Vending Machines

This might end up as a “D’oh!” moment for me, but I guess I don’t understand. Our company is getting rid of our vending machines because they don’t want to pay for them anymore. I was under the impression that one didn’t pay for the vending machines and that’s why the things inside of them cost so much money. I figured we gave them the space and the customer base and they in turn gave us $.80 Snickers bars. Not exactly profitable by itself, but if you had enough machines the mark up on the chips and candy could make you a nice little income. Apparently this isn’t the case and we have to pay the vending company.

What’s the Dope on vending machine sales?

The last place I worked, rented a the vending machine from the soda company and the workplace set the price to break even. Some companies try for a profit.

They had a contract for sandwiches, chips and candy with a different company. The machines were vendor filled and maintained with a contract stipulation, they were guaranteed a minimum profit. The workplace had to make up the difference if we didn’t purchase enough food.

I can only relate my experience in Australia, but the last place I worked, basically allowed the vending machine owner to install a machine in the staff room, and the vending company kept it stocked. They then gave a small percentage of the profits back, IIRC the staff club received about 30 bucks a month.

Perhaps the machines were vandalized and needed repairs too often to be profitable.

In my office, I called Coca-Cola one day and asked them about vending machines, and a few days later, they delivered one and handed me a key. I placed an order for soft drinks and they delivered them, C.O.D.

I fill the machine and collect all of the money and when I need to order drinks, I pay for them when they come. The profit is mine. I can set the price to any amount I want. I never paid anything for the machine…it still belongs to Coca-Cola. If it breaks, they send someone out to fix it.

The only obligations I have to Coca-Cola is to sell their products in the machine and I have to order them directly from Coca-Cola.

I could save about 30-40% by buying the fridge-packs on sale at the grocery store, but that would be in violation of the agreement. I think there’s a certain number of cases I have to order in a certain amount of time to keep the agreement.

I generally go through about 5 or 6 cases a month and make about $50 a month in profit.

Related to the OP:

My father-in-law has vending machines at a highway rest area/travel center on a major freeway in Texas. The State of Texas owns the machines, but he owns the inventory. He stocks the machines and performs minor repairs. His profit from these several machines earns him a six figure annual income.

There’s money in vending machines. It may be in quarters, but there’s some real money out there.

One hidden expense that may be a factor here is the cost of electricity to run the machines. That, of course, is paid by whoever is “hosting” the machines. Probably not much for candy machines (at least the ones with fluorescent lights), but probably significant for pop machines, which are, basically, refrigerators.

Sorry, can’t help the momentary hijack, Cluricaun , but…

Interesting choice of words!

Does this story strike anyone as a hoax?

Actually someone had mentioned that to me the other day oddly enough and I called bullshit myself, but it looks as if it’s a true story.