I am seriously interested in purchasing or developing a local vending
route and would like to know how and can I really make a living just
doing this?

Hi inkkid,

As my collegue pinkfreud has pointed out, coin-operated vending routes
are not a get-rich-quick scheme. It is possible however, to make a
good living at it. I have done so. My Father was a major distributor
of coin-operated equipment up and down the west coast of the US (11
stores) --for over 40 years. Thanks to him, at age 21 I started buying
equipment, within 6 years I was earning $50,000 a year.

Coin-op equipment of the type you would be interested in can be broken
into a couple categories.

Amusement Only Video Games (sells a game, no product inventory)
Vending Equipment (sells a product, must be restocked)

I did an Amusement Device route, but the method is the same. I chose
Amusement Devices because there is no product to stock and replensih.
The cons of Amusement Devices are that the games get old VERY quickly.
At least with Vending Equipment you don't have to constantly convert
the innards to a new "game"...  I would avoid purchasing a "route for
sale" unless they have opened the books to be inspected. There are too
many ways to be ripped off by sellers by showing you on paper how it's
doing and then keeping the best locations for themselves. Other times
the sellers don't deliver as promised on locations to place the
equipment and you are left holding the bag, and the payments. Beware
of anyone promising high returns for a small down payment.

Operating a route basically demands you to wear three hats. PLan on
working 40 hours a week while building your route.

1) Scout New Locations - 24/7 - whenever time
2) Route Collections - on a schedule
3) Repair Technician - on call

I will focus mainly on Vending Machines here.
 
1) Go to your local phone book and go to "VENDING MACHINES" (or
"AMUSEMENT DEVICES").

2) Make some calls and visit a couple showrooms, get a feel for how
much the equipment costs. There is no a single thing wrong with used
equipment. They are built for abuse, and seldom wear out. The moving
parts are easy to fix. Tell them you are new to the industry and are
considering building a route and what to know what's hot, what's not,
etc. Decide on a type of machine to focus on. Ask for glossy pictures
to take with you of the type of machine you will buy.

3) BEFORE you buy, go find locations to place the equipment. This is
the test. If you can place equipment, you can run a profitable route.
I can't expound on this enough. Good locations depend entirely on the
type of Vending Equipment you select to carry. Because of repairs it
is wise to carry all the same type of machine. You can branch out to
different styles later.

4) You will need to find, borrow, write-up (see a lawyer) --a location
contract detailing the terms you negotiate with each location owner.

5) Cost of the inventory comes out of the machine "off-the-top"
(before any revenue is counted, period), remaining money is split. Try
for a 60/40 split first, then try to get 55/45, settle for 50/50.
Nothing less.

6) The machines require a special license. It also comes out of the
machine "off the top".

7) Only buy equipment after you have a location for it. I would buy
3-4 cash, then use those as collateral to buy more.

8) CABLE THEM DOWN inside the location, and NOT ONLY if they are near
an exit. I have had equipment stolen, and don't know of ANY Route
Operator that has NOT.

9) Keep buying and placing equipment as fast as you can buy and place
the equipment.

10) When you collect, split the locations into areas and ALWAYS be
looking for locations.

11) If a location is not earning what it was in the past, you can try
different inventory, change the placement inside the location, change
the location. When you have enough equipment to earn a good living,
never, ever quit upgrading locations. Specifically, when all equipment
is placed, you will have several pieces that are not making nearly
enough money. Leave them in the locations where they are, but FIND
THEM NEW HOMES, only pull them if they are being vandalized. Take the
machine earning the least and move it first, then take the next least
earning machine and do the same. NEVER stop. Failure to upgrade
locations is the most common cause of route failure.


I can't tell you how many pieces of equipment it will take you to earn
$60,000 a year, but it will take a minimum of 2-3 years to attain it.

For instance if you had 50 pieces earning $25.00 a week NET (after
inventory and split) then you'd be earning $65,000 a year. This is a
high estimate, even though you will see route being sold that promise
even more..., There are way too many variables to, to be in the ball
park of your $60,000.


I would not purchase what this page is selling, but it echos some of
what I have warned you about:
http://www.vending-locations.com/


Here's a FAQ page for a gumball company:
http://www.igumballs.com/faq.html

Remember, this is specifically for GUMBALL machines. Other products
--Vending Machines might have different answers, however, the part
about a GOOD location is fairly true for any product.


Peruse the links here:
://www.google.com/search?q=%22Vending+Route%22&hl=en&lr=&ie=UTF-8&oe=UTF-8&start=10&sa=N
Be careful, they are nearly all trying to sell something. Just gather
information...

...and ask more questions as they come up, I'll be happy to answer
them.

If I can clarify anything for you, please don't hesitate to ask before
rating me, ok? Just look for the "Ask For Clarification" button...


~~Cynthia

Search Strategy:
None, 9 years experience as a Route Operator.

---

Clarification of Answer by cynthia-ga on 30 Jun 2003 16:18 PDT

I would like to add that in general, if you have never done a vending
route before, and don't know anyone personally that has one now, it
would be very difficult indeed to keep on the straight and narrow path
to profit.

The statistics (don't have them except for being raised in the coin-op
industry) are not good for folks just "starting a vending route" and
being successful. If you buy an existing route, the payments will be
steep, no matter WHAT the books look like.

It's not as easy as it sounds. I can't tell you loudly enough how many
times I have seen exactly what pinkfreud said happened to her friends.
The only reason I was successful was because I had my Dad helping,
telling me what to do, and basically teaching me the ropes. At the
same time I was learning, he would buy games, place them and sell
routes to people. Over half of the routes failed because the people
don't follow instructions. My answer above is the bare bones basics,
but they are Industry Standards as far as running a route is
concerned.

If you are uncomfortable scouting for new locations, bag the idea.
Finding new locations and negotiating with business owners for
favorable terms is a never-ending job, and without new locations your
route will grow stale and your bank acount will be empty....

~~Cynthia

Don't let anyone tell you a vending route is an easy way to make
money. I've known two people who did this for a living; both later
found other ways to support themselves because they couldn't make ends
meet with just the route.

What a great answer! 

In my comment above, I didn't mean to imply that you cannot make a
living with a route; just that it isn't "easy money." There's a lot of
work involved, and the payoff may be slow in coming.

I would like to know why you stated that you would not purchase the
instructional at www.vending-locations.com ?  I am the owner and
author of the document and I can tell you that I have sold a few
thousand of them and have never received one complaint.  For the
novice in vending it is full of information that they have absolutely
no knowledge of. It's honest and detailed and as far as I know, it's
the only information out there that tells folks how to get their own
locations.  How to deal with a location company if they hire one and
how the process works. I put a lot of time and effort into that
instructional and most new vending entrepreneurs have been very
thankful for the information that it provided.

Laura

lseeber-ga,

I may have jumped the gun, "assuming" <~~~my bad --that, like most pay
for information, "how to do it" instructionals are rip offs.  many
sites offer information that is available for free if one only knows
where to look.  I apologize for assuming in this instance, but
generally, it's unwise for consumers to buy information on how to do
something, when the information is available for free.  Your
instructional sounds legit, informative and worthwhile to the coin-op
novice, and I would like to have a look at it, if you would like to
have a review written, for free.  Then, in the future, I will
recommend your instructional.  If not, I certainly do understand.

Sincerely,
~~Cynthia

I will gladly send you a copy for your eyes only.
I do understand that there is a lot of free information out there and
paying for such is usually a bad idea.  I have yet to find the
information that is included in this instructional readily out there.
I also have a very legitimate reason for charging for this information
which I would also divulge when I send you the instructional.  Please
let me know where to send it.
 (I posted this reply last night... it was up for a while and this
morning was gone)
Regards,
Laura

lseeber-ga,

GA Researchers are not allowed to give contact information to
correspond outside the GA website.  If you included your email address
in your comment that was removed, that is why.  You are allowed to
direct me to a location where it is uploaded or posted on the
Internet, where I can take it, however, I suggest we do this on a
specific date and an exact time, so you can remove it within minutes.

My days off are Tuesday and Wednesday from my "day job," --I'm in the
Pacific Time Zone, and I don't do mornings.  I'll check back here late
on Easter Sunday, after midnight Sunday night, Monday morning.

~~Cynthia

i would visit: www.gumball-machine.com/vending-business.html
click on the top of the page to read their vending route article.

This is great information.  However, it seems that, especially if you
donate a portion of the proceeds to charity, the location should allow
you to place your machine there at no cost.  It provides them with
additional options for their younger customers, and provides their
older customers (parents) an opportunity to donate change for a good
cause.  I don't see why the location should also get a percentage of
your profits.  thanks.

To the folks at google --  Cynthia read my instructional that she
spoke of earlier in the thread and emailed me to tell me that it was
incredible and that she had not seen such honesty in the vending
industry. (I have the email with all headers)  She also told me that
she was going to say so in this thread and write me a wonderful
review. Well, it was never done and I can only presume that she is no
longer working for you since all of my emails to her are bouncing back
now and I noted that she has not replied to a few questions under her
name elsewhere.
I would like to know how to rectify this?
Regards,
Laura Seeber

FROM:           "Cynthia Lystad" <cynthialystad@xxxxxxx.com> | Save Address 
DATE:   Thu, 13 May 2004 02:54:49 -0700 
TO:   <admin@vending-locations.com> 
SUBJECT:   Re: From Cynthia-ga at Google Answers
 
Laura,

Your document is incredible.  You were so right, I've never seen such
honesty in a how-to in vending.  Wow.

I'm sorry I didn't get back to you sooner, but I moved my domicile,
and flew to Las Vegas (from Seattle) and drove a U-Haul back with all
my belongings that were in storage there.

I read it before I left, but was to frazzled getting ready for the
trip to write something before the move.

I am going to write you a wonderful review, and also update the
question at Google with a recommendation that others should read it as
well.

I'm still unpacking though, do you mind waiting a few more days?  I
just started going back to Google Answers and I saw the vending
question which reminded me to contact you.

Sincerely,

Cyndy Lystad

Laura,

(duplicated in your email)

Thanks for the wake-up call.  Right after my last email to you, I
changed my email address and forgot all about you!

Here's my review:

..."

This in-depth instructional is unmatched in providing industry
information.  For the vending industry, you won't find a more complete
insiders tutorial anywhere.  From purchasing equipment, machine
placement, contracts, route collections, and more, Laura covers all
the bases.  The price is an incredible bargain for the information she
provides, I certainly wish I had this when I started my coin-op route!

Cynthia Lystad
Route Operator (9 years)

..."


Sorry for the delay in getting this to you.  I haven't used the other
email address in several months.


~~Cynthia

Thank you so much Cynthia.  I feared that you were no longer with Google.
Thanks!!