Jump to content
  • entries
    8
  • comments
    17
  • views
    3,319

Week of October 9, 2011


BobTHJ

364 views

I doubled the size of my business this week!

First - I was able to place 2 of the Buzz Bite machines sitting in my shed (got these with the route I purchased last week). I took them with me when servicing my two steel manufacturing accounts and both let me stick one in their break room beside my combo machine. I think they will do well there as there are a lot of guys moving through these breakrooms and no other coffee or energy products offered.

On Wednesday I purchased a strange biz-op energy drink machine with 3 selections on location at a fairly busy industrial warehouse. The machine is very poorly designed (3 selections, holds 160 total cans) but does seem to vend well (if you don't use coins) and moves a lot of product. I'm hoping to swap it out with a full-size 3rd party Coke machine at some point in the near future.

Finally, on Friday I went ahead and purchased a large honor box route. The prior owner had been running the business for 30 years. Roughly ~100 accounts - not as many as was advertised but I was able to negotiate an owner-carry financing so as not to spend the last of my capital. About 15 old mechanical snack machines (on location) came with this route - some of which are still set at $0.50 vends (candy bars cost me $0.55 at my local Sam's!). I'll have to work through these one at a time and see what can be done about each. Some have to be serviced twice a week because they sell out so quickly so I'm hoping to upgrade those locations to full-size snack machines. I'm headed out this upcoming week to service all the honor boxes with the prior owner. He has sold from these at $0.75 each for everything. Still debating if I should leave it at that price or move it to $1.00 per item.

Still no successful full-line placements yet - but I keep trying. I have one potential lead that wants me to come by today (Monday) to show me where they would like to have a machine - so hopefully that one will pan out. I got approved with Pepsi last week and sent all my information into Coke so my plan is to get out there and place as many 3rd party machines as possible in the next few months and grow my business the free way. Metro Vending is supposed to be coming through with the first half of the locations I purchased from them this upcoming week sometime.

No word from Kickstart yet on the locations I purchased from them but I'm taking the advise offered here on the forums and waiting patiently.

4 Comments


Recommended Comments

oh man that is a lot of money for the honor box biz...placing 100 honor boxes is really not tough to be honest. if you hit it full time you could have that done in a month. Hell i know a locator who does them in-person for 30 a pop or less if you were doing that many, he could knock out 100 in a week for prob $2,500.00 and he will teach u the biz while he does itt. i think that is still too much, because its the easiest thing to place yourself.

anyway good luck, no i would leave the prices at 0.57. I charge $1.00 but honestly you just took the business over, you owe this guy a ton of money now...if you get kicked from the locations you have nothing ...no assets just a lot of debt...whats your COGS on the honor boxes.
Link to comment
Agree - it does seem like a lot. However, in defense of the business owner he's had some of these accounts for 20+ years so they are not likely to vanish overnight. Also, the locations he has overall are the best sellers and top payers, the rest he's weeded out. COGS averages to $0.43 per item including theft.
Link to comment
my cogs is lower because i charge more but that is in line with what i'd expect that is a good route...yes u may lose accounts if u raise the price tho, or they simply dont like you a lot of vending is relationships.
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...