Vending is an all-cash business that works
for you 24 hours a day
Have you ever popped a quarter into a machine for a handful of candy? Or quenched your thirst with a soda? Or cured a splitting headache with a packet of pain medication from a machine in the movie-theater bathroom?
If you’re like many people, you have. Vending machines tempt us with their sweet treasures and convenient necessities. But have you ever thought about making money with a vending machine, instead of spending it?
According to the National Automatic Merchandising Association (NAMA), the vending industry is estimated to be a $19 to $28 billion industry. It’s a growing industry, thanks to endless opportunities for products to vend and flexibility for placement of vending machines or services.
“Vending is recession proof,” says Carolyn Robertson, office manager for U-Turn vending. “Everybody always has a quarter in their hand or pocket or purse. People are always willing to spend a small amount for something they want.”
Vending opportunities appeal to anyone looking to start a home-based business for many reasons, Robertson says. “You’re your own boss and you set your own hours, so you work whenever you want to,” she says.
Larry Carvano, owner the TheBackRubber.com, a company that offers vending massage chairs, says vending offers flexibility for anyone looking to make money.
“A lot of people get into vending as a way to diversify and supplement their income,” he says. “You can do this full time, although most of our customers do it on a part-time basis.”
And vending offers another unique prospect for business owners: “It’s an all-cash business,” says Vincent Cami, owner of The Back Massager, who says vending has never been more popular. “I hear from people all the time who’ve been laid off, who are losing hours at their jobs and are looking for a way to make some extra money. This is a great way to do that.”
Is a vending business right for me? How do I get started?
First, do your research. “There are a lot of scams out there, so you have to be careful who you work with,” Cami says. You want to make sure the company you’re working with is reputable.”
“Check with the Better Business Bureau in your area,” says Robertson. “If they are not a member, that usually means something (and not something good). Make sure it’s a company that’s been around for a long time.” A company that’s registered with the Federal Trade Commission, such as TheBackRubber.com, is also a better bet than a company that’s not, Carvano says.
And it helps to be able to see the product in person if possible. “Check out the product and see what the quality is like,” Carvano says. “It’s better to see the machine or product in person than just viewing it online on a website, because online, you never know what you’re going to get.”
Cami also suggests really getting to know the person or people behind the opportunity before you do business with them.
“Check references,” he says. “Meet with them in person if you can. Make sure you know who you’re dealing with and make sure you’re comfortable with them.”
How do I decide what to sell and where to put my machines?
Along with researching the people and the company, you’ll need to narrow your focus on what you want to vend. The possibilities are almost endless. You may think of vending machines that sell candy or sodas, but think again; your vending route could feature anything from high-end massage chairs to energy mints or even curling and straightening irons for quick bathroom touchups. You can vend personal products like first aid items or small toys, temporary tattoos, or even baseball cards.
“In your decision on what type of vending, consider the frequency of service, profit per vend, product shelf life, best locations for each type of machine, and what your competition is,” says Karen Scott, vice president of production and sales for VendingConnection.com, which sells a vending start-up kit for new business owners.
After choosing what you want to vend and the company you want to work with, you’ll need to find ideal locations for your vending machines or services. NAMA suggests looking at your local Chamber of Commerce membership list and reading through newspapers and the Yellow Pages in your area to get started.
Depending on the type of product or service you’re vending, you can place your machine anywhere, from a local pizza parlor to a mall or movie theater. If finding locations seems daunting, you can work with a locator who, for a fee, will help you secure vending sites.
“There are professional locating companies that can help you find locations across the United States,” says Robertson.
Just like with the opportunity itself, it’s important to make sure you feel comfortable with the locator should you choose to work with one, says Cami. You’ll also need to be sure the locations you choose are lucrative—and make changes if they’re not, he says.
“The best part of this business is, it’s portable,” he explains. “If a location is not providing the kind of income you want, just move your machine somewhere else. It’s not like you opened a coffee shop and if it’s not profitable, you’re stuck there. You can take this business anywhere.”
What are my responsibilities as the owner of the vending route?
“If you’ve purchased machines with products in them, you just need to visit the locations once a week or every few weeks, collect the money, and fill the machine up,” Robertson says. “It’s an ideal home-based business because you’re only out occasionally to fill the machine and empty the money.” For opportunities like massage chairs, there’s no overhead or inventory, Cami says. You simply visit the locations regularly to collect the cash.
So what can I expect to spend on a vending opportunity?
Vending start-up costs greatly depend on the type of product you’re vending. According to Scott and VendingConnection.com, you can spend as little as $40 for one candy machine or upwards of $3,000. Robertson says U-Turn opportunities start at about $7,000, while Cami offers one massage chair for $1,495.
“I have options as low as $2,250 or as high as $25,000,” says Carvano. “It really depends on what you want to do. There’s a big range on what you can invest.”
And, according to the experts, anyone with the willingness to invest can find success with a vending business.
“This is not a get-rich-overnight proposition,” Robertson says. “It’s a business and you’ve got to work at it to make it work for you. If you buy the machines, but they sit in your garage, you’re not going to make any money.”
As Cami puts its, “If someone tells you you’ll make a million dollars, it’s a scam. This is way to make supplemental income, although you can take it as far as you want. I look at it like, if you make even $200 or $300 a month, you’ll have a return on your investment in just a few months and everything beyond that is all profit.” Success, he says, comes from having the right attitude.
“You have to have the mind of an entrepreneur,” he says. “You have to be positive and believe in yourself. This business is so easy, anyone can do it; but you have to work and you have to be persistent.” ♦
Why Choose Vending?
+ Vending is a $46 billion industry
+ Immediate cash flow as soon as your machines are in place
+ Products work for you 24/7
+ It’s a part-time or full-time business—your choice
8 of the Top Vending Opportunities for 2010
Revive | www.EasyVendingBusiness.com
U-Turn Vending | www.UTurnVending.com
Beautiful Vending | www.BeautifulVendingUSA.com
TheBackRubber | www.BackRubber.com
VendStar | www.VendStar.com
DVD Now Kiosks Inc | www.DVDNowKiosks.com
Alco Buddy | www.AlcoBuddy.com
The Back Massager | www.TheBackMassager.com
Is a Vending Business Right for Me?
VendingConnection.com, which offers a Vending Start-Up EKit at www.VendingConnection.com, suggests these 10 questions to ask yourself before starting a vending business:
1. What is my motivation?
Figure out why you want to be your own boss in the first place and if a business is the best way to achieve that.
2. What are my goals?
Decide where you want your business and income to be in six months. How about a year? Five years?
3. What am I willing to give up?
Determine what sacrifices, if any, you will need to make to ensure you have the time to devote to the business.
4. What is my work style?
Do you need motivation to go out and do the work, or are you a self-starter? If you need motivation, where will you find it?
5. What is my timeline?
Maybe you want to pay off your initial investment slowly, or perhaps you’re looking for a quick profit. What is your timeline for reaching those goals?
6. What is my budget?
Investments can run anywhere from $40 to more than $25,000. How much can you afford to spend and how long do you estimate it will take to earn a return on your investment?
7. What training will I need?
Find out if the company you’re considering offers training or there are resources in your area you can turn to for training or advice.
8. Am I willing to work overtime?
Be clear about how you will schedule your work around your life. As your own boss, it is your responsibility to make sure the work gets done.
9. How does my family feel about it?
Running your own business takes support from your family. You’ll do better with someone cheering you on.
10. Would I enjoy the work?
Owning a business is different from being an employee. Are you comfortable with the responsibilities of finding machine locations and managing your accounts?
