The Vending Business

[Seeker]

...I've been researching it for a while.

It seems good on the surface. I could buy 20 small machines or 8 refigerated units if I wanted.

The problem is the 'locators'.

These are companies whose job is to find locations and negoatiate with the owners of those locations to place your machines, since obviously you need good locations.

The problem is that the locators are awfully corrupt...it's in their interest to go in and place your machines as quickly as possible, wherever they can, to cut their costs. Which means you'll get screwed with non-performing machines costing you money.

But the whole reason locators exist is because it is difficult and time-consuming to do it right yourself.

It is such a god-damn risky business. You can end up with a dream business, or you can very easily end up with $20 000 paperweight and about a ton of stale candy, chocolate, and coke.

Does anyone have any experience in this business?

[MRT144]

seeker, no more late night infomercials for you

edit: unless its that one involving ron jeremy...everyone loves ron jeremy

[Urban Ranger]

Seeker,

Then it sounds more profitable to become a locator instead.

[rah]

Everyone I know that has done this type of thing, started out with a bang, then eventually got squeezed by mob types to either make it considerably less profitable or just plain run out of business. My neighbor just retired from doing it after 30 years. (he was his own locator) He said it wasn't worth the being hassled all the time anymore. He had some husky young sons to act as muscle.

[Urban Ranger]

Maybe Canada is safer?

[MRT144]

doesnt rah live in gary indiana? or the south side of chitown?

[Richard Bruns]

I know that the logistics of runing a vending business are a nightmare. You have to keep the machines stocked, which requires a huge amount of labor and planning. Be prepared to pay a guy to drive around in a truck all day, or do it yourself.

[Dinner]

When I was in high school a fellow I knew's father owned one of those coin operated laundrymats. Apparently, it was a fair earner which didn't require much attention other then opening and closing it each day.

Still, I'd rather since my money into realestate then piddle around with coin operated machines.

[Japher]

Yeah, I sooner put money into real estate as well... Maybe you should look into REI or at least network around your community and see if you can't find a Buisness association of some kind that can advise you, or even help you find a mentor. IMO, starting a buisness is not as easy as buying a model as simple as vending machine or coin-op vocations, even franchises are tricky buisness.

[rah]

Originally posted by MRT144
doesnt rah live in gary indiana? or the south side of chitown?

Funny man. North side, South side, Gary, it doesn't matter. If it's within 50 miles of CHICAGO, the shady element is involved. And if you get farther north, closer to Milwaukee, it's just a different shade, but the same thing.

[Seeker]

You mean the thing where you get a bunch of machines vandalized, and then some punk calls and says he can 'protect' your machines for a small fee?

Now THATS easy money....