Vending World: Manufacturing vs. Reselling

There is a great big question in the vending world, but nobody seems to provide an adequate answer. What does it matter if I buy my machines from a reseller versus a manufacturer? It seems as though, at face value, I can buy a machine from overseas far cheaper and they will ship it to a drop point here in the states. Based on the prices they are advertising, I can get it for way less than I can if I buy it here in the states. 

The problem? They don’t tell you about all the gotchas along the way. 

First, if you buy a machine from overseas, chances are very good that the final cost after shipping is going to be a lot higher than you anticipate. If there are not protective tariffs in place, then you have to look at secondary shipping. The overseas manufacturer will ship a machine to a certain point, but they don’t often tell you how much it will be to get it from there to you and that can be a chunk of change. 

Make no mistake, as vending machines are expected to do more and offer more customizable configurations, repair and customizations will become a much more important factor in the type of machine you buy. 

And we are not saying that you should not buy from someone who simply resells machines, you just may want to think about it twice before you do. Make sure they can repair the unit and have the parts on hand in case you have any trouble. Also, get it in writing what happens if your machine breaks down and needs to be repaired or replaced. 

While you may find the urge to try to save a few bucks up front, it may cost you a lot more on the back. We strongly recommend going with a manufacturer here in the states. Several of them are building Interactive Retail Vending Kiosks with a very full feature set and for a price that might surprise you. 

Take a look at what is out there and make sure you ask all the right questions before making your choice. Will they support their units? Do they have the capability and capacity to repair them onsite or replace them in the case of serious defect? Do they have the parts necessary to repair in stock or do those parts come from overseas and take a long time to get to you?

Finally, the software and the ability to make changes to how machines interact with humans will become a much bigger factor over the next few years. This is the move to Interactive Retail Vending over the now antiquated Intelligent Vending model. Make sure your manufacturer is ahead of the curve (or at least able to keep up with it). 

To summarize, buying from a reseller is not necessarily a bad thing, but you have to make sure the unit you buy is able to reliably perform the tasks that you need it to and that you are not buying a servicing nightmare. Often times it makes more sense to purchase something in your own market even if it costs the same or a little more because the cost of repair or replacement can be significantly higher buying overseas. 

The most important take away is that, no matter who you buy from, ask the questions that can really impact your ability to get a solid return on your investment.