35 replies to this topic

[coinvestor]

Does anyone have drink and snack in a car dealership (ford, Chevy, Honda)? The dealership has about 40 employees, but I would need to buy 2 new machines to get in. Any ideas on sales or insight appreciated.

Jeremiah

[jblvending]

Does anyone have drink and snack in a car dealership (ford, Chevy, Honda)? The dealership has about 40 employees, but I would need to buy 2 new machines to get in. Any ideas on sales or insight appreciated.

Jeremiah

Does it have a service area,thats where you will make your money.Also make sure you just put a snack and drink, do not invest in a sandwich machine for a 40 ppl.The reason I say service area is because it's the guys working on the car, and the customer waiting on there car thats gonna use those machines, every now and again the salesmen wonders in for a coke and snack.

[coinvestor]

Does it have a service area,thats where you will make your money.Also make sure you just put a snack and drink, do not invest in a sandwich machine for a 40 ppl.The reason I say service area is because it's the guys working on the car, and the customer waiting on there car thats gonna use those machines, every now and again the salesmen wonders in for a coke and snack.

Yes, it has a service area. No sandwich machine, I'm trying to see how big I can get before I have to do sandwiches. Any thoughts for a sales number?

Jeremiah

[jblvending]

Yes, it has a service area. No sandwich machine, I'm trying to see how big I can get before I have to do sandwiches. Any thoughts for a sales number?

Jeremiah

Hard to put a number on what it will do,I'd say about $120 a week, depends on traffic.If it's the only dealer in town may do more.I Don't really put machine in a account with less than 50 unless they work 24-7.

[tedk]

Does anyone have drink and snack in a car dealership (ford, Chevy, Honda)? The dealership has about 40 employees, but I would need to buy 2 new machines to get in. Any ideas on sales or insight appreciated.

Jeremiah

I have a Kia dealership with 35-40 employees. I can easily service it with a combo machine. For the first couple of years it did about $ 60.00 a week. About 6 months ago they bought a popcorn machine and it has killed the sales. They are down to about $ 40.00. (The weekly Friday barbeque isn't helping either) Hopefully thing will improve in the fall and winter months.

Unless yours is a really good size dealership you might want to think about starting off with 2 new machines.

Ted

[BVI]

Something else to consider are the demographics. The more mechanics there are, the better. Blue collar workers spend the most. Also, the more men the better since men buy a lot more from vending machines than women. Are most of the salespeople men? I would say most likely, being car sales and all. I think $150 per week is probably a good estimate... remember, these people work Saturdays which will in turn help your numbers.

[coinvestor]

Something else to consider are the demographics. The more mechanics there are, the better. Blue collar workers spend the most. Also, the more men the better since men buy a lot more from vending machines than women. Are most of the salespeople men? I would say most likely, being car sales and all. I think $150 per week is probably a good estimate... remember, these people work Saturdays which will in turn help your numbers.

Thanks for all the posts!

I drove by there Friday. All their drinks are set to 50 cent, chips 40 cent, and candy 65 cent. Ouch!!

They said they would be okay with a price increase across the board for new machines and better service, I just don't think that I am willing to put up with the price haggling on every visit.

Jeremiah

[kevin]

I do Hyundai, Nissan, Toyota, Dodge, Crysler, 2 major used dealerships and I am about to move into the next town over and do all the same there. As far as profits dealerships are amazing return. The pitfall for me is the constant complaints even when there is nothing wrong. I run around 200-650 per account. To give you a better idea:

Hyundai: 20-25 emp = $250 (2 machines)
Dodge, jeep: 45 emp = $600 (7 machines)
Toyota: 45 emp = $550 (4 machines)
Nissan: 25 emp = $200 (2 machines)

The machine placement is key. As of right now all dealerships offer better rates on new cars for oil changes. Since this started in my area my profits have increased alot. I also use Mostly my own machines and sometimes that can be hard since I have to have the flashier ones at car lots. For instance I have a $5000 Royal Vision Vendor at Toyota and I have a $3000 AP A La Carte at Dodge. Though the profits average out within the first year or 2 depending on account and other equipment used. I also use 3rd party whenever possible at car lots because they usually dont care, and if they do you can do both Pepsi and Coke machines in same building if allowed in your area. Also as stated above about the popcorn machines, all of my accounts have them right next to my machines and it does not hurt the sales. Just offer a big verity and make sure your machines are seen by everyone and not just the salesmen.

Sorry that was so long

[coinvestor]

I do Hyundai, Nissan, Toyota, Dodge, Crysler, 2 major used dealerships and I am about to move into the next town over and do all the same there. As far as profits dealerships are amazing return. The pitfall for me is the constant complaints even when there is nothing wrong. I run around 200-650 per account. To give you a better idea:

Hyundai: 20-25 emp = $250 (2 machines)
Dodge, jeep: 45 emp = $600 (7 machines)
Toyota: 45 emp = $550 (4 machines)
Nissan: 25 emp = $200 (2 machines)

The machine placement is key. As of right now all dealerships offer better rates on new cars for oil changes. Since this started in my area my profits have increased alot. I also use Mostly my own machines and sometimes that can be hard since I have to have the flashier ones at car lots. For instance I have a $5000 Royal Vision Vendor at Toyota and I have a $3000 AP A La Carte at Dodge. Though the profits average out within the first year or 2 depending on account and other equipment used. I also use 3rd party whenever possible at car lots because they usually dont care, and if they do you can do both Pepsi and Coke machines in same building if allowed in your area. Also as stated above about the popcorn machines, all of my accounts have them right next to my machines and it does not hurt the sales. Just offer a big verity and make sure your machines are seen by everyone and not just the salesmen.

Sorry that was so long

I assume, but just thought I would ask. These are monthly numbers?

Jeremiah

[kevin]

I assume, but just thought I would ask. These are monthly numbers?

Jeremiah

No weekly. Sorry I wasnt more specific. Some use to do worse but most of it was just figuring out what everyone liked and since 7-11 went to a 1.29 on softdrinks I do very well. I also sell a ton of energy drinks for $2 and $1 for bottles. Only sell bottles because they dont want to have something that can spill.

[jblvending]

No weekly. Sorry I wasnt more specific. Some use to do worse but most of it was just figuring out what everyone liked and since 7-11 went to a 1.29 on softdrinks I do very well. I also sell a ton of energy drinks for $2 and $1 for bottles. Only sell bottles because they dont want to have something that can spill.

Kevin, do you service these locations once a week, are twice a week?

[kevin]

Kevin, do you service these locations once a week, are twice a week?

That depends on the time of year mostly. Since its over 100 degrees right now drinks are going fast and most of them are done twice a week. Some dont have enough machines due to the designated areas not being big enough. Like Nissan could use another Drink machine and Toyotas machines are scattered so some do alot more. I do have to offer free coffee machines with my vendors along with 4 boxs of coffee a week for free. That only costs me about $50 a month but the ones that I do this for are the better accounts and sometimes they dont use all the coffee during the summer.

[coinvestor]

For those interested I have taken on this account. I should have machines in by next friday and will update with about what I'm seeing. Thanks for the input from all.

Ted, just incase you were wondering I have increased all of their prices prior to entering an agreement

Jeremiah

[jblvending]

For those interested I have taken on this account. I should have machines in by next friday and will update with about what I'm seeing. Thanks for the input from all.

Ted, just incase you were wondering I have increased all of their prices prior to entering an agreement

Jeremiah

Good job, keep us posted on your success with this new account.

[tedk]

That depends on the time of year mostly. Since its over 100 degrees right now drinks are going fast and most of them are done twice a week. Some dont have enough machines due to the designated areas not being big enough. Like Nissan could use another Drink machine and Toyotas machines are scattered so some do alot more. I do have to offer free coffee machines with my vendors along with 4 boxs of coffee a week for free. That only costs me about $50 a month but the ones that I do this for are the better accounts and sometimes they dont use all the coffee during the summer.

Good job Jeremiah. That is a lot easier to do before you go in than after.

Ted

[BVI]

I had an appointment with a car dealership last week on a side of town that I currently do not service, and I think I'm going to take a pass. They have 1 soda and 1 snack in the service area and have problems with outdated snacks. My experience is that when this happens and the snack selection is at least fairly good, it usually indicates a slow-moving location.

At least, the few locations I have where I really have to watch expiration dates, I usually end up pulling these items ahead of time and transfer them to another location where they will sell within a day or two. Some vendors might get lazy and not transfer items when they need to and instead accidentally leave them in the machine and then pull them when they really are expired. However, I see this as more of a location problem and not a vendor problem. And since I don't want any more slow locations or locations that are way too picky about selection, I'd rather take a pass. Especially when I'm not on that side of town anyway.

That said, if the problem was that they were constantly running out of stuff, obviously, that's a good problem and I probably would be jumping on it.

[jblvending]

I had an appointment with a car dealership last week on a side of town that I currently do not service, and I think I'm going to take a pass. They have 1 soda and 1 snack in the service area and have problems with outdated snacks. My experience is that when this happens and the snack selection is at least fairly good, it usually indicates a slow-moving location.

At least, the few locations I have where I really have to watch expiration dates, I usually end up pulling these items ahead of time and transfer them to another location where they will sell within a day or two. Some vendors might get lazy and not transfer items when they need to and instead accidentally leave them in the machine and then pull them when they really are expired. However, I see this as more of a location problem and not a vendor problem. And since I don't want any more slow locations or locations that are way too picky about selection, I'd rather take a pass. Especially when I'm not on that side of town anyway.

That said, if the problem was that they were constantly running out of stuff, obviously, that's a good problem and I probably would be jumping on it.

BVI, couldnt have said any better than that, you picked on key words the customer stated, on top of that you used the magic word TRANSFER, if you service a location, and fill the row up and go back and that same row is still full, it ain't goona sell, you transfer it, right then, right there, move it to an account that you know will buy it.We have a zero stale rate, we do not have stales ever, we transfer everyday, we do not wait for a week left on the code, we transfer anything that has 2 weeks left, because we have Schools that sell out each day, and we know it will move in those machines.Guys, is real easy and a real cost savings to do this, and it takes no more time to do, we also change postions of chips in each machine to give a pperance of something different, and never put 2 of the same colors side by side(chip bags) it gives the apperance of the same thing.

[coinvestor]

Well the snack machine will be going in tomorrow. I am having a hard time getting coke and pepsi to pick their machines. I was thinking about having my machine movers pick them up and move them to a back area (on a wall without a plug of course). Has anyone done that before. Its been over 2 weeks since they have been called.

Jeremiah

[clvending]

Well the snack machine will be going in tomorrow. I am having a hard time getting coke and pepsi to pick their machines. I was thinking about having my machine movers pick them up and move them to a back area (on a wall without a plug of course). Has anyone done that before. Its been over 2 weeks since they have been called.

Jeremiah

I would say as a vendor operator...your goal is to provide service to your customer. If coke and pepsi are not concerned about their machines...you should not be either. I would move to a safe location that is out of the way...My opinion.

Lee

[kevin]

Well the snack machine will be going in tomorrow. I am having a hard time getting coke and pepsi to pick their machines. I was thinking about having my machine movers pick them up and move them to a back area (on a wall without a plug of course). Has anyone done that before. Its been over 2 weeks since they have been called.

Jeremiah

I have had to do that more then once. Ive moved cokes machines through doors and down elevators without their permision. I do have a close relationship with them though. I have also moved my competitors machines and I usually turn them around facing the wall. I try to make it hard on my competitor so that they dont screw around. The last two times they got the call they were there the next morning.

[coinvestor]

Well I got the snack machine put in today. Its a new HR32 and I will be putting in a BC10 (or CB10, I can remember).

I took my lashes over the price increases. I found it was about a 50/50 split. Half said it doesn't matter what the price was when they get hungry they will buy it. The other half went through the I can get get it cheaper than that at the store, which isn't true. I had one guy ask what the chocolate price was when I told him $0.75 he said "thats just not right" and walked off before I had a chance to answer him.

Overall I'm glad I'm taking my beatings now. They had below market prices because they had 20 year old machines that didn't take dollars (one of the two drink machines took dollars the snack didn't). If I find that the location does decent volume I will be making good money instead of squeezed margins (thanks for the price kick in A$$ Ted).

I will be going back Monday morning to move the Coke and Pepsi machine into a storage area and put in my drink machine.


Jeremiah

[kevin]

Well I got the snack machine put in today. Its a new HR32 and I will be putting in a BC10 (or CB10, I can remember).

I took my lashes over the price increases. I found it was about a 50/50 split. Half said it doesn't matter what the price was when they get hungry they will buy it. The other half went through the I can get get it cheaper than that at the store, which isn't true. I had one guy ask what the chocolate price was when I told him $0.75 he said "thats just not right" and walked off before I had a chance to answer him.

Overall I'm glad I'm taking my beatings now. They had below market prices because they had 20 year old machines that didn't take dollars (one of the two drink machines took dollars the snack didn't). If I find that the location does decent volume I will be making good money instead of squeezed margins (thanks for the price kick in A$$ Ted).

I will be going back Monday morning to move the Coke and Pepsi machine into a storage area and put in my drink machine.
Jeremiah

I guess Im lucky, I can keep my prices below my competitor since they are high and I also use better or retrofitted machines. Though you will always take a beating coming in no matter what. I still have accounts that are at 80 cents on bottles and if I try to go up[ I will loose them and they will go with someone else just in spite, thats one thing I will never understand.

[coinvestor]

I guess Im lucky, I can keep my prices below my competitor since they are high and I also use better or retrofitted machines. Though you will always take a beating coming in no matter what. I still have accounts that are at 80 cents on bottles and if I try to go up[ I will loose them and they will go with someone else just in spite, thats one thing I will never understand.

What size bottle for 80 cents? How much do you pay for 20oz?

Jeremiah

[kevin]

What size bottle for 80 cents? How much do you pay for 20oz?

Jeremiah

20oz and I pay from 14-16 a case. We are making money and we only do it with big accounts. They are usually a $1

[BVI]

I pay $15.60 (Coke) and $16.50 (Pepsi). I avoid vending bottles like the plague. It's a losing proposition no matter how you look at it. Yes, you'll make a little bit, but it's just not worth it. I only put bottles in 3rd party machines and never in any machine that I'm paying off.