Tag Archive | "vending"

Pitfalls and Scams to Avoid in Vending

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A lot of people have big dreams when getting started in vending, but it’s easy to get knocked off track when you get started on the wrong foot. If you’ve done any research at all, I’m sure you’ve seen all the companies selling products, services, or information about the vending business, not all of it is legitimate, and these companies make their money from unknowledgeable people new to the vending machine business. I’m hoping to counter all these scams and rip-off artists by giving you good information so that you hopefully won’t waste your money and will increase your chances of success.

These are 2 scams to avoid:

Business opportunities or biz ops are a plague on vending. This is not an over dramatization when I say this, many people have been sucked into these scams and end up giving up on vending altogether. Basically what these companies offer is to sell you a bunch of machines and help you get them placed so that you can start making money immediately. They do sell you the machines and help you get them placed, so that’s not the rip off part. The scam is that you are paying WAY too much. Sometimes you may be paying more than 5 times what the actual value of the machines and locations are worth. When people invest $15,000 – $20,000 in machines to only end up making $200-$300 a month it makes it very hard to recover and stay focused.

Energy products may or may not be a total scam but I can’t recommend it for a variety of reasons. The main problems with energy vending are three fold – the machines, it’s a fad and product availability. One, the machines can only vend one type of product; if it doesn’t work out for you, you are now stuck with a bunch of machines that you paid good money for and can now no longer use. Two, energy is a fad. How long will it stay popular? Who knows? Candy and gum are timeless. Three, when you buy into energy products, you are usually committed to only one supplier. Since you have already purchased their machines that vend only their product, essentially they have complete control over your purchasing. Is this an issue? Maybe not, but it makes me nervous. What if they go out of business or raise their prices? I can buy candy and gum anywhere, so I’m in more control of my business.