|
Rating:
Level of
Review: Researched, too big a risk to
try.
Overview:
The company sells you vending machines, and will
sometimes finance them for you. You have to scout
locations to operate them from, and you have to
find suppliers for the items in them, plus
servicing them. If the machine fails to operate,
you bear the cost of repairs.
Product:
Candy, novelty toys, soda, etc.
Costs: Cost
per machine are high enough that the company has to
finance them just to sell them. Machines come in
different sizes, and cost varies according to
whether it is a full sized vending machine, or a
smaller model. You must also invest in initial
stock of merchandise.
Compensation:
Varies on where you are selling, whether your
products are good, and whether your location is
successful. I was not impressed with their
projections (see below).
Conclusions:
Based on what was posted on the website
I reviewed, I cannot see that this could pay
off. Here is a direct quote:
"The purpose of any
investment is to make money. However, it takes
money to make money. What you, as a business
investor should be looking for is the highest
possible "Return On Investment". Not only are the
profit margins in selling candy good, they're
incredible! A handful of candy costs you
approximately 5¢. You sell that handful of
candy for 25¢ - for an amazing 400% profit
margin! You buy 1" gumballs for about 2¢ and
sell them for 25¢ to realize a mind-boggling
1,500% profit margin!! Where else can you get these
kinds of safe returns on your money?"
Sounds good... but
the site also says that their new countertop model
is doing great business, and sometimes receives up
to 20 vends per day. Ok, lets do a little simple
Math... A handful of candy, as mentioned in the
quote above, is going to give you a profit of
TWENTY CENTS. Multiply that by itself, and you
could make... Oh, gee, a whole FOUR DOLLARS
per day from a vending machine. And that does
NOT take into account that you need a pickup
to do this business (to move them from one location
to another), and that with the company's 100%
financing, you are going to owe them a healthy
payment every month. Getting only about $120 per
month per machine if everything goes well in a high
traffic area, you don't have a lot of room for
making a payment.
Now, he said that
they are receiving UP to 20 vends a day. That is
not an average. That is a high. You can't even be
sure you'll make $4 per day. And that candy may
only cost you $.05 per handful, but it is going to
cost you $10 or more to stock a machine. If you
want to make any money at all, you are going to
have to make a huge investment in machines, candy,
and possibly that truck if you don't already have
one.
If you could find a
high traffic area, it might be a means of earning a
reasonable income. High traffic areas are hard to
come by. People who own the space where one would
do well generally also own a few machines, or
already have the space contracted out. And do you
think they will let you put your machine in a space
just because of your smile? They are going to want
something in return.
Vandalism and
repairs due to malfunction are also issues. In
poorly supervised areas vending machines can be a
target for theft, destruction, or petty damage. And
a machine that has been damaged won't bringing in
money until you fix it. Supervised areas where
vandalism would be less are also areas where
someone is likely to be selling something in
person.
And this is NOT
really a work AT home business, more of an on the
road type, because you would have to own enough
machines to need to maintain and stock at least
some of them daily in order to make enough money
selling pennies worth of candy or toys. Out here in
Wyoming, it wouldn' even pay for itself.
If you have full
sized vending machines, and good locations - or
your own location to place them, then they can work
well. If they did not, they would not be in
use!
On the other hand,
if you live in a large city, you might find some of
these machines cheap in the used market, perhaps at
a Bankruptcy auction!
|
