Small Business Marketplace - Vending Machines, a Profitable Business Opportunity

A Profitable Business Opportunity
Vending Machines -
A true Work from Home Opportunity

Starting any business is always a little intimidating and frustrating. Frustrating because you end us meeting a lot of people who say how wonderful the business is but they're actually wanting to sell something.

The vending machine manufacturers are the worst in promising a great business all the while pushing their equipment. If it's such a great business, why aren't they building and placing machines themselves? Answer....WORK!

This isn't to say that the vending business is not profitable. Food and drink vending is some of the most profitable small business ventures anyone could affordably start as a business.

You will need to decide what types of products you intend to sell in the machines, purchase the vending machines and the products to fill them, and find good locations in which to place the vending machines. In the vending machine business, location is the most critical element.

As machines can cost upwards of several thousand dollars each, it's important that they're placed in locations that will tend to be popular and increase income. In a good location, even a basic vending machine can be very profitable.

The competition for good vending machine locations is intense and the more experienced vendors are aggressive in their tactics and financing. A new vendor will have to work harder to find good locations and be better than the competition in choosing and stocking products.

If you use the services of a professional locator, most require up front payment and don't provide any guarantees. This means that the purchase of a location is basically blind and a risk.

If you decide to use a space locator, require a guarantee of acceptability for 60-90 days. You should know if a location is profitable within that 60-90 day window. Any locations that do not deliver enough traffic or sales should be eliminated with your machine moved to another, hopefully better spot.

You can operate a vending machine business full time or part time. Part time operators have made a decent supplementary income without having to rely totally on the new business to cover all business and personal expenses.

Be prepared however for the considerable amount of time servicing your new vending machine business. The machines, no matter what they vend, need to be maintained, re stocked and regularly serviced.

An empty or non operating machine doesn't make anyone any money. This means that in addition to the initial investment for equipment and supplies, working capital is also needed.

Vending machines are a great way to make extra money or as a full time job. Make no mistake however that it's a JOB! Self employment, especially in a vending route sales business limits your ability to take time off.

Although there is a lot of flexibility within the routine, taking larger blocks of time off can be hard on the business.

Be prepared for the longer hours, income variability and the work involved in making your new business a successful venture. Research the vending business to make sure you understand the time and effort that is required before you make a large investment of time or money before making that leap.

Loss -- Where expenses exceed sales or revenue; an item sold for less than its cost, that is below the sum of direct and indirect costs (=full cost)

Flyer -- An advertising or promotional printed sheet.

Overdraft -- A credit facility granted by a bank which allows the borrower to draw funds from the bank up to a prescribed limit as and when the borrower wishes.

Annual Trade Survey -- Provides detailed industry measures of sales and inventories for wholesale trade activities. The United States Code, Title 13, authorizes this survey and provides for mandatory responses. Companies with employment that are primarily engaged in merchant wholesale trade in the U.S. These include merchant wholesalers that take title of the goods they sell, and jobbers, industrial distributors, exporters, and importers. Excluded are non-merchant wholesalers such as manufacturer sales branches and offices; agents, merchandise or commodity brokers, and commission merchants; and businesses whose primary activity is other than wholesale trade.

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