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Purchasing location with Coke-owned machine


KRyan3524

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Hello,

I'm new to vending and recently purchased my first account, which includes five machines and four locations. I want to start out slow but I noticed an opportunity close to my home. There is a Coke-owned pop machine at a retail store open seven days a week. I understand there is no rent owed to Coke and they handle all repairs. I must just purchase the product through Coke.

I was told the machine earns $200 a month in profit and he is asking for $650. Is that a reasonable price?

Also, can someone tell me the pros and cons of doing this with Coke involved?

 

Thanks for any input!

 

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Welcome to the forum. 

 

You might or might not get those terms that someone told you about.  First of all, you might find that Coke is not interested in adding a new "third party" vendor to their program and you might not be able to use the machine.  Even if you can then you will have minimum product purchase requirements that usually make a single machine difficult to buy for.  They will require you to purchase a minimum ammount of product from them or an approved wholesaler and the prices you pay will be much higher than if you bought the product elsewhere.  The minimum might be as much as 14 cases per month per machine or a total number of cases per year per machine.  If you have other soda machines then you can use the product you purchase for them to defray the minimums for the Coke machine, but your product prices will be too high.  They may or may not provide repairs for you as every bottler is different in how they look at the arrangement. 

 

As to the price, you will not be buying any asset of any kind and I would doubt that you will actually profit $50 per week from it or the seller wouldn't be selling it.  You would be best to avoid dealing with bottlers at all as you begin because that can be a dangerous way to grow your business if the bottler decides to call all of their machines in.

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Hello,

I'm new to vending and recently purchased my first account, which includes five machines and four locations. I want to start out slow but I noticed an opportunity close to my home. There is a Coke-owned pop machine at a retail store open seven days a week. I understand there is no rent owed to Coke and they handle all repairs. I must just purchase the product through Coke.

I was told the machine earns $200 a month in profit and he is asking for $650. Is that a reasonable price?

Also, can someone tell me the pros and cons of doing this with Coke involved?

 

Thanks for any input!

If, in truth, the location really does roughly $400 a month, then $650 with or without the machine would be a good buy.  Personally I'd dump the bottler machine and stick my own equipment in there - bottlers don't like you putting competitors products in their machine.  In this case you won't be able to offer Pepsi, Mountain Dew or maybe even Dr. Pepper and Monster Energy drinks.

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Honestly... To buy directly from coke should cost at least 90 cents per bottle. That means the price must be at least $1.80 to double your money. That's $400/month. Realistically though, it's probably $1.50 or less and the purchase price might be near $1. So... This machine may need to gross about $125/week to profit $200/month and I don't see a retail store doing that unless it's Walmart.

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I would look quickly for your own machines and call coke to pick their machines up.  Coke is a company that does not care about you, it is all for them, not you.  I recently bought some snack machines that had 3rd party coke machines.  I have friends here close by and asked if they had any soda machines they would sell me.  Coke will threaten you and even steal accounts from you.  They have left a bad taste in my mouth, will never deal with them again!

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