21 replies to this topic

[HVendTrends]

I am looking to buy an existing snack vending route in DC metro region, either in Maryland suburbs/Montgomery County or Northern Virginia suburbs (not both areas in one route) and would prefer a vending route that has a healthy snacks emphasis. I would not be interested in a size larger than I can service myself of no more than 20 to 30 machines and would need seller financing after I make a down payment on the business.

I am also seeking advice on how to price such a vending route. I welcome feedback on views/experience for buying an existing snack vending route and suggestions about how this should be priced (an equitable formula for pricing on net annual revenue) with seller financing as part of the transaction. Should it be priced just on the annual net revenue or should current value of the used machines be taken into account for the price of the route?

Thank you for your input!

[vend1ng]

Why would you waste our time, We told you everything in your last post and you were going to make your own luck. I'm going to waste my time and give you one more piece of advice. When someone asks me about getting into vending I tell them "If you can open the window and throw 40,000.00 dollars out the window and not bother you then your right for vending" because that is what it will cost you in mistakes luck or no luck. If you listen to the people on this board we can maybe save you half of that. Just my own thoughts but I'm pretty sure "You" already have a vested interest in Healthy Vending and all this chat about "Healthy Vending" is effecting my health.
Vend1ng

[H4UV]

I second vend1ng.... We already answered the questions, and your mind is made up. Why continue to ask questions and never take our advice?

[RJT]

Guys I agree 100% with what you are saying. However, he/she is not alone in their thought process. I do consulting so maybe I seem biased but here is what I cant understand. I here people every week that call me about my services go into the spill about this and that when it come to some "opportunity" and they say it cost (whatever) usually to the tune of 20k plus. We all have heard the same stories with a poor business model like all healthy vending, poor quality machines they are charging 10 times (or more) what they are worth. They are going to locate them for them have them "delivered" and setup, etc, etc.

Then when I tell them my fees they think I am crazy or they will not buy my book because of price. I am amazed at what people are willing to spend when it seems easy. Yet my fees are a drop in the bucket compared to what they say they are going to spend on one of these packages. I also get the calls after someone bought into this type mess and want me to help then salvage it. It is hard to salvage junk equipment, junk accounts, and paid 40k for 8 machines.

I am not real sure what causes people to think this way but at times I wish I were a dishonest guy because I could be rich in the gulf of Mexico sipping a nice cool beverage. However it is not in my thought process to be that way. So I will continue to deal with the want a be vendors, dreamers, and people willing to pay their life savings on junk, all for them to think I am crazy for what I charge for my services and book.

It is real hard at times for me to wrap my head around why people think the way they do but I guess they want people to spoon feed them a business that they can just put on auto pilot and count their money.

Why do you think their are usually only a handful of known vending companies in any given town? Because those are the ones that do it right. As they say, if it were that easy everyone would be doing it.

I have and do make great money at vending but it is a job like any other. I like to say it is the hardest easy money I have ever made.

Good luck!!! (your going to need it)

[HVendTrends]

Hey Guys,

As I am new to this "professional" forum, I am a bit surprised with the abrasive and somewhat antagonistic tone in these posted replies to my inquiry about acquiring an existing GENERAL snack vending route above. Firstly, it seems to me that the purpose of this kind of forum is to post questions, comments and advice to further understanding about this industry and issues about vending. So, when I have been contemplating a particulary business opportunity for healthy snack vending, it seems entirely appropriate to post a question and request for feedback. Some of the feedback has been quite helpful and constructive and I as I am further evaluating what direction to take, the constructive comments are appreciated and I am taking a second look at healthy versus general snack vending as reflected with my post above. The reply above that I am wasting people's time is bogus, gratuitous and unnecessary. If you think I'm wasting your time then don't bother offering your gratuitous comments. I have no "vested interest" in healthy snack vending, I simply posed the question for feedback which it would appear is the purpose of this forum.

Second, my posting above clearly invites interest and conversation about my new interest in buying an existing GENERAL snack vending route, which if you cared to look at the posting, is expressing an interest in general as opposed to exclusively healthy snack vending. In addition to inviting possible offerings for an existing route (based on the general advice provided), I also invite advice on how to formulate pricing for my purchase of an existing general snack vending route.

I hope this clears up the confusion and gratuitous responses. I'm not interested in wasting anyone's time so please don't waste anymore of mine.

Constructive advice on my posting above and two questions posed are welcome.

Thank you!

[H4UV]

Well, it always depends on the type of equipment on the route, the types of locations, etc. It is IMPOSSIBLE for us to help price a hypothetical route we know nothing about. If it was all Genesis or Seaga machines in beauty parlors, I'd say pay $400 a location with the machine max if you wanted to buy it, and stay away from it if you were smart. Types of equipment and accounts matter for a lot, and if neither are very good, don't buy.

When I look at a route to buy, which has good quality machines and good accounts, I'll offer for the route the total gross income it takes in for one year. If I don't have the money, then I'm not going to borrow. The only thing I would consider is having the seller finance the route, and hold the machines as collateral. That way, you don't loose anything but your time if you can't pay.

[vend1ng]

Hey Guys,

As I am new to this "professional" forum, I am a bit surprised with the abrasive and somewhat antagonistic tone in these posted replies to my inquiry about acquiring an existing GENERAL snack vending route above. Firstly, it seems to me that the purpose of this kind of forum is to post questions, comments and advice to further understanding about this industry and issues about vending. So, when I have been contemplating a particulary business opportunity for healthy snack vending, it seems entirely appropriate to post a question and request for feedback. Some of the feedback has been quite helpful and constructive and I as I am further evaluating what direction to take, the constructive comments are appreciated and I am taking a second look at healthy versus general snack vending as reflected with my post above. The reply above that I am wasting people's time is bogus, gratuitous and unnecessary. If you think I'm wasting your time then don't bother offering your gratuitous comments. I have no "vested interest" in healthy snack vending, I simply posed the question for feedback which it would appear is the purpose of this forum.

Second, my posting above clearly invites interest and conversation about my new interest in buying an existing GENERAL snack vending route, which if you cared to look at the posting, is expressing an interest in general as opposed to exclusively healthy snack vending. In addition to inviting possible offerings for an existing route (based on the general advice provided), I also invite advice on how to formulate pricing for my purchase of an existing general snack vending route.

I hope this clears up the confusion and gratuitous responses. I'm not interested in wasting anyone's time so please don't waste anymore of mine.

Constructive advice on my posting above and two questions posed are welcome.

Thank you!

We tried the nice "Professional" approach in your last post, That didn't work so I tried the 2x4 approach at least you understood that. It doesn't matter how you change or sugar coat your questions we're still not going to say what you want to hear. Yes, I don't have to respond to your posts but it is my "professional" responsibility to respond so all the other people that have the same question can read it. If you don't want to know don't ask, Search the archives every question you ask is answered at least 100 times you might even check the post "Good business opportunity?" which was posted just before your last post which will give you an idea on how to price a vending route. Here is the important part If you can't take it stop reading now. In your first post on "Healthy" vending alarms went off and everybody on here jumped in to stop you from making a huge mistake ...... Your second post set off twice as many alarms and sent up 100 red flags and we all knew we lost one. Here is the clue: In the first paragraph your telling us what your going to do and in the second paragraph your asking us to tell you its ok. Its ok I know I'm an A$$ I'm called that every time the truth hurts. Read the archives then if you have a serious question then ask.
Vend1ng

[HVendTrends]

To Vend1ng:

I'm thinking seriously of entering into the vending business which is why I have joined this forum and have asked serious-minded questions. If you can't offer constructive and thoughtful responses, you really shouldn't bother giving antagonistic statements that serve no good purpose and only bring down the quality of the exchanges from responsible postings. Your statements above are irrational mumbo jumbo and useless. How's that for your 2x4 approach?

[jblvending]

I think all the advice is good, I've lost two accounts because they wanted Healthy, and I tried it ,and it went bad, so I went back to the regular chips and candy, sells went back up, but when they saw that I had pulled it and I informed them that it wasnt selling, they went with snake oil vending salesmen that promised them everything under the sun. I guess the point is, healhy does not sell and do not be strong armed into thinking that it will, it want. What I do now when a accounts want healthy I tell them we are 70% regular products, and 30% healthly,( which we are and always have been). HVend , seems like your feeling got hurt with there rebuttal response, but better your feelings than your pocket book. Good luck

[RJT]

You are lucky anyone is responding at all to your post or questions. You are not giving any dialog with your post to encourage help. I posted about your question about JOFEMAR machines back two weeks ago and you haven’t even said a peep of a thank you for the response and info. On another post about HUMAN Vending you are the same way with no response or thank you.

I am not sure if you realize that we don’t get paid to participate on this forum and "help" you. A simple thank you would be great and a continued dialog of question that you may have and how our responses have helped or maybe even confused you. Either way how about responding in some way to post people have taken their time to help answer for you. It is just polite in general.

Like JBLVending said, better to hurt your feelings rather than your bank account. BTW it isn’t medicine, you don’t have to take it......

[vend1ng]

To Vend1ng:

I'm thinking seriously of entering into the vending business which is why I have joined this forum and have asked serious-minded questions. If you can't offer constructive and thoughtful responses, you really shouldn't bother giving antagonistic statements that serve no good purpose and only bring down the quality of the exchanges from responsible postings. Your statements above are irrational mumbo jumbo and useless. How's that for your 2x4 approach?

We've given you "serious-minded" answers and all my answers are constructive and very thoughtout responses, The antagonistic statements are only antagonistic because I'm not saying what you want to hear. There is probably noone on this board that has more experience with "healthy" vending than me. I design and setup total nutritional vending for companies so they can save and receive rebates on group health insurance plans. I receive subsidies based on a percentage of that savings. I'm not anti "healthy" vending I make alot of money because I've studied it and learned how to use it where my competition runs from it. As for your 2x4 approach you swing like a girl. I know for a fact that your not "thinking seriously of entering into the vending business " and I still believe you already have a vested interest in a "healthy" vending concept. If you were serious you would have already bought RJT's book, read the archives, ask questions not give statements and be appreciative of those that can save you lots of money. No, wait you want to do it on somebody elses money that way when it doesn't work out you just walk away. Hey wait a minute I might have you all wrong you've been to one of those "business oppurtunity" seminars found out they don't finance and they sold you on their BS and you think you can do it yourself! Not! those are the red flags and alarms I was mumbo jumboing about. Thanks for feeding this a$$ I thrive off people like you.
Vend1ng

[jblvending]

We've given you "serious-minded" answers and all my answers are constructive and very thoughtout responses, The antagonistic statements are only antagonistic because I'm not saying what you want to hear. There is probably noone on this board that has more experience with "healthy" vending than me. I design and setup total nutritional vending for companies so they can save and receive rebates on group health insurance plans. I receive subsidies based on a percentage of that savings. I'm not anti "healthy" vending I make alot of money because I've studied it and learned how to use it where my competition runs from it. As for your 2x4 approach you swing like a girl. I know for a fact that your not "thinking seriously of entering into the vending business " and I still believe you already have a vested interest in a "healthy" vending concept. If you were serious you would have already bought RJT's book, read the archives, ask questions not give statements and be appreciative of those that can save you lots of money. No, wait you want to do it on somebody elses money that way when it doesn't work out you just walk away. Hey wait a minute I might have you all wrong you've been to one of those "business oppurtunity" seminars found out they don't finance and they sold you on their BS and you think you can do it yourself! Not! those are the red flags and alarms I was mumbo jumboing about. Thanks for feeding this a$$ I thrive off people like you.
Vend1ng

Now I find that interesting that you would get subsidies from accounts based on setting there vending up healthy. If you could share or elaborate on this process, I'd like to learn more. I think this would be a good tool to use when making a bid or presentation for a new account.

[vend1ng]

Now I find that interesting that you would get subsidies from accounts based on setting there vending up healthy. If you could share or elaborate on this process, I'd like to learn more. I think this would be a good tool to use when making a bid or presentation for a new account.

In short a company we were doing vending for implemented a employee wellness program in conjunction with their group insurance company. It was a pilot program that rewarded the company for implementing a wellness program that would cut down on health insurance claims. Every employee was required to maintain wellness guide lines to continue receiving matching contributions to their health insurance. We originally estimated and loss 42% in gross sales. The company agreed at the start to subsidise the difference to help keep the cost of "healthier" items affordable. We worked directly with the company nutritionist who set the guidelines. Only diet soda,teas,water, juices, milk, energy drinks. Snacks could only be single serving packaging, 10 grms fat or less, only 35% calories from fat, all the fruit, nuts, and protein we want. No restrictions on cold food items. Of course at the start it was shakey without the subsidy we would not have made it. That was 5 years ago and today the program is a success saving the company thousands of dollars. Every year we are graded and get a B+ only because the cold food has no restrictions the average for the country is a C- for the companies on the program. Because of the inventory we had to have we do 30-40% nutritional products in all of our locations and use that as a selling point we can even go higher % if need be. Other than the soda if you check what you are putting in snack machines now 30-40% of your inventory now will meet these requirements.
As of March 19 2012 all of my park and recreation accounts have set the same nutritional guidelines except they only allow 30% calories from fat. They do not subsidise BUT I only have to be 35% compliant by 3/19/12, 50% compliant by 9/12, 75% compliant by 1/13 and 100% compliant 6/13. The good part is no non-compliant product can be sold for less than a compliant product. Which means I'm getting a 300% profit margin on the items that sell. Right now on a 10 select soda we only have to have 4 items compliant we already carry 2 gatorades 20oz and a water 20oz we've added tea 20oz and changed soda back to cans @ 2.75 we get 2.50 for the 20oz bottles pissed the customers off but made client real happy. We will revaluate at each change to see if it is profitable we will probably do a 10-15% price increase at each change to make 100% compliant profitable.
I recommend that you educate yourself on "more nutritional items" and when someone says they want more "healthier" items then you will be ready. People assume that anything in a vending machine is junk food which is far from the truth. Anybody that uses the term "healthier" do not know what they are talking about if you have a nutritional plan that is 30-40% compliant then you will sound like you know what your talking about. The key to this is only 40% of a vending machine is sellable anyway. Example: On a 8 select soda machine only 3 selections are sellable meaning if any 1 of those three selections are out they are calling you to fill the machine. So if you have at least 3 selections compliant (2 diet and a tea) your 40% more nutritional and still have your best 3 sellers. On a 4 wide snack 32 select you will need 12 selections to be compliant. Doritos, Sunchips, double salami, beef& cheese stix, cashews, pistachios,peanuts,sunflower seeds shelled and unshelled, pretzels, cheez-its, 3 musketeers, granola bars, special k bars, snackwells cookies, all 100 calorie pastries, single serving pop tarts, tator -skins tgif, pork skins,trailmixes,animal cookies, the new sunmaid trailmix and apple raisin cookies big seller. etc.etc.etc. I can go on and on there are multiple flavors of all those chips. These are all items that sell I have never lost any of these items because of dates. Set your guidelines study the products educate yourself and when a customer says we need "healthier" items you'll be prepared and you will amaze them with your preparedness. If you already use these items you can say we're already at 40% nutritional or you can say "well you do know that healthier items are more expensive" then raise your prices 20%. Just my thoughts. I hope this helps.
Vend1ng

[HVendTrends]

Hello Gentlemen,

The constructive comments above are very much appreciated. I believe I did comment to RJT previously and with my other posts that I appreciate your comments. My apologies if I didn't provide more timely acknowledgment of your constructive comments. To be sure, I have no vested interest in healthy snack vending as this was the entry point into evaluating getting into the vending business. I am now entertaining buying a general snack vending route from an experienced snack vending business owner where I would buy a piece of his larger general snack route and operate off his existing warehouse and systems. Seems like a good entry into this business and it follows many of your comments. I would then diversify with healthy snack offerings according to the preferences and requests of the locations, and I would come up with the more popular healthy snack choices to accompany the general snack items that have been selling. How's that strategy? Follows our advice doesn't it?

Thanks again for the constructive comments and advice!

[RJT]

The buying a piece of someones business and operating using their warehouse and systems sounds a bit fishy and complicated. Not sure what exactly you are looikng at doing with that but dosent sound like the best of moves....

[jblvending]

In short a company we were doing vending for implemented a employee wellness program in conjunction with their group insurance company. It was a pilot program that rewarded the company for implementing a wellness program that would cut down on health insurance claims. Every employee was required to maintain wellness guide lines to continue receiving matching contributions to their health insurance. We originally estimated and loss 42% in gross sales. The company agreed at the start to subsidise the difference to help keep the cost of "healthier" items affordable. We worked directly with the company nutritionist who set the guidelines. Only diet soda,teas,water, juices, milk, energy drinks. Snacks could only be single serving packaging, 10 grms fat or less, only 35% calories from fat, all the fruit, nuts, and protein we want. No restrictions on cold food items. Of course at the start it was shakey without the subsidy we would not have made it. That was 5 years ago and today the program is a success saving the company thousands of dollars. Every year we are graded and get a B+ only because the cold food has no restrictions the average for the country is a C- for the companies on the program. Because of the inventory we had to have we do 30-40% nutritional products in all of our locations and use that as a selling point we can even go higher % if need be. Other than the soda if you check what you are putting in snack machines now 30-40% of your inventory now will meet these requirements.
As of March 19 2012 all of my park and recreation accounts have set the same nutritional guidelines except they only allow 30% calories from fat. They do not subsidise BUT I only have to be 35% compliant by 3/19/12, 50% compliant by 9/12, 75% compliant by 1/13 and 100% compliant 6/13. The good part is no non-compliant product can be sold for less than a compliant product. Which means I'm getting a 300% profit margin on the items that sell. Right now on a 10 select soda we only have to have 4 items compliant we already carry 2 gatorades 20oz and a water 20oz we've added tea 20oz and changed soda back to cans @ 2.75 we get 2.50 for the 20oz bottles pissed the customers off but made client real happy. We will revaluate at each change to see if it is profitable we will probably do a 10-15% price increase at each change to make 100% compliant profitable.
I recommend that you educate yourself on "more nutritional items" and when someone says they want more "healthier" items then you will be ready. People assume that anything in a vending machine is junk food which is far from the truth. Anybody that uses the term "healthier" do not know what they are talking about if you have a nutritional plan that is 30-40% compliant then you will sound like you know what your talking about. The key to this is only 40% of a vending machine is sellable anyway. Example: On a 8 select soda machine only 3 selections are sellable meaning if any 1 of those three selections are out they are calling you to fill the machine. So if you have at least 3 selections compliant (2 diet and a tea) your 40% more nutritional and still have your best 3 sellers. On a 4 wide snack 32 select you will need 12 selections to be compliant. Doritos, Sunchips, double salami, beef& cheese stix, cashews, pistachios,peanuts,sunflower seeds shelled and unshelled, pretzels, cheez-its, 3 musketeers, granola bars, special k bars, snackwells cookies, all 100 calorie pastries, single serving pop tarts, tator -skins tgif, pork skins,trailmixes,animal cookies, the new sunmaid trailmix and apple raisin cookies big seller. etc.etc.etc. I can go on and on there are multiple flavors of all those chips. These are all items that sell I have never lost any of these items because of dates. Set your guidelines study the products educate yourself and when a customer says we need "healthier" items you'll be prepared and you will amaze them with your preparedness. If you already use these items you can say we're already at 40% nutritional or you can say "well you do know that healthier items are more expensive" then raise your prices 20%. Just my thoughts. I hope this helps.
Vend1ng

Very good information, yes we do comply with a min 30% as far as healthy goes for all our vending machines, and for you full line venders Herr's chips offers a very good choice of baked chips, they seem to sell well. Setting up a wellness program is almost mandatory now a days. Really that type of program is normally set up for white collar accounts that are in the 1000 or above in people, while this sounds like a homerun as far as accounts go, there more capital and labor intense than any account that you will encounter. Most of the time they want a vending machine on every floor as well as sandwich machine, instead of a central location. While we have walked away from one of these type of accounts, the company has since moved out of state, sometimes it pays to walk away from such an account.

[vend1ng]

Very good information, yes we do comply with a min 30% as far as healthy goes for all our vending machines, and for you full line venders Herr's chips offers a very good choice of baked chips, they seem to sell well. Setting up a wellness program is almost mandatory now a days. Really that type of program is normally set up for white collar accounts that are in the 1000 or above in people, while this sounds like a homerun as far as accounts go, there more capital and labor intense than any account that you will encounter. Most of the time they want a vending machine on every floor as well as sandwich machine, instead of a central location. While we have walked away from one of these type of accounts, the company has since moved out of state, sometimes it pays to walk away from such an account.

I didn't mention Herrs because I don't they're available on the west coast. We use about 7 different chips of theirs. Their baked cheddar sour creme is by far the best green label around and out sells frito lay 3-r and Herrs case counts are great too.
Vending

[HVendTrends]

Hey RJT,

I wanted to respond to your comment above about my review of an opportunity to buy an existing snack vending route in current operation in my area. The deal would be a separate section of the business owner's regional vending route so he would continue in business operating his remaining regional route business while I have purchased a separate sub-route in a separate geographic region. I would be making a down payment on the price that is based off of 2011 net revenues and the general snack machines being transferred that are currently being operated on the locations. Since I don't have storage available starting out after buying his route, he would be making available a separate section of his warehouse space for me to use for a transitional period at no additional cost. This deal would include 40% of the price seller-financed. The owner seems to be a nice guy to work with and has been quite responsive so he seems to make a good mentor after having grown his business over many years in my area. Hence, there would be infrastructure in place and even an employee I could call on and pay hourly when I need help in the transitional phase after taking over this route. With seller financing spread over a period of 4 years, do you think I should have a provision in the sale agreement that if I am not able to continue the operation of this route business that I am not liable for the unpaid balance of the seller-financed Note?

Thanks again for your valued input!

[RJT]

Let me get this straight? You are buying a portion of a company (ie route) from an existing vending operator that plans on staying in business? If this is what you are saying I am saying NO that is not a good idea. No matter how "easy" he seems to make it. The BIG question is why is he selling? I understand people sell all the time but it is usually to get out. Sounds to me he is selling you the junk and he is keeping the white meat.

This deal sounds bad all the way around. No way I would buy into a route/company that plans on staying in business. I have bought sperate accounts from companies but not any type of "route". Companies do sell a location from time to time for various reasons. One company I know used to sell off all their slower producing accounts because they only concentrated on large volume accounts. To give you an idea, they had 77 total account doing 4.5 million at one time.

I have seen companies sell accounts because they needed to free up cash flow to buy a truck, equipment, get out of dept to suppliers, emergency situation, etc. Most times it was to buy equipment for a larger account they had gotten. They would sell off two or three accounts to then use the money to buy equipment for the large account.

It is up to you but I would not do a deal like you are looking at, unless I am missing something I dont see......

[jblvending]

Hey RJT,

I wanted to respond to your comment above about my review of an opportunity to buy an existing snack vending route in current operation in my area. The deal would be a separate section of the business owner's regional vending route so he would continue in business operating his remaining regional route business while I have purchased a separate sub-route in a separate geographic region. I would be making a down payment on the price that is based off of 2011 net revenues and the general snack machines being transferred that are currently being operated on the locations. Since I don't have storage available starting out after buying his route, he would be making available a separate section of his warehouse space for me to use for a transitional period at no additional cost. This deal would include 40% of the price seller-financed. The owner seems to be a nice guy to work with and has been quite responsive so he seems to make a good mentor after having grown his business over many years in my area. Hence, there would be infrastructure in place and even an employee I could call on and pay hourly when I need help in the transitional phase after taking over this route. With seller financing spread over a period of 4 years, do you think I should have a provision in the sale agreement that if I am not able to continue the operation of this route business that I am not liable for the unpaid balance of the seller-financed Note?

Thanks again for your valued input!

Does seem fishy, but I want knock this deal until I see some numbers. So if you can post how many machines, and gross sells off this route, I'd think we could tell you more as far as if it's worth it. I'm open minded to such deal if the ROI is right, there are attractive aspects to the deal and one of them is sharing of warehouse, although I would recommend that you change the locks of all the machines you get, and make sure you order those locks and not the person you bought it from, and never ever give him or anyone esle a key.

[dogcow]

In short a company we were doing vending for implemented a employee wellness program in conjunction with their group insurance company. It was a pilot program that rewarded the company for implementing a wellness program that would cut down on health insurance claims. Every employee was required to maintain wellness guide lines to continue receiving matching contributions to their health insurance. We originally estimated and loss 42% in gross sales. The company agreed at the start to subsidise the difference to help keep the cost of "healthier" items affordable. We worked directly with the company nutritionist who set the guidelines. Only diet soda,teas,water, juices, milk, energy drinks. Snacks could only be single serving packaging, 10 grms fat or less, only 35% calories from fat, all the fruit, nuts, and protein we want. No restrictions on cold food items. Of course at the start it was shakey without the subsidy we would not have made it. That was 5 years ago and today the program is a success saving the company thousands of dollars. Every year we are graded and get a B+ only because the cold food has no restrictions the average for the country is a C- for the companies on the program. Because of the inventory we had to have we do 30-40% nutritional products in all of our locations and use that as a selling point we can even go higher % if need be. Other than the soda if you check what you are putting in snack machines now 30-40% of your inventory now will meet these requirements.
As of March 19 2012 all of my park and recreation accounts have set the same nutritional guidelines except they only allow 30% calories from fat. They do not subsidise BUT I only have to be 35% compliant by 3/19/12, 50% compliant by 9/12, 75% compliant by 1/13 and 100% compliant 6/13. The good part is no non-compliant product can be sold for less than a compliant product. Which means I'm getting a 300% profit margin on the items that sell. Right now on a 10 select soda we only have to have 4 items compliant we already carry 2 gatorades 20oz and a water 20oz we've added tea 20oz and changed soda back to cans @ 2.75 we get 2.50 for the 20oz bottles pissed the customers off but made client real happy. We will revaluate at each change to see if it is profitable we will probably do a 10-15% price increase at each change to make 100% compliant profitable.
I recommend that you educate yourself on "more nutritional items" and when someone says they want more "healthier" items then you will be ready. People assume that anything in a vending machine is junk food which is far from the truth. Anybody that uses the term "healthier" do not know what they are talking about if you have a nutritional plan that is 30-40% compliant then you will sound like you know what your talking about. The key to this is only 40% of a vending machine is sellable anyway. Example: On a 8 select soda machine only 3 selections are sellable meaning if any 1 of those three selections are out they are calling you to fill the machine. So if you have at least 3 selections compliant (2 diet and a tea) your 40% more nutritional and still have your best 3 sellers. On a 4 wide snack 32 select you will need 12 selections to be compliant. Doritos, Sunchips, double salami, beef& cheese stix, cashews, pistachios,peanuts,sunflower seeds shelled and unshelled, pretzels, cheez-its, 3 musketeers, granola bars, special k bars, snackwells cookies, all 100 calorie pastries, single serving pop tarts, tator -skins tgif, pork skins,trailmixes,animal cookies, the new sunmaid trailmix and apple raisin cookies big seller. etc.etc.etc. I can go on and on there are multiple flavors of all those chips. These are all items that sell I have never lost any of these items because of dates. Set your guidelines study the products educate yourself and when a customer says we need "healthier" items you'll be prepared and you will amaze them with your preparedness. If you already use these items you can say we're already at 40% nutritional or you can say "well you do know that healthier items are more expensive" then raise your prices 20%. Just my thoughts. I hope this helps.
Vend1ng

this is a hall of fame post

very nicely explained

thank you.

[dogcow]

do you think I should have a provision in the sale agreement that if I am not able to continue the operation of this route business that I am not liable for the unpaid balance of the seller-financed Note?

sure why not, i doubt u will get it