8 replies to this topic

[Aquarterdollar]

So I am going to attempt to make this an interesting post so I can get some feedback. Well I was a 21 year old male going to college in March/April 2006 and I found out about vending machines in the small business opportunity magazine. So I was looking at them all just from the pictures in the magazine. Eventually I came to a conclusion and thought this would be a great business to get into because you wouldn't have to work too hard and make a ton of money.

So I eventually decided to buy the BIGGEST BADDEST MACHINE ever the 8 selection U-turn Terminator. I really envisioned this thing kicking some rear and not taking any prisoners. I envisioned people putting in Nickels and trying to cause me some troubles, but the thing is the machine seemed so bad that it would just take any wrong change and put it right in my pocket. I purchased 3 machines + warranty + parts all for about $2,300-$2,500 on my AMEX card which had 0% interest for a whole year. I had no idea what I was getting into really. The people at U-turn told me to get with a charity to help place my machines and I selected Child Search which costed about another $36 or so. I then was told that they had locators which could locate my machines for just $75 per machines.

Anyway May 2006 I had all my machines up and running and everything seemed so exciting. Since I was new to the business I pretty much offered Mike + Ikes, Skittles, M+M, Peanut M+M'S, Gum balls, and Hot Tamales. So this meant I had 2 smaller containers empty at the base of the machine.

Well I never ever expected what happened in the last 3 years to happen. The first location didn't bring in too much money compared with my other machines. I already saw my superior U-turn machine failing which I thought NEVER would have happened. When the candy started to get stale after a few months due to the lack of sales I was sort of surprised since it had a tight sealing lid and freshness protectors. So I think I made the right decision to this day and got a $100 machine on the internet which was a standard 3 head machine that was black and red. I pulled the giant U-turn 8 selection out and placed the 3 selection in. I made $217.00 in Revenue (not profits) up to April 19, 2007. I eventually just was frustrated by then and just abandoned the machine there since I kept putting it on the back burner.

The 2nd machine was located at a law firm of all places. It was pretty nice going there because they had the air conditioning blasting ice cold in the summer time. So I felt I was doing quite well there after hauling in $75 in the first month of operations. I had only encountered a few small problems with some of the candy going bad. The profits kept rolling in and I was pretty pleased until I went to vend my machine and found every single quarter vanished from the machine and all the candy too. I have no idea how they broke into the machine, but I was depressed and on that day in June 2007 I brought home machine number 2. My unstoppable profit machines seemed both stoppable and unprofitable within 13 months of operations. Eventually the whole economy would go south and sometime in early 2009 when driving past the old law firm I saw the giant sign "FOR RENT." It's sort of ironic how operations would have ceased either way by mid 2009.

Machine number 3 was set up at a giant Warehouse. As I was setting up the machine some of the guys there made ridiculous comments like "instead of giving us a pay raise they are giving us a new vending machine." This time I had some competition on my tail because another vendor had a Pepsi machine. Also, more intimidating there was another vending machine which dispensed everything from snacks, chips, candy. I knew this couldn't be good since I would be in direct competition. However, my assumption was beyond wrong I brought home $120 in my 1st 60 days of operations. For some reason I felt really joyful like I had just beaten someone at their own game on their own turf. After seeing the prices drop on my competitor I knew I inflicted some major damage. I had finally stuck it to "the man." Anyway the location every few months has a broken Mike + Ike container (due to poor quality in my eyes) and I replace it from the parts I bought. Thankfully U-turn made good on the warranty and gave me a new container (when it was still under warranty). Recently I added Reese's Piece's to the machine and it was selling well, but then something happened where there was only a few quarters in that slot, but the whole bottom container was empty! I turned the handle and it seemed to be working fine which was even more bizarre.

So I hope everyone enjoyed my long story. Now comes the tough part. Should I just sell them and cut my losses?

[markvend]

I don't think you're going to get very much for the machines by selling them. I would hang in there and keep servicing them and moving around until you get acceptable accounts. For no more machines than you have, it should not take a long time to service them. True, you over paid for them, but you will eventually get your money back. I think I would wipe the debt off my card with other money to save on interest charges there, but make the best of it. Vending is a great business but this is the hardest lesson learned - starting off on the wrong foot. You might consider buying 5 more machines cheap to help generate more cash flow to get you repay your initial investment sooner (provided you can get the machines placed).

Hang in there - you can do it!
Thanks,
mark

[Aquarterdollar]

Thanks Mark, but I paid off the credit card with my regular job. Thank god I didn't buy 10 machines to start out. If I buy more machines I think I will buy 3 headed ones, or 4.

[coinopdirect]

Thanks Mark, but I paid off the credit card with my regular job. Thank god I didn't buy 10 machines to start out. If I buy more machines I think I will buy 3 headed ones, or 4.

I have never bought nor seen the inside of a U-Turn machine but my experience has shown me that many bulk vending machines have interchangable parts such as vending wheels.

If you can find them I would purchase a few 1.1" Capsule wheels & .50 cent coin mechs and re-brand the machine.
Toy's do not go stale, can rotate between machines with no hassle and I would find a decent store or restaurant that will let you locate the machine in the front-of-the-house (Customer Traffic). I would also try to approach them with a commission offer as well.

Just my 2 cents.

[minivend]

Beaver vending equipment is the BEST bulk vending equipment money can buy. Spend the money and have trouble free machines that will LAST forever. I have 500 heads on the street ALL beaver equipment (except for my Sports Zone and Sports Blaster Machines). Some of my equipment is OVER 20 years old and runs like new. You get what you pay for. Good luck.

[markvend]

Have you made any progress on solving your problem?

[sn vending]

Beaver vending equipment is the BEST bulk vending equipment money can buy. Spend the money and have trouble free machines that will LAST forever. I have 500 heads on the street ALL beaver equipment (except for my Sports Zone and Sports Blaster Machines). Some of my equipment is OVER 20 years old and runs like new. You get what you pay for. Good luck.

How much do beaver machines cost around? I couldn't find a price on there website.

[minivend]

Give Jennifer a call (Beaver Sales Rep) she will go over the pricing and send you some info via mail..

[joshfizzle]

I've only been in operation for a month and a half but I recommend you stay the course. Having machines vandalized or ripped off is apart of the territory sometimes, plus, businesses close and machines break, that is if you do not buy Beavers. When I placed my first machine the owner told me there's a high possibility the machine may get stolen from the laundromat but I'm not going to let this discourage me. It's been 6 weeks and it is still there. I'm glad I never bought any terminators but I came close once. I currently only have 3 machines and I'll admit they are crap but I'm just starting out and once I can afford it I'm only going to buy the Cadillacs in the industry (Beavers).