CANDY VENDING BUSINESS

Easy Business-This is a part-time, all cash, stress free home-based business. There is no need for any employees, an office location, or a special vehicle since the machines are small and can easily be moved in your regular family automobile.

Background Information-This business was started about 15 years ago as an easy way for the owner to make some extra income. There are no employees and the business is operated from home.  The machines are located in retail stores, hospitals, senior care homes, etc. Yes, surprisingly the machines are patronized by adults as well as children.   The owner visits the machines just once a month to collect the quarters and top up the candy in the machines.  In the past the owner has had as many as 150 machines on location, but over the years some locations close or change hands, and new owners don’t always wish to retain the machines. For the last few years the owner has not bothered to find new locations, and there are only 50 machines currently on location. The other 100 machines are in storage, waiting for an energetic new owner to place them in locations, and start collecting quarters.

Location At the present time there are 50 machines on location. About 20 are located in the Casa Grande area, another 20 in Mesa in the East Valley area and about 10 a little farther north. The machines are all in high traffic and high visibility locations where there are employees and customers around at all times. There has not been any theft or vandalism.There are no written contracts with the store owners, and machines could be relocated at any time if the revenue should drop at a particular location

Reason for Selling – The owner is now over age 65 and has been collecting quarters for over 15 years. He is both tired and retired, and is no longer enthusiastic about spending even 2 part-days a month servicing the machines and collecting the quarters.

What is for sale-The total asking price is only $10,000. The asking price is $100.00 for each for the 50 machines now on location, for a total of $5,000. The annual income from these machines is about $9,000, an average of about $200 per machine a year.  Thus their entire purchase price will be recovered in about 6 months, and from then on it will be all profit.

The asking price for the 100 machines now in storage is just $50.00 each for a total of $5,000. An energetic person who is willing to call on business owners can quickly place these 100 machines in locations and can expect about the same average annual return of around $200.00 per machine. Their cost should be recovered in about 3 months, and from then on it will be all profit.

The owner prefers to sell everything to one buyer, but may consider an offer for just one of the routes.

Type of machines-they are all two-head machines on stands, and take up less than two square feet of space in a store. They will handle bubble gum, bulk candy, bulk nuts, Chiclets and mints. You can actually vend any product that will fit through the dispenser. The coin slots take quarters only. The machines are mechanical, not electric so they can be placed anywhere. They are all in good operating condition.  Maintenance is minimal. There is no complicated electronics, but the coin mechanisms do wear out from too much use. Repairs are seldom required and are easy to do. A large quantity of spare parts, coin slides, etc. is included in the sale. New machines cost about $75.00 a head, and stands about $35.00; a total of almost $200 each.

Training-The seller will accompany a buyer on the routes to introduce him to the store owners and familiarize him with the routes. He will provide information on purchasing inventory on a wholesale basis. He will also show a buyer how to make any minor repairs that may be required from time to time.  He is not moving from the area, and will be available for consultation and assistance if needed from time to time. He will of course sign a non-compete agreement.

Opportunity for expansion-It is an easy business to run. It will only require a few hours a month to handle the business. The location of the machines is critical. High traffic locations will of course generate the most sales. It is an all cash business and provides a second source of income. The machines will just sit there making you money 24/7.

Just buying the machines will not produce any income if they remain stored in your garage. They must be placed on location. The only hard part is to find suitable locations. After that it is just a matter of restocking the machines and counting the quarters. High traffic locations will of course generate the most sales. The machines will just sit there taking in money 24/7

 If a business location changes ownership, fails, or moves you may want to move your machine to another location. If the income in a particular location drops for some reason you may also want to relocate your machine.

When all 150 machines are on location the gross revenue should be nearly $25,000 a year. Not bad for a couple of days work a month.

Ease of Operation:  No business could be easier to run. The machines may be small, but they handle a large amount of product. Unlike soda and snack vending machines that cost several thousand dollars each, and where the product must be restocked individually by hand every few days. These machines only have to be serviced once a month. In less than 5 minutes you can just dump in the candy, pocket the quarters and be on your way.

Profitability:   You can make much more money with candy and gumballs than with sodas and snacks. Gumballs and candy costs about 2 or 3 cents a serving and sell for 25 cents. The gross profit is about 800%.  In soda and snack machines the product costs about 50 cents, and it sells for $1.00. The profit is only 100%. And soda machines cost about $5,000 each and they usually have to be serviced weekly, or oftener.

Gumball machines are the best known of all the vending machines. They have been around for many years, and they can generate a lot of profit. You can sell bubblegum, nuts, bulk candy and fun prizes from these machines. You can sell any product that will fit through the dispenser. They are colorful which makes them easy to notice. They are used by both children and adults. The price is only a quarter so it is not costly for the customer.

Servicing a machine takes less than 5 minutes. It consists of refilling the product which is just dumped in, and collecting the quarters. The machines are only serviced once a month. The ones further north are only serviced about 4 times a year.

The above chart is only a mathematical calculation based on an assumed number of daily sales.  There can be no guarantee of the actual number of sales per day for any one machine or any location. Actual sales will vary from time to time. Children with adults often result in multiple purchases at the same time. A surprising number of adults patronize these machines.

The annual profit from each of the machines currently on location averages about $200. The machines can easily be moved to more profitable locations if sales at a particular location should drop off.

Your actual net profit will depend on your other variable expenses for travel, servicing, product cost, etc. The business can be operated from your home with tax write-offs and other benefits.