Hello all!
After reading plenty of forums/threads, I know I'm at the right place. Awesome members in this site!!
I still have MANY questions and I'd appreciate a word from your experience.
First, here are the given facts and situation:
1. I live in a prime location in Florida. Excellent location for vending machines: lots of kids all ages, lots of walking traffic, good weather almost year-round.
2. I still haven't seen any vending machines in my zip-code. Incredible, right? I'm not assuming any bans, any previous bad business or anything yet. Still open-minded until I due research.
3. I have no start-up cash or credit; laid off, newborn son. Good side: plenty of time in my hands, high energies, positive attitude and very happy.
Now the questions:
1. How should I approach the location managers/owners? What if they are a strip-mall committee of sorts? What's the usual to give them: fixed cash $ each month or a % from revenues?
2. On AVERAGE how much should I expect to sell and earn (revenues and profit) from each machine? (I understand that each location/machine is different)
3. Can I start this business leveraged by itself? Is there some kind of lease-like figure for these machines? If not, what's the least amount I'll need to start?
4. How can I decide what makes most profit; snacks/soda, bulk, toys?
Again, thanks a lot!!
Best,
Michel.
To vend or not to vend?
Started by michel, Aug 16 2010 12:37 PM
3 replies to this topic
#2
SweetTooth
-
- Members
-
- 2 posts
Newbie
Posted 19 September 2010 - 04:50 AM
Start with 1-3 machines and start off slowly. Buy used equipment - every experienced bulk vendor will tell you these things. You can find cheap, quality machines on Craigslist, and who knows, you might get lucky and find an inexpensive route that a bulk vendor wants to get rid of. I started with Vendstars, which many people think are junk but they are cheap and I have made my money back many times over.
Just start small, given your circumstances! Locate your machines yourself, as you will save money and develop a relationship with the business owner.
Charity vending is great, I am affiliated with the National Childrens Cancer Society, so you help a good cause plus you don't have to share the money with the business as with commission vending! Hope this helps!
Just start small, given your circumstances! Locate your machines yourself, as you will save money and develop a relationship with the business owner.
Charity vending is great, I am affiliated with the National Childrens Cancer Society, so you help a good cause plus you don't have to share the money with the business as with commission vending! Hope this helps!
#3
lovinglife702
-
- Members
-
- 9 posts
Newbie
Posted 19 September 2010 - 01:09 PM
Start with 1-3 machines and start off slowly. Buy used equipment - every experienced bulk vendor will tell you these things. You can find cheap, quality machines on Craigslist, and who knows, you might get lucky and find an inexpensive route that a bulk vendor wants to get rid of. I started with Vendstars, which many people think are junk but they are cheap and I have made my money back many times over.
Just start small, given your circumstances! Locate your machines yourself, as you will save money and develop a relationship with the business owner.
Charity vending is great, I am affiliated with the National Childrens Cancer Society, so you help a good cause plus you don't have to share the money with the business as with commission vending! Hope this helps!
Agreed, craigslist/ebay is the way to go. I picked up 10 brand new vendstars the other day for 350 bucks, they may be cheap but at a price like that you cant go wrong. Take your time and ask plenty of questions
#4
markvend
-
- Members
-
- 75 posts
Advanced Member
- Gender:Male
- Location:Midwest
Posted 28 September 2010 - 09:32 PM
Michael,
Based on your situation, I think it would be good for you to start with 1-3 machines as was already mentioned. Getting heavily involved in credit to finance your machines is really not wise, especially for Newbies. It's good for you that's not an option. The best way to build your business with few machines is to be willing to place and REPLACE your machines to get good averages. You multiply your original investment of machines much faster that way. Here's some thoughts on your specific questions:
1. How should I approach the location managers/owners? What if they are a strip-mall committee of sorts? What's the usual to give them: fixed cash $ each month or a % from revenues? If its a great potential account you could offer them 20-30% commission or go the charity route. Strip mall accounts can be good accounts, but I find generally they are mid range accounts for some reason.
2. On AVERAGE how much should I expect to sell and earn (revenues and profit) from each machine? (I understand that each location/machine is different) . The last reported average I heard nationally was $14 a month. Many I have corresponded with online are doing better than this. Its' all how hard you're willing to work your business.
3. Can I start this business leveraged by itself? Is there some kind of lease-like figure for these machines? If not, what's the least amount I'll need to start? ABSOLUTELY you can start yourself, for both money and time. You can start with one and reinvest your profits in new mahcines. It will start to grow rather quickly IF you are committed to getting good accounts.
4. How can I decide what makes most profit; snacks/soda, bulk, toys? Gumballs have the highest profit margin, but theres more to it than that. If your sales are LOW, even though you have high margins, it doesnt give you the cash flow you want. Snack/soda machines require you to service much more often than bulk mahines. A good snack account close to your home can be really nice, but I chose the bulk route to give me great flexibility in servicing. Gumballs followed by Skittles and reeses are good profit margin items. So are bouncy balls and bags of 1" toy capsules at $15 or less. You'll do well if your sales are good becuase these products have good margins. Hope this helps.
THanks,
Mark
Based on your situation, I think it would be good for you to start with 1-3 machines as was already mentioned. Getting heavily involved in credit to finance your machines is really not wise, especially for Newbies. It's good for you that's not an option. The best way to build your business with few machines is to be willing to place and REPLACE your machines to get good averages. You multiply your original investment of machines much faster that way. Here's some thoughts on your specific questions:
1. How should I approach the location managers/owners? What if they are a strip-mall committee of sorts? What's the usual to give them: fixed cash $ each month or a % from revenues? If its a great potential account you could offer them 20-30% commission or go the charity route. Strip mall accounts can be good accounts, but I find generally they are mid range accounts for some reason.
2. On AVERAGE how much should I expect to sell and earn (revenues and profit) from each machine? (I understand that each location/machine is different) . The last reported average I heard nationally was $14 a month. Many I have corresponded with online are doing better than this. Its' all how hard you're willing to work your business.
3. Can I start this business leveraged by itself? Is there some kind of lease-like figure for these machines? If not, what's the least amount I'll need to start? ABSOLUTELY you can start yourself, for both money and time. You can start with one and reinvest your profits in new mahcines. It will start to grow rather quickly IF you are committed to getting good accounts.
4. How can I decide what makes most profit; snacks/soda, bulk, toys? Gumballs have the highest profit margin, but theres more to it than that. If your sales are LOW, even though you have high margins, it doesnt give you the cash flow you want. Snack/soda machines require you to service much more often than bulk mahines. A good snack account close to your home can be really nice, but I chose the bulk route to give me great flexibility in servicing. Gumballs followed by Skittles and reeses are good profit margin items. So are bouncy balls and bags of 1" toy capsules at $15 or less. You'll do well if your sales are good becuase these products have good margins. Hope this helps.
THanks,
Mark
