21 replies to this topic

[Ross]

Trying to understand the real Pros and Con's of having Credit Card Readers in your machines aside from the 4 cents per transaction. Very well aware of most of the common Pros, so would like to hear if anyone has had a terrible experience with them, and pitfalls,

Thanks in advance.

[RJT]

Trying to understand the real Pros and Con's of having Credit Card Readers in your machines aside from the 4 cents per transaction. Very well aware of most of the common Pros, so would like to hear if anyone has had a terrible experience with them, and pitfalls,

Thanks in advance.

Ross,

Their are MANY things to worry about when wanting to start a vending company besides which machine to buy and credit card readers. While those things are important it is a small issue when starting a vending operation.

Business plans
Financing
How are you going to get accounts
What accounts to target
How are you going to move machines
Can you fix machines if not who can fix them for you and what do they charge?
Where to buy product
Competition, how many vending companies currently in your area
Is the competition good companies? What are their strengths and weaknesses?
Exit strategy
Etc, Etc

These type things are much more important because machines and card readers can be bought and shipped to your door. Concentrate your efforts more so on the other things and then get the info on machines and such.

To answer your question, credit card readers are only worth doing in very high volume accounts such as colleges, hospitals, airports, manufacturing facilities with over 300 employees and other similar type accounts. Even then I would ONLY do them if I thought it would increase my sales and revenue and not by the demands of the account or as an incentive to get an account. Dont get me wrong the technology is great and is a nice tool to have in your arsenal but it is not the difference between success and failure in vending. So in the end the "cons" are putting them in accounts that dont justify them and do not increase revenues. Other than that the only issues are no different than any other part on a machine when it breaks or goes down.

[bcron]

Sorry Ross if I'm bogarting your thread but I would like to add another question to this...would you put them into machines in a high school? I'm not sure how many high schoolers are carrying cards these days and whether it would be worth the added investment.

[jblvending]

Trying to understand the real Pros and Con's of having Credit Card Readers in your machines aside from the 4 cents per transaction. Very well aware of most of the common Pros, so would like to hear if anyone has had a terrible experience with them, and pitfalls,

Thanks in advance.

I'd invest in a bill recycler, this is a validator that gives back cash if the customer uses a 5,10, or 20 dollar bill. The credit card deal is expensive, we are waiting for some of the bugs to work itself out. Also, as more players get in the game, the price should be pushed down.

[Ross]

Ross,

Their are MANY things to worry about when wanting to start a vending company besides which machine to buy and credit card readers. While those things are important it is a small issue when starting a vending operation.

Business plans
Financing
How are you going to get accounts
What accounts to target
How are you going to move machines
Can you fix machines if not who can fix them for you and what do they charge?
Where to buy product
Competition, how many vending companies currently in your area
Is the competition good companies? What are their strengths and weaknesses?
Exit strategy
Etc, Etc

Perhaps there is a good chance I have most of that figured out already, and I'm more concerned with over head cost, etc? Credit Card Readers in my specific area of Long Island, NY in certain locations are almost needed not just desired because no one carries cash anymore the surroundings. It's very easy to see just when I have 500 customers come buy something in my own store how many have even a dollar in their wallet, and the chances of them vending two items instead of one because they don't have more than a dollar, or pocket change on them. I do not live in an area where the AVG Household Income is 40, 50, or even 60 thousand a year -- it's 90,000.

I for one have two locations that have training meetings in groups of 10 - 20 all day with roughly 5 counselors every hour creating heavy foot traffic, and they all pay every time they are there, and 80% of them pay with Debit/Credit Cards.

When making a business plan with financing it is key to figure in ALL cost -- Repair, MACHINES, Credit Card Readers/Fees, Maintenance, Surplus of Cash to keep in the Machines, Cost to keep all Machines filled with merchandise, Moving Machines, Moving Product, Storing Product, etc ... and lastly if you were not paying in cash how quick do you intend to repay your loans.

Machines are key to targeting specific locations.

I have friends in high places that for instance work, and manage the Township of Babylon, so I will be well versed when it comes to knowing a contract is up for big for schools, etc when they all renewal, or the town parks.

I also have two major dealership service lanes, and a couple other locations I would not care to mention as I'm sure most people do not like to be specific about locations.

The competition is horribly serviced, terribly old machines, and do not pick up their phones.

[RJT]

Perhaps there is a good chance I have most of that figured out already, and I'm more concerned with over head cost, etc? Credit Card Readers in my specific area of Long Island, NY in certain locations are almost needed not just desired because no one carries cash anymore the surroundings. It's very easy to see just when I have 500 customers come buy something in my own store how many have even a dollar in their wallet, and the chances of them vending two items instead of one because they don't have more than a dollar, or pocket change on them. I do not live in an area where the AVG Household Income is 40, 50, or even 60 thousand a year -- it's 90,000.

I for one have two locations that have training meetings in groups of 10 - 20 all day with roughly 5 counselors every hour creating heavy foot traffic, and they all pay every time they are there, and 80% of them pay with Debit/Credit Cards.

When making a business plan with financing it is key to figure in ALL cost -- Repair, MACHINES, Credit Card Readers/Fees, Maintenance, Surplus of Cash to keep in the Machines, Cost to keep all Machines filled with merchandise, Moving Machines, Moving Product, Storing Product, etc ... and lastly if you were not paying in cash how quick do you intend to repay your loans.

Machines are key to targeting specific locations.

I have friends in high places that for instance work, and manage the Township of Babylon, so I will be well versed when it comes to knowing a contract is up for big for schools, etc when they all renewal, or the town parks.

I also have two major dealership service lanes, and a couple other locations I would not care to mention as I'm sure most people do not like to be specific about locations.

The competition is horribly serviced, terribly old machines, and do not pick up their phones.

Well since you "have most of that figured out already" and "have friends in high places" I am sure you will do just fine. Good luck and sorry if I offended you that was not my intent.

[RJT]

Sorry Ross if I'm bogarting your thread but I would like to add another question to this...would you put them into machines in a high school? I'm not sure how many high schoolers are carrying cards these days and whether it would be worth the added investment.

No, most high school vending is not worth doing anymore because of all the restrictions they put on vending. Private schools can be good if they are not heavily restricited.

[RJT]

I'd invest in a bill recycler, this is a validator that gives back cash if the customer uses a 5,10, or 20 dollar bill. The credit card deal is expensive, we are wanting for some of the bugs to work itself out. Also, as more players get in the game, the price should be pushed down.

Good advice.....

[H4UV]

No, most high school vending is not worth doing anymore because of all the restrictions they put on vending. Private schools can be good if they are not heavily restricited.

You're right about the high schools. I had a machine in a high school that was doing over $100 a week. It was my first machine in a school, and my last, and I though it would work out great. Then they told me that they needed a key so that they could turn it off during school hours! My income dropped by about 75%, and they now have a key to the machine. Unless the income goes up, I'm probably going to pull it. I would have when they first told me that, only the account was 30 miles away. You're right, Department of Education rules make it very difficult to have machines in the schools.

[RJT]

You're right about the high schools. I had a machine in a high school that was doing over $100 a week. It was my first machine in a school, and my last, and I though it would work out great. Then they told me that they needed a key so that they could turn it off during school hours! My income dropped by about 75%, and they now have a key to the machine. Unless the income goes up, I'm probably going to pull it. I would have when they first told me that, only the account was 30 miles away. You're right, Department of Education rules make it very difficult to have machines in the schools.

Just wait till they make you do "all healthy" on top of keeping the machines cut off. Oh, thats not to mention the high comissions they expect. I refuse to do business with these types of accounts...

[Technivend]

Just wait till they make you do "all healthy" on top of keeping the machines cut off. Oh, thats not to mention the high comissions they expect. I refuse to do business with these types of accounts...

I have a few customers that are doing the "all healthy" thing and are doing quite well with it. I hate to say it but this could be the next craze like water was.

[RJT]

I have a few customers that are doing the "all healthy" thing and are doing quite well with it. I hate to say it but this could be the next craze like water was.

Maybe but I will let the others fight that out. I offer "healthy" and put it in accounts with branding on the glass and green product pushers. I just dont think it is mainstream enough to have an all healthy product machines.

BTW: I got that Poly Vend up and running. It looks to had been the thermostat. Thanks for the help!!

[bcron]

I have a high school that I had the first two years I bought the route. I had to get out this year because of tear-down and reconstruction but have been assured I am back in next school year. I am actually quite happy with the income from it even though I do have to program the machines to lock out during MOST of the school day. They still buy quite a bit before the bell or on the way to the bus. Two machines need servicing twice a week which for me is pretty good.

I will be placing brand new machines in there this year and was approached about card readers for them. I am just not sure how many teens these days carry cards. My kids are still young so I am not familiar with that age group too much. I'm not sure that many of them are given debit or credit cards by their parents at that age. I am quite sure I wouldn't.

[VagabondVending]

Ross and bcron, what did you guys ever end up doing concerning the credit card readers? I ask because we have an account with a high school school and have credit card readers on all the machines there and we get about 30-40% of our sales from credit card transactions.

[bcron]

Just had to pick that scab didn't you?

Actually, I just found out that I probably will NOT be back in now... it appears that they may not have taken the space for the machines into account during the construction/planning process. &*^%!

I looked into the CC reader for the two machines I HAVE PURCHASED FOR THEM being ASSURED several times I was back in but I didn't do the CC readers on the machines. For my operation, it wasn't worth it and I wasn't sure that many HS students carry cards anyway. It appears from your experience that many do though.

While on the subject, I have two nice brand new Wittern 7-tray machines gathering dust now looking for a good home if anybody is interested! I want to get out from under them. If the HS finds the space, I will cross that bridge then.

(My frustrations didn't show too much did they?)

[VagabondVending]

Sorry bcron, didn't mean to remind you of your frustrations. That is pretty upsetting. Nothing worse than having a good account pulled out from under you when you don't expect it.

[H4UV]

What are you asking for the machines?

[bcron]

Paid $8600 for both, open to offers and you would have to arrange shipping. They are still wrapped up in plastic at my machine supplier's location.

[H4UV]

Well, could you give me a call on them? I have several questions on them, and may be interested in working out a deal. 970-623-1272.

[RJT]

Just had to pick that scab didn't you?

Actually, I just found out that I probably will NOT be back in now... it appears that they may not have taken the space for the machines into account during the construction/planning process. &*^%!

I looked into the CC reader for the two machines I HAVE PURCHASED FOR THEM being ASSURED several times I was back in but I didn't do the CC readers on the machines. For my operation, it wasn't worth it and I wasn't sure that many HS students carry cards anyway. It appears from your experience that many do though.

While on the subject, I have two nice brand new Wittern 7-tray machines gathering dust now looking for a good home if anybody is interested! I want to get out from under them. If the HS finds the space, I will cross that bridge then.

(My frustrations didn't show too much did they?)

That is to bad, I hate to see people get into a situation like that. Try and place the machines in another location....

[bcron]

They're overkill for my locations, but I have a couple of other thoughts up my sleeve that I'm hoping might pan out.

[H4UV]

bcron, just updating you... I wasn't able to find anyone interested in them at that price. Actually, I talked to my USI distributor, and he said he was selling them out of his showroom for slightly less then what you wanted for them. I could sell them for you, but I would have to buy them at wholesale distributor prices to be able to compete with the other guys.