It's time to turn our attention to whether vending is a viable business to enter, as well as the average cost for a very important part of the business: the vending machine.

Is vending a reliable business venture?The first recorded vending machines date back to the first century B.C., but came to prominence in the late 1880s. These were primarily postcard and gumball machines with simple mechanisms, a single selection and accepted one coin.

The snack and soda machines we recognize today – multi-selection, accepting multiple coin types, dispensing change – originated in the 1940s. In the '40s, of course, vending machines accepted coins only, did not dispense change, and limited selections about 20 items. These were fully mechanical vend mechanisms and required no power to operate the vend cycle.

Early soda machines required power to refrigerate the product. The modern vending machine design with spiral dispense, full change capacity, dollar bill acceptance (usually by dollar bill coin changer), 30-40 snack selections, and up to 10 soda options, came to being in the late 1960s and was refined in the 1970s.

Improvements in vending machine technology since have been based on electronics and computer innovation, with standardization of protocols and improvements in currency acceptance. Ultra-modern vending machines can accept a variety of payment types – credit cards, large denomination bills (up to $100), cell phone charges (charging a product to your cell phone bill) – can be monitored remotely by Internet, can produce sales figures to individual unit numbers (sold 13 Snickers and 8 Doritos out of this machine last week), log machine entry times, and can even provide surveillance with camera technology. Yes, we've come a long way, baby.

So how is this history lesson relevant? Vending machine technology is responding to market need. The successful vending operators have driven this technology with their purchasing habits. Like all businesses, if technology affords a profitable advantage, that product has a market. The fact that the vending machine manufacturers have continued to produce better and better vending machines means that the vending business is a reliable venture when run properly.

Like all businesses, proper operations is the key to success. Learning about your account market, the kind of locations and businesses you serve, learning about marketing, the product you are you going to sell, and the type/s of vending equipment you'll use, all these factor into the success of your vending machine business.

There are thousands of successful vending machine companies in the United States, and if you think the vending business is for you, offer to work for a company in another city for free. For free, are you kidding?! Instead of taking that week's vacation on a cruise, work for a vending machine company: learn all you can about every aspect of the business – load trucks, fix machines, look at the accounting, install machines. Pay attention to the products sold, the order in which they go into the vending machine, find out what sells best, ask questions. The real-world education you will receive will be invaluable. One week's worth of effort can literally save you hundreds of thousands of dollars. (And an operator in a different city than yours won't feel threatened by your business plans.)

The vending machine business is an established industry, so don't try to reinvent the wheel. . .at least not at first. Work a proven system until you achieve profitability, then implement new systems to improve your economies of scale. Don't fall into the trap of believing that the rules of the business do not apply to you.

So what do vending machines cost?The first criteria in determining cost depends upon the location for which the vending machines are destined.

Most successful vending operators have a formula to determine the value of the equipment to be placed into a given account. In our surveys of hundreds of companies, we have found that most operators want to pay off the equipment with 9 months' profit from the vending machine account. This equates to about half of the gross sales for a 9-month period. If they project an account to do $10,000 in sales in 9 months, then the equipment cost should be $5,000 or less. Less effectively produces more profit from your vending machine investment.

Now that you have a budget (based on your agreement with the customer), it's time to find the vending machine equipment. You have two basic choices:1. Used vending machine equipment2. New vending machine equipment

New vending machine equipment is straightforward: find the brand and model you feel comfortable with. New equipment ranges from $2,000 to $10,000 per vending machine and depends on the type of machine, as well as its options. Types include snack machines, soda machines, refrigerated machines, frozen food machines, change machines, and more. Options include payment methods, size of vending machine, number of selections, electronics packages, and so forth.

Used vending machine equipment has many options on pricing, from free to several thousand dollars. With all used machines, make sure you have a clear title. Be extremely careful in buying a branded machine (Coke, Pepsi, M&M, etc.), because many of these machines are owned by the brand company, which retains ownership rights. If you purchase one of these machines, you could find yourself either losing the machine without compensation, or heading to jail for possession of stolen property.

Most free vending machines have been abandoned when an operator went out of business. You can also find operators selling their vending equipment through the want ads. Both of these venues generally require a tremendous amount of work to get the vending machine location-ready. While the initial cost might be low, the time and repair costs can be excessive, making other alternatives actually less expensive in the long run.

Reputable used vending machine equipment suppliers sell equipment at several levels: as-is, as-is working, refurbished (several levels), and like new. As-is and as-is working are similar to free machines or those found through want ads. I don't suggest these options unless you are a highly skilled mechanic with access to a large parts inventory.

Instead, I suggest you concentrate on refurbished vending machines. Select the refurbishment level that the customer needs, and stick to your pre-determined budget. Expect to pay at least $1,000 per machine. And don't forget shipping, which can be considerable and is a part of the cost of vending machine equipment.

Buying a vending machine for your company or office depends on many variables not the least of which is customer demand of the product you can sell. Placing bubble gum machines at the lobby of an office building will yield little results because the proper audience is not present. On the other hand, an area where there is high traffic, but few food choices, then the likely decision to make would be to buy a new or used vending machine that dispenses crackers, water, sandwiches, and candy. But if traffic — the amount of people coming through the area who are likely to make a purchase — is not high enough, then the profit will suffer just as well.

Most first-time buyers are often discouraged by the high price of a new machine. This is why many choose to look for and buy a used vending machine start with or maybe to test the market. While you could shop for a secondhand machine offline, you are likely to find better results by performing the bulk of your search online. Some sites that are worthy of further investigation are eBay, sakauegroup.com, and better-vending.com. Additionally, popular website is Craigslist for buying vending equipment. While searching for the best deal, it is important to remember that the transportation cost of your vending machine could be substantial depending on how far away you are from the seller.

When buying a used product it is imperative to give the merchandise a thorough inspection before purchasing one. First questions tend to focus on the machine’s history, like were there any issues encountered by the previous owner. Were there any repairs made to rectify these problems? Asking these questions will not only assist you in making a more confident purchasing decision, but it will also help you keep your used vending machine in optimal working condition since you know what to look out for.

For entrepreneurs who are new to the vending machine industry, tapping into trends like a DVD vending machine could be very rewarding. They would also be wise to procure the services of the manufacturer to make repairs to the machine at least in the beginning. In time, familiarity with the product will grow, thus enabling the buyer to decide whether a specialist is needed or if the repairs can be performed in-house. Before closing the deal, be sure to ask about the possibility of the warranty being transferred. This can result in huge savings. Being knowledgeable of this can also prepare the buyer for any required maintenance to be in compliance with such a warranty.

A vending machine can be a welcome extension to your overall channel of revenue. With the proper placement, even when your store is closed for the day, a vending machine will continue generating income for you.

As the name suggests, customers can use this particular machine to buy or rent a DVD of their choice. The machine stores DVDs placed in columns that can be observed through a Plexiglas front. The consumer then rotates the racks to check out the collection. Once they choose a DVD, they simply insert their payment and the disc is dispensed.

So successful are these machines that manufacturers are boasting that these machines can easily make a profit of $100 per day. Profit is heavily dependent on the movie selections being provided. Stocking popular movies increases one’s chances of increasing the amount of generated revenue. Purchasing a DVD vending machine from a reputable manufactuer can also affect how much money you make.

Take Redbox, for instance. Their vending machines are meant for renting movies. Consumers like this innovative idea because they can eliminate the hassle of competing with the other renters at a DVD rental store over the weekend. But as the market becomes more saturated with the DVD vending machine, this advantage will be reduced. The machines are frequently more conveniently located than the traditional video rental stores. The very affordable rental rate of $1 per night ensures that you will not run out of consumers interested in renting a movie.

There are DVD vending machine manufacturers like MovieMate, DVmatic, Pluton Video, and others that sell fully-automated versions of the machine. Unfortunately, even though this concept is hot, it is still in its infancy, so finding a used machine for a lower cost can be difficult. A new machine may set you back anywhere from $12,000 by as much as $30,000, depending on its features. Doing the proper research will help minimize your investment while maximizing your profit.

The vending equipment is the foundation of your business. Your business will only run as well as your vending machines so it is critical to buy from a dependable distributor who has been in the business for at least a couple of years and has a good reputation.

Whether you rent or buy vending equipment, it would be wise to anticipate that replacements parts will be needed over the life of the machine. This is when you want to have the support of a dependable business to help you when something breaks down. Most reputable businesses will stand behind their product and will offer a standard one year warranty on the machine you bought. Something else to look for will be customer support. This becomes crucial if you are new to the business. Many new owners haven’t a clue about how to fix a novelty machine which frequently has many moving parts that could affect the overall performance especially when lights and sound displays meant for generating transactions are concerned.

Another important element to explore when investing in vending equipment is to select an appropriate location for it. This is where most new business owners fail. No matter how good the machine is or how good the products are that are for sale, no profits can be made if not enough customers are present to make an acceptable amount of transactions. Conversely, a location with a high level of customer traffic will only buy products from a machine they have a desire for.

Frequently, vendors will have to negotiate with other business proprietors who have the space to house the vending equipment. An established business may already be aware of the value the right machine can add to a customer’s overall experience. If not, both parties can usually come to an agreement that will commonly include sharing a percentage of the profits.

People who are new to the business of vending may think businesses that already have a selection of vending goods are not likely to be interested in partnering with someone new. In situations like these, the new vendor may be able to provide better customer service or solve challenges that exist in the current relationship. It might be that all the business needs is to know there is another alternative awaiting them. This may be a clue to jump in with the benefits that your company can provide. As a startup, you can make up for years of experience by providing the kind of personalized service that larger vendors may no longer be able to fulfill.

There are many websites that you can browse through to find a machine that suits your requirements and budget. Some recommendations are gumball.com and bubblegum-machine.com. Both sites not only offer a wide range of machines, but they also have many supplies to choose from.

Bubble gum machines have a high profit-making potential, simply because the product that you are selling is an extremely low priced product. Normally, you would sell it to the consumer for an affordable price of 25 to 50 cents. However, the scope of making a good profit lies in the substantially low wholesale purchase price of the product. Bubble gum is normally available for less than 10 cents a unit (whole sale price) at any restaurant supply store or warehouse. Since you are stocking the machine with bulk products and selling them per unit you could make a 200% or more profit on each unit.

As with any vending machine, regardless of whether it is a used vending machine or not, one of the most important aspects of the bubble gum machine business is the location in which you place the machine. Because the product is meant for children, you will need to place it in an area with high traffic. However, the best part is that such locations can either be rented inexpensively or for free by contacting the owner or manager of the store you are interested in. If you are particularly keen on placing the machine at a specific location that belongs to a store owner, you may wish to consider enticing the store owner with a profit-sharing arrangement. However, it is critical that you decide on the location before you buy the machine. The reason for this is because it will assist you in avoiding additional shipping expenses that may come as a result of having no other choice than to place the machine — something you have already invested in — in a location further than you originally hoped for.

Since you are selling an easily perishable product, it is recommended you secure a place where the vending equipment is not positioned in direct sunlight. To do otherwise would mean reducing the shelf life of the candy or quite possibly rendering it worthless as it could melt and lose its visual appeal to customers. The normal shelf life for gum balls is about 10 months, but that is assuming it has not been stocked by the supplier for months before it is delivered to you.

Another issue encountered with bubble gum machines is theft, damage, and lock tampering. This point is particularly important to discuss with the manufacturer you are buying it from so that you are aware of potential problems and how or if the manufacturer will offer any warranty that will cover such things in case they do occur. Simple measures to deter theft include placing a small alarm that detects vibration in the cash box or chaining the unit to a counter or the floor. Usually, bubble gum machines that are made of mostly metal are more expensive, but the additional cost of buying a vending machine is justified in their ability to withstand physical abuse.

Prior to buying a vending machine you need to consider a place where you would want to place the machine. Since location is very important to the profit that you will make with your machine, it should be your goal to place it in a high-traffic area where sales are likely to be generated.

Figuring out where to place your machine will help you decide what product that you can. This will also determine the price of the machine you will be interested in. This could range from a few hundred dollars to a few thousand. The variety of options available are vending machines that dispense candy, cigarettes, soda, ice cubes, DVDs — just to name a few.

The next factor to consider would be the shelf life of the product(s) you intend to sell. Candy, for instance, is a perishable item, therefore will spoil over time. The normal shelf life of gum balls is approximately 10 months, but if they have been stored for a few months at the supplier’s end before your purchasing them, then you will need to replace them sooner. This is a frequently overlooked consideration, which can create frustration and lost profits. You also need to consider the demand for the product you are considering for sale. For instance, if you intend to sell or rent DVDs, then you would want to ensure you are stocking the machine with the popular movies.

Now that you have decided what type of product you want to sell and therefore what kind of machine, your next step should be whether you want to buy a vending machine that is new or used. Clearly, a used machine will require a much smaller investment over a new machine, but don’t let this be the determining factor alone. While you can save money this way, you may be missing out on features that you could use to your advantage — features that your market may come to expect. So while a machine that does not accept dollar bills as payment may be cheaper, you may be losing customers. Conversely, a new machine may have the features you need and a better warranty, but it could also be out of your budget’s reach. It is important to get these details sorted out before purchasing a vending machine and you can do this by working closely with a few dealers to ensure you get your money’s worth.

There are good deals to be found if you find them on the Internet. But there are also very strong reasons to purchase a vending machine within your area. For example, the price of shipping should be considered. Some sellers may pay for shipping especially ones selling over the Internet. But whatever direction you take, bear this cost in mind as it could greatly increase your overall investment to have it shipped from another state as opposed to buying one within a reasonable distance from where you are planning to have the machine set up. Some recommended websites to consider purchasing vending machines are Craigslist and vendingsolutions.com. Both places offer new and used machines for purchase.