“Vending Types”

Vending types can be categorized under three categories: Bulk Vending, Amusement Entertainment Vending and Merchandising Vending.

When first getting into the vending business we started out in amusement entertainment vending using (Win Every Time) “Candy Crane” machines. The up side with amusement vending is the required frequency of service is more spread out than that of merchandising vending such as snacks and soda. The down side is the machines new are very expensive and competition for good locations is intense. The biggest and best locations require that new equipment is rotated every three to six months. Commissions are paid out at 25% to 50% of gross revenues collected. The basic rule of thumb is 25% when product is involved and 50% commission when there is no product involved, like in the case of Pin Ball. We did get into some Bulk Vending as well, for some of the reasons stated before such as initial cost. You can start in bulk vending for as little $100 per machine. We put out 21cm Super Ball machines set for $1.00 per vend. Cost of one Super Ball was 18 cents. However, you size up the vending market, you can expect to spend anywhere from $100 to $8000 on any one vending machine. When making your decision on what type of vending to start with take into consideration the following… the frequency of service, profit per vend, product shelf life, competition and the best locations for the equipment new or used. To answer these questions consult with and equipment dealer / distributor. Ask a lot of questions from various sources. Compare and sort through the various answers to arrive at a final conclusion.

Beware of scams and “BLUE SKY” companies. These blue sky companies have given legitimate vending a black mark. A blue sky company will promise much more than they can deliver on. You can usually spot a blue sky deal when it is advertised every week with an 800 number with routes for sale and promising large incomes from the route. They also like to do invitation only seminars at local hotels. Always check with the Better Business Bureau in the area were the company you are thinking of doing business with is located. Also contact the state Attorney Generals office to check on any complaints against the company. You can write for booklets from Better Business Bureau and brochures from Federal Trade Commission. The bottom line is, do your home work before spending any money!

“What type of machines do you want to service”?