.

Good luck!

Barb

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I was talking to the woman that manages my moms office building. She said that she has known people in vending and they've had a hard time making profit in the last few years. I'm looking at bulk more than I am at full line but is she correct or just has a bad example?

One of the problems is the reluctance of vendors to raise their prices, they fear losing a location more than money!

Before I started in bulk I looked at a couple of larger full lines, and for the same product at different locations they had different pricing. Why was my question, and the answer was the fear of losing the location. One set of financial's had showed that this particular vendor was losing money for three years in a row. I wonder why? :X

The deal fell through probably more to do with me telling him what was wrong with his business. His bulk product cost was > 55%, add on to this labour gas and everything else he was losing money on the part of his business that had the potential for greatest profit.

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devster

That info could also be disinfo. Many vendors play down the money they make for several reasons. It may be to discourage competition or to earn pity from the account not to throw them out or balk at a price increase. Try one to see how you like it. Give it a few months and keep reading & asking questions. There are plenty of us here that have been at it a year or less. For some it is a hobby/part time job and others have made it into a full time job. It is not for everyone but most one here would not trade it for anything. The more machines you get the easier it is to buy more of them per say.

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I have not seen any affects. TBird makes a good point, and I agree with him. Quarter, and even .50 machines will really not be affected. As things get worse, parents would rather buy there kids a handful of M&Ms instead of that 1.50 candy bar, and a few .50 or $1 toy instead of that expensive WalMart toy.

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