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Stop Locating! You don't need any more stupid accounts!


GotLocs

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As they say location, location, location!!! Great post. I have learned my lesson about stupid locations. I would give you respect but how do I do it?

Upper right corner of his post. Click the UP arrow to give a measure of respect.

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This post is so true. The best thing to do is build up the accounts you have first before moving on to other locations.

It's a lot easier because:

#1 You already know if the business is going to do better with more equipment.

#2 You already know what type of customers are buying your products, (age group, male/female)

#3 You already know what type of products to add that will increase sales, (toys, candy, etc.)

#4 You already have a good rapport with the owner/manger.

#5 You will save gas by not driving to another town or city.

Gary

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Many good points!  Upgrades and downgrades are an important part of the business.  I keep a color coded spread sheet of all location zones.  The locations in red are to be whacked and the ones in blue need adjusted.

Jax

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Upper right corner of his post. Click the UP arrow to give a measure of respect.

I wonder how many times someone has tried to click the up arrow next to me, and clicked down by accident. :(

Original post: This business is about new locations not old ones. Just leave the machines there service them once or twice a year and go get new locations! ;)

Jax - Whatcha up to this week? Got time to hang out? We could go eat at Brooklyn Pizza for lunch or early dinner, its next to my regular job and you can service your machines, and patronize your business partner. All at the same time! Wow talk about efficient.

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I keep looking at deals for more machines on ebay and craigslist. The funny thing is that I have 10 machines at the house. More important than that is that 50% of my locations generate 80% of my revenue.

Why do I need more machines? What is telling me to buy more machines? I have no idea! I still ahve to fight the impulse to hunt for good deals when I need to be hunting for better loations for my machines or looking for ways to increase the revenues from my current locations.

Great Post!

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You do need to grow your business with new business, however. Just not stupid new biz. Quality of location will determine more than anything else if you succeed or not IMHO. Knowing what is a quality location, how to get it, and then keep it producing is a make or break part of vending again IMHO. This will take time and a solid capital backing.

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  • 2 months later...

although I am in full line, GotLocs post is true for all aspects of vending.  I was location happy and bought a couple single locations. I upgraded to a nicer/bigger snack machine to replace one that kept breaking.  My income rose roughly 65% within the first week from that one machine.  So I have upgraded serveral locations with success. 

Great post GotLocs!

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Guest ontheballvending

This is right on target.  We do our best to always start small in each location, and build it from scratch.  Once we learn the traffic and the purchases, we decide to add more equipment or improve what we have at each location.

You can turn 50 locations into 200 locations or placement of equipment, just by maximizing each location you already have, and you have less people to deal with.  Thanks!  Scot

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This is not only really good advice in vending and business but the principle is true of most things in life.

This concept comes from a nearly forgotten Industrialist/Economist, Vilfredo Pareto, and the idea is quite simple. From a vending perspective: 80% of your good results will come from 20% of your locations. So too.. 80% of your problems will come from 20% of your locations. It's just an issue of nurturing the best and chucking the rest.  :D

The idea works for anything from coffee plant production to employees.

Further reading: http://en.wikipedia.org/wiki/Pareto_principle

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