About Automatic Merchandising
The vending business has been in existence for over 50 years, and currently generates nearly 42 billion dollars in sales each year. It consists of many dedicated "Independent" professionals committed to providing the finest service possible to their locations. Your interest in this business is evidence of your commitment to your own betterment, and in turn, to the betterment of your future customers.
Q. Can I be in this business part-time?
A. YES. You should figure your time in the field to be about 20 minutes per week per machine, plus travel time.
Q. Can I operate from my home?
A. YES. There is no need for an office or warehouse.
Q. How big is the automatic merchandising industry?
A. Last year, approximately $42 billion was spent to purchase products from vending machines.
Q. Who owns vending machines?
A. Two out of every three vending businesses are owned by small vendors who personally service their own locations.
Q. Is this a fad business?
A. NO. Automatic merchandising has been growing every year since its beginning in the 1930s. Consumers have come to depend on the convenience offered by vending.
Q. Is there currently a potential market for new vending operators?
A. YES. New businesses are opening daily, many of which would be great locations for vending. Also, many locations that currently have existing equipment are good prospects due to the possible lack of personalized service or outdated equipment being provided by the present vending operator.
Q. Do I need experience in vending?
A. NO. Training is available in all aspects of the vending business.
Q. Do I have to sell?
A. NO. Vending machines are "silent salespeople." They do all of the selling. Once you have secured the location, your job is simply to keep the machines filled and clean ... and to remove the money.
Q. Where do I locate my equipment?
A. Today's opportunities in vending are limitless. Consider all of the locations close to your home. Public buildings. Manufacturing plants. Auction houses. Billiard parlors. Industrial parks. Real estate offices. Apartment complexes. Fitness centers. Car dealerships. Hotels/Motels. Hospitals. Nursing homes. Factories. College campuses. Skating rinks. Golf courses. Muffler shops. Offices. Schools. Warehouses. Service centers
Q. How much do vending machines make?
A. The average profit in vending machines today is 54%. Compared to many other types of businesses, this gross margin is "phenomenal"! Most vended products (Sodas, snacks, etc.) are sold for at least two (2) times their cost. For example: A bag of potato chips may wholesale to you, the vending machine owner/operator for 16 cents. It will sell to the users of your vending machine for a price of 40 to 50 cents.
Q. Do I need to have a "Contract" with my locations?
A. It's always a good idea to have something in writing with the owner/s of the location where you will be placing your vending machines. Basics need to be covered including starting prices for the products to be sold, commission to the location (If applicable), terms of the agreement and cancellation provisions. If nothing else, this will eliminate "surprises" for both you the owner/operator and your location.