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how many operate in high risk areas?


kai1836

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I had about 50 stops (25% of business) in a higher risk area, both from a crime/low income standpoint and that it is the farthest out from my home (about 75 miles).  After culling non-performers and losing a couple I'm down to about 32 after 6 months.  I have made some decent money and I have a few rack upgrades to do in my better stops.  Overall I would say its definitely worth it, trading a couple lost singles or doubles for a couple new rack locations and well over $1000/service additional to my business.  This summer will really tell the tale for me when we get back there and do some more locating, this time targeting a little more carefully than we did on the initial push.

I also have another 12 or so stops in a small run in Binghamton/Triple Cities Area in NY (about 55 miles away) that is a lower income area because of IBM and other employers going downhill, but there seems to be less crime, it is a college town, just has more business closings.  We will also be hitting this area heavy this summer and possibly moving into Syracuse area (about 75 miles north of Tri-Cities).  The revenue is somewhat less pound for pound here but there is some signs of promise here too.

My top 5-10 spots overall are all lower-middle to middle class type areas.

It seems that the poorer areas generate more revenue than you would think, it definitely seems to be a socio-economic issue.  I think of the Millionare Next Door by Robert Stanley when it comes to discussing issues like this.

I have a couple spots in more upscale locations/towns and they don't do crap.  Then I have other spots of similar nature in a lower income area and they are among my best.  You will strike out in those areas a bit too, and probably lose more machines, but it is a far better chance of being a home run also.

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I have always done better in lower income areas. The majority of my best ATM locations were in the worst areas. The majority of my best game locations were also in not so nice areas. I have no experience yet with my bulk vending but sounds like the same may hold true here.

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Interesting ideas.

Has anyone considered using the "strong box" by northwestern and chaining them to the location to discourage theft? (I have an area I'm concerned about and planning to chain it to a small news paper rack. The newspaper thing is flimsy, just holding free papers, but dragging it out while carrying the machine would be very annoying. Anything I can do to make it harder for a thief to target me, I will look into.

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Has anyone here ever just taken a sledgehammer to the strongbox to see how strong it is?

Unless it is covered by a warranty that includes attempting to destroy it with a sledgehammer, I'd be hesitant to use a machine that way.

I do know my super 60 survived attempts by employees to take it off the stand and get the bottom out. I know the economy is tough for all of us, but I think their day job pays more than mine.

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  • 2 years later...

I'm new here, and new to vending, hello everyone.

Right now I have 7 locations. and 14 more in the works.

I can think of one REALLY tough area, where I do not stop walking to talk (many ask for lighters, cigs, money, etc)...

And must always keep my eyes peeled.

Needless to say, it doesn't make me much if ANY money. Old vendstar in a dirty autobody shop (and possible drug dealer hangout lol).

My machine has the back unlocked, because I still need to fix it lol. And nobody has stolen any money and it's right by the exit too.

Guess I'm lucky.

Safety of my machines is not #1, my personal safety is #1. Up here in Minnesota, I have my carry permit and keep a Glock 26 concealed as well as Nightstick in care and pepperspray.

LOL, seriously. And I look paranoid or scared, but I'm not. I just frequent tough areas a lot and am prepared to meet conflict.

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I now have a couple of locations in the "ghetto" thanks to members on here who sold them to me, both cases they were too far out of the way for them so I bought them. Both seem like they are gonna be good money makers. Since I will be locating more in these areas I am going to invest in some chain and locks. I have thought about trying one of Northwesterns strong boxes and securing it outside of a location. And on the last part I don't carry pistol or anything just the attitude I wish a mother%$#$# would try to take my quarters! B)

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Mainor... I want you on my side when the sh%t goes down! I would agree with everyone's posts so far that my bad areas of town do better than my average machines. Little kids running wild around the neighborhood with quarters can be great for business. Surprisingly, I don't have any machine theft or break-ins in these ares.

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Cool thing about the "ghetto" or hood...or to be politically correct, "densly populated working class neighborhoods"

is that a lot of people don't use banks and they have cash and quarters on hand...

In fact I just got an idea...check cashing stores!!! Awesome spot to place...

Personally I never have cash on hand.

Locating in lower income areas with lots of ma and pop shops is much easier too.

I always dress down for the area. Cuz it doesn't help being butt-white already lol.

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  • 4 months later...

UPDATE:

My "tough"/"ghetto" spots are doing WONDERFUL!

Autobody shop where the dealers hang out (lots of mexicans too with lowryders etc) usually sells out every month! It's a tripple head with PMM, Skittles, and plain MM's.... and I did Tamales here, those sold out, but much slower.

The other area is even more rough I suspect. A murder not long ago a few blocks down!!! But It's becoming my favorite spot... SELLS out on the gumballs!!! They are candy HOUNDS! I also set my wheels to dispense a very small out, and THEY DON'T CARE! Lol... Easily am pulling 35-60 a month here.

Crackheads digging in the dumpsters...I scared them when I did a uturn in the lot! Kind of like watching two guilty little kids digging in the garbage lol.

When I say I set my dispensing wheels on the stingy side, I mean... 4 mm's

Peanuts wide open (since they spoil fast)

then gumballs, for .25 and they pig out on them! Jammed my wheel and bent the agitator (common problem I found out btw).

People are actually nice in this area. they like to talk and even though it's visibly a crime ridden area and statistically high crime, it's really nice seeing small businesses thrive. Everytime I visit to collect, the store owner or his wife is always working.

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Those areas are both good and bad. Kind of hard to place machines because they are already all over the place. But then once in a while you get a call, or you come to service and find out that your machine got smashed because somebody broke into the location one night and all they took was the money inside YOUR machine. Ask Donovon about it, since it recently happened to him with an expensive rack setup. Its happened to me once and all I got back was a pipe stand, a lid and the coin mech. I've also had machines that grew legs and walked away. And other machines where they have obviously been tampered with, since the lock was broken, and the stand all of a sudden had a new paint job.

But, like you said, the returns on those locations were some of the highest of all on my routes.

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middleclass is the best. I don't know if you guys have heard of Hunters Point, but if i were to put a machine there or in the ghetto areas of Oakland, it would be suicide. Making an extra dollar or two is not worth it, especially when your known as the money guy around there. they will kill me.

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There is a level beyond where I'll go. I'll set up in "depressed" areas, or low income areas, but there are some places I just won't set up my equipment- the potential increased return just isn't worth it. I suppose I can't really talk though- Northern Wisconsin isn't noted for it's ghettos.

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I think ghetto is a subjective term, what looks bad to you may look ok to me and vice versa! Lets say middle to low income. Kids with money have iphones & ipads and don't give a hoot about a plastic ring. Seriously, this is a low income biz. As far as security my advise is blend in. I have been at this a very long time and never have carried a gun. Trust me if you are going to be robbed you are going to be hit from behind, or a crash and dash. Just don't stick out, don't be a tard, blend bro. (Mainors the man.)

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My partner has an apartment complex in Oakland. I know for a fact that if i put a machine in there, it would get stolen in less than a week. There was a shooting just across the street at the market, a 15 year old got killed. Another tenant in his building was shot in the head. My partner has had someone steal 15 grand from him there, guy just took off with everyones rent and ran. So for me to have to go there every month for vending would be nonsensical since there are so many other places to put my machines. Even if i made an extra dollar, its not worth getting my head blown off. Other places I wouldnt place my machine in would be East Palo Alto And The Tenderloin. Nothing but crack heads and transvestite hookers. Every bum on the street would be begging me for cash. It's just not worth it!!

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the tenderloin district in SF was pretty entertaining for people watching, a bum came up to me there

and said "would you care to make a donation to the united ne-gro hamburger fund"

got a good laugh and gave him a few bucks

I think ghetto is a subjective term, what looks bad to you may look ok to me and vice versa! Lets say middle to low income. Kids with money have iphones & ipads and don't give a hoot about a plastic ring. Seriously, this is a low income biz. As far as security my advise is blend in. I have been at this a very long time and never have carried a gun. Trust me if you are going to be robbed you are going to be hit from behind, or a crash and dash. Just don't stick out, don't be a tard, blend bro. (Mainors the man.)

100% agree in my opinion the money isnt worth your life

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the tenderloin district in SF was pretty entertaining for people watching, a bum came up to me there

and said "would you care to make a donation to the united ne-gro hamburger fund"

got a good laugh and gave him a few bucks

Do you live in CA? I wouldn't place my machine in the tenderloin. That place is called a ''war zone'' and i think if they know i got cash they want my cash even more. Plus, there is absolutely no parking. I don't know about you, but I would stay away from the ghetto Oakland, Hunters Point, the tenderloin, and East palo alto. I mean I wouldn't do vending there. As far as those bums, yea they know all kinds of jokes to flatter and get your money. I have got ripped off myself there.

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Do you live in CA? I wouldn't place my machine in the tenderloin. That place is called a ''war zone'' and i think if they know i got cash they want my cash even more. Plus, there is absolutely no parking. I don't know about you, but I would stay away from the ghetto Oakland, Hunters Point, the tenderloin, and East palo alto. I mean I wouldn't do vending there. As far as those bums, yea they know all kinds of jokes to flatter and get your money. I have got ripped off myself there.

I grew up in East San Jose. In my early life I was a USPS letter carrier, and I had to deliver mail to some of the war zones out there. Welfare-check-day was a nightmare.

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  • 9 months later...

All my best locations are in the worst parts of town. I have eliminated most of my locations that were in nicer parts of town since they didn't really justify the gas money to go collect them.

I sell many toys and the poorer kids don't have all the cool stuff the rest of the kids do. A .25-.50 toy to them is a big deal where it is a piece of junk to others playing on their iPhones.

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