Lee M

Very EYE OPENING :shock: post Jax - thanks, much appreciated! Lee

I've been researching the vending business for about 30+ days. I've talked with lots of machine manufacturers, numerous locators, even a handful of bulk vending operators, etc. One of the most knowledgable people around is Rob Patterson from Kickstart Locations! He has a good business mind. Not to mention Rob has been VERY generous with his time despite being quite busy. He has gone way beyond the call of duty answering my numerous questions both on the telephone and via e-mail concerning a wide variety of vending related topics! Thanks Rob, I appreciate it! Lee

I read this post with interest because if you could get it to work ... advertising on bulk machines that is ... it could REALLY defray equipment costs. And help the charities even MORE. Being a marketing consultant ...here's what I came up with. Let's say you have a location ... a restaurant owner for example ... you would approach the owner and tell him to give you a list of his "regulars" ...customers who owned businesses. PLUS, you ask for a list of his Suppliers...people like; His INSURANCE AGENT...his ATTORNEY...the REFRIGERATION COMPANY...his LANDSCAPE COMPANY... his PAINTER....CARPET CLEANER...ROOFER...CARPENTER....ETC. Think about it. ALL of these people would be FAMILIAR with the restaurant and... would WANT to be listed (advertising) on the bulk vending machine. More importantly ... when you contact these people ... they will feel a sense of obligation to advertise. Why? Because the restaurant owner is their good customer. PLUS, when you approach the restaurant owners suppliers ... it's not really cold calling because you'll be introducing yourself as Joe's friend over at XYZ restaurant and they'll recognize Joe etc. Then you'll explain to them that you're working with the restaurant to put in a bulk vending machine that supports (insert your favorite charity) ... and Joe thought it would be a nice idea to have you advertise/sponsor a spot on the marquee, as a portion goes to the charity etc. I think this could possibly work. Now of course you'd have to give the location a cut of the deal. For example, say you got 3 sponsors/advertisers to pay $100 each/year .... you'd take in $300 ... a portion would go to the restaurant owner as a commission/thank you, a portion would go to your favorite charity (a lot more than $1 or $2 a month) ... and portion would come back to YOU too ... so it could defer equipment costs, pay for a locator, etc. What do all of you think of this idea? Lee P.S. Beaver makes a marquee that costs a LOT ... I think $200 a pop ...and can be attached to their equipment or another manufacturers. However, I think that's too much, so something else would have to be designed.

Vendmania.com has 2,500 completed (empty) 1.1" capsules (clear bottoms, assorted color tops) for $49.99 plus shipping... they look like Acorn style. Shipping back to me in Pittsburgh brings it to .02 - .024 cents range per capsule. I think that's the cheapest anywhere? Although who knows, maybe the Acorn style doesn't vend as well ... you guys know more about that stuff than me. :shock:

Johnny, Are you sure it's only adding a PENNY to each vend? I thought capsules would add about .3 or 4 cents per vend? I haven't investigated it thoroughly, but everytime I checked on prices on empty capsules they aren't cheap. Where do you get your capsules if I may ask? Thanks. Lee

How do you know a Beaver RB16 and PO89 will work? Did you try it personally?

That's WHY ... all of YOU are the experts! You're actually operating a business and know what works, and what doesn't based on real life experience! Thank you all for the comments and clarifications... sheds light on my idea (a not so good one at that!) Lee

What if you ran single head machines ...but swapped out the product for something else each month? You could even "ask" the location what they WANT ... thus building some anticipation for the new treat of the month. For example ...let's say you started off with Reeses Pieces in month #1 ... then switched to PMM's in month #2 ... then switched to Skittles in month #3. Thereby you're still giving the customer a CHOICE .... in the form of something "NEW" each month. As a result, would you see an increase/bump in sales? (People want to try the new treat of the month!) The reverse of what you see ...decrease in sales... when you guys report that month #2 doesn't do as good as month #1 in a location from the simple standpoint ...customers see a machine, naturally try it out, then may not do so as much the next month. DISCLAIMER: Remember, I'm NOT an actual operator YET - just a marketing guy looking into bulk vending. So you guys have the real FACTS based on actual operation. Lee

A little research on the subject tells us ... Liberty Vending of UTAH was basically issued a cease and desist order because they were offering a vending biz opp (however, they weren't properly registered to do so in the state of WA). Just type in ... Liberty Vending ... into Google and you'll get some results. So you're probably finding machines that they originally offered back in 1999 to 2001 range. Lee

I noticed that you didn't mention a STAND ...that you bought from Beaver, which look very nice, but are quite expensive. What stand did you use with your Southern Beavers? And, does anyone know, what stands in general work with this model? Lee

No ... I don't own or have bulk machines on the street. I'm self employed, marketing consultant. Been so for 17 years. Just looking into the bulk vending business. Actually, I stumbled upon an article about Massage Chair vending business concept. Interesting to say the least. And from there, I learned about bulk vending. Which brings me to this forum, where there is a wealth of information!

Here's an interesting news story on the Breathalyzer!

I think the vending machine manufacturers and distributors should be incorporating something into the design of their machines .... that would allow for additional information to be displayed about the charity. Of course, cost issues may arise which may make it prohibitive.

Sure enough ... a media outlet in Minneapolis has already done a story!! Take a look at this link below: http://www.vendiscuss.com/forums/view_topic.php?id=1612&forum_id=1

Here's an interesting news story below by WCCO TV in Minneapolis, MN. Interestingly in another thread ... (Location Does Not Trust Me) I commented on how I felt this type of investigation into bulk vending, and the affiliation with charities is subject to scrutiny by the media. Sure enough, here is a news story. Give it a review and comment. Lee ====================================================== ARTICLE BELOW Written by WCCO TV It takes just a second to drop a dime into a charity box and you think you are making a difference. The WCCO-TV I-TEAM found that's not always the case. In some cases, hardly any money is going to charity, no matter how much is collected. Last December, Linda Ronan made headlines in the Twin Cities because of how she was making money. Banking on the generous hearts of holiday shoppers, as she placed boxes at a handful of stores and kept the proceeds. Ronan told WCCO-TV she bought the boxes as a business venture and that she has done nothing wrong. She might be right. Prosecutors still have not decided if she should be charged with a crime. The I-TEAM found out Ronan was participating in a vending sticker program that lets people use a charity's good name to raise money. Money that by law does not need to go to the charity. "You risk losing your good money," said Solicitor General Lori Swanson. "So the bigger questions is, it's legal, but is it misleading?" WCCO-TV's Terri Gruca asked Swanson. "Yes, correct," Swanson replied. "If people did give to a charity, if they feel like the charity or the owner of the box mislead them, then we would encourage them to file complaints with our office." To find out how much money a charity box brings in, the I-TEAM set up an experiment, placing charity boxes around the Twin Cities. The I-TEAM signed up for a sticker program with the Vanished Children's Alliance (VCA), a legitimate charity, that helps find missing kids. Based on the agreement with VCA, we could not represent ourselves as fundraisers. Placing the boxes across the metro area was easy. Fifteen boxes were left out for 30 days in ice cream shops, smoke shops, restaurants and liquor stores. "This morning, it's to help find missing children," said donor Gina Breedlove when asked where she thought her money was going. The fine print on the sticker said, "All proceeds go to the unit owner." That means the person placing the box gets the cash. "I never read the fine print on that," said Breedlove. The sticker also said, "The owner of this unit makes a guaranteed monthly royalty payment to the Vanished Children's Alliance." It does not say what the fee is. In the boxes, the I-TEAM collected pennies, dimes, dollars and even a $5 bill. After one month, the total collected was $120.79. All the I-TEAM was required to give to the charity was $22.50, or $1.50 per box. "We want as much disclosure to the public as possible," said Georgia Hilgeman Hammond, who started up the Vanished Children's Alliance. Hammond started the alliance in San Jose, Calif. after her own daughter disappeared. Her daughter was eventually found, but she wanted to help other kids. She said the charity's sticker program is one way to help and believes the stickers themselves say enough. "It's legal, but is it deceptive?" Gruca asked Hammond. "I don't think it's deceptive and anyone that has additional questions can pick up the phone and call us," Hammond replied. "You're doing a box for charity and the reality is the charity is yourself," said Mike Farnham. Farnham took the I-TEAM's box out of his liquor store when he realized the Vanished Children's Alliance did not have to get all the cash. The VCA said it is not all about the money. "We're getting publicity for this particular child, exposure for this child and exposure to the agency so people can know of a resource," Hammond said. The VCA fears people will not give if they find out the charity only requires to give $1.50 a month. "There probably are people making money and you know, it's not necessarily bad because hopefully, it's a win-win situation," Hammond said. The I-TEAM found people all over the Twin Cities using charities to make money. Chris Bratvold uses National Children's Cancer Society stickers on her vending machines. She brings in about $200 a month. "They told me this can be some very good income on the side," Bratvold said. Diliana Thilomy uses stickers from Child Search on her candy-filled boxes. Both women said they got involved in this business to raise awareness for good causes and to make money. "I needed help and they needed help," Thilomy said. "I thought this was a pretty good thing to do." The Vanished Children's Alliance said people should only use its stickers on boxes where people get something for their money. The Alliance said just using the term honor box in their contract is enough to let people know they can't just put out boxes to collect donations. However, the charity never asked the I-TEAM if it was selling anything when signing up. The Ronald McDonald House is one of the few charities that does not let people make money off its name. "That money is very significant to us," said Meg Katzman, Executive Director of the Ronald McDonald House in the Twin Cities. The local and national charities get 100 percent of the money collected in McDonald's charity canisters. "For a charity to allow someone to put a box out and only receive a minimum of $1.50, when you have the potential to raise so much more money, I have an ethical problem with that," Katzman said. The Vanished Children's Alliance said it makes $200,000 a year from its sticker program. "I think about the good that money does for these children and these families and for educating the public," Hammond said. The I-TEAM's earning show the VCA is missing out on a lot more. The I-TEAM made five times what it was required to donate and gave it all to the charity. If the VCA took in five times the $200,000 it typically earns in a year, it could have $1 million. Knowing that, the VCA still doesn't plan to charge more than $1.50 a month. "As a matter of fact, a lot of people think we ask too much," Hammond said. In the 1980s, Minnesota had a law requiring charities to give 70 percent of what they collected to their cause. The Supreme Court ruled that law unconstitutional so now you have to do your own homework. The best way to check up on a charity is to call the charity or look at the charity's legal papers at the Attorney General's Office. Even if a charity does not participate in a sticker program, it may use an outside agency to collect charity box profits. Most agencies get 30 percent of the money collected. (WCCO)

I'm self employed marketing consultant ...specializing in writing and distributing press releases for businesses. I have yet to enter the bulk vending business ....just investigating it at this point. Lee

Philo makes a good point. For any entrepreneurial person ... to get into the bulk vending business ... it really doesn't cost a whole lot. One way to get a handle on the SMALL companies ... is to just walk around to various establishments ... looking for bulk vending machines, and see if they leave a sticker on the machine (identifying the owner possibly) ... as well as see which charity they are affiliated with ... (i.e. then you could call that charity and perhaps figure it out etc.) Lee

I have spoken with Marjorie from Midwest on a couple of times. Her phone # is 1-800-221-2234. Bear in mind ... I have NOT used her to locate any machines. Purpose of my calls were to gather information etc. Lee

Hi Johnny ... I'm a marketing consultant who specializes in working with the media ... so I KNOW a LOT about this topic. If the day ever comes ... that the media wants to take a peek into this aspect of vending ... they will need to offer a "fair and balanced" report. In other words, while it's true that any individual vendor ... at any given individual location doesn't give a whole lot ... the charity receives thousands upon thousands of dollars ... from their total vending outreach program. All at little to no work too on their part too. So the reporter will have to contact these charities ...and these charities are going to praise all of the vending operators (such as yourself). So the only "real" story left for the media to report is this. What does a person "think" or "perceive" ...when they drop a quarter in? Of course most people don't think about it a lot because it's simply only a quarter. BUT ...I can virtually guarantee you that most people "think" that a high percentage (.25 cents, .20 cents) is going to the charity. That's the perception. Now is the reporter going to blow this into a story knowing that for the most part there is much more positive going on here vs. negative? Well, it depends. It depends on how busy they are today (slow day in the newsroom?). I'm NOT involved yet in vending. But if I do decide to become an operator ... I'd like to put my skillset to use ... (i.e. working with media to get coverage). EXAMPLE: Couldn't the story be .... "Join us at 5 PM as consumer editor Joe Smith shows how all of your spare change is adding up to help youngsters like (fill in the name of someone). That's how anyone running a route could get FREE publicity for their business! Pretty neat eh? Lee

I think Buzz Bites forum will eventually see a lot of action ... especially considering the amount of advertising money that is being poured into BB campaign ... especially pay per click ads! (i.e. lots of prospects considering this type of vending, and will want to know the inside scoop). Not to mention some veterans that will be "curious" to see if all the HYPE about these machines is for real. Lee

Yes Ebonie. Jay Abraham is the real deal and the link you referenced is a very good one for learning some of the basics regarding how to develop a USP. Actually, I'm a marketing consultant, and own several of Jay's books. Excellent stuff! Lee

This technology is fascinating stuff! The time-savings an route operator would enjoy, plus less hassle ... makes it worth for anyone (in my opinion) to consider. Even the basic meter which keeps track of vends sounds like it would be helpful. Lee :cool:

Ebonie, You can always take this concept to the next level by developing a "USP" -- unique selling proposition for your company. EVERY company should have one! Examples.... Dominos Pizza, "Domino's delivers, 30 minute delivery or your money back." Energizer, "Outlasts all other batteries.... It keeps going and going and going." Midas Muffler, "Guaranteed for as long as you own your car." Geico, "A 15 minute call could save you 15% or more on car insurance." See how powerful those are? Lee

Many years ago, I traveled to Valley Forge, PA ... where Hugs Not Drugs was based to meet personally with Ruth Harris, Founder. I got a complete tour of the operation! Very impressive, as she is very dedicated to helping children and families! Who knows, if I decide to get involved with Bulk Vending ... Hugs Not Drugs charity will be strongly considered! Lee

Bigger message here is that .... Everything is always changing! Translation ... Businesses come and go, even very big ones too. So the landscape of where your machines are today, will not be the same landscape in the future. Lee