PDA

View Full Version : New at Vending :)



wannavend
01-23-2009, 12:58 AM
I'm not that familiar with message boards' ins and outs but is the only other thread in the vending section the warning not to solicit?
I found a few posts about vending in other areas of the board and I so appreciate the information but I need more.

I would love feed back about starting in the vending business. I would like to start with just a few machines for extra income and grow from there as I learn the business.
I am handy and good with people and sales (I have an AA in electronics that I have not used in forever, but I was a field tech for years driving around fixing giant printers and my customers).
I am hoping these skills will carry over.

I have so many questions.
How to pick locations?
Are companies that find locations a good solution?
Do franchises make sense?
What products sell best?
Where do you get the product and what kind of profit margin is the norm?
What kind of commissions to the locations are the norm?
How many beverages a month does a machine in a great/good/average location generally sell per week?
Are there vending machines for Monster? (I love Monster :-) )
Are brand new machines best or refurbished, used?
Any beverage machines that are generally lemons or fairly trouble free?
Any idea of what repair costs can generally run on average and is it a good idea to have a repair contract?
Is buying an established route a good idea and if so what should I look for?
What is it that I don't even yet know that I don't know?

Like I said, I have a lot of questions.
Mentors wanted. Private messages are fine.
Mahalo,
Mary :)
p.s. I know this is the beverage Net but I'm also very interested in the DVD kiosks vending concept.

the saint
01-23-2009, 06:36 PM
I have so many questions.
How to pick locations? anywhere there isn't a coke or pepsi machine
is a good start,laundrymat, auto body shop, mech shop, apt complex


Are companies that find locations a good solution? not unless you want
to get ripped off

Do franchises make sense? not unless you want to get ripped off

What products sell best? cheap vend price, non diet soda in
cans (long dates)


Where do you get the product and what kind of profit margin is the norm?
sams, walmart, local supermarket, wherever the price is cheapest. if you make double your money your good

What kind of commissions to the locations are the norm? don't know for sure but 10% would be a good start.

How many beverages a month does a machine in a great/good/average location generally sell per week?
depends on what product and price if you are talking energy drinks
you ae not gonna sell many no matter what anyone else tries to feed you
at the best I would say a case or two, worst case a can or two , soda best case empties itself, good would be 5-7 worst case scenario a mixture of a case or less


Are there vending machines for Monster? (I love Monster :-) )don't know I am sure there are

Are brand new machines best or refurbished, used? obvious answer new are best but also most expensive, refurbs are usually just as good as new machines mechanically but are not the latest and greatest on features, I would not buy a used machine


Any beverage machines that are generally lemons or fairly trouble free? cannot answer for you


Any idea of what repair costs can generally run on average and is it a good idea to have a repair contract?
depends on machine and problem, most machines are usually trouble free for years. costs could be anywhere from a 10 cent fuse to a $1000 compressor end result is the same, the machine doesn't work right.


Is buying an established route a good idea and if so what should I look for? I wouldn't for the simple fact that it is just like the stock market, for everyone thinking it is the "next best thing" there is someone looking to unload it before it tanks out.


What is it that I don't even yet know that I don't know? It isn't just a few hours a week for 1000s in profit like the ads say. more like full time job in hours (considering going out and purchasing product, to driving to location, cleaning, filling, fixing, machine(s) )for little pay in CHANGE mostly


Example. you go and buy 10 select machine, you put 10 brands in it, you buy 10 cases at ( i will use $ 5 a case for ease of multiplication) at store for $50, you drive to location and spend 40 minutes filling machine (keepingin mind you are new at this, you will get faster) put $17 in change in changer. then drive back home. you come back in a couple of days or a week, see what you have sold. go back to store and purchase stock (we'll sayanother 5 cases for $25). drive back to location spend 20-30 minutes refilling stock. pull bills out of validatorempty change bucket and begin counting your $50-$60 you take out. you then minus your $25 you just spent to refill
so you made a total (not including your time and fuel etc ) of $25-$35 for a couple of hours work if you subtract fuel costs at say $2.50 a gallon (depending on distance and MPG) we will say 2 gallon so you 25-35 became 20-30. you then
have the time factor of one hour filling machine, one hour round trip to machine 2 times and one hour to store round trip 2 times so you have 5 hours time in that 20-30 so you made $5-$6 an hour and that is if you sold 5 cases out of it if not then you made even less per hour.not trying to scare you away, just trying to enlighten you as to what you are wanting to get into

ithastabeshasta
01-25-2009, 09:39 AM
I have been in vending for 23+ years as an employee and not a owner for a reason. Now if vending was as quick and easy as most people believe, don't you think I would have my own company by now?


some things about vending most don't know about:
1 - Most locations require you to carry liability insurance of up to 1 million dollars. Even if they don't require it are you willing to risk not having it?
2 - Remember you must pay sales tax on your sales.
3 - What happens when you can't fix a machine by yourself? Be prepared to spend up to $75 an hour to have someone fix it for you.
4 - Keep in mind many locations are open 24 hours be prepared for the 2 AM phone call demanding service, if you don't go they will find a new company that will.

Don't get me wrong vending has treated me fairly well through the years it's just not the lazy persons dream that some make it out to be.

I have to disagree with the saint on a couple of things if I wanted to get into vending.
1 - absolutely I would purchase an existing route, but only if the sellers numbers checked out.
2 - Used equipment is fine but do your research first, generally do not buy equipment more than 10 years old and make sure technical support is still available on them. Many vending machine companies have been sold or gone out of business so do your research on any used equipment you intend to buy.

the saint
01-26-2009, 07:22 AM
some things about vending most don't know about:
1 - Most locations require you to carry liability insurance of up to 1 million dollars. Even if they don't require it are you willing to risk not having it?
2 - Remember you must pay sales tax on your sales.
3 - What happens when you can't fix a machine by yourself? Be prepared to spend up to $75 an hour to have someone fix it for you.
4 - Keep in mind many locations are open 24 hours be prepared for the 2 AM phone call demanding service, if you don't go they will find a new company that will.

Don't get me wrong vending has treated me fairly well through the years it's just not the lazy persons dream that some make it out to be.

I have to disagree with the saint on a couple of things if I wanted to get into vending.
1 - absolutely I would purchase an existing route, but only if the sellers numbers checked out.
2 - Used equipment is fine but do your research first, generally do not buy equipment more than 10 years old and make sure technical support is still available on them. Many vending machine companies have been sold or gone out of business so do your research on any used equipment you intend to buy.

I always forget about the insurance and taxes since I, like yourself, work for someone else that pays for those items.
On customer owned equipment my company is like $60 trip fee plus (i think but not positive) $60 an hour with 1 hour minimum plus all parts. so the costs are quite steep in that regard, sorry I rambled off on something and did not finish answwring the question in my first post, If a service contract is resonably priced and you can afford one, it would be a wise investment (especially if you plan on buying used machines).
HEHEHE I still get 2 am phonecalls usually from accounts I haven't serviced in years because my number was the last number they had from anyone. That or I get calls from managers who have gotten my number from someone else. I always enjoy the next day after I give the account/ manager the person who should have been called phone number, and they call me at 5am thinking they are gonna wake me up and I am already at my 2nd or 3rd stop of the day. There have been a couple of times I didn't know who account it was and I gave the head boss' phone number to them. after all (like he says your accounts are my accounts I am just as responsible for their concerns as you guys), he would eventually know about it because I would leave a voice message on his phone anyway. ooops I am rambling again

on buying a persons route, I stand by what I said. numbers can be cooked, (enron, freddie and fannie etc) owners can go out the day before you want to take a look at locations and half empty product and empty a roll of quarters in the bucket along with sticking some bills into the validator. Alot of people in vending read the ad in the paper or on the internet are
lazy and it is too much work and not enough money for them. They will do whatever they can to unload the stuff so they can go back to watching tv & eating cheetos all day.

Used machines are like a used car. They work just well enough for your payment to clear, then they are your problem. JBweld, bailing wire and duct tape can fix most anything for a little while.