8 replies to this topic

[BVI]

I've thought and thought about this until I'm not sure I'm thinking straight anymore. I operate in a town that is what you would call a "big, small-town." The number of accounts that can gross over $400 per week are not exactly on every street corner. I have been turning my nose up at smaller locations mainly because I've been buying all-new machines and therefore need to have accounts that can gross $200 to $250 or more per week minimum.

However, due to a lack of what I will call medium to larger accounts around here, I'm considering going after the small potato accounts, but with refurbished equipment (thus, keeping my equipment cost low). I'm thinking that as long as they have at least 20 employees on-site all day with some of those being blue-collar, I could put in a small refurbished generic soda machine and do okay. If they have at least 35 employees, I could provide a refurbished snack machine in addition to the drink machine.

Am I thinking off-base here, or should I scrap the idea?

[kevin]

I've thought and thought about this until I'm not sure I'm thinking straight anymore. I operate in a town that is what you would call a "big, small-town." The number of accounts that can gross over $400 per week are not exactly on every street corner. I have been turning my nose up at smaller locations mainly because I've been buying all-new machines and therefore need to have accounts that can gross $200 to $250 or more per week minimum.

However, due to a lack of what I will call medium to larger accounts around here, I'm considering going after the small potato accounts, but with refurbished equipment (thus, keeping my equipment cost low). I'm thinking that as long as they have at least 20 employees on-site all day with some of those being blue-collar, I could put in a small refurbished generic soda machine and do okay. If they have at least 35 employees, I could provide a refurbished snack machine in addition to the drink machine.

Am I thinking off-base here, or should I scrap the idea?

My best advice is to buy used but not to old if you are going for that size of accounts(no more then 5 years old). I have talked about this before and sometimes if you go small you find really good accounts. Most of my smaller accounts under 35 are not so great but every now and then you find ones where they cant leave for lunch becuase they only have a 30 minute break and the work long hours. Those tend to be very good accounts and even if there not as good as the 80+ people ones. I wouldnt go under 30 unless more then half are blue collar. Most the places in my town are blue colar while the neighboring town is mostly white collar. Also I only have 5 accounts in the neighbor town where I have over 100 in my town (if you include each buisness one no matter how many locations around town). We never turn our nose up to accounts but we also offer alot of services such as paper, coffee, and other product deliveries; so its hard not to find something to offer an account.

[BVI]

My best advice is to buy used but not to old if you are going for that size of accounts(no more then 5 years old). I have talked about this before and sometimes if you go small you find really good accounts. Most of my smaller accounts under 35 are not so great but every now and then you find ones where they cant leave for lunch becuase they only have a 30 minute break and the work long hours. Those tend to be very good accounts and even if there not as good as the 80+ people ones. I wouldnt go under 30 unless more then half are blue collar. Most the places in my town are blue colar while the neighboring town is mostly white collar. Also I only have 5 accounts in the neighbor town where I have over 100 in my town (if you include each buisness one no matter how many locations around town). We never turn our nose up to accounts but we also offer alot of services such as paper, coffee, and other product deliveries; so its hard not to find something to offer an account.

Well, I was thinking that even if I only put a small generic soda machine into an account and it only does $50 per week, or maybe $40 per week, that's an extra $160 to $200 per month in sales, and a gross of $80 to $100 per month extra, and right now I could sure use that. Machine cost would be, maybe $20 per month on a machine that I might pay $1000 to $1200 for.

[Vol Vending]

You could easily pick up a refurbished soda vendor for $1200 or less. I paid $1200 for mine and only charge .50 cents for drinks (.75 for YooHoo). We have had it in a Fraternity house (very random sales) for less than two months, and my partner and I have netted over $150/each in that time.

We assumed it would take a year to break even, now it looks more like 6 months. Like Kevin said, you might find a dedicated location.

Occasionally you see $600 machines out there on eBay, if you can get something decent looking and in working order I would say go for the small fish and see what happens... but I don't know how much money you have to play with.

What do you plan on charging for Drinks? I am considering buying a snack machine to match with my .50 cent drink machine... hoping people spend their whole dollar.

[BVI]

You could easily pick up a refurbished soda vendor for $1200 or less. I paid $1200 for mine and only charge .50 cents for drinks (.75 for YooHoo). We have had it in a Fraternity house (very random sales) for less than two months, and my partner and I have netted over $150/each in that time.

We assumed it would take a year to break even, now it looks more like 6 months. Like Kevin said, you might find a dedicated location.

Occasionally you see $600 machines out there on eBay, if you can get something decent looking and in working order I would say go for the small fish and see what happens... but I don't know how much money you have to play with.

What do you plan on charging for Drinks? I am considering buying a snack machine to match with my .50 cent drink machine... hoping people spend their whole dollar.

I have some larger accounts, and some proposals out there for some more larger accounts, but I had an interest in going after some small fries out there because I found a great source for used / refurbished machines that took away some of the fear I had of using used machines. A machine that does $60 per week can still be profitable if there is not much invested. Small accounts can help spread your risk over a greater number of machines and still add to the bottom line as long as the machines are good and do not cost too much. I was just wondering if there is some line beyond which it just isn't worth it (employee count-wise).

I currently sell CSD cans for $0.55, and I'm raising my bottle prices for most accounts to $1.25.

[coinvestor]

I have some larger accounts, and some proposals out there for some more larger accounts, but I had an interest in going after some small fries out there because I found a great source for used / refurbished machines that took away some of the fear I had of using used machines. A machine that does $60 per week can still be profitable if there is not much invested. Small accounts can help spread your risk over a greater number of machines and still add to the bottom line as long as the machines are good and do not cost too much. I was just wondering if there is some line beyond which it just isn't worth it (employee count-wise).

I currently sell CSD cans for $0.55, and I'm raising my bottle prices for most accounts to $1.25.

I like to find small accounts that do better than I expected. I will try nontraditional locations that other vendors won't even put a machine in to find out how it does. My thinking is the more money I can make from "less desirable" locations, the less likley I am to get any competition for them.

I just put in a snack machine near the bathroom area for an outlet mall. All the big guys in town told them they couldn't touch it. I put in a refurb'ed snack and it looks like its going to do about $50 - $60 a week. I won't make a killing, but thats $200 - 250 a month that nobody else wanted.

I don't think I would ever go under 25 employees unless they had significant traffic. It just isn't worth it from what I have seen. I have looked at lots of routes for sale. They all have some good accounts, but then they all have some very bad ones too. I just don't see making an investment in buying and maintaining equipment to bring in $15-25 a week (half of which is product cost). Its not even worth the gas, nevermind having a changer or validator go bad.

Just my .02

JD

[BVI]

I like to find small accounts that do better than I expected. I will try nontraditional locations that other vendors won't even put a machine in to find out how it does. My thinking is the more money I can make from "less desirable" locations, the less likley I am to get any competition for them.

I just put in a snack machine near the bathroom area for an outlet mall. All the big guys in town told them they couldn't touch it. I put in a refurb'ed snack and it looks like its going to do about $50 - $60 a week. I won't make a killing, but thats $200 - 250 a month that nobody else wanted.

I don't think I would ever go under 25 employees unless they had significant traffic. It just isn't worth it from what I have seen. I have looked at lots of routes for sale. They all have some good accounts, but then they all have some very bad ones too. I just don't see making an investment in buying and maintaining equipment to bring in $15-25 a week (half of which is product cost). Its not even worth the gas, nevermind having a changer or validator go bad.

Just my .02

JD

Your outlet mall account where your snack machine is doing $50 to $60 per week is exacly what I had in mind. Actually, that isn't a bad return at all (it's low for a new machine, but decent for a refurb). These accounts are a quick "in and out and off to the next one", and I like those because they break up my day when I do my larger accounts.

I agree on the 25. And that needs to be mostly blue-collar. Worthwhile as long as there's not much machine cost.

[The Vending Guys]

I have an account at a cabinet shop which has about 20 people building cabinets and 15 people working in the office. I have a USI GF-12/CD-6 there. This place bring in anywhere from $275-$325 a month. It takes me 10 minutes to service this location. I wish I had more of these but its hard to size up a place like that. Sometimes I guess you have to try it out and if it doesn't work then pull it.

I've thought and thought about this until I'm not sure I'm thinking straight anymore. I operate in a town that is what you would call a "big, small-town." The number of accounts that can gross over $400 per week are not exactly on every street corner. I have been turning my nose up at smaller locations mainly because I've been buying all-new machines and therefore need to have accounts that can gross $200 to $250 or more per week minimum.

However, due to a lack of what I will call medium to larger accounts around here, I'm considering going after the small potato accounts, but with refurbished equipment (thus, keeping my equipment cost low). I'm thinking that as long as they have at least 20 employees on-site all day with some of those being blue-collar, I could put in a small refurbished generic soda machine and do okay. If they have at least 35 employees, I could provide a refurbished snack machine in addition to the drink machine.

Am I thinking off-base here, or should I scrap the idea?

[alberta canada]

I have an account at a cabinet shop which has about 20 people building cabinets and 15 people working in the office. I have a USI GF-12/CD-6 there. This place bring in anywhere from $275-$325 a month. It takes me 10 minutes to service this location. I wish I had more of these but its hard to size up a place like that. Sometimes I guess you have to try it out and if it doesn't work then pull it.

Your right, there is never any harm in trying out locations. I have all mechanical machines, none of the electronic machines you guys are refuring to, but between lunch rooms and showrooms like car dealerships, I maintain 50 combination units that make about 4500 in sales a month over 6 days of work (3 runs that i do twice a month). I wish I had more big accounts but a big corporation like Red Carpet Vending here in canada has contracts with basically every large chain of hotels, malls, ect usually national contracts that cant be broken in small towns that they refuse to sevice well. I find the small locations at least keep my machines moving some kind of money while I look for more locations. If a current location is under your break even amount, whatever you set it at, then at least its not in your garage and you can easily reposition it once you find another location to try out. And depending on your costs of referbished machines, the mechanical ones can go for as little as $600 for a combination pop and snack machine... That kind of small investment can even make a $50-$75 dollar a month seem worth while, and you probably wont have to service it as often anyway.

I use to have quite a few in mechanic shops, but the mechanical machines would always get about about 20% theft, so I am slowly pulling them out. I just have to fight too hard to find new locations due to the big guys and their competition. Any suggestions on where you have them that maybe might work for me as well?