16 replies to this topic

[TurboLS]

So basically I got laid off back in November and just started a new job this month and I've decided I don't want to have to worry about getting laid off ever again. This is why I am looking for a business of my own that I can start part time and hopefully watch it blossom into something huge.

In any case, I came up with a business plan to fund a start-up company based on snack/soda vending and had it pretty nailed down. Then, I read a thread on here dealing with the vending company and how they might have some iffy BBB filings.

I guess my question is how to get started if it turns out this particular vending franchise ends up not being the way to go... There are things that I know I want out of a vending machine, especially if I want the business to grow to the point where I will have to hire people to manage it.

1.) Remote access to the machine (so i can track sales, supply, etc.)
2.) Electronic, not completely mechanical
3.) snack area and a chilled drink area
4.) Preferably $15k or less for 3 machines with these capabilities

Since I just joined this forum today, I plan on doing some reading over the next few weeks to get used to the information on here and see if some of my questions may already be answered.

Thanks in advance for any input you might have.

[Agee Vending]

Well... when you find a remote access machine let me know. What your looking for is a telemetry system... and they start at about 30-35k + the cost of the hardward and wireless to get the data. If your a start up guy... I'd worry less about that than, how to get and service customers, where to buy product, how are you going to deal with service calls if you have a job, etc. Sounds like the franchise guys did a number on you... there are plenty of part time guys in this business, I take locations from them everyday. I'm full time vending and have been for 5 year... Its a constant struggle... lost money, machines breaking down... clients want this and that. I'm not trying too discourage you... Its a great business, and I love it. But the reality of it is there is a lot of hard work that goes into making it successful. One thing you should look at is how are you going to track your sales, inventory and location sales and services. How are you going to track your sales tax payments (I just picked up 3 machines at a tax auction, guy didn't pay his sales taxes and it caught up with him).

Look harder... your not asking the right questions yet... when you do... you'll be ready young jedi...

So basically I got laid off back in November and just started a new job this month and I've decided I don't want to have to worry about getting laid off ever again. This is why I am looking for a business of my own that I can start part time and hopefully watch it blossom into something huge.

In any case, I came up with a business plan to fund a start-up company based on snack/soda vending and had it pretty nailed down. Then, I read a thread on here dealing with the vending company and how they might have some iffy BBB filings.

I guess my question is how to get started if it turns out this particular vending franchise ends up not being the way to go... There are things that I know I want out of a vending machine, especially if I want the business to grow to the point where I will have to hire people to manage it.

1.) Remote access to the machine (so i can track sales, supply, etc.)
2.) Electronic, not completely mechanical
3.) snack area and a chilled drink area
4.) Preferably $15k or less for 3 machines with these capabilities

Since I just joined this forum today, I plan on doing some reading over the next few weeks to get used to the information on here and see if some of my questions may already be answered.

Thanks in advance for any input you might have.

[TurboLS]

Well... when you find a remote access machine let me know. What your looking for is a telemetry system... and they start at about 30-35k + the cost of the hardward and wireless to get the data. If your a start up guy... I'd worry less about that than, how to get and service customers, where to buy product, how are you going to deal with service calls if you have a job, etc. Sounds like the franchise guys did a number on you... there are plenty of part time guys in this business, I take locations from them everyday. I'm full time vending and have been for 5 year... Its a constant struggle... lost money, machines breaking down... clients want this and that. I'm not trying too discourage you... Its a great business, and I love it. But the reality of it is there is a lot of hard work that goes into making it successful. One thing you should look at is how are you going to track your sales, inventory and location sales and services. How are you going to track your sales tax payments (I just picked up 3 machines at a tax auction, guy didn't pay his sales taxes and it caught up with him).

Look harder... your not asking the right questions yet... when you do... you'll be ready young jedi...

Thanks a lot for the input. I honestly hadn't thought of sales tax at all. Also, I could probably design something to go into a vending maching to track all the stuff i'm interested in, being an electrical engineer myself. I'm also considering teaming up with people who have "off" days different than mine such that someone can manage a service call any day of the week if it comes in.

As for where to buy product, I've heard of wholesalers like Sam's Club, BJ's, and Costco. Does this sound good?

[kevin]

Thanks a lot for the input. I honestly hadn't thought of sales tax at all. Also, I could probably design something to go into a vending maching to track all the stuff i'm interested in, being an electrical engineer myself. I'm also considering teaming up with people who have "off" days different than mine such that someone can manage a service call any day of the week if it comes in.

As for where to buy product, I've heard of wholesalers like Sam's Club, BJ's, and Costco. Does this sound good?

A wireless system dosnt cost that much.... You can call MEI, USAtech, cantaloupe, Inone technology, Crane. They will all work with you to try them out. They average about $275-$450/machine based on what system you get. I use cantaloupe for remote monitoring but I also am using MEI for cashless and soon I will be able to integrate them both into one application. The thing about some of them is they want minimum purchases so you will have to work with them. MEI dosnt require a minimum but you will have to get software where most have an online software. Ive been meaning to document my remote install but weve been busy with some contracts going up and some shity national contracting agencies trying to push us out because they partner with canteens, more on this later. check out this site first telemetrytalk.com

[Agee Vending]

Yep... lots of things to think of.... service will be the most important... if you lack it.. you'll lose your locations and poof... its all just a joke then.

Thanks a lot for the input. I honestly hadn't thought of sales tax at all. Also, I could probably design something to go into a vending maching to track all the stuff i'm interested in, being an electrical engineer myself. I'm also considering teaming up with people who have "off" days different than mine such that someone can manage a service call any day of the week if it comes in.

As for where to buy product, I've heard of wholesalers like Sam's Club, BJ's, and Costco. Does this sound good?

[Agee Vending]

hmm cantaloupe qouted me a $35k minimum... I only wanted to use it on one of my routes... and then get it up on the all. Let me know who you are working with.. I'll do 300 a machine anyday... does the canaloupe and MEI talk to each other... or do you have to have them both in a machine where you want to do cashless?

A wireless system dosnt cost that much.... You can call MEI, USAtech, cantaloupe, Inone technology, Crane. They will all work with you to try them out. They average about $275-$450/machine based on what system you get. I use cantaloupe for remote monitoring but I also am using MEI for cashless and soon I will be able to integrate them both into one application. The thing about some of them is they want minimum purchases so you will have to work with them. MEI dosnt require a minimum but you will have to get software where most have an online software. Ive been meaning to document my remote install but weve been busy with some contracts going up and some shity national contracting agencies trying to push us out because they partner with canteens, more on this later. check out this site first telemetrytalk.com

[TurboLS]

what are some good sites to check for used vending equipment?? Any ideas?? I'd love to get a bit more info on the machines... the more up close, the better.

[djpvending]

if you are looking to get into vending, the most successful operators are doing exactly what you are. developing a business plan, market strategy, product cost, equipment etc. need to be mapped out first.

I have been in the industry since 1972 and thru the years it has always been a reliable income for me. Unfortunately i learned some things the "hard way"

the web based monitoring equipment is here and as a new operator it is wise to investigate it. currently i own a distribution center for all major brands of equipment and parts, both new and reconditioned, but i physically operated until 2004

my reason for posting is not necessarily to sell you equipment, but to invite you to visit our website at www.vendohio.com there you will find services that are free such as business consulting ,technical assistance etc. to help you decide which way to go.

if you would like to contact me directly feel free to do so, regardless of what the question entails and i would be happy to help. we spend a great deal of our time here doing nothing more than discussing with vendors the whole range of vending issues... from route sceduling to marketing ideas...

Doug

[TurboLS]

Thank you very much for your offer of help, Doug! I am excited to get some experienced advisors. I will definitely check out your website and probably follow up with a phone call in a few weeks to a month down the road. Thanks again!

if you are looking to get into vending, the most successful operators are doing exactly what you are. developing a business plan, market strategy, product cost, equipment etc. need to be mapped out first.

I have been in the industry since 1972 and thru the years it has always been a reliable income for me. Unfortunately i learned some things the "hard way"

the web based monitoring equipment is here and as a new operator it is wise to investigate it. currently i own a distribution center for all major brands of equipment and parts, both new and reconditioned, but i physically operated until 2004

my reason for posting is not necessarily to sell you equipment, but to invite you to visit our website at www.vendohio.com there you will find services that are free such as business consulting ,technical assistance etc. to help you decide which way to go.

if you would like to contact me directly feel free to do so, regardless of what the question entails and i would be happy to help. we spend a great deal of our time here doing nothing more than discussing with vendors the whole range of vending issues... from route sceduling to marketing ideas...

Doug

[kevin]

hmm cantaloupe qouted me a $35k minimum... I only wanted to use it on one of my routes... and then get it up on the all. Let me know who you are working with.. I'll do 300 a machine anyday... does the canaloupe and MEI talk to each other... or do you have to have them both in a machine where you want to do cashless?

You can buy MEI hardware 1 unit at a time. Call around to alot of service centers and some will have used ones or very low prices. You need to talk to them about plugging it for setup. Im able to use MEI for cashless but its going to be, hopefully soon, ported over to cantaloupe so all my units are under one software. Im going to be looking into eaitrax software instead of cantaloupe if it dosnt come through soon but cantaloupe does a very good job and is close to cashless as well. Inone lets you by as little as possible but I personally had problems with them. They do have a cheap device for banks, you use a hub and then a 485 port links over for the other devices. The 485's were ok but you are limited. They are only like $90 for the 485's and the main unit is like 300-350.

[vendithot]

Thank you very much for your offer of help, Doug! I am excited to get some experienced advisors. I will definitely check out your website and probably follow up with a phone call in a few weeks to a month down the road. Thanks again!

TurboLS, I'd be happy to help, too. We've been in the business since 2003 and have learned some things the hard way as well. That's why we developed our own machines that have remote monitoring, cashless payment, and eco-friendly power devices built right in. You're spot on with wanting remote monitoring. You can learn more at www.healthyvending.com, or you can give me a call to discuss (phone number is on the contact page).

Happy vending to you!

Best,
Andy

[kevin]

TurboLS, I'd be happy to help, too. We've been in the business since 2003 and have learned some things the hard way as well. That's why we developed our own machines that have remote monitoring, cashless payment, and eco-friendly power devices built right in. You're spot on with wanting remote monitoring. You can learn more at www.healthyvending.com, or you can give me a call to discuss (phone number is on the contact page).

Happy vending to you!

Best,
Andy

Correct me if Im wrong but the machines previewed in the video on the site is a Bevmax that was made specifically for coca cola and an AVT RAM. Im positive on the coke machine but Ive only seen the AVT at trade shows. The guy that was trying to sell them to me was a bit crazy, but the machines are really nice and some of the better looking machines Ive seen in awhile. I don't know much about them but I know there drop sensor is different then most since it dosnt use IR and the screens were cool but not something that is practical in our area.

[Red Bear Vending]

Hello Doug,

I would very much be interested in talking with you about the vending business. My husband and I are looking to start a vending business for extra income. Not looking to get rich just make nice extra income. We are very hard working people I started a retail store last year but it is seasonal May-Sept so I would like a winter time or year round cash flow. My husband is a disabled vet and this would great for him also. Do you have a phone number or email where we can reach you? We just need the basics on how to get started like the do's and dont's. Any information would be very helpful. Thank you! Jacque Duxbury

[For The Kids Vending]

If you don't mind a plug I learned a ton by reading "Small Change" from my-vending-uncle.com. It is an excellent book about some of the real life issues with vending. Doesn't cover the wireless monitoring, more of their story of how they started and built their vending business.

[Red Bear Vending]

Hello,

Thank you for the plug on the book. I will check it out. I will take any advice I can get on learning the business. Jacque

[cwdist]

If you don't mind a plug I learned a ton by reading "Small Change" from my-vending-uncle.com. It is an excellent book about some of the real life issues with vending. Doesn't cover the wireless monitoring, more of their story of how they started and built their vending business.

+1 on the ebook.
While it's not every thing you need to know it is a good start.

[For The Kids Vending]

+1 on the ebook.
While it's not every thing you need to know it is a good start.

I should say for the sake of posterity I am not the vending uncle and the book wasn't free. In fact it wasn't all that cheap if I remember. I bought it and it is most definitely worth every penny. Read that book and spend 4-6 hours reading this forum and you should have a great start to be able to do things the right way.