Gumball Vending as an Income-Producing Asset

gumball vending
Gumball vending can be a very profitable business if your startup phase is conducted right.  In other articles I have written about not overpaying for machines, buying the right machines, and choosing the right products.  Gumball vending is normally the highest profit margin area of Bulk Vending.
Many vendors buy their gumballs at Sam’s Club or Costco stores for  around 2 to 2.5 cents  apiece and sell them for 25 cents.  It seems like a huge profit margin.  The profit margin is large, but there are many expenses which have to come out of that quarter if you run your gumball vending route as an income-producing asset:
  • Product cost (minimal)

Vending Route Management – How to Structure a Better Route

dreamstimefree_323051A vending route can be structured for profit with a little careful planning.  The number one mistake most operators make it trying to go too far too fast.
Take time and evaluate your route structure.  This is even more important as you increase your number of machines.  Are you running yourself ragged for a few extra dollars?  You may want to consider expanding your route closest to you and dropping your "stragglers" the farthest out.
High gas prices in 2008 and 2009 caused me to re-evaluate all my routes.  I not only dropped some stragglers but extended my service cycle times.  By doing this, I saved on my expenses:

Vending Opportunity or Vending Disaster – You Decide

gum-on-shoeMy vending opportunity came out of nowhere – almost literally!  One day while at the office I received a letter in the company mailbox asking if I could recommend a trustworthy person from my circle of friends to service a local bulk vending route.  Little did I know the vending opportunity that awaited me and my family!

My wife and I talked it over and decided she would take the job to help put our kids in private school.  She was hired on the spot.  And so began my introduction to bulk vending and eventually the ownership of over 3,000 vending machines.

For each person considering a home business like this, there awaits either a vending opportunity or a vending disaster.  In my opinion, to avoid a vending disaster, you must launch the business in the right way.

To take advantage of a real vending opportunity and produce good cash flow, I recommend considering these steps.

  1. Start with quality machines.  This is priority one.  Cheap malfunctioning machines cost you money and quality accounts.  In fact, you may end up replacing your money-making asset quickly because of the poor quality.
  2. Don’t bite off more than you can chew.  Start with a few machines and see if you even like this business.  I have heard of several people buying dozens and dozens of machines at a cost of thousands of dollars and discovering they hate bulk vending.  For them, the vending opportunity became a vending disaster.
  3. Don’t try to sell 25 products in your bulk vending machine.  Concentrate on a half dozen or so of the best sellers and expand after you get the basics down.  I still recommend staying with as few as possible.
  4. Saturate the market around you before expanding.  Don’t try to go 100 miles away from home until you have thoroughly covered the 10 mile radius around your home.
  5. Heavily concentrate on learning the skill of locating bulk vending machines.  This will save you tremendous amounts of money and help you develop business skills as well.

I cannot guarantee your vending opportunity will be a success.  Only you have that power. You will have to work and it will not be get-rich-quick endeavor.  Decide you will investigate all the angles of the business and get expert advice both from vending operators like myself and legal and accounting professionals as well.  The more you explore any business the better prepared you will be.

Here are some other articles I have written which will help you:

Profitable Bulk Vending from the Start

Using the Power of the Gumball to Produce Profits

Power Tips I Used to Locate 100 Vending Machines in the Last Year

Mark Evants

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