About The Vending Machine Business

Bulk candy vending, which dates back over a century, is a contemporary expanding industry with significant sales growth over the last decade. Fueling this growth is the great consumer need for easy access to inexpensive products. Additionally, this form of venture is well suited to new entrepreneurs as the startup capital is relatively low and significant profits are possible.

The bulk candy vending business can be lucrative. The principal initial capital outlay is the expense of purchasing a vending machine or machines for location at convenient consumer spots such as grocery stores, shopping malls, etc. The vending machine is an uncomplicated mechanical device, which upon insertion of a coin dispenses to the consumer a quantity of candy, i.e. a gumball, a hand full of M&Ms or other items. A real advantage to this type of business is that bulk candy vending machines are less costly when compared to other kinds of vending machines, such as soda and snack machines, as they have relatively simple mechanical operations and do not need refrigeration equipment or an electrical supply.

Further, in the case of bulk candy vending, a significant profit making opportunity exists as the gap between acquisition cost and sales price is favorable. For example, gumballs can be bought in bulk for .02 each and can be purchased from a vending machine for .25. Operating costs can be further reduced due to the fact that bulk-vending sales are exempt from sales tax in many states.

Bulk candy vending inventory items are generally not subject to spoilage, a factor which tends to minimize the time and labor needed for operation of the business. As an example, less time is required to move, replace and restock merchandise. Bulk candy vending can be an excellent "second income" business opportunity for someone who is employed full-time, to a greater degree than soft drink and snack food vending. This is the case because favorable venues for bulk candy vending machines, i.e. grocery stores, drug stores and shopping malls, are readily assessable during evening and weekend hours for maintaining and restocking the vending machines while soft drink and snack food vending machines, on the other hand, are typically located in office buildings with reduced access on evenings and weekends.

Another significant reduction in operating costs is available to bulk candy vendors. While most favorable vending machine locations will charge a fee for placing a machine, if the operator is willing to contribute part of the vending, sales proceeds to a local charity often the fee will be waived. Be aware in this regard as previously stated the profit margin on bulk candy vending sales is high thus enabling the vendor/operator to set aside a portion of the proceeds for donation to a charity while also realizing a significant return.