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.