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Vending Machines
FAQ - Frequently Asked
Questions
Either read entire
page or go direct by clicking ?'s below.
Important Message from the Owner
What are the
advantages
of owning vending machine/s?
- Immediate cash flow once machines are on location.
- Low initial investment, because WE will sell you just one if you want to
start slow.
- Work it when you can at your own pace.
- Good hourly income for the time spent collecting and restocking.
- Unlimited potential.
- Freedom to grow and change over time!
- Tax advantages:
Mileage write off.
Equipment depreciation write off.
Interest paid on vending machine loans is a write off.
Possible advantage for using home as storage and or office.
- Flexible hours - You are the Boss!
- Low overhead.
- No employees
- No warehouse costs.
- Excellent product markup.
- Machines bring in money while you sleep or play.
- Self Employment is very Rewarding!
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From a business standpoint, should I do
small bulk
vending machines or larger
machines like snack and beverage machines?
If you are just starting up a vending route then small
Bulk
vending machines are probably the best way to get
started.
If you own a business or store, then Pop
& Snack machines are probably the better choice for you because you'll
want to have a large selection and maximize your space or possible earnings. Either
way, you might also want to consider
honor snack centers.
Snack and soda machines have advantages similar to bulk machines,
but do expect to spend more time refilling pop machines
Advantages
of bulk gum,
candy, & toys
Bulk vendors want to service a
location fast and move on to the next one, and bulk machines do just that
because it just takes seconds to POUR in the product. It's easy to
own and operate 100's of bulk locations making it a very secure source of
extra income. Figure on it only taking about 5 minutes once a
month to service one of your bulk locations.
Bulk machines cost considerably less, and you can buy approx. 10-20
bulk
machines or maybe 100's of the honor snack
centers for
the same price of just one large pop or snack machine. This is good for the starter
because you will have more locations generating money, and your cost to get into
each location is less, so you should be able to pay off each locations machine
sooner.
The more locations you have the more secure your income,
because if you have many locations you can loose one and it is just a
small percentage of your overall income.
Bulk locations are easier to come by,
commissions are generally much less, less maintenance required, smaller vehicle to run your
business, less weight of machines and product, more time for relaxing in your vehicle as you go to the next
location.
Our experience on large kinetic gumball machines or any
expensive ones for that matter is to only use them when
necessary. Smaller machines will make about as much for you as the bigger
ones, and since they cost much
less you can pay them off faster, and thus you can afford to have more
machines. The more machines you have again will give you a more
secure income. Smaller and simpler machines are also of course much easier to
maintain and therefore faster to service.
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What kind of product
should I use for bulk vending?
1" gumballs are great!.
Runts
Skittles
Chicklets
M&M's
Large Peanut M&Ms
Dinner Mints
Mikes Ikes
Hot Tamales
Nuts
Etc.
For honor snack
centers
we suggest these items.
Chocolate bars and all types of candy bars.
Cookies
Chips
Packs of Gum
Crackers
Hostess Pies and Cakes
Doughnuts
basically whatever you see in a big snack machine,
also ask the people at the location what some of
their favorite things are, this is sure to increase sales.
Back to bulk vending machines:
There are 2 types of dispensing wheels. ROUND ones with an agitator for round items like gumballs, superballs, toys
capsules. The other type is referred to as "bulk" and these are
usually PIE shaped wheels, and adjustable so you can adjust the portion size you want to
give.
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What is the typical
price of product for a 25 cent bulk
vending machine?
1" gumballs are great, they only cost you approximately 2 cents! A box of
1" gumballs at a wholesale store is around only $16.00, that's a 1250% markup or 23 cents
product profit
every vend.
A handful of bulk candy usually costs you about 5 cents and you will vend it for 25
cents, 500% markup or 20 cents product profit every vend.
Candy and food for honor snack centers only cost around 5-25 cents, and
you will charge around 25-60 cents. Because honor snack
centers are so inexpensive you can usually pay them off in just a few
weeks, that's why they are such a great investment. After it is
paid, the profit is then of course... all yours!
Hint: Try to price your
honor snack
centers merchandise at a
low fair price, it's a great selling point
when you go to place these, they get a convenient snack center with low prices,
what more could they ask for?
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What about a
charity?
Your local Police and Fire Fighters, or any good local charity are
very popular choice these days. E-Vending will not make
any suggestions of national charities so please do not contact us about this.
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Does the color of the machine matter?
Not really, probably the best and most eye-catching is RED.
Unless you have a city, state, business, or school color, it really
doesn't matter
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How does the commission thing work?
Many
businesses realize the convenience and service you are providing and therefore
don't require any commission. Actually, sometimes it is quite the
opposite, especially with larger machines and in larger cafeterias, businesses will pay you to provide
the service. For high traffic locations you might sometimes have to go as
high as 35%, any more and it may not be worth your time.
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How can I keep my commission down?
-
Do honor snack
centers,
they are convenient and the business will be
glad they didn't have to invest in an expensive vending machine.
-
Use small machines, they won't expect much from a smaller
machine.
-
Locate the machine yourself.
-
Having a charity may help.
-
Tell them you provide a quality service and do it.
-
Start around 10% commission if needed, you can always go higher if
necessary.
-
Say you like to set the dispensers for a maximum handful for your customers, and
that you would have to give a smaller portion if a commission is necessary.
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What about a contract?
General things a contract may consist of is the name and address of the
location, the owners or managers name, starting date of
contract, length contract will last, commission % if needed, and signed and dated by
yourself and owner or manager. This is just general information, you
should consult a local professional whenever you do a contract.
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What
does the future of vending hold?
Looking to the future, vending machines are here
to stay and we predict there are going to be new and exciting ones coming out all the
time. In a
high-tech world, where smaller is better, plays perfect to the vending industry.
Small gadgets, especially electronic ones. i.e.. phone cards,
and cell phones, and calling cards, this is just the beginning.
We envision many new machines that will vend all sorts of electronic products.
The person that starts or expands there
business now, will be ready for the new technologies that will be coming in the future. Being one of the first in your area with a new machine
and
product usually will only add to the success of your business.
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I'm new, how many
machines should I start with?
You can always start with just one machine when buying from E-Vending.
To get a good feeling for the business it probably will take at least 10
machines, but you can always start with just one and grow from that. Location is everything! Small machines
take just minutes to service. Wait
until a machine is empty and service as many machines per hour as you can. Buying
less expensive machines will allow you to have more locations and therefore a
more secure income.
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What about insurance?
Yes, liability insurance should be considered and it may very well be a law in your state.
Check with your city and local insurance agent, but generally this
is a very nominal cost of your business.
Should I have insurance to cover the machines incase of
theft or vandalism?
It can be very costly for this type of insurance.
Typically, we only have about 1% of our machines vandalized or stolen a year, so
having theft
insurance on our machines would not be very cost effective, because generally
this type of insurance is very expensive.
You will have to decide if you want to pay for this.
The above information on insurance is general advice, you should contact a
professional insurance company to discuss any insurance needs you have.
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Where
are some possible locations for some machines?
What if a location already has some machines?
If a location has machine/s that is okay,
that just means they are open to having
machines and that the location is a pretty good one. There are many ways
in which you could have a machine there also.
If the location doesn't have 1" gumballs use a machine that will do that.
Hardly any locations have the 27"
Spiral, so even if they have
1" gumballs they may be hip to a cool machine like that. If you know the location is good then find a machine that is better or
different than the ones already there. Or offer a machine that vends more
products in the same space, like the space saving bulk
machines and honor snack centers.
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What about locators?
We strongly recommend that you attempt to do all locating on your own! Unless you have lots of extra money try doing the locating
yourself. You could possibly buy a new machine for every time you pay a locator to
find just one location. It's a great
feeling every time you find a new location by yourself, and you will be glad that you saved your money and reduced your business expenses. We
do not associate with locators and will not recommend any locators, so please do not contact us about this.
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How do I place a vending machine at a store?
- Just walk in and ask. Or if you are associated with a charity then
calling on the phone might work best.
- If you can, carry the machine in with you, they need to see it.
- You want to be able to leave the machine the same day they say yes, that's why it's so important to bring the filled machine with you
when you initially ask.
- Keep it simple and just ask if they have room.
- Pick a company name related to your state and ends in
vending so people know you are local and that you
are in the vending business. Example:
Husker Vending
- When you ask a business just say "Hi I'm John with so
& so Vending, "would you have space
for this machine". They may say yes right off and that's all
you want to hear.
The simpler you keep it and the less you say the better your chances.
Smaller machines are also good because stores typically won't require much of a
commission, if any, for a smaller machine.
Many stores go through employees and managers pretty regularly so check back
with any stores that say no the first time.
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How do I
service my bulk vending machine?
Usually once a month you will go service the bulk vending machine.
Fill the vending machine product first while your hands are clean.
Then remove the money and wipe it down with cleaner.
Usually takes less than 5 minutes to service a bulk machine.
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What
are some
tips
you could share?
- Location is everything! In your city and in the store.
- Place the machine between the check out and the exit because they might
have more change after checking out.
- High traffic areas, check for places near the restrooms, phones, ATMs, pop
machines where you could set a machine.
- The more locations you have the more secure your
income is.
- Some stores never even mention a commission.
- Floor space is very important to store owners, so bigger isn't always
better.
- Remember you are providing them a nostalgic free service that their
customers appreciate.
- Small and counter top machines in a mall are excellent locations.
- Fancier
isn't always more profitable.
- Smaller machines usually pay for themselves sooner because they cost less,
easier to service and locate, so better to have lots of small vending machines than one big
expensive one.
- It's easier to find locations for simple vending machines like
the 27 inch spirals or honor snack
centers.
Use the other
machines that we carry for your really good locations when
needed.
Vending is over a 30 billion a year industry an increase of nearly 10
Billiion in the last decade alone. Selection and quality of machines have never been better. There are many self-employed
people in the vending machine industry today. Some vending machine
products have over a 1000% mark up. Vending is not a get rich quick
scheme, it is a proven industry that has been around for a very long time.
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