9 replies to this topic

[newbie2Vending]

So I am considering starting a business in bulk candy vending, like alot of the visitors to this forum. For my investment, I'm looking at the "EZ Pro Triple Vends" from XYZ vending. I want to start small, so I am thinking of purchasing 5 machines and locating them myself.

I've been doing alot of research online and visited the National Bulk Vendors association as a starting point. I am writing a business plan as well to help me off on the right foot. However, I do have some questions and the answers seem scarce, maybe you guys can help?

1) Has anyone had experience with the "EZ Pro Triple Vends" from XYZ vending? If so, please do tell!

2) I've read in several locations that a typical machine will only generate between $15-$25 per month. Is this the case with "triple-head" machines, or is it $15-$25 per head?

3) How much candy, in terms of count is typically held in each head of a 3-headed machine?

Now after these questions come some assumptions. I honestly do not know if these are correct assuptions or incorrect. So let me tell you they are and you guys can set me right.

Assumption 1: Each head on a "3headed" machine will generate $100 from full to empty.
Assumption 2: It will take approximately 3-6 months for each head to completely empty.
Assumption 3: Each head will generate between $25 and $33 per month.
Assumption 4: Each canister holds approximately 15lbs (4000 ct) of candy.
Assumption 5: Average Cost of Candy is $28 for 8000 ct.
Assumption 6: Each vend will distribute 10 peice of candy to the customer.
Assumption 7: Must replace candy every 3 months.
Assumption 8: Must re-fill candy machines every month.
Assumption 9: Fuel Cost at $100 per month

Based on these two assumptions, my business financial plan looks something like this:

Best Case: (3 months till machines empty with 5 3-headed machines.)

Candy Cost over 3 months: $350
Fuel Cost over 3 months: $300
Total Candy Vends over 3 months: (4000 ct per head * 15 heads) = 60000 / 10 = 6000
Avg vends per day(All Machines): 66
Avg earnings per day(All Machines): $16.50
Total money made: $1500
Gross Profit: $1500-$650 = $850
Net Profit = 637 (after tax profit)

Worst Case: (6 months till machines empty with 5 3-headed machines.)

Candy Cost over 6 months: $700
Fuel Cost over 6 months: $600
Total Candy vends over 6 months: 6000
Avg vends per day(All Machines): 33
Avg earnings per day (All Machines): $8.25
Avg earnings per day: $16.50
Total money made: $1500
Gross Profit $1500 - $1300 = $200
Gross Profit : $150

Can you guys tell me if this is a realistic look at the business? Let me also know if my assumptions are near the target or way off. I would appreciate any feedback.

Thanks,


Newbie2Vending

[g&r vending]

I am also new to the bussiness and have 7 3 head machines out. I have seen after just one month that some places do alot better than others. I had on place do $39 and another do $13 for a month, but over all it averaged out to about 20-30 a month for my triple head machines. One thing I did find out fast was its easier to place a machine when your with a charity, as people will see you as much more legit, personaly I use the National Childrens Cancer society. Hope this helps a little

Gary

[newbie2Vending]

I had on place do $39 and another do $13 for a month, but over all it averaged out to about 20-30 a month for my triple head machines.

So $20-$30 a month for the entire machines? Not per head huh? How do you make money with such low margins? One thing I was looking at is $20-30 per head not per entire machine.

[Gabe .Z.]

In a hurry, but I will say that the XYZ easy pro gets great reviews on vendiscuss. There is a member there who loves them (T-birdJohnny). I have the original XYZ pro machines, and they work great. Good company choice. $ per month is all about location. One of my triples pulls abouit $7 a month (i'll be relocating it soon), and another does $27. Location is key (as I'm sure you know).
I'm not sure how much each head holds. You may be able to find that at XYZ's site. Or try contacting them.

[g&r vending]

To make $20 to $30 per head you better have a big location like a chain grocey store or walmart. Its all about location, to make $60 a month in a location is Huge. Most smaller locations make around $30 for a month, its all about volume the more machines you got out the more your gonna make, got 7 know but hope to have 22 by the end of the month.

[joebob051977]

I use the XYZ Easy Pro and I love it. I think it is an excellent choice for a machine. It is simple to service, and overall a very good value. If you plan on doing some retail locations you will need to buy gumball wheels.

I think that $20 a machine is a fair assessment for monthly revenue. It really depends on the locations. I have 2 locations which do only $12.50 per month, and I have another location that I just placed a couple days ago, going by my first check up it will be earning over $60/mo. I assume $12.50 per machine because I prefer to keep my estimates conservative. As you grow you will probably want to move your machines around to try to bring up your average.

I would start with about $12.50 per month estimate for each machine. As you grow and get more experience your averages will go up. I let candy go 6 months. Gumballs have a much longer life span. I believe it is 2 years.

[QIANG]

we are a manufacture triple vending machine in China, i would like give a advise you ,you can impoart
that machine from China
5 samples is ok , and put it out to testing then you will know all of assumption is clearly
and the XYZ is importing the machine from China too

[joebob051977]

we are a manufacture triple vending machine in China, i would like give a advise you ,you can impoart
that machine from China
5 samples is ok , and put it out to testing then you will know all of assumption is clearly
and the XYZ is importing the machine from China too

How do you import the machines yourself? What do you have to do?

[orion27]

this is a link i found to different machines for sale

http://cgi.ebay.com/...E:L:LCA:US:1123

[lucks]

Its a numbers game. The more machines you have the more you are going to make. I think its best to find machines on ebay or craigslist. You can get them very cheap and try out a few to see if you like the business.

Another recommendation is to go with a product that no one else has. Check out some of the products in the energy market. Its brand new to vending and its a pretty big industry everyone knows about