# Anyone got any experience of the food vending machine business ?



## rabbit (21 Nov 2008)

Anyone got any experience of the food vending machine business ?  I was just thinking of what business may be relatively recession proof, and thought that servicing / filling a vending maching with chocolate bars or whatever might be a nice little sideline ?


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## Bessa (21 Nov 2008)

*Re: Vending machine business*

It very much depends where you site your machines. Chocolate crisps will always sell even in recessionary times. It may be the one indulgence left to people after the government has their pockets well picked with taxes.


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## Bob the slob (21 Nov 2008)

*Re: Vending machine business*

I was only thinking of this the other day too.  They still get used.


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## Irishchappie (28 Nov 2008)

*Re: Vending machine business*

A lot of companies/office that used to have free drinks etc in their canteens or kitchen are now replacing them with vending machines. Most arent charging the full price that you would pay in the shops, usually just the cost of the product and the cost of the machine rental, so the employees still have minerals, chocolates available to them but at a discounted price and the company isnt spending a fortune subsidising them..

So its definitely an option, one thing though is to make sure you know how to service these machines and have a stock of modern looking ones.. as they tend to be changed frequently as far as stock or options available depending on whats selling or not.

Also an on call service is ideal with a quick turn around time for repairs/replacements is an advantage as employees will start complaining if they arent able to get their treats and of course you lose out on potential income too.. so being available during office hours will be a must.

I.C


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## dimaer (19 Dec 2008)

*Re: Vending machine business*

Interesting topic. Thanks for starting 
I am about to start vending business, however, I have few concerns. 
My idea of particular product is something really new and, I believe, can sell very well in right places. 
- Do you need to make a written contract with other businesses (where you are going to locate your machine) or verbal agreement is enough? I want to approach to some big retailers (Dunnes e.g.). 
- Will they be looking charge you some flat fee or % from profits? 
- Is it hard to get permission from them for this kind partnership?
- What can be done to protect idea? Because, I think some businesses can simply copy your your idea and refuse to locate your vending machine in first place.
Any hints and tips will be appreciated.


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## rabbit (20 Dec 2008)

*Re: Vending machine business*



dimaer said:


> I want to approach to some big retailers (Dunnes e.g.).
> - Will they be looking charge you some flat fee or % from profits?
> - Is it hard to get permission from them for this kind partnership?


 
A small factory will often agree to a vending machine in its canteen free of charge, for example, to keep its staff happy if the canteen had no other facilities. 

However I doubt big retailers like Dunnes would buy or rent ( and heat, insure etc ) valuable floor space and give it to you to make money from, if they did not make something from it themselves. I do not know for certain, I do not work in vending...if your idea was good what would there be to stop Dunnes buying a few machine + making money from it themselves ?


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## dimaer (21 Dec 2008)

*Re: Vending machine business*

Rabbi, thanks for your response.
Well, there is some risk of course, because it is not possible to protect your business idea in Ireland with patent (like in US).
Was thinking to offer % from profits to keep them happy and also vending machine with this particular product will keep their customers happy.
As I think (and hope), big retailers are more likely to allow you to operate and enjoy with plain cash left after your activities. All employess (including managers) are hired people so, I think, they will not bather to organize something like this (as it involves extra costs and staff).
IMHO. Comments are highly appreciated.


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## stephen1381 (21 Dec 2008)

*Re: Vending machine business*

The profit margin is crap! My dad used to own a news agents and we didn't make much on soft drinks and chocolate. I was thinking of doing the same a few years back. If you have it on a business premises such as a gym, they expect a % of your profit. When I was looking into in it was typically 6% if I remember correctly


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## dimaer (21 Dec 2008)

*Re: Vending machine business*

Hmm. 6% from your profit does not sound much if you do not pay a rent.


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## Kilise (21 Dec 2008)

*Re: Vending machine business*

Copied from BDS Vending website www.vending.ie

Commissions start at 10% and can go as high as 25% depending on your location and turnover
Should for example, the machines turnover an average of €300 per week the annual revenue to can be as high as €3000!  Royalty payments are paid every 26 weeks in arrears and are based on the average volume throughput of the machine over that period. The percentages are calculated on retail price less the VAT.


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## bond-007 (21 Dec 2008)

*Re: Vending machine business*

So you are made wait for your money? Not so good so.


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## dimaer (27 Dec 2008)

*Re: Vending machine business*

Anyone knows if it is possible to install a bill acceptor to the condom/cigarette machine type?
Looking forward to sell some kind of gadgets, but without accepting notes it is worthless.


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## bond-007 (28 Dec 2008)

*Re: Vending machine business*

You sure can but the security risks are very high.


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## Dwithad (30 Dec 2008)

*Re: Vending machine business*

i have decided recently to venture in to this business but am finding it hard to get locations has anyone any ideas or know a location that could use one


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## rabbit (2 Jan 2009)

*Re: Vending machine business*

Sometimes the sellers of the machines will help find locations, I believe. ( or they have told me that before I part with my money ! ).     Do you find most leisure centres / public buildings / centres etc will not allow you to site a machine there, or do other machine  operators offer bigger percentage commissions /  royaltiies ?


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## jimmyb (28 Jan 2009)

i am also currently looking into setting up a vanding business, could anyone possibly point me in the right direction, how do i aquire machines and sites to place machines? how often do they have to be filled and what kind of profit can be made from it?? i would be very grateful if anyone had any advice


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## computerman (4 Feb 2009)

A client of mine had a toothpaste / comdom vending round a couple of years ago.  Had good sale on toothpaste but not on comdoms.  (City center pub). I suggested that he put "extra large" on the front of the machine for the condoms - business ahs been on the up ever since.


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## blueoval (11 Feb 2009)

was thinking of venturing in to this business but i heard people find it hard to secure locations for their machines


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## bond-007 (11 Feb 2009)

I have been trying to get a vending machine into my business for almost a year. No joy. Amazing considering the current times we are in.


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## allthedoyles (11 Feb 2009)

If you are considering setting up a vending business in Chocolate / Crisps etc ....It is not going to be possible to compete with the likes of Aldi/Lidl nowadays .

It was even on the Six-one News this evening , that people are not shopping for convenience anymore , but are shopping for keen prices.

http://www.rte.ie/business/2009/0211/competition.html


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## rabbit (12 Feb 2009)

allthedoyles said:


> If you are considering setting up a vending business in Chocolate / Crisps etc ....It is not going to be possible to compete with the likes of Aldi/Lidl nowadays .
> 
> It was even on the Six-one News this evening , that people are not shopping for convenience anymore , but are shopping for keen prices.
> 
> http://www.rte.ie/business/2009/0211/competition.html


 
The likes of Lidl often do not sell the brands that people want. Also, if you want a little something for say a euro at / after college, at a train station, after the swimming pool etc ...are you going to try to find a Lidl ?


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