Are Vending Machines Risky

By: Jimmy Ingram Click author's name for more of his/her articles

Surveying high volume vending machine locations takes no sales ability, it all just boils down to laboring under the correct knowledge and common since.

Is not “risk” what we all are afraid of when going into a new venture? The fear of the unknown and the fear of failure are not near as powerful as the risk of loosing our total investment or life savings.

Vending is one of the safest businesses that you can invest your time and treasure in.

If you invest in most business your investment in the equipment it takes to run that business devaluates as soon as you purchase or lease it. For example investments in an office, the restaurant business, construction business or the maybe the color copy business you have large capital investment in new equipment. In most cases you have to invest in ALL of the equipment before you can start your business… you earn no money until you have invested in 100% of ALL of the equipment it takes to run your new business. Vending on the other hand takes a minimal investment in equipment and the equipment you invest in has a great resell value and an estimated life of 25+ years.

When first starting a vending route you do not need a truck of any kind. It is fairly easy to service your first locations using your four by four or your family car. It is not necessary to rent an expensive warehouse to store your goods because now there is a “super store” like Sam’s Club in almost every neighborhood in the US.

It isn’t necessary spend tens of thousands of dollars buy/lease dozens of vending machines before you have found homes for them. Every state has a “licensed vending machines dealer” that will not only guide you in machine selections they will also help you with setting up an open lease and finance program. This assures that all you have to do when you sign a new location is make a phone call to your dealer and let them know what you need and where to deliver it. Your distributor will prepare your new lease agreement and then start prepping the additional vending machines that you need to satisfy your new vending location agreement.

In most cases the location contracts you have signed will not cost you a penny; your only investment will be in the time you spent overturning the location. After you have serviced each of your locations for a few months you will have a “cash flow statement” and sales tax returns to confirm your gross sales and profit. If for some reason you decide to sell your vending route you now have absolute proof of the profitability of your route.

If there are any doubts from your prospective buyers after seeing your tax returns and your bookkeeper’s cash flow statements all you have to do is open each machine’s door and push a few buttons on the key pad, this will pull up your DEX accounting system that records the gross sales for every sale since the machine was manufactured.

Now you can sell your route for what it is worth, one location at a time or as a complete route. If for some reason you have lost your locations you can sell your vending equipment for approximately 70% of what you purchased it for in the first 18-months and 50% of its purchase price any time within the first three years.

Vending is an ALL cash business with great appeal… that equals to a relatively risk free business.

Copyright (c) 2009 Jimmy Ingram

Article Source: ABC Article Directory

About The Author: Jimmy Ingram has written 20-books on his business experiences and solutions; he has created and owned 25-bookstores/12-restaurants/nightclubs/2-large vending routes/vending management company & consulting company, his books are sold on ebusinessmediaonline.com