Anyone have experience with vending machine businesses?

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July 18, 2023

by a searcher from Purdue University in Mason, OH, USA

I'm looking at a vending machine business and wondering if anyone has any insights they could share?

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Reply by a searcher
from Harvard University in Washington, DC, USA
Sam - would be happy to connect re: this industry. Have put IOIs in on a couple. Lots to like if you're looking at ones that are at scale - installed base / sticky revenues, route density, opportunities for selection and pricing improvements and remote monitoring, real upside from micro-market installation, likely a few local small add-on acquisitions available, and opportunities to differentiate. Some downsides are surprisingly low margins outside the coffee/office segment, Compass franchise limitations (for some), and scrappy competition buying from Costco/on-sale items and working out of their home.
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Reply by a searcher
from American University in Fairfax, VA, USA
I do not have direct experience. What I have heard is that vending machines can be a pain. It all comes down to the route and locations, how many machines, types of machines, who is collecting the funds (if it is cash based machines) and if you have someone who can service it when broken, YMMV.
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