Vending Machine Business

[jean777]

I’m currently looking into side hustlers that can help me generate some extra cash. One of the main options I’m looking at is running a route. This can be done part time, on top of my full time 9-5 job. I currently don’t own anything and am looking for more information/advice on what to look out for and if this is a good opportunity.

I came across a posting where a vending machine route owner is looking to get rid of two of his locations. I spoke to him and apparently they are out of his way and wants to cut that portion of his business out. One location has 3 machines on two floors in a busy office building in a city. The building is a non for profit that is only open Monday-Friday 9-5. According to him these machines average 7-9k gross revenue annually (21-24k annually) at this location. He is pricing this location at 28k total.

The other location is at a 24/7 hotel where staff is constantly working. The machine is located in the basement. Apparently this location is grossing 15k annually. He is asking for 20k for this location and machine.

I want to get a better understanding of how much money I would take home with this side hustle assuming his numbers are correct. I would refill these machines twice a month most likely. If the net revenue is 36-39k annually, how much would I take home? Also, he said reports are kind of bs in the vending machine route business.

I can negotiate on a final price pretty substantially but, it is a lot of money for two locations. Please let me know thoughts. Thank you

 

[buckeye_momof4]

@jean777 Theres a few real good YouTube tutorials.

One of the big recommendations was to go with newer machines b/c replacement parts are more readily available.
Also machines w/ wireless connection, and accepts credit cards.

 

[jean777]

@buckeye_momof4 What video channels do you recommend

 

[buckeye_momof4]

@jean777 I honestly couldn't say.
I was just browsing one day and stumbled into a couple.
Try a search for Vending Business Tutorial or Vending Business for Beginners.

 

[jean777]

@buckeye_momof4 When you look at buying a new location how do you verify the gross revenue they claim the location is generating? I feel like this information can be easily forged and end up screwing you in the end

 

[buckeye_momof4]

@jean777 I think that's one of the problems with that business when you buy a location. It's basically a cash business that you can't verify.

The other problem is, there's no location contract so you can buy a machine/route for
X thousands and 90 days later, you can get a call to remove your machine.

IMO, if the location was so good, they wouldn't be selling it unless the guy is retiring, or they have no other clients in the area making service difficult.

 

[mykey]

@jean777 I do vending, if they were good locations he would drive to them. If wanting to do vending get a machine and talk to different businesses. IMO that’s too high, if it was me buying.

 

[jean777]

@mykey If I offered anything it would be 24k total for both, he’s willing to bundle them. We live on Long Island so driving into manhattan can be a huge pain. According to him he isn’t trying to go into the city any more so on the surface it checks out

 

[jean777]

@mykey Also, when you look at buying a location do you ask for reporting on the revenue reported? It does seem careless to just trust his word for it

 

[mykey]

@jean777 That makes more sense to me now. Yes, I would think he would have that. See if he has a dex inside machines as well, that will let you what sales and how much money is coming in.

 

[jean777]

@mykey Thanks, how would you determine if this is a good investment or not? I would honestly be dumping my entire savings into this. I’m currently making good money not paying rent at home so I have the ability to invest in something, pay it off as quickly as possible and not rely on getting this money. But I clearly need to make sure I get my ROI and break even as quickly as possible. I don’t own any locations currently so I would be putting all of my eggs in one basket pretty much

 

[mykey]

@jean777 Personally I wouldn’t put all
My eggs in that basket. Also , see if you can run route with him one day to see if it’s worth the time and money.

 

[suzq154]

@jean777 Get into the ATM business instead. Vending you have spoilage, mice trying to eat inventory, and those machines are crazy to move. I honestly think vending is only good at a good scale. Although, I’m in the ATM biz, so I guess I’m partial. Reach out if you are interested in knowing more.