Which machine to buy?

[USMC]

I am in Arizona and am looking into opening a few Soda/drink vending locations about between 30 and 40 of them.

As a newbie to vending I was looking for some in site as to which machines I should be looking to buy, used of course.

I want to be able to vend a variety of drinks; Coke, Pepsi, Red Bull, Monster.......

Should I be looking at glass front machines or the standard back-lit machines?

What is the ideal number of products to vend out of each machine?

Any advice would be a great help.

[dogcow]

All that is going to depend on the location do you have one secured? If so give us some detail

[USMC]

All that is going to depend on the location do you have one secured? If so give us some detail

I don't have a location yet, because I am still deployed but I will be back in Arizona on December 1st. At that time I will be searching out location. I just want to be prepared to get the machine needed machine as soon as I have the location. Once I get the location I will post info about it .

Thank you for your reply

[dogcow]

if you are buying a refurb unit from a dealer dont worry most dealers have quite a

good selection on hand from what ive seen so availability is not a problem. If you

are looking for a craigs list deal then the machine you buy largely will dictate where

you put it. For example if you buy a beat up flat front can vendor you are limited to shop floors and so on.

try to secure the location first, tell them you will need two weeks to get the machine installed. that should give you enough

time to find something and close a deal assuming you dont have

much else to do.

Also try to consider how you will move the machine. You will need to secure a truck with a lift gate and a dolly that is made for moving vending machines. Either that or you will need to find a professional vending machine mover. Alot of the repair guys also move machines and may know of good deals on used equipment. Try to sort all of this out before making a deal with a location so you are not scrambling at the last minute.

Last but most important MEASURE EVERYTHING BEFORE BUYING A MACHINE!!!

[USMC]

if you are buying a refurb unit from a dealer dont worry most dealers have quite a

good selection on hand from what ive seen so availability is not a problem. If you

are looking for a craigs list deal then the machine you buy largely will dictate where

you put it. For example if you buy a beat up flat front can vendor you are limited to shop floors and so on.

try to secure the location first, tell them you will need two weeks to get the machine installed. that should give you enough

time to find something and close a deal assuming you dont have

much else to do.

Also try to consider how you will move the machine. You will need to secure a truck with a lift gate and a dolly that is made for moving vending machines. Either that or you will need to find a professional vending machine mover. Alot of the repair guys also move machines and may know of good deals on used equipment. Try to sort all of this out before making a deal with a location so you are not scrambling at the last minute.

Last but most important MEASURE EVERYTHING BEFORE BUYING A MACHINE!!!

This is a great help!

I know of a few used machine dealers in the Phoenix area, I will be sure to stop in there as soon as I return home.

I was going to look into the charity vending programs as well, have you found that this has been helpful getting locations?

Thank you very much for your time.

[Vending How Chris]

This is a great help!

I know of a few used machine dealers in the Phoenix area, I will be sure to stop in there as soon as I return home.

I was going to look into the charity vending programs as well, have you found that this has been helpful getting locations?

Thank you very much for your time.

Everything Dogcow said is right on. To be sure, your product mix will change over time as you learn what your customers want. A helpful thing to do, however, is go to a similar kind of location (particularly if its nearby as demographics have a lot to do with product selection) and check out their vending machine. Whatever their mix is is a good place to start.

[USMC]

Everything Dogcow said is right on. To be sure, your product mix will change over time as you learn what your customers want. A helpful thing to do, however, is go to a similar kind of location (particularly if its nearby as demographics have a lot to do with product selection) and check out their vending machine. Whatever their mix is is a good place to start.

I have only been a member of this site for a day and I already have pages of notes. Please keep it coming. Thank you all very much

[mission vending]

I am in Arizona and am looking into opening a few Soda/drink vending locations about between 30 and 40 of them.

As a newbie to vending I was looking for some in site as to which machines I should be looking to buy, used of course.

I want to be able to vend a variety of drinks; Coke, Pepsi, Red Bull, Monster.......

Should I be looking at glass front machines or the standard back-lit machines?

What is the ideal number of products to vend out of each machine?

Any advice would be a great help.

Starting out I'd keep it simple. Stay away from glassfronts, you will have to carry too many different products and the machines are also way to expensive to put in a soda only location. Stacker machines either owned or bottler provided will be the simplest way to start while you are learning about the machines and the business. In this scenario, with several locations, you might have 12-15 selections.

Like mentioned, find the location then get the machine. Find yourself several used equipment dealers to establish a relationship with to buy equipment from. If you want to vend Monsters (Red Bull is a pain to work with due to size) you will need to focus on newer muti-price machines.

Depending on your employment situation you might want to even consider trying to work for a large route company for a few months to get paid while you learn, this would dramatically shorten the learning curve for you.

[AngryChris]

I have a few pieces of advice, but first I will recommend what I would start with if I were you.

Start with can machines. Can-only machines are cheap, easy to work with, tend to have far less problems than anything else you can get, and require cans -- a product that lasts long and you can buy at any grocery store.

As for brands? I don't think I have ever seen somebody that does NOT like Dixie Narco. It may not be their first choice, but I have never seen someone refuse to buy them. As for snack machines, I like the modern USI machines as well as the Crane-GPL series but the older APs and National are proven brands.

Here is my advice:

Firstly, never listen to a biz op scam ( you know, those ads that claim you could get rich if you buy their super modern technologically advanced vending machine that does it all ). These things are usually scams and are always misleading.

Secondly, understand that in full-line vending, products go out of date. You simply cannot throw a huge machine into a small location and expect everything to move.

Thirdly, not everyone likes what you like and also may not like what they think they like ( sounds weird right? ). An example of this is when you go to a location and say "What should I put in the machine?" One guy says "Twizzlers!!" so you put them in and you never sell a single one. Why? It's because they want to buy their favorite item instead. Sure, if you GAVE them the twizzlers they would eat it. Maybe if their favorite item was sold out, they would buy the twizzlers but you have no guarantee on what people claim to want.

Fourthly, pop machines are INCREDIBLY less demanding than snack machines. To install a soda machine may require 8 cases of soda ( average amount ) but a snack machine may leave you with boxes and boxes of product due to the huge variety.

Fifthly (is this even a word?), your goal should be to gain a return on your investment. You have to spend money to make money but you also have to make money to justify the amount that you spent! Don't put vending machines in a location just because you can; make sure the location is going to turn a profit.

Sixthly(here we go with the crazy words), blue collar buy far more than white collar. People who delivery spend less than people who stay on site. People with shorter break times spend more at the vending machines. Older people are smarter and bring their own lunch while younger people spend their wages away in your machines. Demographics = $$$$

Seventhly (spell check going crazy now), you need to be able to understand all of this and brush it off of your shoulder, because if it sounds like too much to understand, you are going into the wrong business.

Finally, keep in mind that the vending industry is constantly under attack by regulations, usually just because it is a retail sales industry.

[RJT]

USMC,

Do not buy anything yet!!! When you get home send me your info and I will send you my book and CD for free. I like helping out my fellow Marines and Vets anytime I can.

Happy belated birthday and Semper Fi!!

[USMC]

Starting out I'd keep it simple. Stay away from glassfronts, you will have to carry too many different products and the machines are also way to expensive to put in a soda only location. Stacker machines either owned or bottler provided will be the simplest way to start while you are learning about the machines and the business. In this scenario, with several locations, you might have 12-15 selections.

Like mentioned, find the location then get the machine. Find yourself several used equipment dealers to establish a relationship with to buy equipment from. If you want to vend Monsters (Red Bull is a pain to work with due to size) you will need to focus on newer muti-price machines.

Depending on your employment situation you might want to even consider trying to work for a large route company for a few months to get paid while you learn, this would dramatically shorten the learning curve for you.

I was thinking about starting with 10 selections.

Coke, Pepsi, Diet Coke, MT. Dew, Dr. Pepper, Energy drink, Water, I an not really sure about the other 2.

I had not really considered going to work for a large route company, but I think that is a great idea.

Thanks again

[USMC]

I have a few pieces of advice, but first I will recommend what I would start with if I were you.

Start with can machines. Can-only machines are cheap, easy to work with, tend to have far less problems than anything else you can get, and require cans -- a product that lasts long and you can buy at any grocery store.

As for brands? I don't think I have ever seen somebody that does NOT like Dixie Narco. It may not be their first choice, but I have never seen someone refuse to buy them. As for snack machines, I like the modern USI machines as well as the Crane-GPL series but the older APs and National are proven brands.

Here is my advice:

Firstly, never listen to a biz op scam ( you know, those ads that claim you could get rich if you buy their super modern technologically advanced vending machine that does it all ). These things are usually scams and are always misleading.

Secondly, understand that in full-line vending, products go out of date. You simply cannot throw a huge machine into a small location and expect everything to move.

Thirdly, not everyone likes what you like and also may not like what they think they like ( sounds weird right? ). An example of this is when you go to a location and say "What should I put in the machine?" One guy says "Twizzlers!!" so you put them in and you never sell a single one. Why? It's because they want to buy their favorite item instead. Sure, if you GAVE them the twizzlers they would eat it. Maybe if their favorite item was sold out, they would buy the twizzlers but you have no guarantee on what people claim to want.

Fourthly, pop machines are INCREDIBLY less demanding than snack machines. To install a soda machine may require 8 cases of soda ( average amount ) but a snack machine may leave you with boxes and boxes of product due to the huge variety.

Fifthly (is this even a word?), your goal should be to gain a return on your investment. You have to spend money to make money but you also have to make money to justify the amount that you spent! Don't put vending machines in a location just because you can; make sure the location is going to turn a profit.

Sixthly(here we go with the crazy words), blue collar buy far more than white collar. People who delivery spend less than people who stay on site. People with shorter break times spend more at the vending machines. Older people are smarter and bring their own lunch while younger people spend their wages away in your machines. Demographics = $$

Seventhly (spell check going crazy now), you need to be able to understand all of this and brush it off of your shoulder, because if it sounds like too much to understand, you are going into the wrong business.

Finally, keep in mind that the vending industry is constantly under attack by regulations, usually just because it is a retail sales industry.

From what I have been reading it does sound like the Dixie Narco machines have a reputation, I will continue to investigate them. I also believe that I am leaning towards Drink vending, not snack vending right now.

What do you use for a determining factor when deciding what size machine to place in a location if there is no data from a prior vendor?

I assume you use a combination of:

# of people working at location

# of customers at location

Are customers waiting for something

Thank you for all the advice.

[USMC]

USMC,

Do not buy anything yet!!! When you get home send me your info and I will send you my book and CD for free. I like helping out my fellow Marines and Vets anytime I can.

Happy belated birthday and Semper Fi!!

It is great to hear from a fellow Marine, thank you for your service.

That would be awesome! I have quite a learning curve ahead.

I was kind of disappointed at my current location we really did not celebrate the Marine Corps Birthday, but I guess I am in third world country.

Thanks again

[AngryChris]

From what I have been reading it does sound like the Dixie Narco machines have a reputation, I will continue to investigate them. I also believe that I am leaning towards Drink vending, not snack vending right now.

What do you use for a determining factor when deciding what size machine to place in a location if there is no data from a prior vendor?

I assume you use a combination of:

# of people working at location

# of customers at location

Are customers waiting for something

Thank you for all the advice.

I have a pretty complicated formula but here is my general formula for "justifying" a location.

White collar x $0.85/week. (ie. 20 white collar in an office x $0.85/week = $17/week)

Blue Collar x $1.75/week. (ie. 20 blue collar in a factory x $1.75/week = $35/week)

These figures are for soda only. Snacks account for an extra 50% of the soda revenue so an account that may do $20/week for soda, alone, will do $30/week with snacks.

After calculating a basic formula (ie # of blue/white collar workers x 0.85 or 1.75) you can determine your own profit margin by determining your sales price, cost of goods, and sales tax rate.

For example: If you are selling cans and you determine that you are going to sell them for 75cents and your local sales tax rate is 10% (or 7.5 cents ) and your cost of goods is 30 cents per can. Now you can do some math.

First, multiply the sales price ( $0.75 ) x the tax rate ( 10% ) to get $0.075 or 7.5 cents. (this is the sales tax that you must pay for the can when taxes are due)

Now add the sales tax to your COG ( 30 cents ) to get a total of 37.5 cents.

Now that you know what your expense is for the can, you can do a simple formula.

( Sales Price - Expenses ) / Sales Price or ( .75 - .375 ) / .75 which is broken down further into .375 / .75 = .5 or 50% profit.

It may look complicated but it's what you need to find out.

Now, if you have a place with 20 blue collar workers at $1.75/week you should assume around $35/week. Of that $35, you should earn $17.5 in profit which is 50% of your total sales. Use that $17.5 and multiply it by 50 weeks ( to make it easy ) and you will have earned $875 in a year which could easily pay for a can machine.

It's a lot of math but it's much much easier than it looks once you get the hang of it.

Also, to determine the price of the can if you buy it at the grocery store, factor in the ENDING SALES PRICE ( price + sales tax ) and divide that by the number of units (ie $4.80 for a 12 pack would be $.40/can which is super expensive btw)

I hope this helps and doesn't overly confuse...

[dogcow]

White collar x $0.85/week. (ie. 20 white collar in an office x $0.85/week = $17/week)

Blue Collar x $1.75/week. (ie. 20 blue collar in a factory x $1.75/week = $35/week)

that seems about right to me, at least for can drinks. do you assume the same for bottle drinks? I figure with bottles and energy drinks your gross #s will be higher. I dont do them so I cant really say but I just sort of assume so.

[AngryChris]

White collar x $0.85/week. (ie. 20 white collar in an office x $0.85/week = $17/week)

Blue Collar x $1.75/week. (ie. 20 blue collar in a factory x $1.75/week = $35/week)

that seems about right to me, at least for can drinks. do you assume the same for bottle drinks? I figure with bottles and energy drinks your gross #s will be higher. I dont do them so I cant really say but I just sort of assume so.

I use the same formula for both and usually come out quite similar. A lot of places will buy 2 cans instead of 1 bottle so the revenue stays similar but the overall revenue increase from bottles is offset by the higher COGS so even if a bottle account did $40 and a can account did $25, the overall profit might be around the same. I haven't really crunched the numbers hard enough in the past to figure out the difference... I don't have enough information to get an accurate formula for that... maybe in a few years I'll try to break it down further.

[USMC]

I have a pretty complicated formula but here is my general formula for "justifying" a location.

White collar x $0.85/week. (ie. 20 white collar in an office x $0.85/week = $17/week)

Blue Collar x $1.75/week. (ie. 20 blue collar in a factory x $1.75/week = $35/week)

These figures are for soda only. Snacks account for an extra 50% of the soda revenue so an account that may do $20/week for soda, alone, will do $30/week with snacks.

After calculating a basic formula (ie # of blue/white collar workers x 0.85 or 1.75) you can determine your own profit margin by determining your sales price, cost of goods, and sales tax rate.

For example: If you are selling cans and you determine that you are going to sell them for 75cents and your local sales tax rate is 10% (or 7.5 cents ) and your cost of goods is 30 cents per can. Now you can do some math.

First, multiply the sales price ( $0.75 ) x the tax rate ( 10% ) to get $0.075 or 7.5 cents. (this is the sales tax that you must pay for the can when taxes are due)

Now add the sales tax to your COG ( 30 cents ) to get a total of 37.5 cents.

Now that you know what your expense is for the can, you can do a simple formula.

( Sales Price - Expenses ) / Sales Price or ( .75 - .375 ) / .75 which is broken down further into .375 / .75 = .5 or 50% profit.

It may look complicated but it's what you need to find out.

Now, if you have a place with 20 blue collar workers at $1.75/week you should assume around $35/week. Of that $35, you should earn $17.5 in profit which is 50% of your total sales. Use that $17.5 and multiply it by 50 weeks ( to make it easy ) and you will have earned $875 in a year which could easily pay for a can machine.

It's a lot of math but it's much much easier than it looks once you get the hang of it.

Also, to determine the price of the can if you buy it at the grocery store, factor in the ENDING SALES PRICE ( price + sales tax ) and divide that by the number of units (ie $4.80 for a 12 pack would be $.40/can which is super expensive btw)

I hope this helps and doesn't overly confuse...

Thank you for taking the time to spell it out for me, this completely make sense. That is a wealth if insight.

Thanks

[AngryChris]

Thank you for taking the time to spell it out for me, this completely make sense. That is a wealth if insight.

Thanks

No problem at all. That's what this forum is for, right?

[USMC]

No problem at all. That's what this forum is for, right?

It sure has helped me.

Thank you everyone

[USMC]

USMC,

Do not buy anything yet!!! When you get home send me your info and I will send you my book and CD for free. I like helping out my fellow Marines and Vets anytime I can.

Happy belated birthday and Semper Fi!!

Hey Buddy, I finally made it home after a few days of travel. I was just checking in to see if you might be able to hook me up with the book you were talking about? Again thank you very much for your help.

[RJT]

Hey Buddy, I finally made it home after a few days of travel. I was just checking in to see if you might be able to hook me up with the book you were talking about? Again thank you very much for your help.

Sure, PM me your name and address...