A Sweet Deal: Selling Snacks to Supplement Income
Rodney Wormsley earns extra cash by owning vending machines
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| Rodney Wormsley restocks one of his vending machines. |
After purchasing his first candy vending machine almost a year and a half ago, Wormsley, a special education teacher from Clinton, Md., realized the small machine made him about $200 a month.
With just three machines in his first year of business, Wormsley, 29, turned a profit of about $7,500. It also helped that he was able to place his equipment in his parents' laundromat in Temple Hills, Md. He's now up to six machines.
While the vending machines have earned Wormsley some extra cash, he says it's not as easy as it seems. For one thing, the machines can cost up to $7,000. Another big challenge is finding a profitable location that is not already monopolized by the larger vending companies.
At least once a week, Wormsley replenishes his stock with products he purchases at Sam's Club. On a good week, Wormsley says he may have to refill the machines three times.
Most large vending operations give commissions to companies that house their machines. Since Wormsley did not have the cash on hand to do that, he decided to target mom-and-pop shops.
"I went to this after-school program that was located near a liquor store and told them my machines could prevent the kids from buying sodas in the liquor store," Wormsley says. " I also told them I could add more water in the soda machine to encourage the kids to drink water."
While Wormsley expects to make around $9,000 this year after expenses, Brian Allen, director of governmental affairs for the National Automatic Merchandising Association (NAMA), says it's easy to get mislead. The numbers pulled in by established vending companies can make it seem like there's tons of money to be made. "The mistakes I see entrepreneurs make is they don't [research] the industry or [know] the quality of equipment necessary," Allen says. "They think they can buy a machine and everything will sell."
Wormsley realizes that it's not necessarily a get-rich-quick industry but is more concerned that a bigger vending company will offer his clients a large sum of money to move his machines out and put their own machines in. Allen says that is a common practice in the vending industry.
Entrepreneurs should also be aware of scams. Often businesses will sell machines and then disappear or take too long when the machines break or need servicing. This happened to Wormsley but he has since learned to go with local vendor manufacturers that are easily accessible.
Despite those challenges, Wormsley is sticking with it, adding an extra cushion to his $50,000 a year salary. He also plans to buy two more machines by summer's end. To other entrepreneurs, Wormsley says, "I would do business with companies who have been in the business longer than seven years and deal with local companies that have a proven name. So when things don't pan out, you can go to an address and talk with someone face to face."
For more on vending opportunities, visit NAMA's Website at www.vending.org, www.vendingtimes.com and the Automatic Merchandiser's site at www.amonline.com.
RAWW Vending; P.O. Box 1001, Clinton, MD 20735; 301-343-2490
07/21/05
While Wormsley expects to make around $9,000 this year after expenses, Brian Allen, director of governmental affairs for the National Automatic Merchandising Association (NAMA), says it's easy to get mislead. The numbers pulled in by established vending companies can make it seem like there's tons of money to be made. "The mistakes I see entrepreneurs make is they don't [research] the industry or [know] the quality of equipment necessary," Allen says. "They think they can buy a machine and everything will sell."
Wormsley realizes that it's not necessarily a get-rich-quick industry but is more concerned that a bigger vending company will offer his clients a large sum of money to move his machines out and put their own machines in. Allen says that is a common practice in the vending industry.
Entrepreneurs should also be aware of scams. Often businesses will sell machines and then disappear or take too long when the machines break or need servicing. This happened to Wormsley but he has since learned to go with local vendor manufacturers that are easily accessible.
Despite those challenges, Wormsley is sticking with it, adding an extra cushion to his $50,000 a year salary. He also plans to buy two more machines by summer's end. To other entrepreneurs, Wormsley says, "I would do business with companies who have been in the business longer than seven years and deal with local companies that have a proven name. So when things don't pan out, you can go to an address and talk with someone face to face."
For more on vending opportunities, visit NAMA's Website at www.vending.org, www.vendingtimes.com and the Automatic Merchandiser's site at www.amonline.com.
RAWW Vending; P.O. Box 1001, Clinton, MD 20735; 301-343-2490
07/21/05
