The Vending Machine Business

vending machine business

vending machine business

The vending machine business is lucrative for many reasons. Everyone knows you can make good money in the vending business with out having to work full-time hours. Yet there are still so many vending businesses out there that fail within their first year.

You can see for yourself that traditional vending is on a decline when you recognize the large number of used machines on the market. It is quite common to see full-sized vending machines being sold for a quarter of the price that they were originally bought for. If the people who owned these machines were largely successful with their vending business, they certainly wouldn’t be selling their machines at such a low cost.

There is a simple reason that vending machines don’t make money like they used to. It’s because most types of vending machines have already saturated the market. This means that most or all of the good vending locations have been taken. It only makes sense that people who have a certain kind of vending machine first  start off trying for the most premium locations then eventually work their way down to the bottom of the barrel.  Let me give you a few examples of vending machines business ideas that are way too late to get into:

1. Full sized vending machines, including snack, pop and combo machines.

These machines came in strong twenty years ago. Everyone was buying full sized machines. And let me tell you that small business entrepreneurs were making a fortune off these machines. Then, big companies that owned thousands of machines came into the picture as well. These large companies swept the market and snatched up most of the best locations.

Nowadays any location with 20 employees or more will already have a full sized vending machine. If you think that just because you have a nicer machine that you will be able to take over another person’s location, YOU’RE DREAMING! Just because your machine is nicer does not mean that a business will remove the original vending machine which has been there for years.

One more example:

The coffee vending machine business was rocking 10-15 years ago! People were making a profit of way over 500 a month on an average location!

But now the coffee vending machine business SUCKS! I’m sorry to be so blunt, but all the big locations are either gone, or they have what’s called an office coffee service. This is when the owner of the business pays a monthly fee to have free coffee and supplies for all employees.Vending Machine Business

That’s one problem, but the greater problem is a businesses like Starbucks or Tim Hortons. Or any one of the other coffee cafes you see on every street corner. Even if you think that your coffee is better, doesn’t mean people will drink it. People go to these coffee shops out of habit. Haven’t you heard of  “the Starbucks run?” Many people make trips to these coffee shops three times a day! And even in remote area’s where there isn’t a Starbucks for miles, there is a good chance that businesses have the privilege of a coffee/snack truck coming by to caffeinate its employees. So where does your coffee machine fit in?

And people wonder why they get such good deals on used ones…

The bottom line is people who are successful in business think outside the box. They aren’t afraid of trying something that is new and innovative. If everyone’s doing it and they know it’s a good business, that means it’s WAY too late for you and you NEED to think of something different!

We have given you a couple examples of vending machines that are way too late to invest in. Trust me there are many more than the ones we’ve listed.

If you have questions about other “past their prime” vending machines be sure to contact us. You may be surprised with what you learn!

However, there are also many different vending business ideas that still do very well. The key is to catch them at the right time so that all of the best locations are available to you.

I will give you one example of a great vending machine business that has been picking up a lot of steam in the past year.

It is the breathalyzer vending machine business.

The breathalyzer vending machine business?!

Yes. Breathalyzer vending is likely going to be the next big thing in the vending industry. Let us explain why…

There are so many benefits to the breathalyzer vending machine business that you simply will not have with a traditional vending business. For example:

1) The breathalyzer machines help bar owners with liability. Therefore, owners actually WANT the machines in their business, making it easy to secure locations and avoiding having to give away a commission to the bar.

2) There is no inventory to carry. It is difficult constantly going to Wal-Mart or Costco and buy soda and snacks and always having to keep track of what you need. If vending is supposed to be passive why would you want to put up with those headaches?

The breathalyzer machines only need to be stocked with straws once a month. There is no inventory. Enough said.

3) The money you make is 100% profit.

People always want to pay less and costs are always going up. A constant frustration with people in traditional vending. The only product to buy in the breathalyzer vending machine business (aside from the machine) is a sensor which needs to be replaced every couple of years (roughly $150) and straws (cheap!) Other then that it’s a pure profit business. In any business, profit margin is KEY. I’d say 100% is pretty good. Other types of vending you are lucky to get 50% gross profit.

4) Low maintenance

Often vendors will have to own a van to load and unload supplies. You also need to often have help from others to service your machines. This isn’t passive income. With the breathalyzer vending business you only have to replace straws once a month. No cargo vans needed. THAT’S passive income!

5) It’s socially responsible.

The breathalyzer vending machine business is a socially responsible one, and instead of making people fat, you can help your community by preventing drunk driving. You may even save someone’s life. It’s something you can feel good about.

As with many new businesses, the window of opportunity with the breathalyzer vending machine business is extremely small. The reason being is that the placement of these machines is limited to establishments that serve alcohol. Smaller cities may only be able to support ten breathalyzers. This is not a disadvantage at all because it is new. In five years I predict that everyone will know that the breathalyzer vending business is a great one, but by then the best locations will be gone an it will be very hard to succeed. Just like it’s hard to succeed with the two examples mentioned above: coffee and snack vending.

The Breathalyzer Vending Machine Business: Before It’s Too Late!

But as of now there is almost no market domination for these. I have spoke to the the companies that sell these and I estimate that less than 1% of the market is saturated. So if there was any time to get into the breathalyzer vending business, it’s now, while all of the great locations are wide open. If you’re the type of person that likes to invest in original ideas, be sure to look into the breathalyzer vending machine business. As neat as everything is about this business, what if you saved someone’s life? Do you know of anyone who’s life has been affected by a drunk driver?

If you want more information on the breathalyzer vending machine business, please contact us, we will be happy to answer any questions you may have.

 

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