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RSLVend

Wanting to get started

4 posts in this topic

Hello All!  I have been reading the forum for a few weeks now trying to learn and get a feel for things.  I have quickly learned that there is so much I have no clue about.

The reason for the initial research on this site is because I have an interest in getting involved in vending.  Let me take a moment to explain my thinking/opportunity:

I have a great partnership with a very large charity and I have discussed using their connections to secure vending locations for me.  In theory, the charity will find locations for us from their supporters/partners.  Once they have permission, I would take over and give a 10% kickback to the charity.  They are actively contacting partners now and we have given a March 13th deadline to see if they can secure any locations or not.   If no they cannot secure any locations, well then we will scrap that idea.

In the event we land a location, I have two possible plans.  Buy a machine, place it and learn the business starting small.  Second idea, which I would prefer, to avoid initial costs would be to find an operator who could place their own machine and provide all service and maintenance.  I would ask for 20% from the operator (I would give half to the charity and keep half).  I would provide a "company" credit card to the operator to purchase product, so I would require those funds back as well.  The operator would take the remainder as profit.  

I would prefer option 2, but I'm looking for feedback if this is even realistic?  Or am I pipe dreaming?  Are operators keen on an arrangement like this? Easy to find?  

Please be frank with me, I have thick skin.

Thanks!

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I forgot to introduce myself.  My name is Tom and I am currently located near Cedar Rapids, Iowa.  Nice to meet you all.

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4 hours ago, RSLVend said:

Hello All!  I have been reading the forum for a few weeks now trying to learn and get a feel for things.  I have quickly learned that there is so much I have no clue about.

The reason for the initial research on this site is because I have an interest in getting involved in vending.  Let me take a moment to explain my thinking/opportunity:

I have a great partnership with a very large charity and I have discussed using their connections to secure vending locations for me.  In theory, the charity will find locations for us from their supporters/partners.  Once they have permission, I would take over and give a 10% kickback to the charity.  They are actively contacting partners now and we have given a March 13th deadline to see if they can secure any locations or not.   If no they cannot secure any locations, well then we will scrap that idea.

In the event we land a location, I have two possible plans.  Buy a machine, place it and learn the business starting small.  Second idea, which I would prefer, to avoid initial costs would be to find an operator who could place their own machine and provide all service and maintenance.  I would ask for 20% from the operator (I would give half to the charity and keep half).  I would provide a "company" credit card to the operator to purchase product, so I would require those funds back as well.  The operator would take the remainder as profit.  

I would prefer option 2, but I'm looking for feedback if this is even realistic?  Or am I pipe dreaming?  Are operators keen on an arrangement like this? Easy to find?  

Please be frank with me, I have thick skin.

Thanks!

Finding somebody that would actually pay you a 20% commision would be your biggest hurdle (it would need to be a prime account for any vendor to consider such a high commission assuming they'd even pay it and not fudge the numbers).  You'll need pretty good accounts to even justify the 10% commission.  If you're going to pursue this, you should plan on servicing the locations yourself .  While it would be nice to let somebody else deal with the issues and just collect your 10%,  you need to remember that vending is actually work and there is no free lunch in this business.

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1 minute ago, moondog said:

Finding somebody that would actually pay you a 20% commision would be your biggest hurdle (it would need to be a prime account for any vendor to consider such a high commission assuming they'd even pay it and not fudge the numbers).  You'll need pretty good accounts to even justify the 10% commission.  If you're going to pursue this, you should plan on servicing the locations yourself .  While it would be nice to let somebody else deal with the issues and just collect your 10%,  you need to remember that vending is actually work and there is no free lunch in this business.

Thanks @moondog.  This is definitely what i'm starting to realize.  I guess just trying to be ambitious from the start.  I have created two financial models considering both business models I listed.  Also, just trying to find all the ways we can look at trying this business.

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