14 replies to this topic

[pinto1]

I am in the Dallas area and have ran across ads in the classifieds advertising established routes for sale. I called and talked to them and it all sounds good, but a little fishy to me. The name of the company (atleast what the guy told me) is Discount Vending. I can't seem to find any web info on them. He told me they were some huge company with operations all over the place...blah blah blah... The route I was interested in was 11 soda machines on location, 4400 gross monthly, asking price $15,000. The thing that made me leary of this was he would take 10k and finance me the other 5k, I have always been a payment in full person. But even if they are legit, how do I know that as soon as I buy the route their "big" company doesn't steal the locations back and leave me with homeless machines? I currently have a small route and would like to expand, any info for the dallas area would be greatly appreciated, Thank you.

[Rocksolid]

ask them for their website and ask if they are listed with the BBB. Becareful sometimes vending companies go by a few different names. You can also ask for referrals, but when it comes to referrals I guess they could just give you the name of somebody that works for the company pretending to be a customer.

[pinto1]

ask them for their website and ask if they are listed with the BBB. Becareful sometimes vending companies go by a few different names. You can also ask for referrals, but when it comes to referrals I guess they could just give you the name of somebody that works for the company pretending to be a customer.

Yeah, he said they are accreditted by the BBB, and licensed by the state to sell "business oppurtunities", I've never heard of that but I will keep doing my homework, Thank you

[coinvestor]

Yeah, he said they are accreditted by the BBB, and licensed by the state to sell "business oppurtunities", I've never heard of that but I will keep doing my homework, Thank you

Something dosen't sound right. If the drink machines are really doing $4400 a month he should be able to get his $15000 cash from an existing vending company. That is a decent return. I would think differently if it was a private vendor (not a bizop).

What kind of machines? How old are they?

JD

[philo]

Something dosen't sound right. If the drink machines are really doing $4400 a month he should be able to get his $15000 cash from an existing vending company. That is a decent return. I would think differently if it was a private vendor (not a bizop).

What kind of machines? How old are they?

JD

There is a company online called Discount Vending Supply, but they are not the same company, so be carefull there. The rub might definietly be if they are looking to unload old machines that might need serious work or are losing the locations. Good luck.

Philo

[vendievend]

Speaking of "business opportunities", has anyone heard of YoNaturals? They seem to have a nice business concept (getting healthy alternatives into schools and hospitals via vending machines), but the investment they are requesting is aprox. $10,000/machine for the combo snack/beverage machine, cashless technology, off-site monitoring system and software, training, site location, press release and option to use their product distributors. Is this reasonable or a "blue sky" scam? It seems pricy, but would save a lot of time and energy.

[C & J Enterprises]

From my experiences in the past, I have tried the healthy items and I just quit stocking them because my customers bought the most unhealthy food in the machines. I had one customer that swore up and down that he wanted most of the machine filled with healthy items. A few months later they didn't move much and it all got switched over to regular impulse items. Of course I like to hang around oilfield companies and they don't tend to eat healthy. Another reason that it didn't work for me was that healthy food items are more expensive. The only healthy food that worked for me was granola bars and tuna lunches. Most of the working class likes to get (the most for their money) even if it means buying a huge pastry for the same price of a small health bar.
With that being said, it sounds like the ticket into huge locations like schools that nobody else can touch with regular candy bars and chips. Healthy items may not be what the students crave, but it's all they have to eat. It might be a good machine for a gym or where alot of women work. Good luck with that and keep everyone informed if you do decide to make that business decision.

C&J

[vendievend]

Thanks for your honest opinion, I appreciate your input. I guess my larger question is: how do you know how to identify a "good" business opportunity that packages machines, locations, marketing and distribution channels together for one investment cost vs. a "bad/non-profitable" business opportunity? Is there a general rule of thumb for investment cost per machine? Are there any books or resources available that helps outline the analysis process? Is it typically advised to build your business on your own, or do companies such as Yo Naturals or Fuel Zone provide value that is worth the higher investment cost?

[C & J Enterprises]

Thanks for your honest opinion, I appreciate your input. I guess my larger question is: how do you know how to identify a "good" business opportunity that packages machines, locations, marketing and distribution channels together for one investment cost vs. a "bad/non-profitable" business opportunity? Is there a general rule of thumb for investment cost per machine? Are there any books or resources available that helps outline the analysis process? Is it typically advised to build your business on your own, or do companies such as Yo Naturals or Fuel Zone provide value that is worth the higher investment cost?

Sorry if I ramble on some times. I started my company about 2 years ago with the three headed gumball machines. I saw their ad in the local paper and called. It sounded like a good start up business, but I found out later that they really screwed me. I checked with the better business bureau (after) I bought and found out that they had a different company name that was full of negative feedback. That is the reason I am into drink and snack machines now.
I've never heard of a rule of thumb for buying vending business opportunities but I would never buy one again. Research very carefully and the best way I think is to check with other vendors and see what they have to say about the future investments. I would check into a franchise if you want a solid company with a reputation. The drawback is that they know exactly how much their company is worth but the good thing is there isn't much guess work involved. There is nothing wrong with building your own company. I've more than tripled my profit each year since I started with no sign of slowing down!

C&J

[vendievend]

Congratulations! That is quite an achievement. The more research I do, the more it seems to make sense to put in the leg work and build a vending business from scratch. There is just so much information to sort out, I still don't know where to begin. I know that I want machines that are combo snack/beverage, with bill acceptors, cashless technology, and off-site monitoring capabilities if possible. Are there a few brands that are recognized as being 'state of the art' and/or reliable? I looked at the Automatic Merchandiser buying guide, but it doesn't rate companies or equipment. Where did you even start? What resources would you recommend?

[C & J Enterprises]

Congratulations! That is quite an achievement. The more research I do, the more it seems to make sense to put in the leg work and build a vending business from scratch. There is just so much information to sort out, I still don't know where to begin. I know that I want machines that are combo snack/beverage, with bill acceptors, cashless technology, and off-site monitoring capabilities if possible. Are there a few brands that are recognized as being 'state of the art' and/or reliable? I looked at the Automatic Merchandiser buying guide, but it doesn't rate companies or equipment. Where did you even start? What resources would you recommend?

That is quite a list of equipment, where do I start? First, bill acceptors are almost a must, don't even bother with coin-only machines because you would miss tons of sales. Cashless technology is something I'd like to learning about. It's new technology that you might have a hard time buying used or refurbished if needed. I'm thinking it would be expensive but let me know what you find on that. Off-site monitoring is another thing I'm not very familiar with. I've seen the programs but I don't have a large enough company to use that yet. I just use plan-o-grams or charts of what is in each machine and carry enough product to last a day or two on my van.
I have several different brand name machines all (28) being bought refurbished. I seem to have more electical problems with my Rowe snack machines. I have Automatic snack machines that work perfect so far after I upgraded to Mars bill validators. The National Snack Machines sometimes have a few electric problems. Drink machines are easy. Dixie Narco, Vendo and a Royal are all good machines. In fact, all of my vending machines (drink and snack) work well, but with the drink, I have about the same amount of can or bottle jams in the vendos as in the dixie narco's. I only have one royal drink vending machine with no problems. This is only through experiences with my machines.
Over all, refurbished or new these machines are all commercial quality and are work horses. Remember, these are machines and problems can and will go wrong so make sure you have a company that offers technical support to walk you through the process if you get stuck. Don't count on your owners manual to help with everything. If you need names of companies, I could give you two but both specialize in reburbished machines. I didn't buy new because I could buy more machines and I also didn't want to lose a ton of money if I decided this wasn't the business for me.
I hope this at least gives you an idea of what my company does. Any improvements or suggestions to my system of working would be greatly appreciated. Remember, once you think you know everything is when you stop learning.

C&J

[coinvestor]

C & J,
Where do you get the tuna lunches from, and how much do you sell them for?

Thanks

JD

[tedk]

C & J,
Where do you get the tuna lunches from, and how much do you sell them for?

Thanks

JD

JD:
I'm not sure if it is the same thing but Sam's sell a Tuna and Crackers lunch. It comes six per box and it is in the canned fish and meats aisle. In Canada they sell it for $1.29 each. I sell it for $2.00. I have also seen it at one of my wholesalers. They have a salmon one as well.
Ted

[coinvestor]

JD:
I'm not sure if it is the same thing but Sam's sell a Tuna and Crackers lunch. It comes six per box and it is in the canned fish and meats aisle. In Canada they sell it for $1.29 each. I sell it for $2.00. I have also seen it at one of my wholesalers. They have a salmon one as well.
Ted

Thanks Ted, I looked at sams online and didn't see them at my sams. I have a location looking for stuff like that. Does anyone vend canned soup from a snack machine?

JD

[C & J Enterprises]

Thanks Ted, I looked at sams online and didn't see them at my sams. I have a location looking for stuff like that. Does anyone vend canned soup from a snack machine?

JD

I'm not sure if all of the Sams clubs offer the tuna lunches but that is where I buy them. If you cannot buy them in the club you can look at samsclub.com and find food and other items sold only on the internet. I sell the tuna lunches for $2.00 also but I saw them this evening at wal-mart for $2.19. I'm not sure if the price is going up or it was in the wrong place on the shelf but you can also find chef boyardee and other microwavable meals at wal-mart that fit in most machines. Be carefull though, not all locations are going to buy meals for more than around $3.00 if they have fast food around. They can take up space in your machine that you can be selling chips or other items and make more profit per item.

C&J