hawksfan9325 Posted May 9, 2014 Share Posted May 9, 2014 So. I have noticed over the past 2 years in this business that it seems that vending is coming to a slow, and steady death. There are so many more negatives than positives in this industry. I am still going to try and acquire some more accounts, and see if I can't grow a bit, but if after another 6 months or a year, I may call it quits. I've tried remaining positive about all this. Just look at all the negatives.. 1. Government Regulations on "Junk Food". 2. "Healthy Vending" that in reality is not only not healthy, but doesn't taste good, or sell. 3. Higher Fuel Prices. 4. Continued Increases in chips, soda, and snacks. 5. Lack of growth in Blue Collar business, i.e manufacturing, warehouse, etc. 6. More and more convenience stores popping up everyday, with much lower prices. 7. Everyone wants "their cut", commission, etc. Is there any growth left, are there any positives? Even the credit card acceptance is often more of a convenience than profitable. Seems like we work our tails off for minimum wage and razor thin margins. Seems like the winners are the ones in derivatives...service, equipment sales, food sales, etc. I am truly worried. I have even asked the local "big boys" about sales, and they say that over the past five years, sales have consistently gone down.. -Patrick Link to comment Share on other sites More sharing options...
allen watson Posted May 9, 2014 Share Posted May 9, 2014 Everything in life has it's downside, even waking up in the morning. You have to decide if this is something you want to do and also why you are doing it. Personally, I tune out all that negative crap and concentrate on what's going on right in front of me. People are still buying snicker's and drinking cokes just a much as they were 10 years ago. No matter how much you tell someone that they should be eating healthy, they will still eat what they want. My take on the healthy stuff is that if you want healthy, go to a health food store. I'm in California and have been under the healthy vending laws (schools) for a couple years now and it's still profitable. If this is what you want to do, don't let people tell you that you can't do it. There always seems to be more reasons to not do something than there is to do something. I've heard this doom and gloom before and even purchased a route from someone with the same outlook 5 years ago. They said the reason they wanted out was because vending was "going away". At this time, ALL their accounts are actually doing way better than when I purchased them. If you want to do something, do it and don't let nobody, no-how, no-way hold you back. You are in charge of your destiny, not the naysayers. Right now, I've got empty machines all over the desert that need to be filled. Something I've been told over and over that wouldn't happen. This is the start of my 8th year and am looking forward to 20 more. The 2 to 5 year mark was tough for me as well. My wife and I nearly gave up at 2 years. After a long hard discussion and crying our eyes out, we decided to stay in it. 2 years after that we were filing for bankruptcy. 4 years after that and we are finally on our feet and doing good. I can't tell you it has been easy because it has not. But I can tell you that all the hard work and sleepless nights are finally paying off and I'm so glad to have stuck it out. Link to comment Share on other sites More sharing options...
mission vending Posted May 9, 2014 Share Posted May 9, 2014 I will take the opposing side. I think the future is bright for us. We are in the middle of a paradigm shift and those stuck in the old ways are those that are and will continue to suffer. First and foremost we need to support our national trade associations so that they can continue to work on our behalf to minimize as much as possible the negative impact of legislation and to be our voice. Fuel costs will always be a issue, it is one of our largest controllable expenses. In order to minimize costs we need to invest in newer vehicles that get better fuel milage, we need to use technology to better plan our routes, we need to prekit so we only have on the truck what we need and we need to use dynamic scheduling to maximize revenue per stop. Yes there are fewer midsize companies out there for us to get but to me all that means is that we need to figure out how to be be profitable in smaller accounts ( see above). Healthy vending is and will continue to be a issue both from a consumer and regulatory standpoint. Those that figure it out will be very successful. Right now I am doing very well with promoting the NAMA fitpick program, it is a common sense approach and if you take the time to educate your existing and potential customers then you will reap the benefit. In order to be successful with it you need to take some time to learn and understand the process behind it as well as learn to read and explain nutritional labels to your customers so you can do comparisons for them. Those that are willing to invest the time to learn and to invest in their business to deploy new technologies are those that will still be standing 5, 10 and 20 years from now. Link to comment Share on other sites More sharing options...
hawksfan9325 Posted May 9, 2014 Author Share Posted May 9, 2014 I agree with all of what you guys say. I look at the facts though too, and the facts are soda sales are down 11 years in a row, and it just makes it hard to move forward knowing the reality. Soda sales will probably never pick up. It's sort of like how fast food killed a lot of family sit down restaurants. We must adapt to the change, but the change we are seeing isn't fully adaptable, unless we have hoards of cash to invest in the best technology. Strongest will survive. Link to comment Share on other sites More sharing options...
mission vending Posted May 9, 2014 Share Posted May 9, 2014 I agree with all of what you guys say. I look at the facts though too, and the facts are soda sales are down 11 years in a row, and it just makes it hard to move forward knowing the reality. Soda sales will probably never pick up. It's sort of like how fast food killed a lot of family sit down restaurants. We must adapt to the change, but the change we are seeing isn't fully adaptable, unless we have hoards of cash to invest in the best technology. Strongest will survive. You are right that soda sales are down but enery drinks (monster, vitamin water and others like them) and teas are the big winners in the cstrgory. I am also selling more juices than ever. Link to comment Share on other sites More sharing options...
allen watson Posted May 9, 2014 Share Posted May 9, 2014 I don't believe technology will make my route any better or more profitable. I think it will only cost me more money, drive my sell price up and cut into profits. I will be the old rotary dial telephone to the day I get my phone line disconnected. Keep it simple and keep selling. Link to comment Share on other sites More sharing options...
Golfdogs Posted May 9, 2014 Share Posted May 9, 2014 This is an interesting discussion...I'm five years into this and I'm starting to see the light at the end of the tunnel. I've been where Hawksfan is right now. I made the decision to not let the negative thoughts affect my determination to see this thing through. Persevere, my friend. I never wish to work for someone other than myself. Link to comment Share on other sites More sharing options...
hawksfan9325 Posted May 9, 2014 Author Share Posted May 9, 2014 Yeah. Just sitting in bed sometimes wondering "does this all make sense". It's brutal somtimes. Then you have a lady yesterday who requested a machine be put in her location, I had machined delivered, and she told me she wouldn't sign any contract until we did a "trial" period, and wanted 25% commission instead of the original 10% that was offered. At least now I have a nice AP machine in my garage. I guess I need to realize it's only today, and not tomorrow. Just get worried when locations seem impossible to find, and prices keep going up. I'll persevere. Only the tough business people make it through the rough 1-3 year start up periods. Link to comment Share on other sites More sharing options...
Djstorman Posted May 9, 2014 Share Posted May 9, 2014 I think that a lot of that apprehension goes away when you get an account that makes decent money. I spent a great deal of my time trying to find good locations rather than a lot of locations. I just dont have the money to purchase a lot of machines and just place them. I buy good machines, I look for locations that have at least 50 employees and locations that have blue collar employees. For me taking it slow and choosing the right locations has made the experience more profitable and less stressful. Link to comment Share on other sites More sharing options...
mission vending Posted May 9, 2014 Share Posted May 9, 2014 Yeah. Just sitting in bed sometimes wondering "does this all make sense". It's brutal somtimes. Then you have a lady yesterday who requested a machine be put in her location, I had machined delivered, and she told me she wouldn't sign any contract until we did a "trial" period, and wanted 25% commission instead of the original 10% that was offered. At least now I have a nice AP machine in my garage. I guess I need to realize it's only today, and not tomorrow. Just get worried when locations seem impossible to find, and prices keep going up. I'll persevere. Only the tough business people make it through the rough 1-3 year start up periods. As much as it sucks you did the right thing by pulling it. Learn from the experience and don't make the mistake of placing a machine without a written agreement again. Link to comment Share on other sites More sharing options...
tc vending Posted May 9, 2014 Share Posted May 9, 2014 This is the best week we have ever had, I try not worry about the negative. It seemed like we could not add a good account this year we added one over a week ago it became number one account in one week and we are installing two accounts next week. Its not all good in vending but not all bad either. Link to comment Share on other sites More sharing options...
allen watson Posted May 9, 2014 Share Posted May 9, 2014 New accounts are certainly exciting. When servicing a slow account or any account for that matter, I try to remember back to when they were new and all the excitement that went with it. So right now it's supposed to be my day off but I have 3 stops I missed during the week. I've been hanging out with my wife and kids all day and I think now is just about the right time to go out and hit them. Yeah, right about now. Let's do this.......... I'm thinking I'll take all the money I collect and go splurge on something this weekend with my family. Link to comment Share on other sites More sharing options...
tc vending Posted May 9, 2014 Share Posted May 9, 2014 I believe older equipment has a purpose 90s tech vending works great in working men locations which are profitable. Why put a new machine in their when they leave footprint on the keypad happened today and are destructive in general. I believe new machines are necessary as well but the old machine still make money with tufffront a little paint. Link to comment Share on other sites More sharing options...
moondog Posted May 10, 2014 Share Posted May 10, 2014 I believe older equipment has a purpose 90s tech vending works great in working men locations which are profitable. Why put a new machine in their when they leave footprint on the keypad happened today and are destructive in general. I believe new machines are necessary as well but the old machine still make money with tufffront a little paint. The older machines are the only ones that will last in many blue collar accounts - they'd beat the hell out of the new stuff in short order. Link to comment Share on other sites More sharing options...
CajunCandy Posted May 10, 2014 Share Posted May 10, 2014 The older machines are the only ones that will last in many blue collar accounts - they'd beat the hell out of the new stuff in short order. Which is why I don't try to make all of my machines pretty, some of my locations is all men who don't give a rats azz what it looks like just so it works! Like the machine shop, where the AP 6600XL with the factory chiller is located it still has the brown grain look to it and I clean it once a month. Dirty! They don't care! Now I need a DN 600E to replace the Vendo 480 I have there, to darn small! Link to comment Share on other sites More sharing options...
tc vending Posted May 10, 2014 Share Posted May 10, 2014 Cajun I might know where you can get a 600e over in baton rouge. Link to comment Share on other sites More sharing options...
allen watson Posted May 10, 2014 Share Posted May 10, 2014 I like the AP Snack Shop 500's manufactured late 70's early 80's. those things take a beating an keep on working. I have some with the upgraded board and bill validator and others just like they came from the factory with the same coin mech. still in them. A bolted on bill changer from the same era that even takes copied one dollar bills, lol. I had a guy trying to sell me some new machines and he couldn't believe I still used those old dino's. He said the motors are wound backwards and can no longer be found. Hmmmm.....considering I have about 100 spares and 5 complete spare machines.....I don't think I'll worry about that just yet. I have a really old AP in my garage from 1961 with pull knobs. The original price tabs are .05 and .10 cents for candy. The thing just came off a location that moved and still works great. Someone upgraded it with a newer coin mech and moved a couple rows over to accommodate 1oz chips. A guy that buys stuff for movie sets wants it, but I just can't part with it. Maybe a location at a museum might be cool for it. Link to comment Share on other sites More sharing options...
hawksfan9325 Posted May 10, 2014 Author Share Posted May 10, 2014 Old machines are the best. As long as the account doesn't mind. Good for apartments, laundromats, train stations, etc. Love my AP 6+7000 series machines. Such work horses. Link to comment Share on other sites More sharing options...
moondog Posted May 10, 2014 Share Posted May 10, 2014 Which is why I don't try to make all of my machines pretty, some of my locations is all men who don't give a rats azz what it looks like just so it works! Like the machine shop, where the AP 6600XL with the factory chiller is located it still has the brown grain look to it and I clean it once a month. Dirty! They don't care! Now I need a DN 600E to replace the Vendo 480 I have there, to darn small! Just think Mike, if you had any pretty machines they'd just get covered in Gator turds the first flood you had Link to comment Share on other sites More sharing options...
chris in bc Posted May 10, 2014 Share Posted May 10, 2014 As for the commission end of it offer this to your clients; 1) Tell them sorry we simply don't pay commission anymore due to my businesses' higher operating costs...like fuel, auto insurance, cost of chips, choc bars, cookies, wages, health care etc 2) We will pay commission only on pop at $1.00 per can 3) offer the customer one case of bottled water free per month as a "thanks" for your business. ( this works well) 4) offer them 5% on only on chips payable at the end of the year 5) tell the client you will donate $125 bucks towards their Christmas party, BBQ or even donate water to their monthly meetings 6) give them 30 bags of free 1 oz chips every second month 7) pay the commissions once a year around Christmas.....they will never reject the amount you give them especially at Christmas time instead of Christmas...leave one choice in the pop machine free ( pick a slow mover) 9) tell them you will donate to a charity on their behalf............let them pick which one! 10) commissions only on every 2 nd months sales! 11) look the customer in the eye and simply tell them...there is just not enough margin to pay commissions anymore! Offer a coffee service-increase your revenues to try and offset your commission ! Link to comment Share on other sites More sharing options...
allen watson Posted May 10, 2014 Share Posted May 10, 2014 I tell them we usually only do commissions for schools and non-profit organizations, but if you insist we can certainly accommodate you. So here is what your new prices will look like and your commission will be paid quarterly minus the outdated product. Who do I make the check out to? Link to comment Share on other sites More sharing options...
hawksfan9325 Posted May 10, 2014 Author Share Posted May 10, 2014 Another thing I am learning from you guys is there is a certain "coolness", cocky factor involved with dealing with accounts. If you can shut them up early (by being confident), then they will know better than to keep pressing the commission issue. That means explaining just how bad prices are now, and that there is little money left over. Makes perfect sense to me. Link to comment Share on other sites More sharing options...
allen watson Posted May 10, 2014 Share Posted May 10, 2014 If they are wishy-washy about asking for commission, it okay to say no. Link to comment Share on other sites More sharing options...
Feral Vending Mechanic Posted May 16, 2014 Share Posted May 16, 2014 The older machines are the only ones that will last in many blue collar accounts - they'd beat the hell out of the new stuff in short order. I shudder to think what Media Merchant machines ( the "latest" and "greatest" from ApNationalVendoCo ) will look like after ten years in the field. Yet I see AP 113s, and National 157/167s that are going on twenty years and look damn near as good as they day they were unpacked. Link to comment Share on other sites More sharing options...
AngryChris Posted May 17, 2014 Share Posted May 17, 2014 There are some AP 7000s out there that still look good. They made some damn good equipment. I'm only fond of AMS's new snack machines. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.