Vending Machine Business

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October 31, 2022

by a searcher from Heriot-Watt University in Boston, MA, USA

Good day community.... anyone have experience in the Vending Machine industry? Would love to pick your brain if you don't mind.

Interested in learning about the industry, risks and opportunities for growth.

Thank you,

Marc

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Reply by a searcher
from Babson College in Natick, MA, USA
Marc, I have some experience and have done quite a bit of research into the industry. While it can be a great business due to (relatively) low CAPEX as a barrier to entry, with decent margins, the key barrier to growth is obtaining locations for the machines. Since it’s such a simple business, I wouldn’t recommend buying an existing vending route or business but rather start one as a part-time venture to work out the difficulties. Your biggest competitors are usually the bottlers themselves (coke and Pepsi) who run large networks of machines. However, market concentration is low. There is operational risk once you outgrow a ‘part time’ model where you need to hire employees, get trucks, and employ telemetry to do load and route planning, but nothing insurmountable. Send me a note if you have more questions.
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Reply by a searcher
from Northwestern University in Nashville, TN, USA
Hi Marc - I own & operate a vending machine business (snacks & drinks) that I started last year. In general, it's a great business if you ask me. Happy to chat about it though. Feel free to DM me to connect.
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