OT Entrepreneur business questions, Small vending business???? Options

[GaroldShaffer]

Julie and I have been talking about different ways for some extra income. Currently I am a full time engingeering manager and she works 3 days a week as an accounts payable clerk. She also sells Longaberger baskets for her "spending money". We live the American dream, and are doing fine. Just like everyone (well almost everyone) we want more.

We don't want her to go back to work full time, we have 3yr old. If we could find a way to replace her income that would be great, but mainly we are looking for something to make some extra $$ for trips, college savings, and so on. So now to my question.....

We are looking at a small vending business, mainly just gum ball vending. The startup cost is low, under $1000 for 4 machinces and supplies. Each machine could bring over $400+ each month, is low cost to mantain, and we can do it here locally.

I know these are very general questions but has anyone every ran a vending type business? I have never really done any business for myself other than cutting lawns when I was a kid. Any advice for a startup business?

Thanks

edit: link to what we are looking at http://www.navending.com/

[seanery]

Placed in the right location (not your front door) I think you could do well. I would want to make sure that you picked a secure location as well as a high traffic location. Buy quality stuff, like Ford gumballs.

[djm914-6]

GUMBALL! Did someone say GUMBALL? Yeah baby, coast to coast run. Lets go!

All kidding asside, I've given a lot of thought to this topic, bought many books and magazines. Never acted, but dropped lots of cash. This could be an interesting topic.

[ppickerell]

$400 a month from one machine? Thats a lotta goomba for gumballs!

[GaroldShaffer]

Placed right, its doable. They would be a double head machine.

[morph]

You have the machine, you have the gumballs, do you need to pay rent for a place to put it? Do they provide you with a place to put your machine? Whats the overhead on each gum ball?

[anthony]

And who will repair the machines when the break? How often will they break?

[GaroldShaffer]

Not sure about rent, but I would assume yes. They have a service that is free that will help you find locations to place your machines and make the calls for you if you want. Gumballs at like Sam's club run in bulk about $.02 each.

And who will repair the machines when the break? How often will they break?

The machines come with a life time written warranty. After checking all the different vendors these machines seem to have the best built quality, they are all metal, no plastic parts, globes are high quality glass, metal sands and a very sercure cash drawer.

I am going to call them later today to get their detailed info kit (free) and ask my billion questions (IMG:style_emoticons/default/smile.gif)

[Part Pricer]

How much of your take do you have to kick back to the local crime family? (IMG:style_emoticons/default/wink.gif)

[GaroldShaffer]

(IMG:style_emoticons/default/laugh.gif) (IMG:style_emoticons/default/laugh.gif) (IMG:style_emoticons/default/laugh.gif) The Gumball Gangsters (IMG:style_emoticons/default/ar15.gif)

[spare time toys]

When we had our bar up home (IMG:style_emoticons/default/drunk.gif) a local guy owned the pool table juke box and pinball. He did all the work and gave us half for the space. It made a killing especially the pool table. We had a bar league turneys were free.

[seanery]

seriously, don't get cheap gumballs. FORD rule.

[Carl]

What's the standard practice regarding the rights to a location and rent? Also, what insurance is required against product contamination, product liability and if the machine gets knocked over and whacks somebody on the foot?

[morph]

When I was in high school there was a gumball machine, much like the dual ones on the website, that was stolen from where I worked. The thiefs just walked right out the door with it.

[GWN7]

A guy at work went into the vending machine business (gumballs, nuts and candy). It lasted about 5 months. Broken machines, stollen and cracked glass did him in. Each town has different laws reguarding permits and costs.

To make $400 a month from a machine, you would have to sell 1600 gumballs (@ $0.25 per) Figure 30 days in a month and your "location" is open 12 hrs a day (24 hr locations already sell candy, ect) or 360 selling hours, that works out to about 4.5 "gumballs" a hour or one every 15 min.

Now I have bought "gumballs" before and have never had to wait in line for them.

Best to check their "facts" on how much you can make.

(IMG:style_emoticons/default/bs.gif) (IMG:style_emoticons/default/cool_shades.gif)

[rick 918-S]

I'd love to do something like this myself. I wish you the best. But if it sounds too good to be true it probably is. I would back the companies projected numbers off by about 60% and then see if it's worth the investment in time servicing the locations.

Now if you could get a bank of about 10 or 15 machines and put them in the hall at the mall..... Now we're talking... (IMG:style_emoticons/default/idea.gif) One location to service, too many people to have vandals wreck things.... (IMG:style_emoticons/default/clap56.gif)

[scruz914]

Have you visited potential locations? How many already have machines? There may be slim pickings for available locations.

Like GWN7 said, the numbers don't sound right.

-Jeff

[McMark]

I know you're talking about gumballs, but the place I used to work had a snack and soda vending machine that was ALWAYS broken in some sense. From the perspective I got, it looks like a ton of work for little payback.

[GaroldShaffer]

There are a ton of locations here in my little city of Portage, IN. I know the numbers are (IMG:style_emoticons/default/bs.gif) , but even at 1/4 of what they it is still worth the risk. We would only get two machines to start with, cost $500ish, we already have 5 places that would let us put our machines there. We have friends that own a few Smoke shops and I know the owners of some local auto repair places.

We won't make tons of $$ but any extra is a plus. As for servicing them, I work from home and can check on them during lunch a few times a week. The drive through town takes 5 minutes if you catch all 4 stop lights green (IMG:style_emoticons/default/biggrin.gif)

[rick 918-S]

There are a ton of locations here in my little city of Portage, IN. I know the numbers are (IMG:style_emoticons/default/bs.gif) , but even at 1/4 of what they it is still worth the risk. We would only get two machines to start with, cost $500ish, we already have 5 places that would let us put our machines there. We have friends that own a few Smoke shops and I know the owners of some local auto repair places.

We won't make tons of $$ but any extra is a plus. As for servicing them, I work from home and can check on them during lunch a few times a week. The drive through town takes 5 minutes if you catch all 4 stop lights green (IMG:style_emoticons/default/biggrin.gif)

I say go for it. (IMG:style_emoticons/default/clap56.gif) But get in big. Buy all 5 machines and do all 5 locations. Your talking as little as $ 2500.00. Look at it this was, You'll have a better chance at make a couple of bucks on the deal. The other thing you could do is see if the local Dentist will sponsor a couple of the machines for you... Tell him he's bound to get a filling replacement or two... (IMG:style_emoticons/default/lol2.gif)