Vending Machine Business

[bizaro86]

Or buy used ones if you're handy and can keep them going. There's a steady stream of people who have bought a dream but don't keep going.

Something similar to what you posted is here at a $140 asking price
http://www.kijiji.ca/v-business-indu...ationFlag=true

(Not my ad)

[photon]

They say that the company offers an insurance policy on the machines where they'll replace them if anything goes wrong, but I told them it didn't sound to me like that would cover normal servicing (just theft or vandalism), so they're going to find out more about that.

[photon]

Originally Posted by bizaro86

Or buy used ones if you're handy and can keep them going. There's a steady stream of people who have bought a dream but don't keep going.

Something similar to what you posted is here at a $140 asking price
http://www.kijiji.ca/v-business-indu...ationFlag=true

(Not my ad)

Heh, first link in Google for Revolution 650 vending:

https://www.thomsonrogers.com/practi...lution-650-tm/

[Locke]

Originally Posted by photon

They say that the company offers an insurance policy on the machines where they'll replace them if anything goes wrong, but I told them it didn't sound to me like that would cover normal servicing (just theft or vandalism), so they're going to find out more about that.

Ooooh.....that sounds bad. Sorry, if they're willing to insure them but not lease them ie. own and be responsible for them.

Sorry man, that sounds like a bad deal.

That sounds like someone is trying to pass a bad deal onto someone else.

[KTrain]

I definitely wouldn't use one of those machines that dispenses loose candy and nuts. They always look dirty and the food inside them looks old.

[dre]

I think this would do well in a campground or convenience store.

[photon]

Originally Posted by Locke

Ooooh.....that sounds bad. Sorry, if they're willing to insure them but not lease them ie. own and be responsible for them.

Sorry man, that sounds like a bad deal.

That sounds like someone is trying to pass a bad deal onto someone else.

It could also be I don't have the deal quite right, I've told them they should ask for a copy of the contract so they and a lawyer can read it over. I told them too to get a better answer on who maintains the machines for normal wear.

Originally Posted by KTrain

I definitely wouldn't use one of those machines that dispenses loose candy and nuts. They always look dirty and the food inside them looks old.

Yeah, those are the kind I've usually seen in offices I've worked in. This one the food is in individual sealed plastic cups.

[DoubleF]

Years ago, I chatted with a guy that owned a bunch of vending machines and he essentially said that he makes money on them, but after everything is said and done, he would be surprised if he makes minimum wage. This was around a decade ago.

[GP_Matt]

I would be pretty worried if they have to buy the product from the vending machine company as well.
The company is offering to sell the machines, provide the locations and sell the merchandise. I would be willing to bet that your friend will make less than minimum wage after their costs. Otherwise, why on earth would the company not just hire someone to do the work. If it was profitable they would have no trouble getting enough money to grow and operate their own machines.

The biggest question to ask is what does your friend bring to the equation that they couldn't get elsewhere. No one is going to give away a successful business model if the other party doesn't provide something they can't get themselves.

[Jbo]

Banks hate these types of operations. All coins and cash. Generally viewed as a "potential" money laundering risk. Usually charges in converting the coins to cash. Something to think about

[photon]

Originally Posted by GP_Matt

The biggest question to ask is what does your friend bring to the equation that they couldn't get elsewhere. No one is going to give away a successful business model if the other party doesn't provide something they can't get themselves.

That was my first question; if they're successful why don't they do it themselves?

I'd say ask for their financials to find out how much income they get from selling product and how much they get from selling machines, but a private company isn't going to just give that kind of info out.

Really good point about converting coins, something to find out how much their bank will charge for that.

[Sliver]

Originally Posted by photon

That was my first question; if they're successful why don't they do it themselves?

I'd say ask for their financials to find out how much income they get from selling product and how much they get from selling machines, but a private company isn't going to just give that kind of info out.

Really good point about converting coins, something to find out how much their bank will charge for that.

It should. I think anybody buying a business would want to see the financials for as far back as they can and at a minimum the last five years and it would be strange for a company to withhold them.

[photon]

If you were buying the actual business, but they're buying the machines and a contract to purchase the product, so it'd be like asking Apple for their financials if you're buying an iPhone and some apps. Or maybe more like buying a Toyota to use as an Uber.

[Sliver]

Originally Posted by photon

If you were buying the actual business, but they're buying the machines and a contract to purchase the product, so it'd be like asking Apple for their financials if you're buying an iPhone and some apps. Or maybe more like buying a Toyota to use as an Uber.

Okay, I see. Ignore my comment.

[afc wimbledon]

Originally Posted by OMG!WTF!

That's actually a wicked return. He nets maybe $50 a month? If you could replicate that you'd have a dream retail business.

It works out ok for him because I shlepp his arse back and forwards from Costco and down to the site, it makes more than I thought but not enough to justify the cost and time imho, that said I am going to buy one to put into a hall I help run to make a little extra money to help cover the halls cost, we have karate and dance groups using it most days and so again it will cover its costs and start making money after a year or so, but the benefit only works as we just have to buy a second hand machine and don't need to do much but cover its costs and make a few hundred a year.

[Snuffleupagus]

Originally Posted by photon

Who repairs them is something to find out.

You buy the equipment, you fill them, you maintain and fix them.

Vending 101

[Hack&Lube]

Originally Posted by GP_Matt

The biggest question to ask is what does your friend bring to the equation that they couldn't get elsewhere. No one is going to give away a successful business model if the other party doesn't provide something they can't get themselves.

Gullible slave labor. They make their money selling machines and product. They get desperate people trying to become independently wealthy driving around emptying out dirty/heavy change into bags and refilling stale old product. If they sell you a decent contract location, you might do okay. Some companies are worse and tell you to be your own salesman and to sell yourself into locations - which again is doing their work for them.

I went to the franchise expo at the Telus Convention Centre last year and it seemed like there were quite a few companies selling their "innovative" vending machines which were really just vending all the normal stuff (snacks, pop, coffee) in a different form factor that seems alien and obscure to people. They attracted crowds of immigrants with tales of being their own boss and making a fortune with exaggerated projections. People are more likely to use a regular vending machine than a strange looking one.

[taco.vidal]

A family business I worked in in the past had some vending machines on our premises. I dont know the details of the arrangements but I seem to recall that our business did get some small amount of compensation in return for the right to put the machines in. I think there was also some stulipulation as to how often the machines were stocked and how quick they would resolve any breakdowns or other problems.

The machines were owned and stocked by a retired couple. I remember asking them about their business. They seemed to do this more as something to keep busy than anything else. It seemed like it was essentially buying a part-time job but that you were your own boss for the most part. I dont think anyone is going to get rich from owning one or two machines. And if you own 20, your going to be working significant hours so your hourly wage is quite low. Im guessing those at the top, selling machines and established routes or locations are the ines that make bigger money.

[blankall]

The only way I could see this as being viable would be if your machine(s) were located within a very short distance of your home or work. Having to spend any travel time on this would kill all profitability. If the machine was in your office, where you are everyday anyways, spending 10-20 minutes here and there wouldn't be a big deal.

I also think you'd be better off just buying a machine outright and stocking it with your own supplies from Costco. I don't see how this company is going to help you. You're probably going to have to stock a lot of their unsellable junk product too. You're much better off buying your own machine and filing it with stuff that sells. Those weird plastic cups look strange to me. I'd rather buy a bag of Doritos.

[bizaro86]

Originally Posted by photon

Heh, first link in Google for Revolution 650 vending:

https://www.thomsonrogers.com/practi...lution-650-tm/

Lol. Looks like they got sued for making unrealistic income promises. That wouldn't preclude buying the machines used, although I do think packaged snacks are probably better. The margins on the bag of doritos are probably just as good, with more people actually willing to buy them.