If you have trouble getting along with your boss and coworkers and your communication skills are not the best, perhaps you are thinking that owning and operating a successful vending machine route will be the solution to all of your problems. After all, your days would be spent counting and sorting merchandise, stocking machines, collecting money, and reordering merchandise, right?

No. You would also be contacting your locations regularly to ensure they are satisfied with your service, calling those in charge of potential new spots for expansion or replacement of under-performing ones, dealing with customers who have lost their money in your machines and possibly dealing with charities on sponsoring your machines.

There is much more selling involved in vending than the blue sky promoters, also known as biz-ops, reveal to their customers.  One of the sales pitches used by biz-op and the vending machine companies is that there is “no selling”.  But that’s completely false. There’s a lot of selling involved to get your vendors on location. And unfortunately, people don’t always find that out until after they have spent a lot of money on vending machines.  The primary problem is the lack of persistence on the part of new operators who do not come from a sales background and are unused to making a sales presentation.

When I first speak to other vendors I’ve found that they are afraid to just walk up to someone and say “Are you happy with your current vending service?”  Get out and give it a try.  Once you start hearing “yes” you will get enthusiastic about it and start putting more energy into the business.

Actually, there is an entire spectrum of under-the-radar customer service behind any successful vending business, all of which requires a positive image and sufficient face time with location managers. And if you are one of those who has fallen for the idea that no selling’s involved since vending machines “sell” for you, then you have forgotten the most important item of all you need to sell: yourself.

You can start your business part-time and allow it to run as-is or grow it slowly until you feel comfortable transforming it into a full-time business.

My favorite aspect of having a bulk candy vending route is that if a location is not doing well, or simply wants you to leave, I can easily take the machine away.  I heavy lifting or hand carts necessary.  I guess I could even pick up the entire business and move it with me to another city if I ever moved.

Now don;t get me wrong.  It is still a business like any other and I have met people who have lost lots of money trying to get into the bulk candy business.  Being such a low-cost business to start people are fooled into thinking that is it is a “no-lose” proposition.  Like any aspect of the vending business, if you learn the rules, you can find great success.

Click here to learn more about starting a bulk candy vending machine business.

Some people in the vending industry will try to tell you that all you have to do is lay back and collect money.  Sorry but that just isn’t true.  If you attempt to sit back and collect the money you will be collecting less and less as time goes on.  This is due to simple attrition: businesses close or move, vandalism problems or the location owner simply doesn’t want your machines around anymore.  Many people just stuff these machines in the back of the garage or basement.  Pretty soon, you have very few machines making money and a lot less storage space in your house.

Mastering  an ongoing location program will not only get those idle machines making money, but will increase your profit on the vending business in general.  Commit to spending 10% to 20% of your time on your routes to gaining and securing new locations.  If you do not have idle machine then now is either a great time to expand your business or reanalyze your current route and re-locate poor performing machines.  Over time, with an ongoing locating program you will have more machines averaging more profit.

Learn more about how to locate vending machines.

Let’s be clear about something, soda is still #1 in thevending machine world.  According to the latest report by Beverage Digest carbonated soft drinks still rule with consumers.  The reports state that Americans drank on average 49.3 gallons of soft drinks in 2007 while bottle water consumption is only 22.5 gallons.

Water is highly profitable and I run it in all my soda vending machines but don’t be quick to toss out soda.  It is still desired by consumers, no matter what they say.  Purchase actions speak louder than on non-purchasing words.

I use the reverse approach.  The location almost always asks if they have to sign some kind if contract I automatically say”No.”  I explained that my service is just that, a service.  I explain how I have no interest in locking them into any kind of commitment.  My machines are there only so long as they like the service and it makes financial sense for me to be there (notice the seed I just planted?).  As a matter of fact I tell everyone that I have a “24-hour pull-out guarantee” for the first 90-days.  If either one of us is unhappy with the situation I will pull the machines out within 24-hours.  Remember that the locations are usually very unsure.  They’ve seen poorly maintained vending machines at other locations and don’t one on their premises.  You are showing them that you respect their space and they appreciate it.  And quite frankly, if they don’t want you there they just move your machine into the back room or make life difficult for you in some other way.  A weird note for you here.  I had one account that didn’t want me but wouldn’t tell me to my face.  They’d just keep unplugging my machine (no it wasn’t a competitor - my spies told me it was the manager).  I’d ask them if they’d like me to pull out and they always said, “No.”  Go figure.

I suggest you find, and buy your vending toys on eBay. There you will find all types of toys and supplies for your bulk toy vending machines. A couple things to remember:

1. Only buy from reputable sellers (100+ feedback with 99% or better rating).
2. Read the auction carefully, most sellers are very upfront about the details.
3. Always use PayPal, it is the safest way to protect yourself from fraud.
4. Buying vending toys is great but be sure to get a display too!

If you want to see the selection of vending toys on eBay click the button below:

Vending Rules Answer:

I would like to first confirm that your placement ratio will be able 1 in 20 the first couple times you try. Once you’ve placed a couple boxes you’ll not only gain confidence but you’ll also have spoken with customers and have a better idea of what “sells” them on the idea of letting in an honor box. Plus once you get a few customers word-of-mouth really begins to help. Unfortunately in the beginning you have a little bit of “the chicken and the egg” dilemma.

You are 100% correct NOT to put the boxes out for the general public, you’ll get wiped out.

How do you overcome their concerns? Its not that hard, but you have to project lots of confidence. You and I know that theft is inevitable and expected; that is why we MUST have a mark-up of 100%. Honestly if your locations had a constant loss rate of 20% or less I say you had a successful business. Obviously though I’d never tell a location that. I’d explain to them that you understand their concerns and thank them for looking out for you. Tell them that people only steal if they feel anonymous, and you have several strategies to reduce that. First, you use menus and Talker Cards so people realize you know what’s in the box and give them polite feedback. Second, you stay in contact with the employees and ask what they like and dislike in the box. People will steal from the faceless vendor but not from “Kim” - this is where doing your route with a child once or twice really helps out The more “human” you are, the less likely they’ll steal from you. Third, I’ve tested “deputizing” someone in the office. You get one person to volunteer to keep an eye on the box and they get a free candy bar for every cycle the box is “even” (anything above 95% is fine - but don’t tell them that).

Then end telling them that this is a test. You’ll return in two weeks and see how it goes. If it doesn’t go well you’ll simply pull the box. You’ll find that many locations do just fine. Especially if you (very nicer) tell employees that they got a 2nd chance, so keep an eye on each other because one week of “free candy” will cost them the box forever.

Be prepared that some locations will smile and act very nice and then empty the box out without leaving a penny - and act like nothing happened. I know it sounds crazy but it happens occasionally so don’t be upset when it happens. That’s the cost of doing business. Just know never to go back and learn to spot potential locations like that in the future.

Like all things in life vending is simple, but not easy. The concepts are very straight forward but the implementation takes some time and guts. The first step is to decide what kind of vending you want to get into. This requires you to analyze: your startup budget, your time, and your goals (both personal and financial). If you want to have a $600K/year business your start-up will be different from someone looking to make and extra couple bucks to pay off debt (or begin investing). You also need to decide if vending is going to provide cash flow for you to invest or is it an investment in and of itself.
With bulk candy/gumball machines I never use a contract. The location would NEVER sign one anyway. Find a local store that you visit often and talk with the owner/manager. Offer the machine and a 25% commission. You can also offer to give that money to their favorite charity (most of my locations choose this option).

Vending Rules Answer:

So long as they didn’t damage the machine - nothing. This is not that unusual. Often we suspect some kind of “foul play” if we find our machine moved slightly when none exists. Have you considered that maybe they needed more space or simply someone just liked it better in another spot.

My only real concern is that if they move it #1 someone could get hurt and they might try to come after me legally and #2 they could damage the machine slightly. As a quick aside, I’ve NEVER had either one happen in all my vending years.

This is why it is important to cultivate a good relationship with your locations. Sometimes I’ll mention that if they needed the machine moved I would do it; saying that I don’t want “one of them” getting hurt moving my machine. That way I know what is going on.

P.S. - Be aware though that if they move your machine more than once in a year the next move might be out the door. Make sure you talk with them to find out the problem. If they are concerned with space offer to get them a smaller machine if they can “reserve” the space for you.

I believe that if you do not have the money to buy something then you probably need to fix your personal cashflow first. Because if you have poor cashflow in your personal life you will bring that into your business. I’ve noticed that many people believe that you can just “out earn” your financial problems. I do not believe this is possible - I have never seen a real lief example of someone who did not properly manage their money AND were very financially successful. Sure they may have great income but once the income ends (or is reduced) bankruptcy is right around the corner. If my income ended I would have to develop another stream but I would be just fine.

It has been my experience that you get very good machines for a fraction of their original price. My best method is to advertise in local papers (I use the local “cheap fliers”). My ad reads “Cash for your used candy, gumball, and vending machines”. I think you may be surprised how many people have vending for sale.

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