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Bulk Vending

Though you may not feel as though the machines in your bulk vending business are as snazzy as many other similar forms of vending machine in the industry, when you look at the bottom line, it won't take you long to discover why it's worth your while to consider this style to increase your earnings. In fact, bulk vending is not just better in terms of the money it earns, but it is also superior in the amount of time it takes to maintain the business.

A bulk vending machine is the type that sells snack items or toys in loose form instead of pre-packaged individual items. Customers pay a fifty to one hundred percent markup for snacks that are dispensed by the handful. In fact, it isn't unheard of for machines to have a price markup of two-to-three hundred percent and still be very popular. These machines are most commonly seen in the entrances (and exits) of grocery and toy stores as well as in some restaurants.

The cost of the snacks to the customer is typically between ten and fifty cents. Items dispensed will generally consist of loose candies, nuts, gum, toys in capsules, stickers, temporary tattoos, play jewelry, and other small items and snacks. The machines will usually have a selection of between one and four items, but some have as many as eight.

On average, it requires that you sell the machines to empty twice in order to recover your entire initial investment. This typically means that you'll have recovered your full investment within the first three to six months of opening your business. From that point on, you'll experience significant earnings. It isn't uncommon to see earnings of $200 (gross) every hour in a good sized bulk vending business. Considering that these machines need servicing only every couple of months, that is an impressive profit without very much effort at all.

The reason that these machines don't need to be serviced as frequently as other forms of vending machines is that they typically will hold seven hundred vends (in the average 3-selection bulk vending machine). This means that the capacity of the machine, if you are vending the average four to eight times every day, is between three and six months. That being said, a good quality machine will have a coin box that will hold well for about two months at a time. Considering the type of product sold in these machines, shelf life is usually a non-issue. After all, most candies won't expire or go stale within that time, and toys and stickers certainly don't go bad as a result of time in a vending machine. Therefore, you likely won't need to service your machines any more frequently than every two months - sometimes to refill the product, and sometimes only to empty the coin box.

Servicing is an extremely simple process. Even when you need to handle both the product and the coin, it consists of merely dumping more product it the machine, emptying the coin box, and using a rag to wipe it down so that it is clean and dust-free (since the better the appearance of your machine, the more vends you will experience). You will likely also want to take a few notes regarding the status of the product and other observations so that you can best monitor the vends at your various bulk machines. Of course, the servicing will differ (only slightly) from one machine to the next, just as your number of vends will differ from one machine to the next.

It is important to select a machine that combines both form and function. Far too many bulk vending machines are extremely unappealing. With an attractive machine, you will not only experience a higher number of vends, but you'll also find it easier to discover a location for your machine. If it looks great and it always works, you've found the machine that will bring in the best returns.

The average bulk vendor will typically hold between three and five pounds of product (depending on the machine and the type of product being sold). Of course, if you are running on a tight budget - especially at the start - you should know that you are not required to fill the machines to the top every time. Even if your machines are only half-full, they'll contain enough to get you started and begin earning for you. You will not experience a lower number of vends by keeping a machine that is half full; in fact, if you avoid filling your machine all the way to the top, customers will believe that it is a popular item and that it hasn't just been sitting there stagnant for months at a time. They will be more likely to think that the product is good and that it is worth their while to drop a coin in.

To set up the machine in the first place, you simply need to adjust it so that it vends the right amount of product. This usually means setting the weight. In order to choose the weight, use a low-cost postal scale to measure out the amount of product that will cost 7¢. To find out how much product costs that amount, simply divide the price of a pound of product by 7¢. This will give you the number of vends per pound. Then, divide one pound by the number of vends per pound and this will give you the weight of each vend.

For example, if a pound of product cost $3.00, then the per-vend weight would be calculated as follows:

$3.00 per pound ÷ $0.07 per vend = 42 vends
16 ounces (1 pound) ÷ 42 vends = 0.38 ounces for each vend

When choosing your location, you may be inclined to try to get a place at the local grocery store. However, those are often areas that have heavy competition and will therefore lead to a great deal less profit. Avoid the areas that have already been saturated with bulk vending machines if you want the highest possible profit. Instead, aim for locations that are typically overlooked. These often include offices and businesses other than those in the retail sector. Furthermore, make sure that your machines are clean, well maintained, and attractive and you'll find that even if yours is located next to another one, you'll be able to attract a good number of customers.

It is often found to be easier to get permission to place your vending machines in a given location when you have licensing to use a charity's name. If you are struggling to find locations with high potential that will take your bulk vending machines, then this alternative approach might soften their hearts a little. The monthly charitable donation for these licensed machines is usually between one and two dollars.

Commissions aren't the standard when placing a bulk vending machine in a location. This is because the average vending commission is generally ten percent (though it can be as high as thirty percent) simply isn't enough to entice a location into giving you the spot. That being said, it isn't at all strange to have dozens of machines in many different locations without ever having to pay commissions to the owners of those locations.

The three main issues faced by bulk vending machine business owners are the following:

1. Servicing issues - if badly serviced, a machine will run out of product, the coin box will be over-full and won't accept any more vends, or the machine will become dirty. The solution to this issue is to keep up a proper servicing routine, cleaning it and maintaining its contents.

2. Poor offerings - offering generic products such as candies or toys won't earn anywhere near the same amount of profit as brand-name items. Recognizable name brands may cost a bit more, but you can charge more for them and they will vend much more frequently.

3. Wrong location - it isn't hard to discover if you've selected the wrong location - you simply won't make enough sales. The solution is quite direct: change locations.

If you choose to do the little necessary work that is required and you ensure that you've placed your machines in the right locations, then you've done everything required of you to ensure your earnings.

If you feel that you're ready to get started with a bulk vending business, then here is what you will need to get yourself off the ground:

> A minimum of ten good quality attractive bulk vending machines
> A product selection of between three and five snacks or toys per machine
> A low-cost postal scale (for weighing product)
> Charity licensing agreements if desired.

As you can see, even the largest and most commonly experienced problems in the bulk vending business can be easily resolved without a great deal of time, effort, or money. The machines are not difficult to manage or service and servicing doesn't need to be done very frequently. Therefore, it is simply up to you whether or not you will be successful in your bulk vending business.