Using a local Bottler to supply machines

[USMC]

I have seen a few posts about people setting up accounts with Bottlers. Is this very easy to do? Is it really worth doing, it seems like they charge higher prices for their drinks than a big box store? ( Sams, Costco)

Might it be better to just buy drinks at a Big Box and then buy the machines yourself once you have a location, that way there is no minimum case order each month?

There have also been a few posts about this company Metro Vending I did decide to contact this company, I do not believe that I will use them. I have a hard time handing over my hard earned money to a company that wants 1/2 the payment upfront then the other 1/2 before the job is even complete.

Anyways I will post my email conversation I had with them, just so people can see what they to say.

Also let me know what you all think.

My email to them

I have a few questions about the services you offer. I have worked with a locating service in the past with horrible results, so when it come to handing over my hard earned money I am very skeptical. Here are the questions.

How long does it take to secure locations?

What constitutes a successful location?

How is it determined if a location in under performing and needs relocating?

What is the criteria for a good location?

If you are unable to find locations what is the predetermined amount of time before a full refund is issued?

To be clear the machines are provided by the bottler at no other cost, is this correct?

Is there a delivery charge for the Bottler to deliver products to my storage facility?

I also have a few question about the complaint filed against you at the BBB.

How was this resolved?

What does he mean by Coke, Dr Pepper, 7-up would not loan him machines even after his account was setup with them?

Is having the machine secured in the location part of the agreement between you and I?

Also it states that they were not getting responses to their emails, text and calls when they were trying to check the status of their account. Can you please shed some light on what took place.

Can you provide references?

Can we also get a contact number or email for Coke/Pepsi bottlers that I would be working with in my area. So I can verify that machines are available and they recognize the relationship to your company?

I really want to make sure that this is not some scam put together just to take peoples money. Please don't take this email the wrong way I want to ensure I am working with honest hard working people like myself and I don't want to waste your time or mine.

Here is what I am looking at, placing 40 machines in Mesa, Arizona

Their Response to me

Hi Jayson, -A route of 10 usually takes 6-7 weeks from start to finish.

Locations will usually average $75-$100 per week. -$40 per week has your investment back in a little over a year, volumes less than $40 are subject to relocation.

Foot traffic and/or employee count are the factors we consider for locations.

I have never encountered an area that couldn't supply locations for people who have bought. If it did happen (which it won't) a refund would be issued.

The machines are provided by the bottler at n/c with the stipulation that product sold through the machines are purchased from the bottler.

No charge for delivery.

-My former partner (father) was the one having issues with the guy who filed the BBB complaint. He is based in Spfld and I am in KC and we no longer are doing business together. I don't have any disgruntled former buyers. I believe he did come to an agreement with the gentleman and supplied him with some mchns he would own and supplied locations to put them. I am not really familiar with the particulars as it wasn't my deal and I never even spoke to the guy.

-The machines ending up installed into the location would be guaranteed and a refund would be issued if they were unable to be installed.

If you are interested in proceeding I would be happy to supply you with references.

I couldn't send you in to the bottler before we had an agreement. As mentioned, a refund would be issued if we couldn't secure equipment although I have not had an area where we were unable to get equipment.

40 machines/locations would take 3 or 4 months to complete although you would start having machines installed at around 6 weeks after we started.

I don't blame you for being skeptical...there are a lot of slimes in the vending industry. I have been offering this program for 20 years and take pride in the success of my customers. My former partner is the only issues I have encountered. If you get close to proceeding, fly into KC and if we do the deal I will cover your air fare. I will also send you with Mark or Mike (who have each bought around 60 from me) and they can give you some hands on experience with some equipment including both Coke and Pepsi machines.

Thanks for your interest.

Metro Vending

Everything always sound so good on the outside, but can turn to crap if they steal my money. What do you all think?

[Vending How Chris]

Everything about it sounds on the level to me, except for the part where he would cover your airfare. I don't know why, but that sounded a little off. Make sure you read over whatever contract you sign thoroughly before preceding and have a lawyer read over it as well so you know what you can do if they do try to scam you. If you don't have a lawyer, there are services (I can't remember any off the top of my head) who will give legal advice on a per hour basis. I'm sure you could send the contract to them and have them read it over.

In terms of bottlers, I can't recommend developing a relationship with a bottler enough. My company has over 200 locations and we deal almost exclusively with Coca Cola. They offer free machines that we lease and we install them, then they pick them up if we are done with them. While the machine is at a location, they offer free maintenance as much as needed.

For us to have this contract with them, we need to have a certain amount of machines already and these machines have to dispense exclusively coke products. It's something like 20+ machines on the route already.

If you ask the owner of my company, he'd tell you that the only way he was able to grow so quickly was because he cut his costs drastically by working with a bottler. If you can swing it, this is the way to go. Coke Cola is the only company where we have this kind of agreement so I can't speak to process of working with other bottlers.

[USMC]

Everything about it sounds on the level to me, except for the part where he would cover your airfare. I don't know why, but that sounded a little off. Make sure you read over whatever contract you sign thoroughly before preceding and have a lawyer read over it as well so you know what you can do if they do try to scam you. If you don't have a lawyer, there are services (I can't remember any off the top of my head) who will give legal advice on a per hour basis. I'm sure you could send the contract to them and have them read it over.

In terms of bottlers, I can't recommend developing a relationship with a bottler enough. My company has over 200 locations and we deal almost exclusively with Coca Cola. They offer free machines that we lease and we install them, then they pick them up if we are done with them. While the machine is at a location, they offer free maintenance as much as needed.

For us to have this contract with them, we need to have a certain amount of machines already and these machines have to dispense exclusively coke products. It's something like 20+ machines on the route already.

If you ask the owner of my company, he'd tell you that the only way he was able to grow so quickly was because he cut his costs drastically by working with a bottler. If you can swing it, this is the way to go. Coke Cola is the only company where we have this kind of agreement so I can't speak to process of working with other bottlers.

Do you think it would be better to just contact my local Bottler and workout the details then go find the locations myself or hire a locator?

Being that this company is not located in my state I doubt they have a relationship with the Bottler but I will ask. They want about $35,000 for their services, it seem to me that they just know the process and who to contact in order to setup the accounts with the Bottler. Does this sound right or am I missing something?

I also wonder if I could spend that $35,000 finding locations myself or use a locator and end up with more locations in the long run.

Do you know if it is possible for the average guy to setup accounts with Bottlers?

[dogcow]

I cannot stress enough please do not send 35k to metro vending...look for the thread on hhhere about their "services"

[USMC]

I cannot stress enough please do not send 35k to metro vending...look for the thread on hhhere about their "services"

I 100% agree!!!

I think I have read most of the posts on this company and it smells of fish.

I will stay clear.

I am trying to figure out if someone with no connections will be able to setup accounts with local Bottlers. Being that I am still deployed I will have to wait until December when I get home to call them.

I have looked online for an email to the Coke bottler nearest Mesa, Az but I have only been able to find a phone #. Does anyone know an email address for the Coke Bottler in Tempe,Az or where to get this information so I can contact them prior to returning home?

Dogcow, thank you for your time

[Vending How Chris]

I 100% agree!!!

I think I have read most of the posts on this company and it smells of fish.

I will stay clear.

I am trying to figure out if someone with no connections will be able to setup accounts with local Bottlers. Being that I am still deployed I will have to wait until December when I get home to call them.

I have looked online for an email to the Coke bottler nearest Mesa, Az but I have only been able to find a phone #. Does anyone know an email address for the Coke Bottler in Tempe,Az or where to get this information so I can contact them prior to returning home?

Dogcow, thank you for your time

Don't know their email, but bottlers want to work with you. I would deal with them directly if you can help it. We have never used a locator service or any other third party. If you do good work, you can build your business through referrals. In fact we get a lot of referrals from the bottler themselves!

It is my understanding that it isn't about connections, it's about prior business. I agree though that 35k is a lot and you would be better off buying a route from a third party than giving it to them if you wanted to get into the business quick. Alternatively, you could work for an existing vendor and work out a deal to buy part of their route from them.

Just some thoughts.

[mission vending]

Working with bottlers can be a good thing, as mentioned no cash outlay in equipment, free repairs etc. On the flip side I have seen the trend over the years as CCE as bought out most of the independent bottlers that it is becoming harder to do business with them, especially for someone new to the business. In my area, San Antonio, TX, they won't even talk to you about third party lease equipment until you can show you have been in business for at least a year.

I will also mention here again that the standard contract that they are now using gives them the right to pick up all the equipment on 30 days notice. If all of your equipment is provided by them they could easily arbitrarily put you out of business and you are left with no other option other than scrambling around to buy as much as equipment as you can get your hands on to save the accounts. Full disclosure: I have never heard of them doing this except to the vendors that are in violation of the contract but you never know what the future will bring.

My suggestion is to use a blend of owned and lease equipment. I put lease machines in areas that I feel are likely to be vandalized or due to extreme conditions will require a lot of maintenance. I also used them several years ago when I first got into glassfronts in a big way. After learning about the equipment and figuring out which locations worked well with them I began phasing Coke equipment out as I purchased my own glassfronts. By owning my equipment I can put ANYTHING in the machines that my customers want and not be limited by a bottler contract. This gives me a competitive advantage when going after accounts that have bottler equipment.

BTW, one final comment, don't waste your time with Metro. Even if its 100% legit you are, IMO WAAAAAAY overpaying for the service being offered.

[BobTHJ]

I am a recent Metro Vending customer. I can assure you they are legit. So far they have fulfilled all their contractual obligations to me - and have even provided an additional 5 locations beyond what was agreed to at no additional cost. They have been pleasant to work with and have acted promptly on securing my locations.

However, as was pointed out to me on these forums and later confirmed via other sources they appear to be way overpriced. Even with the extra freebie locations that's still $766 per location I paid - and most of these locations are in the mediocre range. While they did assist in helping me set up accounts with Coke and Pepsi (which has some value) in hindsight I could have easily done this myself by googling the phone numbers for the local bottlers and asking to speak to the sales reps about 3rd party. If Metro Vending were to lower their prices I would gladly recommend them as a locator - but at present their service costs too much.

[mission vending]

I am a recent Metro Vending customer. I can assure you they are legit. So far they have fulfilled all their contractual obligations to me - and have even provided an additional 5 locations beyond what was agreed to at no additional cost. They have been pleasant to work with and have acted promptly on securing my locations.

However, as was pointed out to me on these forums and later confirmed via other sources they appear to be way overpriced. Even with the extra freebie locations that's still $766 per location I paid - and most of these locations are in the mediocre range. While they did assist in helping me set up accounts with Coke and Pepsi (which has some value) in hindsight I could have easily done this myself by googling the phone numbers for the local bottlers and asking to speak to the sales reps about 3rd party. If Metro Vending were to lower their prices I would gladly recommend them as a locator - but at present their service costs too much.

Rates are different parts of the country.... the last time I talked with a reputable locator I was quoted $300 per machine for locating services, and that was for snack and soda, maybe more, type locations, not a soda only that typically has significantly lower sales volume as BobTHJ mentions.

[USMC]

Don't know their email, but bottlers want to work with you. I would deal with them directly if you can help it. We have never used a locator service or any other third party. If you do good work, you can build your business through referrals. In fact we get a lot of referrals from the bottler themselves!

It is my understanding that it isn't about connections, it's about prior business. I agree though that 35k is a lot and you would be better off buying a route from a third party than giving it to them if you wanted to get into the business quick. Alternatively, you could work for an existing vendor and work out a deal to buy part of their route from them.

Just some thoughts.

If there is one thing I know is that I am not afraid of working hard and I like building relationships, so I hope this will help me overcome my shortfalls.

I know that sales are not my strong suit and getting people understand why it would benefit both of us if I can place a machine in their location, is not that easy for me.

I really hope that I do not have to end up using a locator.

I will search the forum for techniques on getting location.

Thank you

I am a recent Metro Vending customer. I can assure you they are legit. So far they have fulfilled all their contractual obligations to me - and have even provided an additional 5 locations beyond what was agreed to at no additional cost. They have been pleasant to work with and have acted promptly on securing my locations.

However, as was pointed out to me on these forums and later confirmed via other sources they appear to be way overpriced. Even with the extra freebie locations that's still $766 per location I paid - and most of these locations are in the mediocre range. While they did assist in helping me set up accounts with Coke and Pepsi (which has some value) in hindsight I could have easily done this myself by googling the phone numbers for the local bottlers and asking to speak to the sales reps about 3rd party. If Metro Vending were to lower their prices I would gladly recommend them as a locator - but at present their service costs too much.

I think I am going to contact the Bottler directly when I get home and see what it takes to set up an account.

Thank you for the input

[onecent@atime]

I have used them before, run as far and fast as possible, the money they say you will make is a lie, the support they say you will get is also a lie, if you want there locations i will sell you some of the ones they sold me for 1/2 the price and I will give you all the info they gave me plus one year of real local experience in the market . You need real numbers with real results.

I have seen a few posts about people setting up accounts with Bottlers. Is this very easy to do? Is it really worth doing, it seems like they charge higher prices for their drinks than a big box store? ( Sams, Costco)

Might it be better to just buy drinks at a Big Box and then buy the machines yourself once you have a location, that way there is no minimum case order each month?

There have also been a few posts about this company Metro Vending I did decide to contact this company, I do not believe that I will use them. I have a hard time handing over my hard earned money to a company that wants 1/2 the payment upfront then the other 1/2 before the job is even complete.

Anyways I will post my email conversation I had with them, just so people can see what they to say.

Also let me know what you all think.

My email to them

I have a few questions about the services you offer. I have worked with a locating service in the past with horrible results, so when it come to handing over my hard earned money I am very skeptical. Here are the questions.

How long does it take to secure locations?

What constitutes a successful location?

How is it determined if a location in under performing and needs relocating?

What is the criteria for a good location?

If you are unable to find locations what is the predetermined amount of time before a full refund is issued?

To be clear the machines are provided by the bottler at no other cost, is this correct?

Is there a delivery charge for the Bottler to deliver products to my storage facility?

I also have a few question about the complaint filed against you at the BBB.

How was this resolved?

What does he mean by Coke, Dr Pepper, 7-up would not loan him machines even after his account was setup with them?

Is having the machine secured in the location part of the agreement between you and I?

Also it states that they were not getting responses to their emails, text and calls when they were trying to check the status of their account. Can you please shed some light on what took place.

Can you provide references?

Can we also get a contact number or email for Coke/Pepsi bottlers that I would be working with in my area. So I can verify that machines are available and they recognize the relationship to your company?

I really want to make sure that this is not some scam put together just to take peoples money. Please don't take this email the wrong way I want to ensure I am working with honest hard working people like myself and I don't want to waste your time or mine.

Here is what I am looking at, placing 40 machines in Mesa, Arizona

Their Response to me

Hi Jayson, -A route of 10 usually takes 6-7 weeks from start to finish.

Locations will usually average $75-$100 per week. -$40 per week has your investment back in a little over a year, volumes less than $40 are subject to relocation.

Foot traffic and/or employee count are the factors we consider for locations.

I have never encountered an area that couldn't supply locations for people who have bought. If it did happen (which it won't) a refund would be issued.

The machines are provided by the bottler at n/c with the stipulation that product sold through the machines are purchased from the bottler.

No charge for delivery.

-My former partner (father) was the one having issues with the guy who filed the BBB complaint. He is based in Spfld and I am in KC and we no longer are doing business together. I don't have any disgruntled former buyers. I believe he did come to an agreement with the gentleman and supplied him with some mchns he would own and supplied locations to put them. I am not really familiar with the particulars as it wasn't my deal and I never even spoke to the guy.

-The machines ending up installed into the location would be guaranteed and a refund would be issued if they were unable to be installed.

If you are interested in proceeding I would be happy to supply you with references.

I couldn't send you in to the bottler before we had an agreement. As mentioned, a refund would be issued if we couldn't secure equipment although I have not had an area where we were unable to get equipment.

40 machines/locations would take 3 or 4 months to complete although you would start having machines installed at around 6 weeks after we started.

I don't blame you for being skeptical...there are a lot of slimes in the vending industry. I have been offering this program for 20 years and take pride in the success of my customers. My former partner is the only issues I have encountered. If you get close to proceeding, fly into KC and if we do the deal I will cover your air fare. I will also send you with Mark or Mike (who have each bought around 60 from me) and they can give you some hands on experience with some equipment including both Coke and Pepsi machines.

Thanks for your interest.

Metro Vending

Everything always sound so good on the outside, but can turn to crap if they steal my money. What do you all think?

[dogcow]

If there is one thing I know is that I am not afraid of working hard and I like building relationships, so I hope this will help me overcome my shortfalls.

I know that sales are not my strong suit and getting people understand why it would benefit both of us if I can place a machine in their location, is not that easy for me.

I really hope that I do not have to end up using a locator.

I will search the forum for techniques on getting location.

First before you do anything check out RJT's book , it has a lot of good info and will answer many questions. Also check out the books on here in the downloads section. vending machine fundamentals has a lot of good info too but its written in a kind of dry boring manner so its hard to get through.

Second, make a detailed plan on how you want to approach vending. This can be tricky because you dont know a lot of the info. For example if you want to focus on drink-only locations what you are looking at is locations that are basically low volume. You will need to have a lot of locations to make money. On the other side these locations are easier to get and you could possibly set them up as full service locations so your main job would be focusing on sales and coke/pepsi would be handling the stocking and repairs. I think its possible to structure a business I don't know if you can make a full time income doing it. Also you have to contend with the stuff mission said. I agree its hard to get the time of day form a bottler in my area without being in business for a year or two.

If you own the equipment doing low volume drink-only locations can be a good second income but the cost-to-service can kill you over time if you are trying to be a full time vendor because you will need so many locations even if they are on low service cycles. Also your ROI will be poor and repairs will seriously hurt your bottom line.

$100 a week location from drink only, may be possible if you are selling bottles @ 1.25/1.50 but with cans at .75 a $100 a week drink location without snacks would be rare in my , granted limited, experience.

Not doing enough reading and planning were huge mistakes for me when I decided to get into vending I think back if I had done both I would have done things a lot differently.

[USMC]

I have used them before, run as far and fast as possible, the money they say you will make is a lie, the support they say you will get is also a lie, if you want there locations i will sell you some of the ones they sold me for 1/2 the price and I will give you all the info they gave me plus one year of real local experience in the market . You need real numbers with real results.

Sorry, I just want to be clear, you are saying that I should run from Metro Vending is that correct? I have not heard many good things about them makes me wonder.

The local bottlers may still be a good option right?

thanks for your input

[USMC]

First before you do anything check out RJT's book , it has a lot of good info and will answer many questions. Also check out the books on here in the downloads section. vending machine fundamentals has a lot of good info too but its written in a kind of dry boring manner so its hard to get through.

Second, make a detailed plan on how you want to approach vending. This can be tricky because you dont know a lot of the info. For example if you want to focus on drink-only locations what you are looking at is locations that are basically low volume. You will need to have a lot of locations to make money. On the other side these locations are easier to get and you could possibly set them up as full service locations so your main job would be focusing on sales and coke/pepsi would be handling the stocking and repairs. I think its possible to structure a business I don't know if you can make a full time income doing it. Also you have to contend with the stuff mission said. I agree its hard to get the time of day form a bottler in my area without being in business for a year or two.

If you own the equipment doing low volume drink-only locations can be a good second income but the cost-to-service can kill you over time if you are trying to be a full time vendor because you will need so many locations even if they are on low service cycles. Also your ROI will be poor and repairs will seriously hurt your bottom line.

$100 a week location from drink only, may be possible if you are selling bottles @ 1.25/1.50 but with cans at .75 a $100 a week drink location without snacks would be rare in my , granted limited, experience.

Not doing enough reading and planning were huge mistakes for me when I decided to get into vending I think back if I had done both I would have done things a lot differently.

I will without about read his book and any book I can too learn.

I will also say that I am not sold on only doing soda machines, I was just trying not to get into deep and end up with a lot on product that will expire.

Maybe a mix of locations that have full service and some that just have soda would be good?

Sorry for my confusion, are you saying that it is hard to make a living owning soda machine alone and keeping up with the maintenance of the machines?

Thank you for all your help, I will continue to learn.

[dogcow]

I will without about read his book and any book I can too learn.

I will also say that I am not sold on only doing soda machines, I was just trying not to get into deep and end up with a lot on product that will expire.

Maybe a mix of locations that have full service and some that just have soda would be good?

Sorry for my confusion, are you saying that it is hard to make a living owning soda machine alone and keeping up with the maintenance of the machines?

Thank you for all your help, I will continue to learn.

ok ill try to elaborate as much as a can, i am far from the most experienced vendor here

but most of my full line locations i bought as soda only (now i added honor boxes but we'll leave that aside for now). I have moved a few of them around and have found what I think are the right #s ... so mission,rjt,poplady or anyone else feel free to chime in if your experience differs but heres mine

a soda-only location, vending cans at 0.65-0.75 ea will bring in between 30 and 60 dollars gross per week. you may do better with bottles and energy drinks, but your profit margin goes down and your equipment cost is more.

so lets set up a hypothetical here.

say you want to earn, pre tax , around $50,000.00 per year at a minimum.

now we'll ignore health insurance, liability insurance, and cost-to-service (vehicle expenses) and just focus on how to get to $50,000 in gross profit

ok so to earn $50,000 profit we have to look at your COGS , say a can drink cost you $0.32 and you vend it for $0.75, that gives about 42% COGS which is about right. What that means is what you keep is 58% of your gross sales minus sales tax. Lets say sales tax is 7%. So

$50,000 = X - ( X(.42) + X(.07) ) .:. X= $98,000 (roughly)

so you need to gross around 98k a year to get your $50,000 in profit before taxes insurance,etc...

Now lets say all your locations bring in about $45 a week, of course thats not gonna happen some will be closer to 60 some will be total duds making maybe $30 or even $15. For the sake of argument we'll say $45... so that means you have about 41 locations to get to your target profit number.

Doesn't seem bad. Now you have to remember there is a cost associated with servicing each location, this is gas,mileage, value of your time,etc... mission vending has a great post about this somewhere i suggest reading it. So you're subtracting that number from your gross to figure your profit.

Now when a machine goes down, lets say you need to replace a validator, thats $50 plus your time to replace it. You've just spent 2.5 weeks of that locations profit fixing that machine in just parts cost.

Now lets say a compressor goes out, you've just spent almost two MONTHS profit from that location in parts cost to fix it.

Now from another perspective if you have a soda/snack acct making $100 a week, you need much fewer of these accounts to get to your goal # right, and repairs hurt less because they pay for themselves quicker. Fewer accts also means less cost to service, which means more profit.

Also looking at return. Now a drink machine say costs you $800.00 you have to consider your ROI at a $30/wk account you will take almost a year just to pay back your investment assuming NO repairs.

I am not saying this to discourage you just something to think about when weighing the options. Your bottler will give you an idea of what they will pay commission on fs account when weighing this against owning equipment make sure to account for all the potential costs. Also remember the higher volume accounts are going to want snacks.

The biggest upside of the small accts is there is almost no competition for them. So if your machine goes down for 2 weeks in july because the compressor keeps icing up and you cant figure out why its unlikely you will get the boot because they probably not been solicited by many, if any, other vendors.

[mission vending]

mission vending has a great post about this somewhere i suggest reading it.

Here is that thread:

Cost-to-Service thread

@ dogcow, good discussion points, looks good to me.

[USMC]

ok ill try to elaborate as much as a can, i am far from the most experienced vendor here

but most of my full line locations i bought as soda only (now i added honor boxes but we'll leave that aside for now). I have moved a few of them around and have found what I think are the right #s ... so mission,rjt,poplady or anyone else feel free to chime in if your experience differs but heres mine

a soda-only location, vending cans at 0.65-0.75 ea will bring in between 30 and 60 dollars gross per week. you may do better with bottles and energy drinks, but your profit margin goes down and your equipment cost is more.

so lets set up a hypothetical here.

say you want to earn, pre tax , around $50,000.00 per year at a minimum.

now we'll ignore health insurance, liability insurance, and cost-to-service (vehicle expenses) and just focus on how to get to $50,000 in gross profit

ok so to earn $50,000 profit we have to look at your COGS , say a can drink cost you $0.32 and you vend it for $0.75, that gives about 42% COGS which is about right. What that means is what you keep is 58% of your gross sales minus sales tax. Lets say sales tax is 7%. So

$50,000 = X - ( X(.42) + X(.07) ) .:. X= $98,000 (roughly)

so you need to gross around 98k a year to get your $50,000 in profit before taxes insurance,etc...

Now lets say all your locations bring in about $45 a week, of course thats not gonna happen some will be closer to 60 some will be total duds making maybe $30 or even $15. For the sake of argument we'll say $45... so that means you have about 41 locations to get to your target profit number.

Doesn't seem bad. Now you have to remember there is a cost associated with servicing each location, this is gas,mileage, value of your time,etc... mission vending has a great post about this somewhere i suggest reading it. So you're subtracting that number from your gross to figure your profit.

Now when a machine goes down, lets say you need to replace a validator, thats $50 plus your time to replace it. You've just spent 2.5 weeks of that locations profit fixing that machine in just parts cost.

Now lets say a compressor goes out, you've just spent almost two MONTHS profit from that location in parts cost to fix it.

Now from another perspective if you have a soda/snack acct making $100 a week, you need much fewer of these accounts to get to your goal # right, and repairs hurt less because they pay for themselves quicker. Fewer accts also means less cost to service, which means more profit.

Also looking at return. Now a drink machine say costs you $800.00 you have to consider your ROI at a $30/wk account you will take almost a year just to pay back your investment assuming NO repairs.

I am not saying this to discourage you just something to think about when weighing the options. Your bottler will give you an idea of what they will pay commission on fs account when weighing this against owning equipment make sure to account for all the potential costs. Also remember the higher volume accounts are going to want snacks.

The biggest upside of the small accts is there is almost no competition for them. So if your machine goes down for 2 weeks in july because the compressor keeps icing up and you cant figure out why its unlikely you will get the boot because they probably not been solicited by many, if any, other vendors.

When dealing with vending machines, are most of them fairly easy to work on if you are somewhat mechanically inclined? Such as changing out bill validator, replacing a compressor, lights going out, recharging the freon.

This is great information, I cannot thank you enough. It really shed some light on how costs can eat up profit quickly, thus I need to be very cognoscente in my planing.

Thank again

[USMC]

Here is that thread:

Cost-to-Service thread

@ dogcow, good discussion points, looks good to me.

That is a link everyone should read!!!!

Thank you

[onecent@atime]

The local bottlers are ok, its not so much the bottle as the rep you are assigned and they are run by regin, the 7 up rep is a stand up guy, but coke and pepsi,well lets just say start with 7 up

Oh and yes run from Van and metro vending, run fast, run far and run hard.

Sorry, I just want to be clear, you are saying that I should run from Metro Vending is that correct? I have not heard many good things about them makes me wonder.

The local bottlers may still be a good option right?

thanks for your input