Too many people dive into the vending machine business by purchasing overpriced “package deals” from companies who make their machines cheaply with parts that will break fast. These package deals often include the help of a “locater” service to place your machines, which is risky since a high percentage of locater services are scams or at least grossly underperform. Operating your own vending route is NOT a get-rich-quick scheme, and you’ll learn a lot more if you start out locating your own machines anyway. Most people who overpay on their package deals experience sticker shock when their first month’s profit nets them about $5 a machine due to poor placement or poor candy choices and they end up selling their routes at significant losses, just lucky to get out with anything at all. Don’t let this happen to you!

Things to keep in mind when considering the business:

Your vending machines need to be quality, with all-metal coin mechanisms and warranties so you don’t spend all of your time and profits fixing machines from a fly-by-night company. Especially as you find locations that have high traffic, your machines need to be able to handle the stress without any downtime.

Buy candy in bulk and keep in mind the climate and type of business. Don’t vend chocolate if the machine is in a warm location. If it’s a health club, nuts, sugar-free gum or bouncy balls will do better than candy. In break rooms or offices, “filling” candy such as Boston Beans or Peanut M&Ms will do better than gumballs. Conversely, restaurants will do better with mints or gumballs than filling candy. If the machine is serving an office or store with regular clients (people who work there), see if there are any requests or favorites. Why should you stock something no one’s going to eat? Stocking popular choices will ensure a consistent profit.

Locater services evoke mixed feelings in the vending industry. Some vendors refuse to use them, while others find it doesn’t hurt to try it out. It is important to find one who has a warranty against kickouts or poorly performing locations so they’ll find a replacement location for you. Without this warranty, you have no recourse if they find you a bad location. Don’t pay too much for locations either, especially if it’s something you can do yourself. Many veterans in the industry start out by placing machines themselves, by going to high-traffic businesses around their town and talking with the managers/owners, acting as a salesperson for their machines. After a time, they discover that in person, they have more success with different types of businesses and less with others. The ones they don’t do so well with are good ones to have a locater place for them. Placing machines yourself can save you anywhere from $40 to $100, which all adds profits to your bottom line, and you get to know store owners, which is critical to making sure your machines will be safe in their store.

The most important thing to remember is that you will not make profits overnight. Rome wasn’t built in a day. Having a vending machine business can be fun and you can meet a lot of fun people doing it, but it’s not for the passive investor. Yes, you don’t have to be with the machines all the time, but you do need to service them at least once a month and you do need to be active in making sure your locations are performing well, or finding better locations. Keeping in mind that it is a real business and taking the above tips to heart, you can start your own vending business!