Red Bull vending machines good investment?

syka16 · #1 10-13-2005, 05:03 PM

I've got about $10,000 to invest in a part-time business venture. I'm researching buying a few Red Bull vending machines and posting them in some decent spots. I have a few family connections that would be willing to rent me some space. Has anyone gotten involved in that sort of venture? Is it more headaches than profit?

pokergrader · #2 10-13-2005, 05:05 PM

The only problem I can think of is that I dont like putting more than $1 into a vending machine to buy anything, and im assuming these are going to sell for something like $2-$5.

istewart · #3 10-13-2005, 05:06 PM

Yes, while you're at it, lower the price below $3 or whatever the [censored] it costs.

swede123 · #4 10-13-2005, 05:07 PM

Vending machines seem kind of scary to me. You get some punk break into one and there's your profit for the month. A friend of mine back in Portland put some money into a little enterprise of Slushie carts during the summers. After some initial struggles he ended up making some cash on this venture. Obviously this involves taking on employees and so on, so it's a bit more involved.
Swede

daveymck · #5 10-13-2005, 05:18 PM

Can you not rent or lease the machines? how many would you get for the amount? How much is the rent for the patch?, do you need insurance etc etc. To me on the face of it unless you can buy a [censored] load of machines your break even point is going to be quite some time in the future, dependant on the profit margin per can and volume you will sell, it seems like more hassle for the profit on the face of it, with the figures may be an easier decision.

syka16 · #6 10-13-2005, 05:21 PM

[ QUOTE ]
Vending machines seem kind of scary to me. You get some punk break into one and there's your profit for the month. A friend of mine back in Portland put some money into a little enterprise of Slushie carts during the summers. After some initial struggles he ended up making some cash on this venture. Obviously this involves taking on employees and so on, so it's a bit more involved.
Swede

[/ QUOTE ]

My uncle used to own a bunch of those around Tampa and his $5.25/hr employees were stealing all the profit... go figure.

Your right, vending machines do attract punks. I'd be putting them in rather low risk areas so I hope that could be avoided. But still... that would worry me. The fact that I wouldn't show any profit for at least a year is pretty normal for any new business and certainly the case with this one. But still, I can't find any better place to invest my money other than some lame CD or whatnot.

Freakin · #7 10-13-2005, 05:23 PM

Did you guys ever think about vending machines in really cold places? If it gets below freezing during the winter, they have to heat the pop, as well as cool it during the summer.

It's like a thermos; keeps cold things cold, keeps hot things hot. How does it know?

Freakin

Reef · #8 10-13-2005, 05:24 PM

I'm gonna go with the not worth it option. I'd save up until you have 30k and then go into real estate

swede123 · #9 10-13-2005, 05:24 PM

You'd be surprised what people will do for a hundred bucks in change. We have a vending machine in my office building, which would be about as low-risk as anywhere on earth. Yet, last year sometime someone cracked it open, stole the cash and broke the machine so the fatties in the office couldn't get their Snickers bars for a few weeks. Now the machine is hidden away inside a lunch room.

Swede

syka16 · #10 10-13-2005, 05:24 PM

[ QUOTE ]
Can you not rent or lease the machines? how many would you get for the amount? How much is the rent for the patch?, do you need insurance etc etc. To me on the face of it unless you can buy a [censored] load of machines your break even point is going to be quite some time in the future, dependant on the profit margin per can and volume you will sell, it seems like more hassle for the profit on the face of it, with the figures may be an easier decision.

[/ QUOTE ]

well taken. Here's a little more info

http://www.franchisegator.com/cgi-bi...&f_type=13