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Is It Wise To Lease A Vending Machine with Location ?

There are vending supplier companies that are offering leasing on vending machines with locations as a bundle and offering a very good term of 24 months or 36 months to pay. This is a very dangerous proposition if you don’t know the outcome of the location since you cannot judge the approximate sales if you are given an approximate number of people in the company.

But if it is a public location with random people it might be worth the take the risk especially if it is a hotel or motel, but the problem is that there is an increase risk of vandalism if there are a lot of traffic but very consistent sales. Let’s say that you are given a location in a hotel with a leasing period of 24 months than it might be a good chance to consider it if you are betting that the profit will be more than the monthly leasing bill that you have to pay.

I tried this method in obtaining more locations but I have to buy a machine bundled with a location and the problem that I have experience is that some months my profits cannot cover the leasing payments and some months my profits exceed the leasing payments, on average I would just make $20 to $50 dollars a month after paying off the leasing payment.

In order to succeed you have to look on a long term scenario since you are tied to the leasing company for 24 or 36 monthly payments and make sure that you will not go into default or else you will be forever be blacklisted to the Vending Supplier Companies and will be hard to do business in the future.

If your aim is to acquire more assets and locations by expanding via leasing, this is a little bit risky business. But lucky enough for me in able to pay my leasing payments and my journey in this vending business I was able to successfully paid around 3 machines with locations and right now my strategy is to bear the painful process of paying off the 24 or 36 months leasing terms and than buy another new machine bundled with a location.

But you have to keep in mind that you cannot do this method of running your vending machine business or else you will end up bankrupt and in bad credit, because there are some unlikely events that might happen which is not in your favor like : business slowdown, business relocation and people complaining about your service etc.

You can only do this method of business if you have a lot of other machines that are already making a stable income for you and if encountered problems with the new machine bundled with location than the other machines can subsidize your loss.

Conclusion

Leasing a vending machine bundled with location is a very dangerous proposition and not a wise decision. You have to crunch a lot of numbers before you make a decision.

If you have around at least 30 machines you can try to take the risk, because it will be subsidized in case you lose it.

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