In today’s economy, I am constantly getting calls from businesses looking to ditch their local vending company and buy their own vending machine so they can capitalize on 100% of the profits- not just 10%. The average profit margins on a vending machine are around 50% of the cost of the product. Vendors will typically provide a 10-20% commission and they will own the machines, restock the machines, and repair them as needed. For many businesses, this relationship works great. However for other businesses, who would like more flexibility and great profit shares, they would prefer to own their machine. Listed below are some of the advantages and disadvantages of owning your own vending machine:
The advantages of owning your own vending machine include:
- Higher profit margins
- Greater flexibility in the pricing
- Greater flexibility in the product selections
- Better service
The disadvantages of owning your own machine include:
- Need money up-front to buy the machine
- Must be willing to coordinate potential repairs of the machine
- Must be willing to buy product and stock it regularly.
For most businesses the biggest obstacle to owning your own machine is the up-front cost. Fortunately, Paypal has provided a way that you can buy now with 0 money down and pay 6 months later with 0% interest OAC.
The other major obstacle is the possibility of the machine breaking down. Most problems are very simple to repair and when you own the machine, you can fix it yourself within a matter of minutes instead of waiting for your local Vendor to come and fix it.
