Bulk candy vending, although it traces its roots back to the late 19th century, is nonetheless a modern growth industry with sales expanding over the last 10 years.
Primarily fueling this growth has been consumer demand for quick and convenient access to competitively priced products.
Additionally, this type of business is well suited to the new entrepreneur as the start-up costs are relatively low and it offers the potential for significant returns and growth.
The business of bulk candy vending can be very lucrative.
The principal expenditure is the acquisition cost of a vending machine or machines for placement at convenient locations for consumers; such as grocery stores, shopping malls, etc.
The vending machine itself is a fairly simple mechanical device which, when a coin is inserted, dispenses to the user a piece (or perhaps a handful) of candy, such as a gumball or perhaps a small toy.
A significant advantage is that bulk candy vending machines typically are less expensive than other kinds of vending machines, such as soda dispensing machines, as they are simpler in construction and do not require any refrigeration equipment or electrical supply.
Additionally, in the case of bulk candy vending, there is a great opportunity for a significant return on investment as the gross margin on sales tends to be high.
For example, in the case of ordinary gumballs, these items can routinely be purchased in bulk for two cents each and can be dispensed from a vending machine for insertion of a quarter by the customer.
An added bonus is that in many states vending machine bulk sales are exempt from sales tax.
Another advantage is that inventory items, such as gumballs and candy, have relatively long shelf lives, which tend to cut down on the time and labor required to service the machines.
Stock does not need to be replaced or rotated as frequently as would be the case with perishable snack items for example.
Bulk candy vending can also be a practical side business for an individual otherwise engaged in a full time job, particularly when compared to other types of vending such as soft drinks and snack foods.
This is the case because, the typical locations suitable for placement of bulk candy vending machines, such as grocery stores, drug stores and shopping malls, are generally open on evenings and weekends for access to the machines; whereas soft drinks and snack food vending machines or more commonly located in office buildings where access to the machines on evenings and weekends is more limited.