VENDINGCHAT.COM

Just for clarification we handle all freight...all I need is machines to be strapped to a pallet (preferably wrapped). If nobody has machines for sale, can you recommend anybody in the business? I deal with 3-4 companies that refurbish but none have newer snacks..they all seem to be older.

I have used http://www.southernequipmentsales.com/ several times. Others on this board have used him also. I have had no complaints.

JD

This dealership has two drink and two snack machines doing about $2000 per month gross. Dealer wants $500 per month commission.

Sounds a little high you think or about par for the course?

That is insane........

Stay away, even if you can find some pricing that works. Trust me you don't want greedy stingy customers, they are not worth the hassel.

JD

Sometimes... I have some outdoor accounts, machine is cooled but direct sunlight cuts life. I'm also based in the desert area of southern california... so heat is a problem @ 120 degrees... We have to have battery operated freezers in trucks because the interior of the truck can heat up to 100 degrees in less than 10 mins.

What kind of battery operated freezer do you use? I looked into thermoelectic, but could not find one that I was happy with. I use a free non-working upright freezer from craigslist. I ripped all the guts out of it, but left the shelves in it and use it as a big cooler. I throw 1-2 ice packs in the door and its good all day, but I'm not in the desert

JD

If this is your only account. You should expect about 25%... I have over 100 machines and I'm running about 3-5% on chips, but I run a little higher on candy and pastry because of the warmer weather.

Why are you dumping candy? Is from melting in the machines?

JD

Thanks, I am still looking for the location, but will probably settle for an indoors, offices or bank or something like that.

Find a location first, then find the proper machine to fit the location. I would avoid mechanical machines.

JD

Can anybody tell me what is a better option for first buy machine - mechanical with coin changer attached (and 25% cheaper) or electronic with slightly larger capacity (and 25%more expensive)?
Thanks in advance for the advice.

Please tell us about your location first.

JD

Hi, I am looking to purchase new machine (soda-snack combo). Found this company RPM VENDING. Has anyone had dealings w/ them, could anybody tell me more about them, please. Also, if anyone would recommend a good company they've dealt with, I'd really appreciate it.
Thank you.

I have bought 4-5 coin changers from them before. I never had any issues buying from them. They sell on ebay and offer there best pricing there (or at least they did).

JD

Can you deduct expired product as a cost of goods for tax preparation?

If you use the "cash method" of accounting, wasted product will be included in your product purchases and will be excluded from sales by default.

JD

We sell LeBleu and Deer Park 20oz for .75 - .80 each. They sell great in the summer and not so good in the winter.

JD

Hi- We need some help!!! We've purchased some machines from Profitt Vending (another subject I won't get into at present), and one of them is placed in a middle school. These machines hold over 100 cans, and we had worked with the school office to put together a list of canned, non carbonated, juice drinks which initially sold like gangbusters- everyone was happy, we thought, including the school administration who had feared that kids weren't eating and hydrating because they didn't like what the cafeteria served up much of the time. However, the machine is located near the cafeteria, and the cafeteria employees complained to the Wellness Coordinator for the city school district, who told us that everything we had except bottled water didn't meet the standards.
I'm sure there are other underlying reasons why the cafeteria folks called this in (isn't it always about the money?), but here is our situation. We have a need to fill just over 100 cans for up to three selections- here are the requirements:

* the slots work best and are made for 12oz cans- but can be shimmed for slightly smaller cans
* the cans need to be 100% fruit juice
* the cans need to be 125 calories or less

The list the school provides is all juice boxes and bags, which won't work in our can slots. Does anyone out there know of a canned product that will work for us? Aside from doubling the price, the machine won't be worthwhile for us to keep in the school if we can't use these slots- cost of driving to the school to refill will outweigh the profit. It's an odd situation, the school administrators roll their eyes and apologize to us regarding the cafeteria people, as though they're at odds.

Help!

The cafeteria workers are most likely contracted through a food services company. These companies spend alot of time and money conforming to the diet restrictions in school cafeterias which is why they are so sensitive to competition.

I thought that pepsico had a planogram to meet these requirements, but I can't find it now. You can poke around here:

http://www.vending.c...liates/Pepsico/

Is there nat any other vending in the school now?

JD

Thanks for the input. I can't even get the guy to call me back on our appointment time. maybe he sold it to someone else, who really knows.

But thanks again for the input. I do want to get started but being new I am hesitant to make the investment without a location. How did you guys get started? Locations first or machines first?

Always location first............................

You may also see if he's willing to accept a down payment and pay the rest off in a month (or more). This will at least keep him honest and you won't be as far into it if he is not being totally honest. However on the surface it does sound like a good deal.

Keep in mind that you can check the non resettable cash counters on the new machines to check his income numbers.

JD

I think he means... is he charging .40 for a soda or .60? Is there room in there for raising the price? Is there a contract or worse an understanding with the client not to raise prices? Make sure you get a sale contract that included a non-contact clause. Its the new scam now. Sell a route, let it run for 90 days and the client kicks out the new guy, calls the old guy and he gets his route back, and you're out of $$$.

Like Agee said, you need to look at his prices in the machines and compair them to your cost. Is he selling stuff at twice the cost?

Good luck,

JD

Find out what his prices are set at. The numbers look good, but you need to make sure that his prices are set right.

JD

It's the cylinoid that has gone bad more than likely. You have to either repair it or replace your whole coin mech. Cost around $80 to $100 for replacement coin mech and around $40 - $50 to repair.

C&J

It could also be that the changer thinks that the tubes are full, so it could be bad tube sensors or they may just need to be cleaned. Midtenn suggested this on one I had and it fixed it. In my case it was only doing it with the quarters not all the tubes, so C&J's suggestion is more likely in your case but you could try cleaning before spending the $$.

JD

I should explain some other reasons for leaving Vistar and going back to Sam's.

First, I am ALWAYS getting chips in with open seams. I'm not talking about an occasional bag here and there. It happens repeatedly with each delivery. At times, simultaneously among as many as 4 different brands. Frequently, as much as 50% or more of the bags are not sale-able of an affected brand. I just went through 3 boxes of a bad batch of Lay's Original in where there were little pinholes in most of the bags -- ants got inside some of the bags and I had some customers discover this, unfortunately. The worst offenders I have found so far: Andy Capp, Lays Original, Austin Zoo Animal Crackers, Snyder's Buffalo Wing Potato Chips (big holes punched through the bags).

I depend on once-a-week deliveries -- so if my entire delivery of one or more products is bad, it really puts me in a bind since I have to wait a week for an exchange to take place. Not good.

Second, Vistar is not cheap. When I get bad product from them that I don't get credit for, it makes them outrageously expensive.

Third, I have gotten bad pastry from them frequently. Some of it has been stale upon receipt (Freshley's Texas Cinnamon Rolls were the most disgusting pastries I have ever seen or tasted), and my Dolly Madison Zingers have occasionally molded between the cakes after just 2 to 3 weeks in some cases. Again, this creates more waste and makes their already high prices nothing short of outrageous.

Yes, Vistar does have a great selection, but that is all they have. My experience with Vistar is that they apparently charge a premium for second-rate or irregular product from the same suppliers that Sam's Club gets their product from, except when you buy it from Sam's Club, you can depend on getting great product with very little or no irregulars. Plus, they are much less expensive.

Good-bye Vistar.

Since BVI mentioned this a couple of weeks ago I started running some COGS numbers which I have not done since gradually switching mostly to Vistar over the last 7 months. My COGS for the 1st quarter of 08 was 47% which is consistent with last year. In the second and third quarters of 08 my COGS was 56.5%.......... Ouch!

Since these numbers come from comparing my gross sales to my total for product cost these numbers can get skewed when you fill new machines or begin hold more inventory. So I had to figure it a different way. I compared item cost with actual order QTY's, this does not include the $15 delivery charge (per delivery). I have calculated that Vistar is costing me $500 profit per month vs buying at Sams. This $500 is equal to $1000 a month in sales with a 50% COGS, so instead of adding a new account I am considering going back to Sams for most of my product too.

I have not had quite the product quality problems that BVI is seeing, most of my problems are order quality. I get stuff that I didn't order and stuff that I did order are not there. My last two orders had cases of Yoohoo that were busted. This makes the storage unit smell great after a couple of days The can drinks that I have been ordering from them have an incredible amount of dirt and dust in the top where you put your mouth. I have gotten dirty drinks before from sams, but I would just blow them off with compressed air. The drinks from Vistar are dirty, then they transport them on a refrigerated truck, when they pull them out of the truck the cans form condensation and it glues all that crap in. I have been throwing out drinks because of this.

Vistar is no different than our vending services. The products are the same, so all they really have to sell is service. I am willing to pay higher prices for better service, but I am intolerant of poor service at this pricing level just as my customers would be.

JD

PS The cases of coffee I buy at Vistar have gone up $2.70 (19%) in the last month and a case of coffee at Sams has not changed, so it can't be a commodity fluctuation.

I checked my machine again today and i beleive the water leaking onto the floor is coming from condensation build up along inner door and ceiling. And seems the water is not draining toward the tube that leads into pan. I have the tube running into a milk jug which may be 10%full at most in 1 week.

Make sure you have a good seal on the door and the flap where the drinks come out is closing properly. Check and see if water is standing in the area above the tube and make sure tube is not clogged. You can blow backwards through the tube to clean it out. Since you are collecting water in your jug the tube is probably not clogged. By using a milk jug you are inhibiting the evaporation process, which is how this water is normally disposed of (small opening with no room for air flow).

If all this checks out then the refridge system may be failing and need to checked and possibly refilled.

JD

I am taking over a vending business and the soda machine was already installed and leaking. the soda machine keeps leaking water towards the front left side of my machine. I checked the drain pan and it is never full. Everyday i seem to have a puddle of water coming from under my machine. i will update with model info if needed (cant think of it off my head). Any suggestion tips or tricks will greatly be appreciated. I thought of placing a large tray under machine to help keep the water contained but cant seem to find a large enough tray.

Moe,
You said that the "drain pan is never full" and you "can't seem to find a large enough tray". Is the water making it into the drip pan in the bottom of the machine? If not, then clean or blow out the tube that leads into the drip pan.

JD

I just bought out another local vendor that uses all coinco changers. When we completed the transaction he took about 80% of the change from the changers (by holding the coin dispense button). I came back and filled the changers back up, but the quarters stay at the same level since the deal was completed. The nickels and dimes stayed full, but the quarters will dump into the change bin until the changer is back to the same level (about 10-15 quarters). I thought about the HI/Low setting, but I know that they working right when I bought them. Any thoughts.

Thanks

JD

Where do you guys buy your bulbs for your drink machines. I am looking for 64T12's that have only the single termination on each end. The only places I can find them online you need to buy a case and I don't have a need for $200 worth of bulbs. I have tried the local electrical supplers and Lowes and HD. Any thoughts?

Thanks

JD

Try NBS Inc. from South Carolina @ 1-800-325-9021. They may have a website.

Thanks midtenn! I always saw there ad in magazines, but then I can't find the ad when I need one.

JD

Does anyone know where to get the "Cold Drink" fronts for drink machines. I have ordered custom fronts from tuffronts before, but I just want cheap generic fronts.

Thanks

JD

I need to order a couple rebuilt changers and validators. I was using Warren Money Systems, but they went out of business. Can anyone suggest a good place to order rebuilt changers and validators that will also rebuild the ones I have? I have found lots of places that do it, but I know that some are better than others.

Thanks

JD

Have you guys really thought this out. Forget all the salesman stuff, look at the heart of the matter. You have one control system that is not mainstream, when you have problems and you will just like all other brands, who do you call, your local repair guy or someone who can help you fix your own problems with cheap parts? No you call the original company you bought from and get stuck with a high bill when you could have gone mainstream. What if you have a dollar bill jam? do you lose one machine until you fix it? No, you lose all of your machines. What about capacity? The machine holds so little that even a mediocre accout will require constant service whereas a mainstream full size machine(s) would hold much more which is better for you and your account. Filling, a cartridge somewhere takes just as much time as filling the machine in person, you don't save time and can't make on the fly adjustments as easy as a normal machine. What if Doritos don't sell this week, your prefilled cartridge is filled and now you have to take the other cartridge home and unstock it just to restock another. This is a machine that benefits only one entity and that is the seller. Think twice. Good luck.

Any real vending equipment supplier knows that machines are usually purchased one or two at a time to fill the requirments of an account. I have never been made to feel like my small equipment orders were not good enough because the supplier knows that if I'm happy I will call them the next time I get an account. The only reason to sell you ten machines at one time is because they either know that you won't be happy, or know you won't survive long enough to ever gain a new account.

Like Scott said your problems with dates will be magnified 2-3X what they would be with normal machines. FIFO is a great thing (first in first out). Your product that was aging all week in your machine will then end up back in the "warehouse" aging again for a week until you go back to service the account, so every 1 week of potential selling time your product ages 2 weeks. Your product will be aging faster and you will have to carry twice as much inventory since you have whats in the machine plus another machines worth of product.

The machines are "neat" but I would reccomend staying away from them.

JD

Don't ever be the one to bring up commission in a negotiation. If you bring it up, they will expect it. If you bring it up, you will lose.

If the prospect brings it up, explain the rationale for not paying a commission (keeping prices low, providing better equipment, more frequent service, etc...). Then stick to your guns. If they insist on a commission, I would kindly tell them you are not interested and then leave. Believe me when I tell you I have no problem telling any prospect I am not interested. Don't be so desperate to get a new account that you make a commitment that you later wish you had not entered into.

The misunderstanding here is that paying commissions will get you accounts and help you keep accounts. This is pure bunk. This is a relationship business. Providing great service is what will get you accounts and when others come knocking on their doors, it is what will keep your accounts. No amount of commission will keep an account for you if your service is mediocre or poor. You must understand this or you will create more work and expense for yourself than is necessary.

BVI,
Have you ever taken an account that was getting a commission, but they decided to not take a commission and go with you?

I'm just getting frustrated with my area. So many prospective locations here have prices that are way too low. Some still have candy and pastry at .60 and this is a fairly large vendor with 4-5 people working for him!!!! Then I find accounts that have halfway reasonable prices that I could take over without too many price increases only to find that they are getting commissions (which is the only reason the prices are reasonable).

I only have one account right now that gets a commission (10% of gross sales).


JD