NATURE OF THE VENDING BUSINESS
There are many types of machines available. One type is the combo machine that sells both soda and snacks. These combo machines have the disadvantage of not holding much of any product, and therefore requiring frequent servicing. Most separate use snack and soda machines.
Finding a good location can be difficult, since many locations already have vending machines, do not want one, or are too tiny to get enough business. An operator may end up paying the store owner a 10% commission, which requires separate accounting for that machine. If the locations are too far apart, the operator may spend so much time driving between locations when filling them that the same amount of time could more profitably be spent working for someone else.
Friday, January 26, 2007
DISADVANTAGES OF FULL LINE VENDING
Soda and snack machines are relatively, unless they are obtained through a third party vending program. Compared to bulk vending machines, full line vending machines take a long time to service. It may take up to an hour to service a soda or snack that is low in inventory. The product also tends to take up more space. Breakdowns are difficult to repair, due to the complexity of the machines; do it yourself repairs may void the warranty. The machines are difficult to move; this task may require the help of professional movers. Some locations expect a large commission. Most locations, such as corporate offices, need to be serviced during traditional business hours, making it hard for a person to service the machines while also holding down a full time job.
Soda and snack machines are relatively, unless they are obtained through a third party vending program. Compared to bulk vending machines, full line vending machines take a long time to service. It may take up to an hour to service a soda or snack that is low in inventory. The product also tends to take up more space. Breakdowns are difficult to repair, due to the complexity of the machines; do it yourself repairs may void the warranty. The machines are difficult to move; this task may require the help of professional movers. Some locations expect a large commission. Most locations, such as corporate offices, need to be serviced during traditional business hours, making it hard for a person to service the machines while also holding down a full time job.
ADVANTAGES OF FULL LINE VENDING
For operators, soda/snack machines have the advantage that many locations recognize their need for such machines. Many locations will, in fact, take the initiative to contact a vending company to request installation of a machine. Companies recognize the difficulty in moving these machines are less likely to request removal, unless the operator does a poor job of servicing the machine. Almost all soda and snack machines have vend counters that track how many items are sold, making it difficult for an employee to steal money. The machines themselves, being large and heavy, are difficult to steal without drawing attention, compared to most bulk vending machines.
For operators, soda/snack machines have the advantage that many locations recognize their need for such machines. Many locations will, in fact, take the initiative to contact a vending company to request installation of a machine. Companies recognize the difficulty in moving these machines are less likely to request removal, unless the operator does a poor job of servicing the machine. Almost all soda and snack machines have vend counters that track how many items are sold, making it difficult for an employee to steal money. The machines themselves, being large and heavy, are difficult to steal without drawing attention, compared to most bulk vending machines.
TRENDS
In the late 1990's and early 2000s, there was a trend in the United States for large national retailers to make contracts with national companies to provide full line vending services to all their branches' break rooms. In many cases, managers and staff of individual stores objected to this, because the national vendors were not necessarily responsive to their product preferences. for instance, they might not be willing to provide Cherry Coke, and vinegar chips or any other niche products. This trend began to reverse. Most full line vendors are small, independent operations. Often, lower prices, stock the machine with the manager's favorite candies, or provide better service.
In the late 1990's and early 2000s, there was a trend in the United States for large national retailers to make contracts with national companies to provide full line vending services to all their branches' break rooms. In many cases, managers and staff of individual stores objected to this, because the national vendors were not necessarily responsive to their product preferences. for instance, they might not be willing to provide Cherry Coke, and vinegar chips or any other niche products. This trend began to reverse. Most full line vendors are small, independent operations. Often, lower prices, stock the machine with the manager's favorite candies, or provide better service.
FULL LINE VENDING
Full line vending is the business of operating vending machines that sell cans or bottles of soft drink and or small packages of snacks. A common volume for soda is 12 fl. oz. (354ml) or 20 oz. (590ml) in North America, or 330 ml or 500ml in Europe; for snacks, bags of chips and similar edibles are usually in the range of 1-3 oz. In any given day, 7 out of 10 people buy something from a vending machine. Operators of snack machines often to choose to operate soda machines as well, so they can sell both services to a particular location and place the two machines side by side for efficient servicing.
Full line vending is the business of operating vending machines that sell cans or bottles of soft drink and or small packages of snacks. A common volume for soda is 12 fl. oz. (354ml) or 20 oz. (590ml) in North America, or 330 ml or 500ml in Europe; for snacks, bags of chips and similar edibles are usually in the range of 1-3 oz. In any given day, 7 out of 10 people buy something from a vending machine. Operators of snack machines often to choose to operate soda machines as well, so they can sell both services to a particular location and place the two machines side by side for efficient servicing.
SOME MORE INFO ABOUT BULK MACHINES
Stands mostly come in two colors black and chrome. Chrome has a tendency to rust when exposed to moisture from mopped floors, humidity, etc. black stands suffer the same problems, but can be repainted with inexpensive black gloss spray paint more cheaply than chrome stands can be rechromed.
Sticker adhesive can be removed from machines by applying lighter fluid and then rinsing with dish soap. It may be a good idea to keep a machine in the house, so you know which cleaners work on which machines.
The best choice of machine depends on the location. For most locations, a simple single or double head stand is sufficient. In some high traffic locations, a four selection machine is the best but can cause product to go stale in a location with less sales.
Machines with separate heads are the ones most commonly encountered. grocery stores, malls, and laundromats may have stands with a half dozen or more separate head machines. Most of them have a large presentation area and allow the product to be seen from all angles, and therefore are more eye catching than triple machines. gumballs and toys sell well from these machines.
Triple selection machines have had some success in office settings, where the target customers are adults. An advantage of triple selection machines over stands with separate heads is that they are quicker to service because one key opens the whole machine. Most triple selection machines have a spill tray, which can help prevent store owners from becoming annoyed at having to sweep up spilled candy. A disadvantage is that the presentation area is smaller than with a globe or panel head, and customers can not see all products from all angles. In addition, three choices of candy are not always necessary, and may result in spoilage if one product moves slowly.
LOCATIONS
A bulk candy vendor must be willing to act as a salesman in order to persuade businesses to allow locations of machines. Since managers are busy, he must be able to state his case concisely and close the sale effectively. Even experienced vendors often report a high rejection rate, on the order of 9 out of 10. Many operators donate a percentage of the profits to charity so that locations will allow them to place the machines for free; others pay the location a commission.
A bulk candy vendor is constantly having to seek new locations as accounts turn over. A company's regional manager may visit a branch, for instance, and decide he doesn't like the bulk candy machine. Or a competing operator may offer the owner a better commission. The prime locations are fiercely fought over, and operators may need to pay as much as 50% to the store owner in order to keep a high volume location. It usually takes about 300 locations for an operator to live solely on bulk cand profits.
The best bulk vending machine locations that are usually profitable include the following:
long hours of operation businesses especially diners
large numbers of customers who will pass by a busy retail store
people waiting for a business to complete something like an oil change place
lots of children in a recreation center
hungry people in a restaurant
people in a laudromat usually have extra coins for vending machines
no other bulk machines at the location
people working at a job, who may not be able to leave to get food
THE VENDING ROUTE
Many vendors began operating a small route as a sideline to a full time professional job, and found it profitable enough that they went into vending full time. Vendors often say that they enjoy the flexibility afforded by not needing to work 9-5. The majority of bulk vending companies are small, one person operations, but some have expanded, hired additional employees, and become sizeable businesses.
Stands mostly come in two colors black and chrome. Chrome has a tendency to rust when exposed to moisture from mopped floors, humidity, etc. black stands suffer the same problems, but can be repainted with inexpensive black gloss spray paint more cheaply than chrome stands can be rechromed.
Sticker adhesive can be removed from machines by applying lighter fluid and then rinsing with dish soap. It may be a good idea to keep a machine in the house, so you know which cleaners work on which machines.
The best choice of machine depends on the location. For most locations, a simple single or double head stand is sufficient. In some high traffic locations, a four selection machine is the best but can cause product to go stale in a location with less sales.
Machines with separate heads are the ones most commonly encountered. grocery stores, malls, and laundromats may have stands with a half dozen or more separate head machines. Most of them have a large presentation area and allow the product to be seen from all angles, and therefore are more eye catching than triple machines. gumballs and toys sell well from these machines.
Triple selection machines have had some success in office settings, where the target customers are adults. An advantage of triple selection machines over stands with separate heads is that they are quicker to service because one key opens the whole machine. Most triple selection machines have a spill tray, which can help prevent store owners from becoming annoyed at having to sweep up spilled candy. A disadvantage is that the presentation area is smaller than with a globe or panel head, and customers can not see all products from all angles. In addition, three choices of candy are not always necessary, and may result in spoilage if one product moves slowly.
LOCATIONS
A bulk candy vendor must be willing to act as a salesman in order to persuade businesses to allow locations of machines. Since managers are busy, he must be able to state his case concisely and close the sale effectively. Even experienced vendors often report a high rejection rate, on the order of 9 out of 10. Many operators donate a percentage of the profits to charity so that locations will allow them to place the machines for free; others pay the location a commission.
A bulk candy vendor is constantly having to seek new locations as accounts turn over. A company's regional manager may visit a branch, for instance, and decide he doesn't like the bulk candy machine. Or a competing operator may offer the owner a better commission. The prime locations are fiercely fought over, and operators may need to pay as much as 50% to the store owner in order to keep a high volume location. It usually takes about 300 locations for an operator to live solely on bulk cand profits.
The best bulk vending machine locations that are usually profitable include the following:
long hours of operation businesses especially diners
large numbers of customers who will pass by a busy retail store
people waiting for a business to complete something like an oil change place
lots of children in a recreation center
hungry people in a restaurant
people in a laudromat usually have extra coins for vending machines
no other bulk machines at the location
people working at a job, who may not be able to leave to get food
THE VENDING ROUTE
Many vendors began operating a small route as a sideline to a full time professional job, and found it profitable enough that they went into vending full time. Vendors often say that they enjoy the flexibility afforded by not needing to work 9-5. The majority of bulk vending companies are small, one person operations, but some have expanded, hired additional employees, and become sizeable businesses.
Vendors generally report that about 1-4% of their machines disappear annually, a problem exacerbated by the fact that machines are usually located close to store entrances, where they are easy to steal. Locations inside existing businesses can be in peril if the business goes bankrupt or evicted from rented premises. machines have been known to be seized or liquidated by the host businesses' creditors, before the rightful owner has a chance to retrieve them.
BUSINESS OPPORTUNITIES
Many of the business opportunities still in existence operate on the margins of legality, escaping liability through carefully worded contracts that make it difficult for customers to cash in on money back guaranties. State and federal government agencies have issued statements warning of business opportunity scams in the bulk vending industry.
The FTC website lists complaints filed by the U.S. government against scores of vending business opportunities. many of them, remain in business and have huge advertising budgets. The high profit margins these companies earn from selling overpriced equipment enables them to pay the fines and continue operating.
MACHINERY
Vendors have a wide variety of machines to choose from. The selection of a machine is important because it can impact sale, time spent servicing the machine, willingness of locations to allow placement of the machine, and a variety of other factors affecting overall profits. Just like a car, once a vending machine is placed in service, its resale value drops dramatically. This is especially true for machines that were overpriced to begin with.
Ligeri Vending (http://www.vendingprofessionals.com/) is generally regarded in the vending community as a company that sells high quality bulk vending machines. Lou Ligeri, owner of Ligeri Vending helps people decide for themselves if the vending business is the right business for them. Mr. Ligeri feels that it is important to give his customers a FREE CONSULTATION about the pros and cons of the vending industry before just trying to sell the customer a blue sky story about how much money they are going to make with little or no effort. http://www.vendingprofessionals.com/ is available for all your vending needs. Ligeri Vending sells all types of vending machines worldwide, locates machines anywhere in the USA , Canada, and parts of Europe, provides a vending consulting service, and gives ongoing support to their customers.
BUSINESS OPPORTUNITIES
Many of the business opportunities still in existence operate on the margins of legality, escaping liability through carefully worded contracts that make it difficult for customers to cash in on money back guaranties. State and federal government agencies have issued statements warning of business opportunity scams in the bulk vending industry.
The FTC website lists complaints filed by the U.S. government against scores of vending business opportunities. many of them, remain in business and have huge advertising budgets. The high profit margins these companies earn from selling overpriced equipment enables them to pay the fines and continue operating.
MACHINERY
Vendors have a wide variety of machines to choose from. The selection of a machine is important because it can impact sale, time spent servicing the machine, willingness of locations to allow placement of the machine, and a variety of other factors affecting overall profits. Just like a car, once a vending machine is placed in service, its resale value drops dramatically. This is especially true for machines that were overpriced to begin with.
Ligeri Vending (http://www.vendingprofessionals.com/) is generally regarded in the vending community as a company that sells high quality bulk vending machines. Lou Ligeri, owner of Ligeri Vending helps people decide for themselves if the vending business is the right business for them. Mr. Ligeri feels that it is important to give his customers a FREE CONSULTATION about the pros and cons of the vending industry before just trying to sell the customer a blue sky story about how much money they are going to make with little or no effort. http://www.vendingprofessionals.com/ is available for all your vending needs. Ligeri Vending sells all types of vending machines worldwide, locates machines anywhere in the USA , Canada, and parts of Europe, provides a vending consulting service, and gives ongoing support to their customers.
MECHANISM
After paying, a product may become available by:
the machine releasing it, so that it falls in an open compartment at the bottom, or into a cup, either released first, or put in by the customer.
the unlocking of a door, drawer turning of a knob,etc.
Sometimes the product is not just released; this may be the case of coffee, french fries, or a ticket that is printed after paying.
BULK VENDING
bulk vending is the sale of unsorted confections, nuts, gumballs, toys, and novelties (in capsules) selected at random and dispensed generally through non electrically operated vending machines. Bulk vending is a separate segment of the vending industry from full line vending, the snack and soda industries, and involves different products and strategies. Bulk vending represents less than 1% of the total vending industry.
HISTORY OF BULK VENDING
Bulk vending dates back at least to the late 19th century. Vending machines were widely used in Europe before they became popular in the United States. In 1950, the United States treasury department attempted to impose a gambling excise taxes on bulk vendors on the grounds that there was no way for consumers to know for sure which gumball or other product the machine would dispense. For a short time, manufacturers installed viewfinders in bulk vending machines to display the next item to be vended. Vendors organized to found the national Bulk Vendors Association(NBVA), which successfully lobbied against the taxes, arguing that the items vended were of approximate or equivalent value. the NBVA has sinced lobbied on behalf of bulk vendors on a variety of issues; it joined the coin Coalition which pushed for elimination of the U.S. one dollar bill in favor of the United States dollar coin.
ADVANTAGES AND DISADVANTAGES OF BULK VENDING
Bulk vending is a hands on business requiring research and planning, as well as sales ability and investment of time, to be successful. many of the same considerations that apply to other small businesses, such as accounting, income taxation, liability insurance, and so on, also apply to bulk vending. On the other hand, some aspects, such as fixed costs and required start up money, are part of getting a business up and running.
ADVANTAGES OF BULK VENDING
The gross margins in the bulk candy business can be quite high, gumballs, for instance, can be purchased in bulk for 2 cents apiece and sold for 25 cents. The machines are generally inexpensive compared to soda or snack machines. Both the machines and product are relatively portable, and the machines are easier to service than in other types of vending. In many states, bulk vendors are exempt from sales tax. Bulk vending may be a practical choice an individual who has a full time job. This is because many locations that have bulk vending machines are open nights and weekends.
DISADVANTAGES OF BULK VENDING
Initially, the cost of insurance for a beginning operation may be cost prohibitive. Consequently, many new operators do not carry liability insurance on their machines. There are very limited companies that offer insurance for bulk vendors.
The business is susceptible to inflation because product costs rise higher than prices customers are willing to pay. many bulk candy vending mechanisms are not equipped to accommodate price increases, unlike electronic machines. Locations do not see a compelling need to have a bulk vending machine. Moreover, because locations know the machines are easily portable, it is not uncommon for bulk vendors to get kicked out of a location.
After paying, a product may become available by:
the machine releasing it, so that it falls in an open compartment at the bottom, or into a cup, either released first, or put in by the customer.
the unlocking of a door, drawer turning of a knob,etc.
Sometimes the product is not just released; this may be the case of coffee, french fries, or a ticket that is printed after paying.
BULK VENDING
bulk vending is the sale of unsorted confections, nuts, gumballs, toys, and novelties (in capsules) selected at random and dispensed generally through non electrically operated vending machines. Bulk vending is a separate segment of the vending industry from full line vending, the snack and soda industries, and involves different products and strategies. Bulk vending represents less than 1% of the total vending industry.
HISTORY OF BULK VENDING
Bulk vending dates back at least to the late 19th century. Vending machines were widely used in Europe before they became popular in the United States. In 1950, the United States treasury department attempted to impose a gambling excise taxes on bulk vendors on the grounds that there was no way for consumers to know for sure which gumball or other product the machine would dispense. For a short time, manufacturers installed viewfinders in bulk vending machines to display the next item to be vended. Vendors organized to found the national Bulk Vendors Association(NBVA), which successfully lobbied against the taxes, arguing that the items vended were of approximate or equivalent value. the NBVA has sinced lobbied on behalf of bulk vendors on a variety of issues; it joined the coin Coalition which pushed for elimination of the U.S. one dollar bill in favor of the United States dollar coin.
ADVANTAGES AND DISADVANTAGES OF BULK VENDING
Bulk vending is a hands on business requiring research and planning, as well as sales ability and investment of time, to be successful. many of the same considerations that apply to other small businesses, such as accounting, income taxation, liability insurance, and so on, also apply to bulk vending. On the other hand, some aspects, such as fixed costs and required start up money, are part of getting a business up and running.
ADVANTAGES OF BULK VENDING
The gross margins in the bulk candy business can be quite high, gumballs, for instance, can be purchased in bulk for 2 cents apiece and sold for 25 cents. The machines are generally inexpensive compared to soda or snack machines. Both the machines and product are relatively portable, and the machines are easier to service than in other types of vending. In many states, bulk vendors are exempt from sales tax. Bulk vending may be a practical choice an individual who has a full time job. This is because many locations that have bulk vending machines are open nights and weekends.
DISADVANTAGES OF BULK VENDING
Initially, the cost of insurance for a beginning operation may be cost prohibitive. Consequently, many new operators do not carry liability insurance on their machines. There are very limited companies that offer insurance for bulk vendors.
The business is susceptible to inflation because product costs rise higher than prices customers are willing to pay. many bulk candy vending mechanisms are not equipped to accommodate price increases, unlike electronic machines. Locations do not see a compelling need to have a bulk vending machine. Moreover, because locations know the machines are easily portable, it is not uncommon for bulk vendors to get kicked out of a location.
Thursday, January 25, 2007
Items sold via vending machines vary by country and region. For example, some countries sell alcoholic beverages through vending machines, while other countries do not allow this due to strict laws. Cigarettes were commonly sold in the United States through these machines, but this practice is increasingly rare due to concerns about underaged buyers. Sometimes a pass has to be inserted in the machine to prove one's age. In some European countries, cigarette machines are still common. Believe it or not, in the 1950's life insurance policies were sold through vending machines.
HISTORY
The first vending machine is believed to have been invented by Hero of Alexandria, a first century inventor. His machine accepted a coin and then dispensed a fixed amount of holy water. When the coin was deposited, it fell upon a pan attached to a lever. The lever opened up a valve which let some water flow out. The pan continued to tilt with the weight of the coin until it fell off, at which point a counter weight would snap the lever back up and turn off the valve.
Despite the early precedent, vending machines had to wait for the Industrial Age before they came to prominence. The first coin operated vending machines were introduced in London, England in the early 1880's, dispensing post cards. The first vending machine in the United States was built in 1888 by the Thomas Adams Gum Company, selling gum on train platforms. The idea of adding simple games to these machines as a further incentive to buy came in 1897 when the Pulver Manufacturing Company added small figures which would move around whenever somebody bought some gum from their machines. This simple idea spawned a whole new type of mechanical device known as the trade stimulators. The birth of pinball is ultimately rooted in these early devices.
HISTORY
The first vending machine is believed to have been invented by Hero of Alexandria, a first century inventor. His machine accepted a coin and then dispensed a fixed amount of holy water. When the coin was deposited, it fell upon a pan attached to a lever. The lever opened up a valve which let some water flow out. The pan continued to tilt with the weight of the coin until it fell off, at which point a counter weight would snap the lever back up and turn off the valve.
Despite the early precedent, vending machines had to wait for the Industrial Age before they came to prominence. The first coin operated vending machines were introduced in London, England in the early 1880's, dispensing post cards. The first vending machine in the United States was built in 1888 by the Thomas Adams Gum Company, selling gum on train platforms. The idea of adding simple games to these machines as a further incentive to buy came in 1897 when the Pulver Manufacturing Company added small figures which would move around whenever somebody bought some gum from their machines. This simple idea spawned a whole new type of mechanical device known as the trade stimulators. The birth of pinball is ultimately rooted in these early devices.
A vending machine is a machine that dispenses merchandise when a customer deposits a sufficient amount of money into a slot. The money(usually coins) is validated by a currency detector.
INTRODUCTION
In the United States, vending machines generally serve the purpose of selling snacks and beverages, but are also common in busy locations to sell newspapers. Another common class of vending machines are photo booths.
INTRODUCTION
In the United States, vending machines generally serve the purpose of selling snacks and beverages, but are also common in busy locations to sell newspapers. Another common class of vending machines are photo booths.
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