The Vending Machine Business
Did you know that as of 2022, the US has roughly 5 million vending machines? According to the industry market research firm IBIS World, the vending machine industry generates close to $8.9 billion in annual revenue. About 67% of this market comprises small independent operators selling snacks and beverages and making small margins. For most vending machine owners, it is primarily a side hustle.
Vending is a booming business, and starting one is not very difficult. The vending business is a constantly changing and evolving industry. It provides an excellent opportunity for all kinds of entrepreneurs, whether you are a novice or a seasoned business owner. The range of products that can be offered to your customers is vast. The most common and popular items being sold are snacks, candy, and beverages like soda, water, and coffee.
Used vending machines generate profits quickly with a low initial cost
If you are new to the vending business and would like to try your hand at it, then an easy way to start your own vending business is to buy used vending machines. A used vending machine will typically cost a fraction of its brand-new unit. You may also chance upon a used vending machine that has barely been used.
While experimenting with new locations, a used vending machine can be a good choice. If you are operating with limited resources, used vending machines may be the way to go. Many such use cases get you started on a used machine and earn the capital required to invest in a brand-new device.
There are many kinds of used vending machines available in the market today. They sell a variety of merchandise, from sodas or general snacks in malls to travel electronics like headphones or phone chargers in airports. You can also buy COVID-19 essentials like masks and sanitizers from vending machines in hospitals and public spaces like malls or theaters. Picking the right product and pricing it right will help recover the capital invested in buying your used machine.
Important aspects to consider before purchase
A used vending machine might seem like a cost-effective choice to jumpstart or expand your vending business. There are a few important things, however, to consider before buying one.
There are pros and cons when investing in a used vending machine. The right price, the suitable model, long-term reliability, value over investment, etc., form the cons. Vending.com ensures that these cons are handled and converts them to advantages.
- Warranty –
- Con – Used vending machines come with no warranty, unlike new ones.
- Pro – Vending.com “factory refurbished” and “certified used vending machines” do come with a great price and limited warranty
- Con – purchasing a used machine most likely will be a cash-only transaction, or you may have to take out a loan.
- Pro -Vending.com has a few attractive financing options that have been designed for entrepreneurs and their cashflows in mind.
- Number of Features
- Con – Used vending machines are generally older models. Legacy units will not have the latest features and technology like contactless transactions. They may not be equipped to accept card payments, thus limiting the number of customer transactions.
- Pro -Vending.com has the expertise and parts catalog to address this.
- Hidden expenses –
- Con – Used machines may work perfectly fine initially, but as they near end-of-life, their mean time between failures becomes lesser and lesser. While the cost of repairs will be a factor considered, the more significant aspect would be the lost revenue from sales.
- Pro- Vending.com’s one-year factory warranty and Vendnet’s 90 years of vending experience ensure your machine operates with no problems.
When purchasing a used vending machine, it’s always a good idea to inspect the vending machine in person. If Tinder taught us anything, it is that profile pictures are often overrated.
- Seeing is believing. Check if there are any physical damages like scratches or dents. It is relatively easy to improve the external appearance of the machine. If there are heavy dents, it is better to take a closer look at the circuit boards and refrigeration systems before moving ahead with the purchase. You should ask for the machine’s original manual and schematics and whatever proof of service the seller has at hand
- If you are buying a vending machine for dispensing cold beverages, check the compressor thoroughly. Insist on starting the machine a couple of hours before you arrive. If you have a gas leak detector, do not forget to take it along. Freon-based coolants like R232 are relatively easier to detect with their distinct smell. It is the propane-based ones that are difficult to spot without a detector. It is better to look for better options if the compressor does not inspire confidence.
- Check the bill acceptor and coin validator. Test it to make sure it is not malfunctioning. No one wants to use a vending machine that simply eats up their money and dispenses wrong items or nothing at all. You could also retrofit a card reader or cashless payment system to the machine. If the bill acceptor or coin validator is glitchy, ask for a discount in the asking price that will help you retrofit one from Vending.com.
The kind of used vending machines you buy can influence the success of your vending business. Getting a quality machine will save you lots of money and time while maximizing revenue-generating transactions. Purchasing your vending machine from a reliable company can help eliminate uncertainties and risks. Vending.com has a wide range of factory-direct new and used vending machines that are manufactured in the USA. All machines have been factory inspected and remanufactured to look and operate just like new vending machines.
When buying your vending machine from Vending.com, you can rest assured that you are in good hands. With over 90 years of experience in the vending industry, Vending.com offers a dependable business proposition to help you build your own vending business.
Vending.com offers affordable used vending machines that are factory refurbished and certified. Call 1-855-929-1042 today for all your vending needs.