How to Buy Vending Machines Wholesale

Research your options before buying a vending machine.

Whether your plan is to start a vending machine route business or just avoid retail costs, finding wholesale vending machines can be more attractive than paying full price. Often, you have to buy bulk quantities of vending machines to qualify for a wholesale price, but many companies are now offering bulk rates at any quantity. Before you begin, figure out your needs. What kind of vending machine do you need? How many do you need? Once you know exactly what you are looking for, you can begin to finalize your plans.

Instructions

1. Finalize your plans. Vending machines are a big investment. Just one unit can cost upwards of $8,000. If you plan on setting up a vending route, create a business plan to justify your investment. Find local businesses that will allow you to keep your machines onsite, often for a percentage of the sales. If you plan on buying one or only a few machines, decide what their purpose is. If you just want them to keep at your home and you don't expect any return on investment, don't spend time worrying about a business plan.

2. Search online for resources to many online vending machine companies and possible local options. You can also find information on the various models of vending machines and which models are the most cost-effective to buy wholesale. If you establish a vending route, you can use the Internet to advertise and market your business. Be sure to look up manufacturers' warranties as well.

3. Find capital. Vending machines are not cheap, and if you are looking for wholesale prices, then you already know this. Investor capital will be obtainable once you have created a viable business plan and are able to forecast return on investment and profit. If you are able to fund the capital yourself, make sure it is an amount you can afford.

4. Compare prices. As a general rule, the larger vending machine suppliers can provide cheaper prices because they're running on an economy of greater scale than competitors and their variable costs are less. Another general rule is that the greater quantity of whole vending machines you order, the lower the cost per unit should be. Find contact information of suppliers and speak with the managers. It is very common in wholesale distribution to negotiate prices.

5. Check auctions. Wholesale suppliers often have excess inventory that is auctioned off, sometimes at a fraction of the suggested price. Search the Internet for such auctions, and keep a supply of cash in case opportunities to buy arise quickly.

6. Arrange pickup. Paying for freight costs of vending machines, particularly in large quantities, can quickly make the deal much less cost-effective. Shipping even a single machine can cost near $500, so arranging pickup or finding any local or area distributors saves a lot of money.

7. Choose a distributor, make your offer, and buy your machines. Common distributors as of 2010 include BJ's Wholesale Club and 1800VENDING, links are in "Resources" below.

Tips & Warnings

• If you are setting up a vending route, buy insurance for your machines. Vandalism and theft can decimate such a business.

References

• Vending Business

Resources

• BJ's Wholesale Club Vending Machines
• 1800VENDING