Both the machines and products can be purchased wholesale. But business opportunity seekers can often be the victim of vending scams. It is important to be cautious and research any company before purchasing its vending equipment.

Setting Up The Soda Vending Business

First, find a wholesaler from which to purchase the vending machines. Suppliers advertise in business opportunity magazines and, often, in newspapers. The cost for one soda machine can be $3,500 or more. Suppliers usually sell at least 10 machines at a time. These are often just the soda machines with a mechanical coin slot. Be careful with these companies because some are fly-by-night operations. They take money from people, deliver inferior equipment and there is normally an additional charge for the locator. The locator helps find locations for the vending machines. Soda vending machines can be purchased at Sam's Club for less.

The electronic commercial soda machines can cost more. They are often provided by Coca-Cola or other companies without charge; but the company usually gets a percentage of the take. Some of these locations are already established. If not, the distributor may agree to set them up in high-profit locations. High-traffic locations include beauty salons, malls, high-traffic retail stores and even grocery stores. Contact a Coca-Cola or Pepsi-Cola distributor for further details.

After getting the machines located and placed, get a source for the drinks. If you are using a mechanical coin machine, buy soda in bulk from Sam's Club or a similar outlet. Large vendors such as Coca-Cola and Pepsi may supply the drinks or provide them on consignment.

Set a price for the drinks. A good benchmark is to use comparable prices in the area. Do not price too high or fewer people will purchase from the machine. A price too low will lessn profits.

Finally, a vendor's license will be needed for paying sales taxes.

Operating The Soda Vending Machine Business

The first step in operating a soda machine business is to stock the machines at each location. Tell the business owner what day the machine will be restocked each week. Some may require two visits per week. Bring plenty of product each week. Some top sellers include Coke, Diet Coke, Sprite, Mountain Dew and Dr Pepper. Most machines will carry at least six brands. Let the sales dictate which brands you use.

Wait about a week after stocking the soda machines, then go back to restock the machines and collect the money. Take an inconspicuous but sturdy envelope to carry the change. Later, count to see how many sales were made at each location. Be sure to label each envelope. Consider finding new locations for places that do not sell much soda.

Count the money after completing the route each week. Obtain coin holders for nickels, dimes and quarters. Prices can eventually be changed on both the mechanical and electronic soda machines. Get a large canvas bank bag to carry change to the bank. Sometimes the bank will count the change with machines. But do not expect them to do this.

Keep records of sales and expenses. Expenses mainly are product purchases and gas. Some locations may require a small stipend. Include that amount in your expenses.

Expanding The Soda Vending Machine Business

You may eventually want to expand your soda vending business. Obviously, the way to make more money is to have more soda machines. Expanding the business may require hiring an employee to help with the pickups.

By www.ehow.com