Used versus Free soda machines

Today, as my friend that I am helping start her soda business and I were talking, she brought up an interesting point. She said that she will probably buy her next machines from someone rather than accept any more free machines. Now why would paying for a machine actually make better business sense than taking a free machine?

She has gotten two soda machines for free. One someone had given to our church for some reason and the church didn't need it anymore. The other was given to her by a business that did not want it around any more because it was vandalized.

She was actually given a third machine by the same business, but found out that it belonged to Coca-Cola. Beware if someone is trying to give you a machine. If it is a Coca-Cola machine, look inside it for the paperwork that says that it belongs to Coca-Cola. They lease machines to people to put onto location. These machines often get abandoned by the person running the route, especially if they have been vandalized. Coca-Cola wanted their machine back and came and picked it up from her. She chose not to keep it once she found out it had an owner.

The other two machines did not have an owner that wanted them, so she took them and put them on location. She has had a lot of difficulty with the machines. The compressors work, but she had trouble with the computer board in one machine. Both machines had issues with the dollar bill exchanger and the coin mechanism. Also, one machine had issues with the cradle that holds the soda and the motors. After it was all said and done, she had spent a lot of time and a decent amount of money repairing the machines to get them up and running. They were still cheaper than most used machines, but was the hassle worth it?

To my friend, it was too much hassle. She spent many hours fixing the machine, running various parts back and forth to a company here in Dallas that repairs vending machine parts. It was very stressful for her to try to figure out what was wrong with the machines. I was able to tell her a lot about what part was causing the problems, but they still had to be repaired. In addition, there was quite a bit of down time after the machine was placed. This is not good for business. People do not like loosing money in the machine.

So, the moral of this story is that getting a machine for free seems like a great break, but you have to be prepared for problems. Take the machine home or to your storehouse and make sure everything is working perfectly before placing the machine. This means plugging it in several days and making sure the compressor doesn't freeze up, the machine cools properly, that every selection works, and that the coin mechanism and dollar bill exchanger function properly. This gives you the very best chance of having it run properly when placed. Don't forget to clean the machine well and do any touch-up painting while you have it.

So what is the advantage of buying a used machine from someone? If that person offers a warranty, he or she has to deal with all the hassles if there is a problem. Make sure when purchasing a machine from someone that you get some references and that you get at least a 60 day warranty. Most of the problems will occur shortly after moving the machine onto location.