Used Vending Machines -- Why They're the Best For Your Business
- Author Simon Harris
- Published January 8, 2008
- Word count 577
If you are looking to get into the vending machine business, there's no better -- or easier -- way then to purchase used vending machines. Do not believe the claims of some manufacturers that you will be better off in the long run by purchasing new machines -- that is a widely reported (and widely believed) myth of this industry. In this article I would like to sketch out for you some of the reasons why purchasing used vending machines will be the better choice, in just about every situation.
Of course the main reason for purchasing a used vending machine is a much lower cost. An important factor in the success of any business is control of operational costs -- and that includes costs for purchasing of equipment. If you have the choice of paying $4000 versus $600 for a vending machine, and each machine had exactly the same size, capacity, and functionality, wouldn't you rather spend $600?
But it is not just the original purchase price that is an important factor -- it is also the amount of time that will be required to gain back what you have spent. Suppose you have a vending machine that empties out at $300. If you have spent $100 on product, then your net profit is $200 (less any commissions). If your used vending machine cost $600 to purchase, then you will need to have it emptied three times before it has paid for itself. On the other hand, if you have purchased a brand-new vending machine for $3000, then that machine will have to empty itself 15 times before it is paid for! And in many locations it may take more than a month for the machine to empty.
But what about the smaller, "bulk" vending machines? They have a lower purchase price and can be purchased in brand-new condition -- why not use these instead? First of all, these types of vending machines typically do not dispense full size stacks or cans or bottles -- typically they dispense gum, nuts, etc. Another problem with these types of vending machines is that they typically do not come equipped with dollar bill changers -- and that can really cripple your sales. You will need to purchase a commercial, full size vending machine to get those changer units -- and you'll pay through the nose if you purchase one brand-new.
Another problem with the smaller vending machines is that they can be knocked over very easily, damaging them -- in some cases they can be stolen, due to their much lighter weight. They are also less durable and in some cases more prone to malfunction. I would much prefer to operate a used, commercial-grade vending machine than a brand-new counter or table top model.
Finally, if you wish to get into the vending machine business, many folks will tell you to just start out with vending machines that dispense cans and bottles -- my recommendation, however, is that you start out by trying to place both drink and snack machines in the same location. A used snack machine and a used bottle/can vending machine will actually reinforce each other, as many people who purchase and consume a snack will then be looking around for something to drink; on the other hand, people with a little extra cash to spend on a drink can also be persuaded to purchase something to eat at the same time -- and why make just one sale, when you can make two?
Simon Harris owns and operates http://www.better-vending.com Is A Vending Business Right For You?
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