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  1. #1
    Join Date
    Oct 2005
    Location
    New Jersey
    Posts
    5

    Post

    Hi, I'm new here and hope to gain enough insight from all of you to help decide if getting into the vending business is the right decision for me.

    Red Bull is offering free standing vending machines (through Creative Concepts). Cans vend for $2 and my profit would be 75 cents per can. Is this a reasonable profit margin?

    Anything else I should be worried about or aware of to make sure this is a smart and profitable venture?

    Thank you in advance!

  2. #2
    Join Date
    May 2005
    Location
    Chicago,IL
    Posts
    4,552

    Post

    Your gross profit for each can sold is 38%.
    I have no actual knowledge but these numbers seem reasonably good for a vending machine.

  3. #3
    Join Date
    Oct 2003
    Location
    CA
    Posts
    212

    Post

    Is this legit? Does Red Bull Endorse this program?

    IS this how Red Bull plans to go to market with their vending program?


    Has anyone placed a machine out there through Creative concepts?

  4. #4
    Join Date
    Oct 2005
    Location
    New Jersey
    Posts
    5

    Post

    Thanks guys.

    Yes, I contacted Red Bull as I had the same thoughts and they confirmed that they indeed came to a deal with Creative Concepts to sell the machines.

  5. #5
    Join Date
    Jul 2002
    Location
    Delaware
    Posts
    4,790

    Post

    But keep in mind that you'll have to pay for placements, give the establishment a cut of your profits, pay for repairs, and so on.

    If the machine is broken into, who pays to fix it? What about the stolen products?

    On a side note, Pepsi has energy vendors. I saw one on Beale Street in Memphis a few weeks ago.

  6. #6
    Join Date
    Oct 2003
    Location
    CA
    Posts
    212

    Post

    so doesn't coke. Co-wrapped Full Throttle/Rockstar.

    Fano-how did you contact Red Bull? Do you mind posting or private emailing me the # you called so I can follow up as well.

  7. #7
    Join Date
    Oct 2003
    Location
    CA
    Posts
    212

    Post

    There is a one year warranty on the machines for any damaged or broken down/into machines.

    Also, Supposedly Creative Concepts will give you placements that they already have established when you sign up for the program.

    All they require is an initial investment of about 13 grand for which you get 3 machines. Fano- do I have this right?

    Warranties and garaunteed placements for Red Bull Machines?!?! Sounds a little too good to be true, especially for such an established product like Red Bull. Red Bull has enough money to purchase and service these vendors on thier own, why would they contract out their vendors to outside companies/investors???

  8. #8
    Join Date
    Oct 2005
    Location
    New Jersey
    Posts
    5

    Post

    Hey Sox fan - I just went to Red Bull's website and emailed them; they got back to me in a day or two.

    Yes - CC claims they give you established locations in exchange for the $13K (along with initial stock of inventory, multiple retail locations and complete support and service).

    I mean, I don't know if this is too good to be true; is this a standard sort of deal with liquid vending machines? I like the idea that CC/RB let you start off slow - 1 or 2 machines and then grow as I see fit.

    I've no idea why RB wouln't just do this all themselves. Sorry, I'm really green with this business that's why I figured I'd ask questions around this board. I mean, obviously I won't get rich from 1 or 2 machines, but the extra income could be pretty sweet and who knows, maybe I could build up eventually to a bunch of RB machines and be on my way to a business that will allow me to quit the day job.

  9. #9
    Join Date
    May 2005
    Location
    Chicago,IL
    Posts
    4,552

    Post

    Wisdom from old fart Zabe. LOL

    There is no such thing as a free lunch.
    (Excluding dumpster diving behind a 5 star restaurant. LOL)

    If it sound to good to be true, than it is too good to true.

    No legitimate company "ASOCIATED" with a company producing a "hot" brand such as Red Bull is going to sell you "hot" spots to sell their products especially to a non established company. You may get 3 machines for 13 grand but I will guarantee you that you will be given poor if not bad locations.

    This company makes their money by selling you machines. They have no concern if you sell 10 bottles or 500 bottles a month.

    I would advise that you find a good lawyer who specializes in business law. The money you will pay for sound legal advice could save you many head aches.

    Get a copy of the contract that they want you to sign. Call the better business bureau for the state they are located and your state.

    I have been burned in the past. I try to take a step back and say "Does this look like a scam?"
    Like I have said after all the background checking, if there is no background to be found. Run away like your ass is on fire. Some of these companies play off the fact that greed for money usually over comes common sense.

    [ 10-13-2005, 12:59 AM: Message edited by: Mr Zabe ]

  10. #10
    Join Date
    Jul 2002
    Location
    Delaware
    Posts
    4,790

    Post

    Firstly, I don't think Red Bull would get into it, because they are in the business of selling their products to distributors. And most distributors really aren't set up to do vending. Eventually as the brand and the energy drink market as a whole matures, you may see RB and others getting into vending. It's easy for Coke and Pepsi, they can just use existing machines with some slight modifications.

    Secondly, I do wonder how the distributors would feel about another party coming into their territory and selling their products. I realize the contracts may have been written to specifically exclude vending rights, but I really don't know. I know I wouldn't be too happy about it.

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