5 Myths About Buying A Vending Franchise Business
5 Myths About Buying A Vending Franchise Business
1. It takes money to make money
Entrepreneurs looking at franchises in general have a tendency to think that unless you are investing a great deal of money into your franchise, it cannot turn a decent profit, but that theory doesn’t quite hold water. Yes, if all franchises made the same ratio of investment-to-profit, more expensive franchises would always make more money, and many of them do take in more dollars, but they also require much more income to continue to keep the operation going. The benefit of a smaller, work from home business is that the overhead is next to nothing, so much more of the income is strictly profit. Most vending franchises, like American Vending Systems for example, are affordably priced below the $20,000 mark, but the industry as a whole brings in $30bil every year in the United States.
2. You cannot make a living on vending machines
Skeptics will still say that though this work at home industry takes in such a huge figure every year, individual owners cannot earn enough money to make a decent living, in part because the income rolls in quarter-by-quarter. That may not look very impressive, yet consider that not all machines run on quarters, like DVDNow automated dvd rental machines, which cost $1 per rental per day. And second, with enough machines, individual vendors have been known to make around $70/hr. This may not be enough money to retire at 35 in a NY penthouse, but vending franchises can certainly keep you comfortable.
3. There is too much competition for everyone to succeed
Admittedly, it does seem counterintuitive, but the competition in this market actually helps. Multiple machines can often profit from being placed side-by-side in the same location, because it offers choice, something that most people love. When they see three machines offering different snack options, they feel more enticed to buy because they are more likely to find something they really like. Think about your own experience: is the tug stronger when there is one isolated vending machine, or three that clearly have a variety of products? Vending may be the one place where competition makes for better business.
4. It does not really matter what you put in the machine, so go with the off brand
The average buyer completely disagrees. If there is one thing that corporate America has succeeded at, it’s convincing consumers that brand means everything, because given the choice between a handful of m&m’s and a handful of the generic product without those happy little letters, most people will pick the m’s every time. This is precisely why businesses like Vendstar make it a point to tell potential franchisees that they only use brand-name candies, nuts, and gums.
5. It doesn’t take any effort to run a vending business
You can run nearly any business with no effort, but chances are you’ll be running it right into the ground. The truth is, it does take hard work to run a vending business successfully. The machines do the hard work of selling the merchandise, but good franchisees have to be constantly on the lookout for the next great vending location, particularly for specialty machines like The Love Maine Lobster Claw Game, which will not turn as great a profit if you place it in the wrong location. Good franchisees also have to be disciplined with their income, always keeping an account for more machine purchases. They must also keep close watch on all their machines in order to keep them stocked. It doesn’t take a rocket scientist, but it does take someone that can keep multiple plates spinning in different corners of town while maintaining focus on long-term goals.
The beauty of vending machines is that they provide wonderful business opportunities for a much lower cost than your average franchise, and whether a person wants to make it a full time job or just something to subsidize an existing income, vending is a solid way to go. You just have to ignore the myths surrounding it and make it work for you.
5 Myths About Buying A Vending Franchise Business - To learn more about this author, visit Candice Clem's Website.
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Many people enter into business opportunities, clinging to their pre-conceived notions, and this is especially true when it comes to vending machine franchises. Whether the thought is, "you can’t make very much money when it’s only a quarter at a time" or "there are already too many vending machines for a new one to make a profit," the truth about vending franchises may surprise you. To that end, here are five myths about buying a vending franchise business and plenty of data and evidence why there is very little truth, if any, behind them.
1. It takes money to make money
Entrepreneurs looking at franchises in general have a tendency to think that unless you are investing a great deal of money into your franchise, it cannot turn a decent profit, but that theory doesn’t quite hold water. Yes, if all franchises made the same ratio of investment-to-profit, more expensive franchises would always make more money, and many of them do take in more dollars, but they also require much more income to continue to keep the operation going. The benefit of a smaller, work from home business is that the overhead is next to nothing, so much more of the income is strictly profit. Most vending franchises, like American Vending Systems for example, are affordably priced below the $20,000 mark, but the industry as a whole brings in $30bil every year in the United States.
2. You cannot make a living on vending machines
Skeptics will still say that though this work at home industry takes in such a huge figure every year, individual owners cannot earn enough money to make a decent living, in part because the income rolls in quarter-by-quarter. That may not look very impressive, yet consider that not all machines run on quarters, like DVDNow automated dvd rental machines, which cost $1 per rental per day. And second, with enough machines, individual vendors have been known to make around $70/hr. This may not be enough money to retire at 35 in a NY penthouse, but vending franchises can certainly keep you comfortable.
3. There is too much competition for everyone to succeed
Admittedly, it does seem counterintuitive, but the competition in this market actually helps. Multiple machines can often profit from being placed side-by-side in the same location, because it offers choice, something that most people love. When they see three machines offering different snack options, they feel more enticed to buy because they are more likely to find something they really like. Think about your own experience: is the tug stronger when there is one isolated vending machine, or three that clearly have a variety of products? Vending may be the one place where competition makes for better business.
4. It does not really matter what you put in the machine, so go with the off brand
The average buyer completely disagrees. If there is one thing that corporate America has succeeded at, it’s convincing consumers that brand means everything, because given the choice between a handful of m&m’s and a handful of the generic product without those happy little letters, most people will pick the m’s every time. This is precisely why businesses like Vendstar make it a point to tell potential franchisees that they only use brand-name candies, nuts, and gums.
5. It doesn’t take any effort to run a vending business
You can run nearly any business with no effort, but chances are you’ll be running it right into the ground. The truth is, it does take hard work to run a vending business successfully. The machines do the hard work of selling the merchandise, but good franchisees have to be constantly on the lookout for the next great vending location, particularly for specialty machines like The Love Maine Lobster Claw Game, which will not turn as great a profit if you place it in the wrong location. Good franchisees also have to be disciplined with their income, always keeping an account for more machine purchases. They must also keep close watch on all their machines in order to keep them stocked. It doesn’t take a rocket scientist, but it does take someone that can keep multiple plates spinning in different corners of town while maintaining focus on long-term goals.
The beauty of vending machines is that they provide wonderful business opportunities for a much lower cost than your average franchise, and whether a person wants to make it a full time job or just something to subsidize an existing income, vending is a solid way to go. You just have to ignore the myths surrounding it and make it work for you.
5 Myths About Buying A Vending Franchise Business - To learn more about this author, visit Candice Clem's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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