I have an entrepreneurial spirit… how feasible would it be for me to build a vending machine empire? For some reason, I find myself drawn to vending machines… I think it is the simplicity of the operation. Obviously I would have to deal with Coca-Cola and Frito-Lay and get the logistics down – a few trucks and drivers and snack men… is this an impossible dream or do you think there is room in this market for another player?
On a similar note, I wouldn’t mind doing a coin-op empire either… arcade and pinball machines. Most places that have a video game or pinball machine tend to have a sticker on there saying something like “FlippyFly’s amusement company” so it seems to me that this might be a similar business. Easier or harder than my vending machine empire?
My Uncle the Weasel did it. He’s made some decent money (though not a fortune) building the firm. He says it’s a LOT of work though. Much lifting and driving around town.
Not to mention, and I quote, ‘Carrying all the damn quarters around.’
It’s actually (like most businesses that appear “simple”) a quite competitive, demanding and involved business with significant capital requirements if you plan on making a decent living with it. Your best best is to get a job with a vending machine company in your area to see how the operation works before making a serious capital committment.
Vending machine operations are stereotypically mobbed up. I don’t know to what extent, if any, the stereotype is true. But you might want to check beforehand…
I believ (can’t prove it though) that msot of the vending machine business in the Boston area is mob-owned. For example:the late Raymond Patriarca (former NE Mob Godfather) owned several vending machine companies in providence, RI. Another one (in Somerville, MA) is controlled (allegedly) by the “Winter Hill Gang” (an Irish gang, which pays tribute to the Mafia).
Patriarca’s company was known for two things:
-old, overage candy in the machines-you wouldpay $0.75 for an old candy bar that was past the sell date
-no competition. There was another vending company that competed with patriarca’s-the owner was “advised” to retire-he did so, and sold his operation to Patriarca.
I don’t have any 1st hand personal experience in the vending business, but 2 or my customers do: one does jukeboxes, pool tables, arcade games, etc. for bars and the other owns a laundromat.
I can assure you, based on both of their accounts, the laundromat route sounds far more profitable. (BTW - A cash business - especially one based on dollar bills and quarters - has built-in tax evasion)
I’d recommend Looking East, young man. If you could find a niche here using some successful & time-tested Japanese Vending Machines, like:
Fried Foods,
Cell Phone Chargers,
Digital Film
Panties!
etc.you may be able top start building an empire.
See above, with this addition: Don’t let anyone talk you into buying crappy, inexpensive machines (selling those is its own little cash-cow business). You won’t get anywhere without decent machines.