20 replies to this topic

[dogcow]

looking at a route to buy

5 total locations all with soda, 2 with snacks. Machines are 1 newer FSI snack, one older FSI snack, sodas are all dixie narco machines, look good working order, 1 with new bill mech

owner claims expenses run about 60 per week and gross is 150 wk , could not verify that was actual cash amount taken from the machine however that seems about right based on the amount of soda i watched the owner load in.

owner asking 5k there is no split with the locations

this seem like a good deal? i figure salvage value for the machines around $3,100 probably

thanks and regards

[Papanick]

If the figuires are correct and you can net $90.00 per week you would be short $250.00 at the end of the first year which would make it a SUPER great deal. Any business that a person buys and can recoupe his entire investment within 2 years is a good deal. The Dixie Narcos that don't have validators may have a knockout on the door for a validator. Soda machines that have validators are easier to sell when they get old. The only thing that puzzles me is the $60.00 per week expenses. Is that the cost of the soda and snacks? Does it also include gas and the sales tax? One more thing you have to consider and that its summer now. What happens to the route in December? Don't know where you live but I live in Florida and when winter hits the sales drop off. Nobody wants to buy a can of ice tea when its cold. There is one way you can see how he is doing ask him to show you his receipts for all the soda he has bought last year and this year. IRS says you have to keep them for 3 years now. Hope this helps.....................Nick

[dogcow]

If the figuires are correct and you can net $90.00 per week you would be short $250.00 at the end of the first year which would make it a SUPER great deal. Any business that a person buys and can recoupe his entire investment within 2 years is a good deal. The Dixie Narcos that don't have validators may have a knockout on the door for a validator. Soda machines that have validators are easier to sell when they get old. The only thing that puzzles me is the $60.00 per week expenses. Is that the cost of the soda and snacks? Does it also include gas and the sales tax? One more thing you have to consider and that its summer now. What happens to the route in December? Don't know where you live but I live in Florida and when winter hits the sales drop off. Nobody wants to buy a can of ice tea when its cold. There is one way you can see how he is doing ask him to show you his receipts for all the soda he has bought last year and this year. IRS says you have to keep them for 3 years now. Hope this helps.....................Nick

gas would be fairly negligible since i picked off only locations that are on my way to work

i am in florida too, any idea what % the sales drop off in the winter? owner does not keep reciepts

[Papanick]

I am in mid Florida Tampa and the drop is about 30 to 50% when it gets into the freeze zone. You also need to consider break downs and who will fix it. That could cost like replacing a compressor I have my coin mechs and validators fixed in Tampa if its a Coinco and Orlando if its a Mars. How can this guy operate without saving receipts. Excuse me I don't need to know. Welcome to the vending business. Its great until you get break downs. I have been in business since 1991 and it suplements my SS check. If I can help you just drop me a line here..................Nick

[dogcow]

I am in mid Florida Tampa and the drop is about 30 to 50% when it gets into the freeze zone. You also need to consider break downs and who will fix it. That could cost like replacing a compressor I have my coin mechs and validators fixed in Tampa if its a Coinco and Orlando if its a Mars. How can this guy operate without saving receipts. Excuse me I don't need to know. Welcome to the vending business. Its great until you get break downs. I have been in business since 1991 and it suplements my SS check. If I can help you just drop me a line here..................Nick

actually i dont think receipts would have told me much, since these are 5 locations off a much larger route.

how much does it cost to replace a compressor? you can buy a used machine for 350 or so, so i'm assuming its no more than that

i used to live in temple terrace (usf alumn) but i live in central fl now


thx for the helpful advice

[Papanick]

If you live any where near Orlando you can find some real good deals on Craigs list. I have driven to Opapka to get my coin mech and validator fixed. Bought about six machines from one guy up there can't remember his name. Most of the older machines have R12 freon. Cost is to much to fix them. If a compressor goes they have a compressor deck (thats the complete unit compressor, evaporater, freon etc.) all ready to install on Ebay for $200.00. Never used him so I can't say what kind of deal that would be. I have 2 compressor decks ( 1 vendo, 1 Dixie Narco) for back ups. I did have 2 compressors replaced and that was about $300.00 each years ago. I have a machine thats been with me for over 15 years and it still has the same compressor.Sometimes you get lucky. Have a great day................Nick

[RJT]

looking at a route to buy

5 total locations all with soda, 2 with snacks. Machines are 1 newer FSI snack, one older FSI snack, sodas are all dixie narco machines, look good working order, 1 with new bill mech

owner claims expenses run about 60 per week and gross is 150 wk , could not verify that was actual cash amount taken from the machine however that seems about right based on the amount of soda i watched the owner load in.

owner asking 5k there is no split with the locations

this seem like a good deal? i figure salvage value for the machines around $3,100 probably

thanks and regards

Let me make sure I understand.

What are FSI Snack machines? Are you sure they are not USI?


5 locations all with Dixie Narco's?

2 of the five locations are drink and snack

7 total machines?

The $150 a week gross is total gross of all 5 locations or $150 gross per location?

Asking price is 5k turn key for everything?



Even before you answer these questions I will say this. When buying "on location" machines I first factor in what gross sales are. Then I take in consideration the value of the machine. Are the machine in good condition? Age? Etc....

Some situations like this I only look at the value of the machine and nothing more. Why? Because in low volume accounts I dont consider revenue and neither should you. The reason I dont is because low volume accounts are easy to get on your own without paying a premium for them. They are a dime a dozen and can be had by just "knocking on doors".

High volume accounts are much harder to get so I take that into consideration and then factor in the machines.

Let me give you an example of what I am talking about. Lets say a guy wants to sell me a USI 3015 Snack machine on location at a hotel that does $75.00 per week gross. He is asking $2000.00 for it. Well first off the machine can be bought for around $1200 in refurbished like new condition or cheaper if you are willing to do a little TLC yourself. Why would I want to give him $2000 for the machine? Because it is "on location"? NO!! The account does not do enough volume to consider paying much more than what the machine is worth.

Whats to say you buy these "accounts" and then after a month you get kicked out? Then what? What did you pay for? I dont want to hear anyone say "if you do the right thing you want get kicked out". BS, I have gotten kicked out of accounts because a new plant manager had a buddy he knew at a vending company. Or he like XYZ vending at his old plant and wants them at his new plant. I have had HR managers just decide it was time to bid out vending and some knuckle head went in with cheap prices and I was out.

Now lets say the guy has a hospital with 5 snack and 5 drink vendors all worth about $1200 each and the account does $80k (at a 50% markup) gross a year. He has two years left on a 3 year contract and the location is ok with him selling the location and honoring the contract as long the new vendor performs to the expected service level. Now we are talking about an entirely different animal and worth paying a premium for but only within reason.



I am sorry but the poster that said two years is good to recoup your investment is good is wrong IMO. If you were buying a fully stocked retail type business or something similar with a lot invested in the products and store fixtures then the two year rule is ok to use. In vending I look at totally different and you should to.

If I read what you said, you said this guy is selling off part of a larger route. Ever wonder why? Why would anyone sell off accounts that are making them money? Unless he bought these himself as part of a entire company and these are outside his regular service area then sure. If he services this area then why is he selling?

Anyone that dosent "keep receipts" is not someone I would want to do business with and buy vending locations from.

Why not just start a company from scratch and find your own locations and then buy machines as you need them.

Source you some machines on the used market. Go to Craigslist, Ebay, Etc. (Do not buy yet)

Print you some flyers and business cards and go knock on some doors.

Once you get someone interested in doing business with you then buy a machine and place it.

I have been in vending for 7 years as a operations and sales manager and now an owner. I have worked for multi million dollar companies. I have seen it all at one time or another. I have seen many new people get ripped off and make major mistakes when getting into vending and loose a ton of money. It has prompted me into writing a "How to Guide" and do consulting. The difference in me is I DO NOT SELL anything. I don’t sell machines, parts, locations, products, etc. I only offer my consulting and when finished my how to guide., complete with sample proposals, service agreements, work sheets, daily logs, etc.

I hope I havent confused you or discouraged you. Vending is great and I love the industry but it is not a get rich deal. It takes work and a somewhat large learning curve.

[dogcow]

first thanks for the insightful reply, however i decided to buy the route. i negotiated a price which reflected a few hundred bucks over what i considered salvage value for the machines.

[quote name='RJT' date='09 July 2010 - 12:20 AM' timestamp='1278656428' post='7225']
Let me make sure I understand.

What are FSI Snack machines? Are you sure they are not USI?

[/quote]

[quote]
FSI, i have a photo of the plate on the inside of the machines




[quote]
Even before you answer these questions I will say this. When buying "on location" machines I first factor in what gross sales are. Then I take in consideration the value of the machine. Are the machine in good condition? Age? Etc....

Some situations like this I only look at the value of the machine and nothing more. Why? Because in low volume accounts I dont consider revenue and neither should you. The reason I dont is because low volume accounts are easy to get on your own without paying a premium for them. They are a dime a dozen and can be had by just "knocking on doors".
[/quote]

thats pretty much how i made my offer. if i had to take all the machines off location im fairly confident could recoup about 95% of my investment in cash value for the machines. i would only be out the cost of transporting them and what amount to a "finders fee" to the old owner. i estimated the machines fairly low, i think i could get more of them because all but 1 is in good shape.


[quote]
I am sorry but the poster that said two years is good to recoup your investment is good is wrong IMO. If you were buying a fully stocked retail type business or something similar with a lot invested in the products and store fixtures then the two year rule is ok to use. In vending I look at totally different and you should to.
[/quote]

what do you consider a good timeframe, out of curiosity? i mean excluding machine salvage value.

[quote]
If I read what you said, you said this guy is selling off part of a larger route. Ever wonder why? Why would anyone sell off accounts that are making them money? Unless he bought these himself as part of a entire company and these are outside his regular service area then sure. If he services this area then why is he selling?
[/quote]

the owner was selling off the entire route due to relocating to another state. most of the locations were outside the area i could reasonably service to be worth my time, so we negotiated a deal for me to purchase part of the route, and someone else purchased the rest.

[quote]
Why not just start a company from scratch and find your own locations and then buy machines as you need them.
[/quote]

finding locations and transporting machines all have costs associated both in time and money. i dont know how much time these things take, my guess is the amount of money and time spent finding the location is not insignificant and then there is the matter of finding a suitable machine, making THAT negotiation, transporting it and installing it and hoping (as you rightly pointed out) that you dont get booted out the next week!

Plus doing it that way you do not have the economy of scale working in your favor. no matter how many machines you have certain tasks aside from the actual servicing must be done: buying the supplies, packing up the car, unpacking the car, sorting the change (prob a few others im missing). all of these must be done if you have one machine or several, but for the small profit from ONE machine they generally aren't worth the time. probably not even from two machines, but with more those activities become cheaper. so servicing the 6th machine, is far less costly than the first. I'm sure you know all this though, so it seems like a weird suggestion.

That said i do plan to locate some myself using craigslist and so on. It seems very tricky because machines dont come up on there every day. When you do a location do you tell them a time frame when you will have the machine because generally it could go 3 wks or more without a suitable one coming up on CL, and I cant really afford to have a garage full of machine, but on the other hand it seems unprofessional to go to a business and say i want to locate a soda machine in your business, but I can't say specifically when I will have the machine or what it will look like,etc.. I assume at the bare minimum most businesses would want to know the dimensions of the machine but you cant even say that really.



[quote]
I have been in vending for 7 years as a operations and sales manager and now an owner. I have worked for multi million dollar companies. I have seen it all at one time or another. I have seen many new people get ripped off and make major mistakes when getting into vending and loose a ton of money. It has prompted me into writing a "How to Guide" and do consulting. The difference in me is I DO NOT SELL anything. I don’t sell machines, parts, locations, products, etc. I only offer my consulting and when finished my how to guide., complete with sample proposals, service agreements, work sheets, daily logs, etc.
[/quote]

I would be very interested in buying your manual when you are done please send me a private message when its offered for sale.

[RJT]

first thanks for the insightful reply, however i decided to buy the route. i negotiated a price which reflected a few hundred bucks over what i considered salvage value for the machines.





what do you consider a good timeframe, out of curiosity? i mean excluding machine salvage value.



the owner was selling off the entire route due to relocating to another state. most of the locations were outside the area i could reasonably service to be worth my time, so we negotiated a deal for me to purchase part of the route, and someone else purchased the rest.



finding locations and transporting machines all have costs associated both in time and money. i dont know how much time these things take, my guess is the amount of money and time spent finding the location is not insignificant and then there is the matter of finding a suitable machine, making THAT negotiation, transporting it and installing it and hoping (as you rightly pointed out) that you dont get booted out the next week!

Plus doing it that way you do not have the economy of scale working in your favor. no matter how many machines you have certain tasks aside from the actual servicing must be done: buying the supplies, packing up the car, unpacking the car, sorting the change (prob a few others im missing). all of these must be done if you have one machine or several, but for the small profit from ONE machine they generally aren't worth the time. probably not even from two machines, but with more those activities become cheaper. so servicing the 6th machine, is far less costly than the first. I'm sure you know all this though, so it seems like a weird suggestion.

That said i do plan to locate some myself using craigslist and so on. It seems very tricky because machines dont come up on there every day. When you do a location do you tell them a time frame when you will have the machine because generally it could go 3 wks or more without a suitable one coming up on CL, and I cant really afford to have a garage full of machine, but on the other hand it seems unprofessional to go to a business and say i want to locate a soda machine in your business, but I can't say specifically when I will have the machine or what it will look like,etc.. I assume at the bare minimum most businesses would want to know the dimensions of the machine but you cant even say that really.





I would be very interested in buying your manual when you are done please send me a private message when its offered for sale.

Since I don’t know what you paid in total I cant say if you got a good deal or not.

Most likely you bought USI machines because they also are called FSI but most commonly known as USI. Are these 4 wide? 5 wide? Model number? 3015A?

What do you mean by “salvage value”? Just selling the machines off as is to another person?

As far as time frames on ROI that all depends on the location itself I am buying. Refer back to what I said about what the account does in volume. I am NOT going to buy a snack machine even if it worth $2000 in true value at a hotel location doing $75 a week in gross. I would however pay 80k for machines at a hospital doing 80k a year gross. I can set that up on a loan to be paid off over the course of a few years and still show a profit every year I am paying on the machines.

Cash is king, so I would not want to tie up my cash in a machine on location that does a small revenue. I treat each location like a separate business and it has to make profit fairly quickly. In a low volume account I want to invest as little as possible so I look for machines that I can buy cheap to get my money back within the first few months. If I can get my money back within the first 6 months I move the machine to another location. Keep in mind this is ONLY when I am tying up cash and not financing machines.

I would place a machine at a hotel doing $75 a week if I had a snack machine I have had in my lineup that was worth 2k but had been paid for long ago and was sitting idle in my warehouse. As long as it was “on the way” to another one of my stops.

Is finding locations easy? NO, but if you have the knowledge and no how to get them it is much better than buying locations unless you are buying the locations for or close to face value of the machines.

Most true professional vending companies find their own locations. Do they buy locations? Yes, but usually only at a heavy discount. Trying to buy your way to locations usually never works out because most people invest WAY to much in them and they can never get ahead before they give up and sell at a heavy discount on Craigslist and get out of the industry. Probably 75% of the adds on CL are people that have failed at vending.

I wish you luck in your new business. Let me know if I can help…..

[dogcow]

Since I don’t know what you paid in total I cant say if you got a good deal or not.

Most likely you bought USI machines because they also are called FSI but most commonly known as USI. Are these 4 wide? 5 wide? Model number? 3015A?

model is listed as 3076

What do you mean by “salvage value”? Just selling the machines off as is to another person?

yes if i had to sell just the machines themselves

As far as time frames on ROI that all depends on the location itself I am buying. Refer back to what I said about what the account does in volume. I am NOT going to buy a snack machine even if it worth $2000 in true value at a hotel location doing $75 a week in gross.

Cash is king, so I would not want to tie up my cash in a machine on location that does a small revenue.

thats probably a good rule of thumb i see your point

I treat each location like a separate business and it has to make profit fairly quickly. In a low volume account I want to invest as little as possible so I look for machines that I can buy cheap to get my money back within the first few months. If I can get my money back within the first 6 months I move the machine to another location. Keep in mind this is ONLY when I am tying up cash and not financing machines.

i should get my money back around 8 months, hopefully, but right now my sample size is too small to make a projection with much confidence. you are probably right about moving the snack machines to a better location once they are paid off.

Is finding locations easy? NO, but if you have the knowledge and no how to get them it is much better than buying locations unless you are buying the locations for or close to face value of the machines.

i paid about 100 bucks over what i thought the machines were worth if i had to sell them to someone else off location ( what i call salvage value) is that too much? i figured it was fair. since i got the inventory and the cash in the machines.

Most true professional vending companies find their own locations. Do they buy locations? Yes, but usually only at a heavy discount. Trying to buy your way to locations usually never works out because most people invest WAY to much in them and they can never get ahead before they give up and sell at a heavy discount on Craigslist and get out of the industry. Probably 75% of the adds on CL are people that have failed at vending.

I wish you luck in your new business. Let me know if I can help…..

what are some of the common pitfalls that lead to people failing at the vending business, except for overpaying which you already mentioned

[RJT]

Real hard to give you a clear answer what the machines are worth without looking at them and knowing current condition.

I am having a tough time finding much info about the FSI/USI 3076 but from what I can tell is that they have not produced that model since 1995 so it would be at best a 15 year old machine. If I think it the machine I know it is at best worth $200 to $500 at best and that is ONLY if they still make parts for that model. Parts being control boards, vend motors, etc. If not they are worth nothing but for scrap metal.

On Ebay right now their is a Refurbished USI 3014 and a Refurbished USI 3015 for $649.99 each buy it now. Both these machines are good machines and parts are still available. Both these machines are used by professional vending companies. On completed auctions a USI/FSI 3129 had a starting price of $549 and didnt get a bid.

I hate to say it but their are TONS of used machines on the market right now. All the refurbish sellers I talk to is saying they are sitting on the most inventory they have ever had. The economy is bad and it has effected everyone including vending companies.

You say you paid about $100 over “salvage price”. How did you determine what “salvage price” was?

Did you research that model before you bought it? Did you call around to vending parts suppliers and ask questions about it like parts still being available? Just looking around on some parts suppliers websites I did not see many parts other than a users manual available for sale of that model. However some parts may interchange with other models.

What did you pay for them? What did you pay for each machine you bought?

The pitfalls are many and that is why I started my consulting company. I can save most folks a ton of time and money. I have even had people after my consult say that vending is not for them. They also say the consult was the best money they spent because I probably saved them from making a huge mistake and lots of money they would have lost.

Keep in mind I am not trying to beat you up on what you have done I am trying to help you figure out your best options at this point going forward since you have bought the machines.

I wish you would have checked back in on the forum before buying, but all might not be lost depending on a few things I have asked.

[dogcow]

Real hard to give you a clear answer what the machines are worth without looking at them and knowing current condition.

I am having a tough time finding much info about the FSI/USI 3076 but from what I can tell is that they have not produced that model since 1995 so it would be at best a 15 year old machine. If I think it the machine I know it is at best worth $200 to $500 at best and that is ONLY if they still make parts for that model. Parts being control boards, vend motors, etc. If not they are worth nothing but for scrap metal.

why is it so low? yes its hard to find info on these machines i couldnt find any when i tried to estimate so i went by ones which looked like a similar size. you make a good point about the parts i had not thought of that.

On Ebay right now their is a Refurbished USI 3014 and a Refurbished USI 3015 for $649.99 each buy it now. Both these machines are good machines and parts are still available. Both these machines are used by professional vending companies. On completed auctions a USI/FSI 3129 had a starting price of %549 and didnt get a bid.

what does it cost to ship something that size?

I hate to say it but their are TONS of used machines on the market right now. All the refurbish sellers I talk to is saying they are sitting on the most inventory they have ever had. The economy is bad and it has effected everyone including vending companies.

i contacted one company here to get an idea of costs i dont think they had any snack machines all for much under a grand.

You say you paid about $100 over “salvage price”. How did you determine what “salvage price” was?

i looked for the machine listed on CL or ebay and averaged the prices. if i couldnt find the exact machine i tried to find one of similar capacity/features.

Did you research that model before you bought it? Did you call around to vending parts suppliers and ask questions about it like parts still being available? Just looking around on some parts suppliers websites I did not see many parts other than a users manual available for sale of that model. However some parts may interchange with other models.

that would have been a good idea

What did you pay for them? What did you pay for each machine you bought?

300 for soda, a grand for snack

I wish you would have checked back in on the forum before buying, but all might not be lost depending on a few things I have asked.

no disrespect but i put my post up 2 weeks ago i checked back quite a bit

[RJT]

Why is it so low? Because the machines are worth what they are worth. No different than pricing cars. A Mercedes is going to cost more than a Ford. They are both cars, similar size, weight, color, gas mileage, etc but one cost more than the other. Vending machines vary a lot between models, age, condition, etc. You cant just compare capacity, and features. Most all snack vendors work on the same concept, Bill acceptors, coin mechs, spiral delivery, push button, etc.

Shipping will vary depending on location, etc. I havent shipped any in a long time and when we did we bought 5 tractor trailer load of drink vendors and got a deal. Just a guess $200 to $400 per machine shipping one at a time. I was not giving the Ebay example to say you should have bought from Ebay. I used it as an example as to some general pricing.

You contacted one company? Why not four or five unless their was only one within decent driving distance. In addition, these people can ask all they want but that does not mean they are worth that in this environment. I promise you you could have told them you wanted to buy six machines and they would have bent over backwards to sell you at a good price.

NEVER get in a hurry to buy vending machines unless you know it is a deal without a doubt. You can find deals if you look long enough.

I hate to say but 1k for those snack machines is way off. The $300 for drink sounds good depending on what they are.

No offense taken and I hope you don’t take any for my critique of your transaction. One of my main reason in starting my consulting business was to help people out from being “ripped off” in the vending industry. Don’t get me wrong I get paid well for my services but if it helps people save money and heart ache then I feel my price is fair. I have seen people ripped off big time in the vending industry. A guy local to me got ripped off over 100k (his entire life savings) from a crook in the vending industry. Their are some very honest and great people in the industry but some give it a very bad name.

The problem with the industry is it attracts a lot of people because it is a business that about anyone can start with reasonable startup cost. You can start as small or as large as you want. People think “how hard can it be’? Put some candy, crackers, chips, etc in a machine and pull out the money in a week or so. They think “all cash”. I can be my own boss, etc. Some of which is true but most people don’t prepare themselves by gathering enough information first. They buy a machine for 1k or 2k (or more) and realize soon after the account they put it in is doing $30 a week gross. Then they get frustrated and get out and loose money.

Account Executives (sales people) for large vending companies can make over 100k a year in salary and commissions. They can pay this because there is that much money to be made in vending. However, to compete with these larger companies you have to act and operate as a professional vending company yourself. If not you will spin your wheels making very little money and a lot of headaches. Keep in mind acting like and operating like a professional vending company cost you very little more. It is the knowledge about the industry that sets you on the same level. We all sell the same things (Coke, Pepsi, Snickers, crackers, chips, etc) we all can buy and use the same type of equipment. It is how it is operated and done.

If a guy thinks he can buy his way into the vending industry and succeed he will 95% of the time be wrong. That is unless he has deep pockets to weather the learning curve to get profitable. Or he can hire and surround himself with people knowledgeable about the industry. You have to have a basic working knowledge about vending, You have to be able to sell your services and get accounts. You have to know customer service. You have to know how to negotiate with customers, suppliers, etc. You have to learn how to work accounts and make them profitable and maximize the profits in each account. You have to know the players in the industry. A single owner/operator wears many hats and he better be pretty sharp at all of them.

I am not trying to discourage you. I am trying to let you know what it is going to take to succeed. Which for the most part is not much different than a lot of businesses you could go into.

[dogcow]

Why is it so low? Because the machines are worth what they are worth. No different than pricing cars. A Mercedes is going to cost more than a Ford. They are both cars, similar size, weight, color, gas mileage, etc but one cost more than the other. Vending machines vary a lot between models, age, condition, etc. You cant just compare capacity, and features. Most all snack vendors work on the same concept, Bill acceptors, coin mechs, spiral delivery, push button, etc.

a mercedes is a status symbol,thats why it is priced higher than a ford. if utility and reliability are not metrics for pricing (as in other types of commercial equipment) what are? so my guess is my machine isnt very reliable based on your estimate of the price.

Shipping will vary depending on location, etc. I havent shipped any in a long time and when we did we bought 5 tractor trailer load of drink vendors and got a deal. Just a guess $200 to $400 per machine shipping one at a time. I was not giving the Ebay example to say you should have bought from Ebay. I used it as an example as to some general pricing.

so the ones you cited are probably more around $600-1,000 all said and done.

You contacted one company? Why not four or five unless their was only one within decent driving distance. In addition, these people can ask all they want but that do not mean they are worth that in this environment. I promise you you could have told them you wanted to buy six machines and they would have bent over backwards to sell you at a good price.

i called to find out what the price was for comparison, no there werent a lot in a convenient area to me

No offense taken and I hope you don’t take any for my critique of your transaction. One of my main reason in starting my consulting business was to help people out from being “ripped off” in the vending industry. Don’t get me wrong I get paid well for my services but if it helps people save money and heart ache then I feel my price is fair. I have seen people ripped off big time in the vending industry. A guy local to me got ripped off over 100k (his entire life savings) from a crook in the vending industry. Their are some very honest and great people in the industry but some give it a very bad name.

none taken either

The problem with the industry is it attracts a lot of people because it is a business that about anyone can start with reasonable startup cost. You can start as small or as large as you want. People think “how hard can it be’? Put some candy, crackers, chips, etc in a machine and pull out the money in a week or so. They think “all cash”. I can be my own boss, etc. Some of which is true but most people don’t prepare themselves by gathering enough information first. They buy a machine for 1k or 2k (or more) and realize soon after the account they put it in is doing $30 a week gross. Then they get frustrated and get out and loose money.

maybe my expectations were low going in? i have a day job im not planning to quit any time soon.


you never really addressed my 2 questions above

1 - why would you suggest starting with 1 machine only?
2 - how do you approach a location if you dont have a machine

[RJT]

a mercedes is a status symbol,thats why it is priced higher than a ford. if utility and reliability are not metrics for pricing (as in other types of commercial equipment) what are? so my guess is my machine isnt very reliable based on your estimate of the price.



so the ones you cited are probably more around $600-1,000 all said and done.



i called to find out what the price was for comparison, no there werent a lot in a convenient area to me




none taken either



maybe my expectations were low going in? i have a day job im not planning to quit any time soon.


you never really addressed my 2 questions above

1 - why would you suggest starting with 1 machine only?
2 - how do you approach a location if you dont have a machine

Mercedes may be considered a "status symbol" by some but that is not the only reason it is more expensive. Take any example you want. A Colt pistol is more expensive than a Charles Daly. A Harley is more expensive than a Honda, etc, etc, etc. If you don’t understand my comparison then I am not sure I can explain it any better. About your two questions. I suggest people start out with one machine or just a few (no more than three) to so they can see if they like the industry and learn the industry before spending a lot of money.

Why would I need a machine to approach a location? Having a machine has nothing to do with approaching an account about the services you offer.

I know I have mentioned my consulting work and I dont mind helping you out a little pro bono but I hate typing for the most part and I usually get paid for the major details. That is the reason I started my consulting work and writing my how to program.

Good luck with your new venture and welcome to the vending industry.

[dogcow]

Mercedes may be considered a "status symbol" by some but that is not the only reason is more expensive. Take any example you want. A Colt pistol is more expensive than a Charles Daly. A Harley is more expensive than a Honda, etc, etc, etc. If you don’t understand my comparison then I am not sure I can help you.

About your two questions. I suggest people start out with one machine or just a few (no more than three) to so they can see if they like the industry and learn the industry before spending a lot of money.

Why would I need a machine to approach a location? Having a machine has nothing to do with approaching an account about the services you offer.

I know I have mentioned my consulting work and I dont mind helping you out a little pro bono but I hate typing for the most part and I usually get paid for the major details. That is the reason I started my consulting work and writing my how to program.

well i might be interested in your consulting services but to be honest your prices are a bit steep considering u dont list many details or even references. i do consulting in another industry i charge quite a bit but i have a full portfolio, testimonials and list of references. i am sort of hesitant to just plunk down a hundred bucks to talk to someone on the phone

[RJT]

well i might be interested in your consulting services but to be honest your prices are a bit steep considering u dont list many details or even references. i do consulting in another industry i charge quite a bit but i have a full portfolio, testimonials and list of references. i am sort of hesitant to just plunk down a hundred bucks to talk to someone on the phone

My prices are a bit steep? Think of it this way if you would have hired me prior to buying the route I could have saved you way more than $100 and led you in the right direction from the start as to what machines to buy and what you should be paying. I can save you time and money in the long run and teach you the right way to do vending and build your business.

I have been in the industry going on eight years and was fortunate enough to work for guys that have been in the industry for 30 plus years. I learned a lot from them and I taught them a few things also about selling and marketing and a better way to do things they hadnt thought of even after 30 years in the business.

I understand your concerns however I would hope my pro bono I have done on here would say something. Matter of fact, go and see my other post helping other people with questions they had. I don’t mind helping people on this forum at all. However to get into the real nuts and bolts of vending it is to detailed and time consuming for me to go into a lot of it on here. If you look back I have spent quite a bit of time already trying to help you out. As far as references I just started my consulting work a month ago. I can give you a guy I have helped and he will be glad to tell you if he thought I helped him. I can give you his email if you like in a PM. I can give you my personal website for my vending company, etc....

You can call me for free if you like to discuss my “credentials” and then decide if you want to do the consulting for a fee. PM me with your number and a time to call and I will be glad to call you if you like. Or I can give you my phone number. If not I understand your concerns and wish you luck in your business and wish you much success. Vending is a great business and it has been great to me.

[dogcow]

My prices are a bit steep? Think of it this way if you would have hired me prior to buying the route I could have saved you way more than $100 and led you in the right direction from the start as to what machines to buy and what you should be paying. I can save you time and money in the long run and teach you the right way to do vending and build your business.

I have been in the industry going on eight years and was fortunate enough to work for guys that have been in the industry for 30 plus years. I learned a lot from them and I taught them a few things also about selling and marketing and a better way to do things they hadnt thought of even after 30 years in the business.

I understand your concerns however I would hope my pro bono I have done on here would say something. Matter of fact, go and see my other post helping other people with questions they had. I don’t mind helping people on this forum at all. However to get into the real nuts and bolts of vending it is to detailed and time consuming for me to go into a lot of it on here. If you look back I have spent quite a bit of time already trying to help you out. As far as references I just started my consulting work a month ago. I can give you a guy I have helped and he will be glad to tell you if he thought I helped him. I can give you his email if you like in a PM. I can give you my personal website for my vending company, etc....

You can call me for free if you like to discuss my “credentials” and then decide if you want to do the consulting for a fee. PM me with your number and a time to call and I will be glad to call you if you like. Or I can give you my phone number. If not I understand your concerns and wish you luck in your business and wish you much success. Vending is a great business and it has been great to me.

considering u dont put your real name, company website, biz pphone or email in your ad, yes $100 seems a bit steep to just send to some random stranger on the internet. yes i'd be interested to know more or if u have a reference or website

[RJT]

considering u dont put your real name, company website, biz pphone or email in your ad, yes $100 seems a bit steep to just send to some random stranger on the internet. yes i'd be interested to know more or if u have a reference or website

I sent you an PM with all information......

[purple82]

The vending machine business is a great way to make some money, like any business it requires investment and lots of expenses before you can make a reasonable profit, but once you get the business going it can be a really good business for you.  So it might take awhile to get adjusted or settled in to the routine, but I think it would be a great choice to give it a shot.  One way to help your business start off well is to use an inventory program.  Abatix.com has a supply advantage inventory program that will really help your business.  The program covers system selection and configuration, program details, delivery and installation, supplies and inventory management.  Here is a link to some more information on the program: ["http://www.abatix.co...sap_vending.htm" Abatix Supply Advantage Program]  

[RJT]

You do realize this thread is 4 years old???