Vending — an easy $15-20K a year?

Here’s an honest question from a 48 Days reader:

I have come across an opportunity to buy 100 bubble gum machines (4 tall spiral and many double headed) for $17k. They bring in around 15k-20k a year.  I have never bought anything like this, can you please give any advicbubble-gum-machinee you may have and if this is a good investment and what other questions I should ask the seller.  Thank you so much..I didn’t know who else to turn to.

Michelle,

I commend you on thinking about a business of your own.  However, getting these machines at a good price is the easy part.  The ONLY thing that matters is whether you can get them set up in good locations.  Believe me, the machines don’t “bring in around 15k-20k a year.”  They bring in zero unless you have them in killer locations.

Don’t even think about buying any machines until you’ve talked with 20 places where you could potentially put them.  You’re going to find that you cannot put them in most retail or franchise locations.  Any hospital or university will already have a contract in place for all their vending machines.  That means then that you’re looking at Mom and Pop small businesses – where it’s questionable if they have enough traffic to make it work.  Don’t do anything until you secure 10 agreements to place the machines.  Once you’ve done your work on that end you’ll have a lot better sense of what the vending business is all about.    

I love the vending business – many of my most profitable products are essentially “electronic vending” — but  you have to do your homework to make it work.

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5 Responses to “Vending — an easy $15-20K a year?”

  1. poor boomer Says:

    How do you get started without money?

  2. Joe Says:

    Vending machines may be a decent source of income, with the conditions Dan has accurately stated. However, what we should ask is this: “WHY?” WHY do we think vending machines are the “way to go”? Is it because we are concerned about prospecting? Well then, we should ask ourselves THIS: “WHY?”.

    “Why” do we think that prospecting for prime vending-machine locations would be any less difficult or any more profitable than prospecting in our current field of endeavour? WHY?

    Hey. It’s alright. Just ask people if they would like to know more about what you offer. You know HOW to do it, don’t you? Well then, JUST ASK!

    If you don’t know HOW, then maybe you need to have a better understanding of “WHY”. 🙂

    In any case, join our Daymakers call for free, any weekday or Saturday at 06:40am Pacific Time. Yeah, it’s early, so what? Nobody will ask you for money and I will gladly escort you into the call. My dime. Joe. 208-659-7908. Just be there. Be there with folks just like you, but get a different view about what makes you do better. 🙂

    Joe. 208-659-7908.

  3. Chad Says:

    Electronic vending…that’s an interesting way to look at it. Thanks for the perspective.

  4. swivel Says:

    @ poor boomer,
    How do you get started without money? You earn the money first.

  5. gumballvending Says:

    I know a vendor who has 75 snack machines and brings in $30k a month. So the numbers mentions in this blog are pretty close for a 100 machine bulk vending business. Check out my progress as I start up a vending business at: Gumballvending.wordpress.com

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