Vending

Pandemic-driven economic downturn brings new wave of vending newbies

Image courtesy of iStock.

October 5, 2020

As with every economic downturn, the coronavirus pandemic has driven many aspiring entrepreneurs to the vending business, lured by what they see as an industry with low entry costs and potentially large profits.

The Hustle, an online business advice site, documented the rising interest in vending since the start of COVID-19 and explored the lessons this crop of newbies has encountered in a recent report.

The Vending Mentors, an educational resource started by a San Diego couple offering a 6-week course for vending newbies, reported that 200 entrepreneurs have signed up for its course this year.

VendingNation, a Facebook group for new vendors, reported a 142% jump in members from 6,000 to 14,500 since January.

The newbies, like their predecessors, are finding the business requires a lot of hard work and requires a lot of trial and error to learn the ropes.

Newbies find that getting good locations is very difficult, as those with a lot of people are already taken.

Among the 23 operators The Hustle interviewed, some said they have to make more than 100 calls before finding a decent location, and they often have to pay as much as 25% in commission on gross sales.

The average operator had 13 machines and grossed an average $309 per machine per month, but sales ranged from $75 to $650.

For an update on how the coronavirus pandemic has affected convenience services, click here.