About Vending Businesses
If you have ever come across a vending business, maybe in the mall or on the street, you may have been completely focused on the products being sold, but never really thought about the vendor himself until now. How much money is the vendor making? Is the time spent vending products worth the money? You might also be wondering what type of investment is required to start a vending business and if you need to go through an application process in order to vend products.
Other People Are Reading
-
Street Food Vending Businesses
-
Lunch trucks are a common food vending business that can be found in most major cities. Vending trucks are extremely popular in Washington D.C., Philadelphia, New York City and Chicago. Street food vendors usually are run by one or two people who are related, such as a husband and wife team or mother and son. A vendor has to go through a number of steps in order to sell food on the streets, at fairs and in indoor locations. Since the owner is selling a product that will be consumed by people, he has to abide by certain health codes, just as a brick and mortar restaurant would. The vendor's major initial investment is in the vending truck, which can be rented or purchased for about the same price as a luxury automobile (around $50,000). Food vending businesses can make anywhere between $500 to $1,000 per day or more depending on the traffic.
Street Product Vending
-
There are a number of vending businesses that sell non-food items as well. Common vending products include books, magazines, clothing, hats, glasses, perfume, art, and home décor. Unlike food, these products are usually not regulated as stringently by the local government. The vendor will usually either manufacture the products herself or get the products from a local distributor. Since street vending is very competitive, especially in major cities, it is important that these vendors keep their prices low. Luckily, their only investment is in a table and the products. While the profit margins aren't spectacular, many vending businesses manage to make a decent living in areas that get a lot of pedestrian foot traffic.
-
Vending Machines
-
In addition to street vending, there are other vending business opportunities. With vending machines, the owner does not have to even be present in order to make sales. The owner is responsible for purchasing or leasing machines, finding locations for them, stocking them with products on a regular basis, and retrieving money. A vending machine can cost anywhere between a couple of hundred dollars into the tens of thousands depending on the style and whether the machine is used or new.
Just to get an idea of what a vending machine owner can make on a monthly basis: a 24 pack of soda can be purchased at wholesale clubs for about $7, which works out to about 30 cents per can. If the vending owner sells each can in a vending machine for $1 and sells 20 cans of soda per day, he can make $420 per month without having to do much more than replace stock. Multiply this by multiple machines and this type of business can be very lucrative. The key to a successful vending machine business is location. You have to find a place where people are waiting or bored and don't have easy access to the products you are selling.
Advantages and Disadvantages
-
If a vending business is in your future, it's important to consider the ups and downs. For one, owning your own vending business allows you to have a certain level of personal and financial freedom--you can be your own boss. But at the same time, income is not always guaranteed. Sometimes people aren't in the mood to buy what you are selling. Also, most vending businesses allow you to interact with a wide variety of people, but you also have to be wary of some. Both street and vending machine businesses are sometimes targets for theft.
Abide by Vending Rules
-
There are state and local rules in place to regulate certain types of vending. You cannot simply buy a table or truck and start selling things, especially food items because they can endanger the health of the public. Most vending business owners need to apply and be approved for a vending permit in order to do business in any area. The fines associated with vending without a proper license are excessive and there are special units in larger cities like New York to deal with offenders, so it is in your best interest to abide by all of your local vending laws.
-
