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RJT last won the day on March 17 2016

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About RJT

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  • Birthday January 1

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  • Vending Type
    Full Line

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  1. Hi folks!! Sorry it has been so long since I have dropped in. I am still alive and well and doing fine. Still working in the industry and consulting. I want to say I am sorry to the people that sent me private messages that went unanswered, I do not get a notice until I sign into the forum so I missed tham. Most were about doing locating and my answer is I do not do locating. I hope everyone is doing well and making plenty of money. Again, sorry it has been so long but I will try and drop in more often.
  2. Here we go with the condescending attitude. You have to factor in the drink revenue that you do nothing for other than collect a check. No product to buy, no machines to buy, no machines to fill, no machines to repair, just collect a check.
  3. You are only investing in 6 pieces of equipment over two accounts and take around 1.5 hours per week to work.
  4. Ok so let me ask this. Lets just assume you could get these accounts on your own by knocking on doors. The requirement to get the accounts is the exact same equipment which means new equipment. Would you do it and what would you have total in it with equipment cost, product cost, labor cost to install, etc? Just FYI, if you are loosing accounts to micro markets then you do not know how to sell against them and save accounts. I have saved my own and helped others save theirs from being taken by micro markets.
  5. You couldn't buy the equipment for that price.
  6. Keep in mind you need to take into account all the factors including what the assets are worth along with the type of accounts, revenue, etc.
  7. Combo machines= stay away Ironic thing is Canteen actually uses these on some locations and if I am not mistaken bought into this company somehow a few years back. Not sure of all the details but I remember something about this and them starting to use these machines.
  8. Since people are always asking what accounts are worth paying for I thought it would be good to do a practice exercise to see how people would price an account. We are going to look at an example to see what people think these accounts would be worth paying for. You are looking at buying two accounts. Both have three year agreements but that is no guarantee of keeping the accounts since the agreement is not transferable. Account # 1 warehouse/trucking Co. 1 USI 5 wide less than 1 year old,bought new 1 USI Cold/Frozen less than 1 year old, bought new 4 beverage machines all bottler owned on full service This account does +/- $200 per week in snack and cold food Prices are where they need to be with no commission paid Account #2 Manufacturing account 1USI 5 wide new with CC reader 1 USI 4 wide new with CC reader 1USI 3 wide (around 4 years old with LED light kit) 1 USI cold/frozen new with CC reader 6 beverage machines all bottler owned on full service This account does +/- $275 per week in snack and cold food Prices are where they need to be with 10% commission paid This account is a new company around 6 months old and has the potential to have a total of around 200 employees and are currently at around 140 employees. The reason they have this much equipment is because of the way the plant is broken down into three separate buildings and no real way to consolidate. You have the option to add your own drink machines and remove the bottlers. Both accounts are worked once a week and are within 15 miles apart. Drink commission paid from the bottlers is around $525 per month Total gross revenue in snack and cold food for both accounts is around $475.00 a week Both accounts take around 1.5 hours to work per week. Combined what are these two accounts worth to purchase? If you need more info just ask..... I give this example because it has a few different things to take into consideration. This type exercise will help people understand what to look at when looking at buying existing accounts. After people have chimed in I will give you my take on it and what and how to consider what to pay.
  9. This is not unrealistic or unfair at all. Full service is done all the time and I use that method a lot of times depending on the account. 20% for doing nothing other than providing the location is a good deal. I think the big issue here is going to be low volume accounts. I am just guessing here but I am going to say they are most likely low volume accounts and the bottler will pick them up in 3 to 6 months. To the OP you also might want to read the small print and see if their are any minimums they require before they pay you anything.
  10. I have had this conversation before (some didnt like/agree with what I said) but I will say it again. If I knock on a door and find out the vendor is paying on "net" I promise you I have a good shot at taking that account from the vendor. Even some of the best vendors at book keeping can not show "exactly" net sales accurately. First thing I am going to ask the account is "net of what"? Then I am going to ask if the vendor shows them how he arrives at "net" each month/quarter? I then tell the account I pay _____ % of gross sales after sales tax. That way their is no question of how the figure is arrived at.
  11. Yes, "small vendors" can stand a chance if done correctly. It also can be a disaster if not done correctly which is no different than regular vending. The key to any business is "getting it right" or have enough money to stand the longer learning curve or as some here like to say "getting your feet wet". I am not a fan of "getting your feet wet" when it could be done correctly from the start. Like all business you will have to adapt and make changes but you also have to have the knowledge and "smarts" to see when and where to make those changes as needed. 5 to 6 years ago I fought CC readers but now they are the norm and have proven themselves worthy in many accounts. On the bottler assets you need to ask if they are full service or third party machines.
  12. Simple math $600,000 divided by 52 weeks= $11,538.00 per week divided by 300 machines = $38.46 a week average per machine. = Terrible averages Unless he has a ton of new and like new equipment and a ton of other assets he is throwing in I just can get their with his asking price. This is another case of a vendor making quite a bit of gross revenue and not really making all that much in net because he/she has so much work to do to make the $600k. I preach this all the time about the average needs to be around $100 per machine per week or you are doing a lot of work for little return and if you ever decide to sell out you are in the same situation as this person with the "numbers" being hard to make sense. It only takes a few machines with bad numbers to start dragging down your averages. Build your own company by getting the best locations and get the best averages of $100.00 or more and you will have something. Like most anything, no free lunches so it is going to take some work to get there.
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