Vending Machine Business - Tips, Tricks & Truth!
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- Опубликовано: 4 авг 2019
- How do I start a vending machine business? Are the companies promising an "easy path to riches" legitimate, and is the vending business really as easy as they suggest?
If you want to learn the real deal about vending from someone who has actually done it, the pitfalls, growth tips, things to avoid, you will want to listen to today's video. We are speaking with Mr Benjamin Barry, Ben has done what few people are able to do, he has built a very successful vending machine business from ground zero.....one single location to hundreds of locations. No fluff no filler just great advice from a successful entrepreneur. We'll look at the different types of vending Ben is involved with, how Ben places his machines, how he got started, as well as a unique niche in the space that anyone can get started in with little to no funds - honor box vending, which is another market Ben has done extremely well with.
Stay tuned until the very end for a link for a free download to help you start your own successful vending business!
Bens website www.vendadvice.com (Sorry it looks like it is no longer online)
EVER WONDER HOW MUCH MONEY FRANCHISES ACTUALLY MAKE? Also - little known million dollar a year franchises for less: ruclips.net/video/bHoezHqvMjI/видео.html Come visit!
Honor box seems like a good way to move products that are about to expire. With the increased possibility of theft. Just out older products so if it sales you avoid a loss and if it’s stolen it was going to be a loss anyway.
Smart!
dperry203 You make a very very good point.👍🏾
I literally said that as soon as he mentioned honor boxes!
I would be happy to come on and talk about my vending business, we only do snack and soda machines 100 total on location. 5+ years experience with employees and trucks.
Thanks for the offer! We may take you up on that in the future.
I Highly recommend getting Mr Hill on your podcast he is a legend
@@philipelliott894 Thanks!
I’ve been waiting for this, thank you!
Thanks for visiting!
Great Questions & love the answers
Thanks for the feedback !
Thank you very much for the Video!. I have been waiting for it. Very informative content as usual. Thanks Rob.
Thanks for watching!
Same here, there are almost too many vending channels on youtube. Some are better than others, but I think you get an well informed unbiased perspective with this video.
Excellent informative video on a fascinating area of business which is probaly little understood.
Been in the vending business for 20years has done very well for me. Getting ready to retire if I could sell. I do believe this is one of the last businesses with little compition.
Great to hear and thanks for the comment! Lot's of buyers out there, I expect you would have no problems selling.
why are you located. I would love to buy an established route.
I’m interested in buying as well let me know thanks
I'm more then interested if you're willing to connect!
Interesting and Informative Interview. I own a Snyders-Lance Route where I deliver to the Grocery Stores. It's a steady Income with 14 accounts. This Man has my respect.
After slowly building a vending machine business and working it for a year now I'm still waiting to get my return back and I'll say that if you think it's an easy business to get into that you shouldn't even bother it's not easy
Zombie Power Drink good luck
Good for you, I wish you the best. And, yes, there is no easy path to success in business or life, frankly.
Best info vid yet 😅😅😅
Thank you!
Being in sales 10 years talking is the easy part got all my paperwork ready and 5 locations with two contracts signed should be installed 30th !!!!
Well once your box is stolen then you can convert it in to a machine, if you where making money there.
At one point large high schools were cash cows but many school districts are looking to provide students with healthier options.
And they still are cash cows, just have to meet USDA guidelines called 'Smart Snacks in Schools'.
Great video.
Could you give us a brief explanation of the costs of placing a machine at a location? Namely, what's in it for the business owner? Do they lease the space to you, or do they take a percentage of the revenue?
This a long time ago, but I placed a group of machines at a location and paid a 5% royalty as "rent" and to cover the utilities. This location was a busy, secure non-public facility with really good sales. I did very well! Placed another at a location with no royalty. Lost a bit due to vandalism, etc. Sometimes it is more lucrative to pay more! Great interview, Robert
Thank you!
You can get accounts and pay no commission
Worked at a concrete company that used an honor box. One guy would steal candy but we'd always make up for him. We would shame the heck out of him though! 🤣😂😀
Lol - DIS-honor box!
Theft is definitely the disadvantage of the honor box business and probably why there aren't more of them around. Still, I think it's a great way to start and you will sometimes find completely honest locations that will stick with you for years. You just have to keep locating until you find them.
I worked one summer at a government repair shop and the employees called it the "steal a snack" box.
Stay away from honor boxes. There is very little honor left. Put a full size snack instead. There are small model snacks that are less expensive . The best full line vending accounts are 24/7 factories. Also hospitals and manufacturing are good places. Most large accounts will need a bevmax a snack a fresh food a frozen and a coffee. Remember, micro markets are making in roads in the vending industry. I can go on and on. That will do. Best.
He is not kidding about blue collar workers and vending machines. I used to work at the USPS Columbus, OH P&DC (United States Postal Service Processing and Distribution plant). The employees (blue collar working folks) would often just buy their lunches from the vending machines. A lot of the younger males would almost exclusively eat out of the vending machines with a large markup!
Can you please do a Great American Cookie review please and thank you in advance.
Can you go into what exactly the start-up costs would be for wfh service franchises like staffing company or consulting? I just can't imagine exactly what you would be spending the tens of thousands of dollars on...
All expenses are broken down in their FDD and the total investment as provided generally includes your working capital for 3-6 months, rent/office space, employee wages, franchise fees, office equipment, etc. Franchise fees alone are typically $30-$60,000. Thats at the lower end, a restaurant will be several times that. Thanks for the question.
First go to town hall ask a bought a vending license first step
Can you do a video on food trucks
His website link is no where to be found now!
Is the website out of commission? I keep getting an error message
i think i know how this subject got brought up, Graham made that vending machine guy take off, now everyone is asking about it :D
They should consider try coin pusher business
Here in Australia, the vending machine business is in crisis. Its because the use of cash has dropped to only 8% of small transactions and the phasing out of the $5 note. Now the smallest denomination will be $10 by 2021. Everyone uses card now for even small items like coffee and because we do not tip as a rule here, there is no need to carry cash. Every vendor must have an eptpos maching and with most now connecting via the cellphone network, the barrier to entry is very low. I have not paid for anything with cash for over three years.
Thanks! Similar in most cities here - nobody has cahs machines are taking BTC, cards etc. Much more $$ to get started!
Globalism. Digital money tracking. No freedom.
The link is not working. Do you have another link?
Sorry, it looks like the site is no longer working. Ill reach out and see what I can find. Thx for the visit.
To bad vending is so saturated now. Everyone is trying to get into vending. Ugh so now I'm doing laundromats and arcades
Sounds like something the small dick bandit would say! GET OUT THERE AND MAKE IT HAPPEN!
That's where differentiation comes into play. When you have something different you can actually replace existing machines anywhere in the US.
@@FranchiseCityOnline That escalated quickly.
Would have been nice to here a ballpark on how much one can make a year😐
Somewhere between Zero to $300k. That's the problem with ballparks, it's useless information. One location can make zero, another can make a lot. One owner can be a superstar, another can suck at the business. One city can have intense competition, another can be wide open. Too many variables to give a number of any use!
I would reframe the question, "how much do you need to make from each location". For me, I shoot for at least $10 per day on a soda machine location. If it's under that, I'm looking for a better location to move the machine to. Almost any location will sell something.
@@benjaminbarry5589 is that before or after taking expenses into account?
What would be the electricity bill for the old soda machine?
Are they noisy?
I have seen it at around $10/month. It also matters where you put it. If the machine is outside on a hot day it will use more power. In the video I suggest you buy a refurbished machine, but you should do your research on which machine to use. Generally Dixie Narco and Royal are considered to be more reliable machines. Also glass front machines tend to be less reliable, especially the ones with mechanical arms so I'd avoid those if you can even though they look great. What you want is a traditional "stack" vendor from either of the above companies.
where do you buy the used machines?
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Depends where you are located. Do a Google used vending+ your local area should be many options. Also Craigslist or local 4sale portals and forums
Should have asked him how he incentivized the owners to allow him to vend.
So is the Mafia still a player in this type of business?
I was a sales rep for a snack food company and I had a lead to contact at a vending company in Boston. I couldn't get out of there fast enough, felt like I was on the set of Sopranos. They weren't even trying to hide it.
how do you launder the cash though?
How do you convince a company or business to let you put a vending machine in their location? Do you give them a kickback? Or do they just do it out of the kindness of their heart?
I wish they would! I offer my service as "free vending service" because you are providing them a service in reality. Most locations really just want snacks and drinks in their workplace. Some will ask for commission, especially if the location is higher volume. If they mention this I always tell them that there is a relationship between price of the products and commission. So if they want the commission I will have to raise prices on the items and that is the reality of it. Focus on what you are doing for them and then decide later if it is worth it for you once they are on board. I would never give a commission to a location I know will be lower volume.
Sell your service and quality machines
NOTE TO VENDING MACHINE OWNERS!!!! make sure your coin boxes are LOCKED and MAINTAINED!!!
in college, at my friend's dorm, a video game machine (remember THOSE? 😲) had a busted coin box, so you could see into it easily. With some ingenuity, he and his roommate 'McGuyvered' a way to get quarters out.... straws, poster putty and later fish-tank nets turned into quite a profitable venture!
Good times...... 🥳🤡🧐😈
what's the incentive of the person owning the business to let you put the vending machine there? Do you give then a cut of everything the vending machine makes? How do you compensate for the opportunity to use their location and electricity used?
Thanks for the question. Yes, the owner of the establishment will take a cut of transactions. That amount will cover their power costs and usually leave some profit. The additional incentive is that customers who come in the use the machines are also likely to buy something!
Link doesn't work
Sorry - not sure what happened we'll try and reach out to them.
Do you think the crane machine would work in a bar with drunks?
Lol! You would never have to restock anything.
@@FranchiseCityOnline Yeah lol, I only remember seeing that once :)
I use those claw machines as examples for my kids as to why they should never gamble. The kids learn that they put in their dollar to win some cute stuffed animal, only to discover that the claw has no grip and drops the item right before the exit hole.
The little kids learn the sad lesson that all games that look easy are actually rigged by the house to make you lose. A good thing to know as casinos spring up around the country like mushrooms after a rain storm.
One more thing. Stay away from any franchise in vending. They are overpriced and no large vending company will go near a franchise. Why? The equipment is inferior to what a full line vendor uses. Also way overpriced. Franchises in vending cannot compete with private vendors.
I appreciate the comment and we covered this topic in the interview. However I do not believe you have analyzed every franchise in vending. Not all of them have the same model. Sweeping generalities do not help anyone.
. saleh 🔴