4 replies to this topic

[RyanM]

Hello,

I am currently finishing my double diploma in the Algonquin College School of business. I am also creating my vending machine business plan. I was curious if it is smarter to secure locations before purchasing vending machines or if is smarter to purchase vending machines first and then secure locations after.

Regards,



Ryan Moore

[ace vending]

[quote name='RyanM' date='Mar 10 2008, 05:55 PM' post='3325']
Hello,

I am currently finishing my double diploma in the Algonquin College School of business. I am also creating my vending machine business plan. I was curious if it is smarter to secure locations before purchasing vending machines or if its smarter to purchase vending machines first and then secure locations after.

Regards,
Ryan Moore
[/quote

the way I started was I secured the location first and told the customer I would install the machine in 1 week. I ordered the machine and the minute it arrived I placed it on location. I started making money as soon as I received the machine. As opposed to buying a machine then trying to find a location. The machine would sit until I found it a home.

[For The Kids Vending]

For large machines you could have thousands of dollars tied up in machines that you may never place. If you have the resources and are trying to place machines full time you might keep 1 machine in stock. Anything more is probably asking for trouble.

If you are talking about bulk vending machines it could be useful to have 2 or 3 since they are cheap enough to keep. When you place one, pull it out of the back of your car and place it on site the second you have permission.

[marks_vending]

Hello,

I am currently finishing my double diploma in the Algonquin College School of business. I am also creating my vending machine business plan. I was curious if it is smarter to secure locations before purchasing vending machines or if is smarter to purchase vending machines first and then secure locations after.

Regards,



Ryan Moore

It's personal preference
Do you have the funds to buy/store machine until you find a location?
Some places want a picture of the machine they will be receiving. If you have a brochure from a manufacture, will that be the same style that you will receive, same amount of selections when you finally do get a machine? It's a big investment "to buy or not to buy" before finding a location. Also, what happens if you get 5 or 6 contacts all at the same time, do you have the funds for 5 or 6 machines to buy at one time?

For newbies I recommend having a machine in storage to learn before placing on location. Go online and download the manual, and go through some "troubleshooting" steps. That way when an issue does arrive, you won't be left in the dark. While the machine is on storage, you can learn how the menu boards and inside control work for various troubleshooting guides. Trust me, it's better to learn how to troubleshoot in a storage unit then it is onsite to have angry owners and a sign saying "out of service". If you have some money to spend, I recommend purchasing a machine and storing it, that's what I did. Then when you get your first location, you can give them a "delivered within 24-48 hours" and they'll love the speed. If they know that you have to order a machine, they immediately think "novice". It's like most other businesses, people have spare machines and spare parts around. Never let the location know you don't have a machine and need to order it, suggest something like "I can have the machine here within a weeks time, as it is currently being transported to me", something that suggests you allready own the machine. Vending machines are tricky and businesses want someone that seems knowlegable and like they have been around the biz for a while.

As a vending business owner, it's 'all in the wording'
Hope this helps

[kcroncarter]

My recommendation may not work with your plan, BUT:

Starting out I would try to find a existing route around 10 locations. Buy only electronic full line.

Never pay over 1 times the profits for one year.

A route with full line machines making 20k a year profit should sell for 20k.

Operate it for 6 months and the knowledge you will gain will make you a better operator.

Here is a link to a USA provider of information. Hanna-vending.com

I never did buy from him, but his information real.

Ron Carter