Jump to content
hyjyljyj

Highest income vending option?

Recommended Posts

Hi all,

 

Brand new to forum and vending in general--thank you for having this resource, I have already leapt forward miles in my education in a short time.

 

I became interested in bulk candy vending years ago when I didn't have any money to invest. Now that's about to "change", and I still feel the vending business model fits me best in every way. My concern is that the small amount of change received in each candy machine would require having hundreds of locations in order to generate the level of income I'm aiming for, roughly 6-7k net profit per month. So my question is, what types of vending are known for producing the best net income while consuming no more than two weeks per month of solid, full-time daily effort? (My wife and I would like to take an occasional vacation). My goal is to be 100% realistic, work hard, have patience, serve the public, maintain integrity, listen and learn from you experienced folks, and build slowly if necessary. Purchasing necessary equipment to build quickly will not be problematic. Thanks

Share this post


Link to post
Share on other sites

Hi all,

 

Brand new to forum and vending in general--thank you for having this resource, I have already leapt forward miles in my education in a short time.

 

I became interested in bulk candy vending years ago when I didn't have any money to invest. Now that's about to "change", and I still feel the vending business model fits me best in every way. My concern is that the small amount of change received in each candy machine would require having hundreds of locations in order to generate the level of income I'm aiming for, roughly 6-7k net profit per month. So my question is, what types of vending are known for producing the best net income while consuming no more than two weeks per month of solid, full-time daily effort? (My wife and I would like to take an occasional vacation). My goal is to be 100% realistic, work hard, have patience, serve the public, maintain integrity, listen and learn from you experienced folks, and build slowly if necessary. Purchasing necessary equipment to build quickly will not be problematic. Thanks

 

If you are going to stay strictly bulk - I would suggest going with toy racks, sticker machines. spirals etc

 

There is not much profit as you have noticed in candy machines esp charity locations.

 

If you are wanting, willing to - mix it up and add some full line locations. i.e. soda / snack locations.

 

Stay away from the combo units, stay with quality machines,

Share this post


Link to post
Share on other sites

Snack and soda will probably give you the best net income, but will require significantly more money up front to get started. If you decide to get started in bulk, forget about candy. Do 1" capsuled toys and tattoos/stickers and maybe gumballs. Price the toys and stickers at 50 cents and gumballs at 25 cents (I actually have one place where nerds gumballs are selling pretty decent at 50 cents!).

Share this post


Link to post
Share on other sites

I would imagine that by the time you are making 6k - 7k of profit, you are hiring someone to service the machines, no?

 

Do you mean $200 / week / machine or do you mean $200 / week / soda + snack?

 

You can get that much money with only 3 or 4 locations?  What kind of locations?  

 

I'm also new, just testing the waters.  

Share this post


Link to post
Share on other sites

I'm talking $200 per location, so that would include any soda or snack machines you have there.

 

I don't think you'd be hiring somebody at $6-7k per month. Though I still haven't gotten into full line, I would think a single person could handle the locations that would be needed to achieve that level of income. But, you'd definitely be working full time at it. It wouldn't be a part time job at that point. Between servicing the locations, bookkeeping, inventory management, and repairs, you'd be busy every day.

Share this post


Link to post
Share on other sites

everybody knows the highest and least work of any vending period is gambling..BUT its not legal everywhere so it depends on your location..

 

A good gambling stop might be a little hole in the wall mexican store with 3-4 8 liners or pokers in back room, service once a week in about 20 minutes ,walk away with  7-800 bucks..

 

 

I know somebody in GA that has about 15 of the legal GA nudge's and he clears about 25K a month working one day a week..but he has high taxes and there is now no more licenses offered so its closed for newbies in GA.

Share this post


Link to post
Share on other sites

How about those games that sit on bar tops (with the touch screens)?  I think those are gambling too, but seem to be everywhere so maybe not?  Do the bars just buy those?  I imagine they don't need a vendor.

Share this post


Link to post
Share on other sites

How about those games that sit on bar tops (with the touch screens)?  I think those are gambling too, but seem to be everywhere so maybe not?  Do the bars just buy those?  I imagine they don't need a vendor.

If they give out a cash prize, they can be considered a gambling device. If not, then they're just an entertainment machine like a pinball machine or arcade game.

Share this post


Link to post
Share on other sites

You're asking two different questions. The title of the thread says highest income option, but your post includes the caveat "only working 2 weeks a month". Given that, I think bulk toy and cranes are far and away your best option. And contrary to what you've read here, your goal is attainable with bulk candy. I personally wouldn't recommend it - but it IS attainable.

You would need 460-500 solid locations averaging approximately $30/month gross. Not happening overnight. But if you were a locating machine, dealt only with quality equipment and stayed diligent with culling your bottom performers, I dare say it would even be possible to net your goal working little more than two of every six weeks.

The key is even 5-star bulk locations only need service every 3 weeks. But you get a 5-star full line location and you're married to it.

Share this post


Link to post
Share on other sites

This is good advice. I once spoke with a used equipment salesman and he told me that on average I should expect to gross $200 per location per week, targeting blue collar factory break rooms with snack and soda machines. These are numbers coming from a salesman, so they're probably a little optimistic. Let's say your cost of goods is 40%, in my area you've got 7% sales tax, and let's say 1% for fuel cost, and 5% for spoilage. I'm just guessing on these numbers, but I doubt that I'm too far off from reality. So, assuming my numbers are somewhere close to reality, you're netting 47%. With no commission, you're netting $94/week per location, or $376/month. Let's say you're paying a 20% commission to the location. Now you're netting about $216 per month. To net $7000 per month, you'll 33 locations like this. Servicing 33 locations in 2 weeks might be realistic, that only works out to 3-4 locations per day if you work 5 days per week.

 

Now, I don't take a salesman's word on anything. If he says $200 per week, I realistically expect $100 per week. We change our numbers to reflect that, and now we need 66 locations to net $7000 per month. That takes you to 6-7 locations per day if you're working 10 days per month. That's probably something you could do. However, getting 66 locations will be a challenge for somebody just starting out. It could take many years to accumulate that many locations.

 

A $100 per week for soda and snack is more realistic. I would say you would want to at least net $150 per account which is realistic without landing big accounts which is hard to do when you start out. So you are looking at 47 accounts if you just do soda and snack machines and this is with low volume accounts which you can service every 10 days or so.  This number could go up also if you have a few really good accounts doing $1000+ a month.  Now you can also do coffee etc to get to these numbers and have less accounts.

Share this post


Link to post
Share on other sites

I don't know about you guys but every time I get 300 miles out of town,  I get a call about a machine down - I swear I could almost set my odometer by it  ;D

 

Yes you can make 6K to 7K a month in full line with some good accounts working two weeks - but actually getting away for those other two weeks will be a challenge.

Share this post


Link to post
Share on other sites

We have a front runner for post of the year.

 

Thanks Mission - high praise coming from you.  It reinforces the fact that I'm approaching this business with the right mentality.

Share this post


Link to post
Share on other sites

my son and I are new to the biz we have a few full line machines and everytime we are laying on the floor with a spot light on our heads trying to fix a refridge problem in a small space we always chant vending is a real job it is not a piggy bank to collect money from it is hard work why are we in vending? because we still love doing it even with the heavy lifting, the car bumper dragging the ground with soda load, the tight spots, the customers beating on machines it is still interesting and satisfying to solve our own problems and feel excitement when we have a pocketful of quarters and $1      although the bank tellers run when I walk in the door with a couple hundred $1 bills they are not allowed to use a money counter they have to count by hand haha     anyway listen to the experienced venders advice and do it for your own satisfaction not for a get rich quick scheme

Share this post


Link to post
Share on other sites

Hi all,

 

Brand new to forum and vending in general--thank you for having this resource, I have already leapt forward miles in my education in a short time.

 

I became interested in bulk candy vending years ago when I didn't have any money to invest. Now that's about to "change", and I still feel the vending business model fits me best in every way. My concern is that the small amount of change received in each candy machine would require having hundreds of locations in order to generate the level of income I'm aiming for, roughly 6-7k net profit per month. So my question is, what types of vending are known for producing the best net income while consuming no more than two weeks per month of solid, full-time daily effort? (My wife and I would like to take an occasional vacation). My goal is to be 100% realistic, work hard, have patience, serve the public, maintain integrity, listen and learn from you experienced folks, and build slowly if necessary. Purchasing necessary equipment to build quickly will not be problematic. Thanks

I know this post is 2 yrs old but it could help someone like the OP.

 

If you could get 1500 single head gumball machines placed and service them every 90 days, I think this would generate 6-7k net per month.  By doing 500 locations a month over 2 weeks this can be attaianble.  I know its alot of work but when I had my route of 400 gumball machines I could do 250 locations a week (6 days) and be done by Wednesday the following week.  Or you could do the 1500 over 6-7 weeks and take 6-7 weeks off to do whatever.  Hope this helps.

Share this post


Link to post
Share on other sites
On 10/11/2013 at 2:23 PM, Rick said:

Given these parameters, I think 4-5K/month net is a more realistic goal than $7k.

That being said, I would challenge you to answer this question as well: Does it matter and what are you using that information for?

Only reason I ask is because these forums are chalk full of posters who had 2-3 posts (much like you) asking some form of the question HOW MUCH CAN I MAKE? And that's where the posts seem to stop. The vendors that seem to stick at this (just my opinion), the money almost a secondary issue. They view building a route like raising a child. $5 in a bulk machine isn't viewed as defeat, but a challenge. Why did it happen and is there anything I can do to fix it? Why did they say no when I mentioned the commission rate and do I need to examine that? etc.

We all like making money but if you're not willing to climb over, go around or break through obstacle after obstacle...AFTER OBSTACLE toward building a successful business? The dollar amount that's possible is irrelivent. If your focus is on process and function the money takes care of itself.

I know this is an old thread, but I think I might just frame this and put it on my wall. Applicable to more than just vending, but any kind of self-built business situation.

 

The bottom line will always matter, but tenacity and the ability to roll with the punches and overcome, will make you go far.

Share this post


Link to post
Share on other sites

LOL thanks, I get the whole tenacity and commitment thing. As part of that, I was doing something known as "due diligence": trying to ascertain the realistic income projections for the vending business model. I got my answer when I read this:

"The dollar amount that's possible is irrelivent [sic]."

If you really believe that constitutes savvy business insight, then you're no smarter than the other fool who wrote it, or the ovine dolts who endorsed it. If you believe due diligence is something worthy of ridicule, you've found the ideal business model for remaining broke, as well as a community of like-minded folks who will share banal platitudes to help you feel better about it.

Thanks for the free advice about how to go far in business. It's questionable, though, why you would think you're a credible source for that, when your idea of how to go far in business involves diving in without studying the business model, and then forever chasing cheap machine parts and selling penny candy for whatever pocket change you may get to pay for them.

Still, since you like free advice, here's some for you: Memorize the best success one-liners to use on your family when they ask why there's no food on the table and why you STILL can't seem to make ends meet.

Good luck to you, man. You are going to need it.

 

Share this post


Link to post
Share on other sites

Currently the smaller independent vendors we work with are happy with accounts that generate $40 a week per machine.  These are retired people or parttime vendors.  They buy a drink and snack set for $1600, get a location for $500 ($2100) earn $320 a month and hope to keep the spot for 2 or 3 years $11520 beats the stock market. Locations with 40 emp to 70 emp

Larger companies want $100 per week per machine. Normally use bottler machines for the drink and purchase good snack machines with cc readers.  $3000 and pay for a good location 900.  total $3900 end of 3 years $28,800.  Locations with 90 to 150 emp (mix of blue collar and office)

 

  • Like 1

Share this post


Link to post
Share on other sites
On 10/9/2013 at 9:32 PM, hyjyljyj said:

(BTW thanks very much for the sincere, direct, no BS responses. You guys are the coolest. If the irony has to be that I end up no longer being part of the community because of not being in vending, I still appreciate the thoughtfulness of the forum and you still would be doing an awesome service by keeping me from wasting a bunch of time and money.)

I's been four and a half years. How did it work out? Your last post seemed quite angry.

  • Like 1

Share this post


Link to post
Share on other sites
On 9/2/2017 at 11:36 AM, hyjyljyj said:

LOL thanks, I get the whole tenacity and commitment thing. As part of that, I was doing something known as "due diligence": trying to ascertain the realistic income projections for the vending business model. I got my answer when I read this:

"The dollar amount that's possible is irrelivent [sic]."

If you really believe that constitutes savvy business insight, then you're no smarter than the other fool who wrote it, or the ovine dolts who endorsed it. If you believe due diligence is something worthy of ridicule, you've found the ideal business model for remaining broke, as well as a community of like-minded folks who will share banal platitudes to help you feel better about it.

Thanks for the free advice about how to go far in business. It's questionable, though, why you would think you're a credible source for that, when your idea of how to go far in business involves diving in without studying the business model, and then forever chasing cheap machine parts and selling penny candy for whatever pocket change you may get to pay for them.

Still, since you like free advice, here's some for you: Memorize the best success one-liners to use on your family when they ask why there's no food on the table and why you STILL can't seem to make ends meet.

Good luck to you, man. You are going to need it.

 

It’s funny I never saw your reply to me until now, almost a year later.  I don’t know if you’re even around anymore, but I’m going to respond anyway, just for clarification purposes.

I think your reply indicates that you didn’t  understand the purpose of Rick’s post. His statement was by no means that money doesn’t matter, his statement was that money doesn’t matter if you don’t have the will or tenacity to actually sell anything. $1000 potential dollars mean nothing if you don’t want to put in the effort that’s necessary to earn them. Rick “got real” with you (with many softening caveats, I might add) and spelled out for you exactly what you needed to succeed.  He didn’t scold you or even call your question unreasonable, he was simply trying to help you refocus on what you would need for the long run.

The fact that you couldn’t take a no nonsense, factual reply laying out for you what you would really need to succeed, indicates the very lack of ability to roll with the punches that Rick was worried about.

He wasn’t scolding you, and I wasn’t liking his content because it somehow put you down. He was giving good advice and providing you the opportunity to refocus your thought process, and I liked what he had to say because it was a kick in the pants for me.

Money is a reasonable pursuit, so often it’s how we go about getting it that makes us who we are. Who are you?

I hope you found success it whatever field you eventually chose to pursue.

Benjamin

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×