Full time bulk venders

[lbizzell78]

How many machines do you own .How did you get to where you are?How long did it take you ? How do you work your schedule and run your business and keep account with everthing?Just a few question i know many want reply but i cant hurt to ask anyway .Please shed some knowledge here.

[madisonclockco]

Here is the makeup of our business...

-  Around nine hundred 3 and 4 select, bulk vending machines. These are the best of the best machines that we have seen.

- 43 coke machines

- 20 snack machines, and 2 more on the way

- 4 employees including myself

It took a couple years to do the business fulltime.

When it comes to bulk vending, the more headsyou have on location the more money you make. E.G. If you had a Coke machine that only sold Coke Classic, your sales would suffer. But if you sold Diet Coke, Sprite, and other selections you'd do much better. Make sense?

Take a look at the REALLY big guys. They do coke & snack machines (I know a guy who has a $15 million /year coke & snack machine business). Also they do racks & cranes in bulk vending --- specifically they have alot of heads at one location. Take a look at any rack. Also they sell candy, gumballs AND toys. We sell all 3 of those in our 3 & 4 head bulk vending machines...while most people sell just candy & gum. And we make a killing. Remember toys never go bad and they sell fast. Also PMMs sell great too!

Good luck!

John

 

 

 

[Jax Snacks]

Way to go John, 900 Locations! That IS impressive and I tip my hat to you. Yea, I agree 100% on the toys, those toys have been the key to my going full time. Without toys, I would still be working my old software consulting job and still dealing with insane projects.  Anyhow, candy alone just doesn't cut it in most places (and the bizops don't want you to know that). There still is a place for candy and gum (but no nuts here - low margin, short shelf life, bug hatching's and a big hassle to clean up). Merchandising and mixing those three product types (candy, gum, toys) at each location is the key. Commission racks can also really rock but there is still a place for charity as well. I look at the route as a mutual fund and try to keep as much diversity as possible and not have any of my gumball eggs in any one type of basket. So if I am asked if I do candy, gum, toys, doubles, triples, quads, racks, shootin hoops, gas pumps, one inch, two inch, charity, commission, industrial plants, restaurants, business break rooms, hotels, automotive, etc. - I reply all of the above (but never, never nuts!) We all start as charity candy vendors, but we need to diversify in order to grow and survive IMO and .02.

Jax

[Outlander]

John,

Sounds like you have enough to keep yourself busy. You indicate you have 4 employees, are they family, friends or hired hands? Being a cash business do you have any problems with theft from the "inside"? We have a similar number of 3-head bulk that I and my son operate.

[madisonclockco]

My 3 employees (1 full-time, 2 part-time) are not related, no. Theft has not been an issue. This has been a concern for all vending companies, forever. The 2nd trick below has worked really well for us.

The keys to avoid theft are:

- Compare the amount of replacement product put inside machines vs the amount of money removed from the machines; this will never be 100% accurate but will be relatively close

- Spot check a few machines, a day in advance of the employee going there. Be sure you tell your employees that you do this (just don't tell them when you do it) --- and if there is any discrepancy they will be fired or disciplined immediately.

- Most larger machines have meters (cranes, coke & snack machines)

- Though we do not use these personally, you can use the EZ Count meter on most bulk vending machines (see http://www.ezcount.com/ )

[EZcount]

FYI.... EZcount not only works on bulk vending machines but snack, soda, kiddy ride's, cranes and pool tables.

[T BIRD]

Great info here.  You folks are true role models for me.  Having the ability to work my business full time now, I need to diversify as I expand.  I have no toys and I have yet to try full line.  I have alot of ambivalence with full line.  I feel I can do it.  And then I feel I can not do it.  ( meaning I am an older guy 58yo and I do not have the strength, endurance and flexibility like I had 15 years ago so cases of soda and water have me thinking it may be too much for me on a regular basis.  Not trying to make excuses here just tryin' to be realistic ).  Anyway I will not know until I try.  I am thinking 5 locations each with a combo machine that has 6 drink and 15 snack choices.  Smaller and manageable.  I know the other side of that is smaller machines tend to need product more often etc. And I need to work with my locator around acquiring locations that would welcome toys etc. I am just thinking that perhaps I should just go and purchase my first rack ( 5 NW machines ) from Sam's and go for it.

[philo]

Johnny:

Seems to me you should stick to what's working for you. Going from 44 to 100 bulk machines should keep you busy. I added some combo and pop machines but my son (age 21) runs them, so i don't do the heavy lifting or servicing. Racks can be great (I have 2) but I don't like paying out commission. Perhaps once you have 100 locations it will be easier to decide how to proceed.

Regards,

Philo

[Outlander]

Johnny,

I am 58 also and I know where your coming from on the "heavy stuff". I have 1 large snack and pop machine at a single "slow" location and it is on the first floor with an outside door going directly to it, so it's not bad getting product to it, but still a job hauling 8 cases of pop in. The other day on my bulk route I was servicing a location that was upstairs and the fella that does the pop machines was there at the same time. He had to manhandle all that pop up a long and skinny flight of stairs and let me tell you, it was a struggle for him. I would guess he was in late 20'S to early 30's. So if you do go that route, make sure you have easy access.

[clearcutvending12]

WOOOW IVE MISSED A LOT!

hey guys its benjie just stoping in and saying whats up, ive been good i still got 9 machien son location and i am trying with all my effert to not forget about vending.

id say this was my first real business. at one point i was in full swing of things, but i got a few new hobbies that are takin gover unfourtunatly

but im just saying hey and woundering how everyones doing

tty soon!

-benjie

CCV

[lbizzell78]

hey benji how are ya! man hang in there youre young keep building.

[markvend]

First of all, let me encourage you that if you have the desire to do this full time it is totally possible.  I don't know if you have machines yet or if you have a good feeling for the business.  You may find you don't want to burn up the roads doing this kind of business very much.  So, I would encourage you to really figure this out.

Bulk vending is a game of numbers.  I built our business basically on the premise that if I can have 3,000 machines and pick up a $20 bill at each stop, that would be pretty good.  We are currently at a little over 2,200 machines and will reach our goal of 3000 by this time next year.  Our business started almost 6 years ago with 600 machines and we increased the number steadily over time. 

We took the approach of buying a pre-existing company with measurable cash flow and a 10-year track record.  Even though we had to take on some debt to accomplish this, the cash flow has been good enough to live on while expanding the number of machines.  To clarify, we put the entire company of almost 3,000 machines under an option-to-buy over a 4 1/2 year period to give us time to purchase all the machines.  This afforded us the right to purchase the entire company as long as we bought a certain number of machines each year to keep the purchase option active.  We are steadily retiring debt by being methodical about saving expenses and protecting our margins everywhere. We've got all our debt under 5%.  We've come a long way in a short time time.   Sure wish I had "vendiscuss" when we started out!

I really love this business and the flexibility it provides.  It really boils down to me exercising leadership over myself and going out there and building the business.  If you're going to do this full time you have to accept responsibility for your actions and keep yourself motivated.  You must get critical infomation about vending to help you maximize your assets (machines) to make the most money.  Stay connected to the people here on the forum who share a wealth of information for the newbie and the experienced alike.

You may decide you only need a few machines and you'll keep moving them around until you meet your financial goals.  That's fine to do it that way.  Just be clear on what you're trying to accomplish financially through the business and be prepared for the obstacles ahead.  Be ready to make adjustments by add more machines if  needed or doing heavier marketing.

One big challenge we faced this year was 25 machines being hit by tornadoes.  We recovered all but 2.  Two machines went through an F-3 tornado untouched (dirty but no damage!)  Thefts have also spiked this year as gas prices have gone up.  If you hang in there through the rough times you get to the fruit of the business building stage and really enjoy consistent profits.  It's great to get to the place of knowing money will be there month in and month out from the business you've built and the plan you've executed.

Good luck!

Mark

[wrench327]

Great post Mark,the tips and articles link was very usefull to to me as I am just getting started. Thank you!

[T BIRD]

Hey bizzell............how's that for some useful information buddy?  ( Markvend's post ).  Thanks for the wisdom and information Mark.  I need to hear what you wrote as I move forward with my business.

I truly hope you will continue to be an active member here.

[mhein68]

I want to second everyone else great post Mark! Thanks!:cool:

[caserri]

Yes great post indeed Mark. Got my POTD vote!

Steve

[Faith Vending]

One of the most important pieces of the business is getting GOOD locations. If you do not want to do it get a great locator (many are recommended on this forum). There is nothing like obtaining a good location yourself. Not only does it save you $ but it will keep you motivated to go out and get more. We have 85 locations right now, I do it all myself, and it is managable. I would like to get to 150-200 locations which I think I can handle alone but it is a LOT of work. All good things do require massive amounts of work but it will pay off.

Start with 5-10 machines; hire a good locator; try locating yourself and see if you like it. We got to where we are with hard work and good advise from this forum.

Jim

[West Coast Vend LLC]

Jim,

That was a great post with great information. I could not agree with you more. There is nothing like getting an account yourself and developing it in to a great account. You are the man my friend. Wow! 85 locations. You are on fire! Say hello to Eve for me.

Gary

[Faith Vending]

Thanks, Gary. We were on the ropes for a long time and I still have 10-12 crummy locations to replace. I have no desire to keep a non-producing location anymore. Nothing good can happen; the location has proven they will not use the machine. I would rather have it in my possession than watching the product go stale, somebody steal it or whack it with a baseball bat.:shock:

Jim

[lbizzell78]

MAN ! Mark your info was very very helpful. I think many benefitted from that. Thanks alot makes me feel good, getting insight from all you guys thats why vendicuss is the best!

[markvend]

Ibizzell78,

Thanks so much. Much success to you!

Mark

[nepavend]

Dont be afriad to stick with bulk (gum, toys, candy) if you feel you will be uncomfortable with the heavier products.  Make a plan and stick to it as much as you can.

Joe