Buying Used Vending Machines and Existing Routes
I’ve been in vending just over two years and have my share of misadventures. It’s not a hard business, but just like anything else, there is a bit of a learning curve. You can read and read all you want about vending, but until you’re actually doing it, you really don’t fully understand all that is involved. Add to the mix all the vending scams out there trying to rip you off perpetuating the misinformation mill and you have the potential for disaster if you’re not careful. I didn’t know anyone in vending so I found a chat board related to vending, did some research on line, checked out Craig’s List and then just basically dived in with what I knew.
All things considered, it could have been worse. I made a couple bad buys but nothing that derailed me or cost me too much money. Some people that get involved with the vending biz ops never fully recover. Imagine spending thousands of dollars for a vending route that ends up producing only $200 a month, a lot of people who get sucked into these “vending opportunities” end up leaving vending all together.
The two main important lessons I’ve learned are:
When you buy an established vending route, don’t pay too much. Don’t jump on what you think is a good deal, wait for a great deal. My first buy was an existing 18 machine route and I figure I paid about $800 or so too much, easy enough to recover from so not a huge loss. Again, I was completely green, so it could have been worse. Honestly, unless there was some serious IRS tax documentation I don’t think I would pay more than $125 for each placed location.
When buying used vending machines, only buy in large lots. You want the same brand of used vending machines and you want a lot of them to make it worth the investment. I ended up buying a lot of 10 machines and quickly figured this lesson out. Not only was my original 18 machine route all different machines, but so was the10 machine lot. What a hassle this turned out to be. Not only did I end up with a bunch of different keys making servicing slower, but I now had machines without interchangeable parts.
