Should You Buy Used Or New Vending Machines?
Starting a vending machine business can get really costly really quick. Is a business that requires a lot of upfront investment, most of which goes directly to buying the equipment, which are the vending machines.
New machines are generally expensive but of course they are new, meaning they will last for quite some time. But what about used vending machines?
Used Vending Machines are usually the option new vending operators take to save money. Is it worth buying a used vending machine?
Here is everything you need to know about buying used vending machines
What Is Considered A Used Vending Machine?
A used vending machine is any machine that has been previously put to use. “Refurbished” vending machines are used machines that may have been repaired or remodeled.
Most used vending machines are sold by their previous owners, however, manufacturers often buy back vending machines of their own brand and “refurbish” them, meaning these used machines sold by manufacturers may look new and work like new but were used at some point.
The depreciation of these machines makes their price drop as soon as they are put to use. This fast depreciation can be beneficial if you are the one doing the buying.
The Pros Of Buying Used Vending Machines
Price: The lower price of a used vending machine is very attractive to those looking to get their vending machine business started.
When you start any business you have to find ways to cut cost, and in the vending business, buying used vending machines can help you maximize your investments.
Good Bargains: A follow up of the previous point, the lower cost of used vending machines allows startups to buy more equipment for the price of one.
A good example would be if you had a total capital of $10,000 for your beverage vending business. Newly made beverages machines cost in the range of $3,000 to $5,000, paying this premium price will make your investment take longer to pay for itself. Now by buying used vending machines for $1,300 to $2,000 you are buying more machines that will recover your investment faster.
Lower Loss/Risk Of Getting Stolen: Most vending machines businesses experience theft or battery at some point, the problem is new vending businesses that aren’t as established may be more affected by the robbery or battery of one machine.
Because of lower cost ,used vending machines reduce the lost of a battered or stolen machine.
The Cons Of Used Vending Machines
No Warranty Or Insurance: Machines that are bought from other individuals usually have no warranty or insurance.
If the machine breaks or comes defective you will have to repair it by your own means.
More Prune To Breaking: Used machines, as the name implies, were used at some point. Many times these machines are “slightly repaired” by their previous owners and later sold as “refurbished”, sooner or later these machines break.
Repairing Expenses: When these machines do break, replacing or fixing them can get really costly.
Tips When Buying A Used Vending Machine
Use Craigslist And Other Forums With Caution: Craiglist is a dangerous marketplace when it comes to vending machines. Always call the seller and arrange a meeting were you can actually see the machine, this way you will avoid falling for common vending machine business scams.
Check The Machines In Real Life: Is really easy to fall in an Ebay, craiglist scam. If these sellers are in your area always see and tests the machines personally before you buy, if the seller is out of state do not deal with them.
Buy From Reputable Manufacturers: If you cannot actually confirm the condition of the vending machine, buy from reputable manufacturers. This is by far the best option when buying used vending machines.
Manufacturers might charge a little more than usual for a used vending machine, but you are usually given a return policy as well as the guarantee that the machine will work like new.
Although buying used vending machines can be risky, is the number one choice for new vending operators.
Weight the risks and the rewards and decide yourself how you will proceed.