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Invest in racks or double head locations?


bulkvendingwizard

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I found an in person locator who is willing to place racks for 150.00 each for 5 way racks. 12 racks located would cost me 1800.00.

My thought though is i could get 50 double heads located for that price. My thought is.... is it really worth it to place the racks?

Doubles would generate (50 locations * $20) = $1000.00 per month

12 racks doing a min. of 50.00 would $600.00 high end of $1200.00

For a double i would have 175.00 invested including location cost. 1 rack with locating fees i would have about 600.00 invested per rack.

To me the doubles would be a cheaper investment, quicker return, and no comission pay outs.

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WHAT DO YOU THINK???

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I like doing both. Not every location is suited for a rack. Let those charity doubles help fill in the gaps between rack locations. But be on the lookout to flip locations either way. Buy single modular heads in any event. As always, pros and cons, pro and cons.

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I found an in person locator who is willing to place racks for 150.00 each for 5 way racks. 12 racks located would cost me 1800.00.

My thought though is i could get 50 double heads located for that price. My thought is.... is it really worth it to place the racks?

Doubles would generate (50 locations * $20) = $1000.00 per month

12 racks doing a min. of 50.00 would $600.00 high end of $1200.00

For a double i would have 175.00 invested including location cost. 1 rack with locating fees i would have about 600.00 invested per rack.

To me the doubles would be a cheaper investment, quicker return, and no comission pay outs.

\

WHAT DO YOU THINK???

Do some of both.

There's nothing wrong with diversity...there's probably even something wise about it.

The nature of racks results in their being placed in higher-volume locations compared to where a locator will put your doubles.

So, it would be easier to average MORE than $50 in your 5-way racks than it would be to just reach the $20 your forecasting for your doubles.

You need more luck to hit a $20 average with doubles than $50 with a 5-way.

Also, your racks will require commission which eats away at your bottom line more than charity.

However, your charity machine locations will be a lot more volatile.

So, while you may have 50 charity double locations this month, you may not have 50 next month.

...and doubles sitting in your garage don't earn you a dime.

Yes. Diversity is good.

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Do some of both.

There's nothing wrong with diversity...there's probably even something wise about it.

The nature of racks results in their being placed in higher-volume locations compared to where a locator will put your doubles.

So, it would be easier to average MORE than $50 in your 5-way racks than it would be to just reach the $20 your forecasting for your doubles.

You need more luck to hit a $20 average with doubles than $50 with a 5-way.

Also, your racks will require commission which eats away at your bottom line more than charity.

However, your charity machine locations will be a lot more volatile.

So, while you may have 50 charity double locations this month, you may not have 50 next month.

...and doubles sitting in your garage don't earn you a dime.

Yes. Diversity is good.

So would you reccomend doing the racks or doing doubles. Havending has some good thoughts on just doing the charity and upgrading as i go.

A $40/mo 6-way rack vs a $50/mo double is not good business.

I dont really understand what you are saying can you elaborate

Work smarter than harder.

So i guess from you view the investment of the 2000.00 paid for locating fees would be better invested into racks moreso than singles or doubles

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I dont really understand what you are saying can you elaborate?

It was in response to the suggestion that 12 locations of racks is better than 50 locations of doubles. I've had a few 6-way rack locations that have done pretty bad, and some doubles that have done better than those racks. So just because a rack is installed in a location doesn't automatically make it a great big money maker. And just because a double does well doesn't mean that it will do better if you upgrade to a rack.

I have a loc that has two 4-ways that does pretty sucky for an 8-way rack. I'm planning to take out one of the 4-ways soon.

So basically, as many have already said, it all depends on what the location warrants.

When I say doubles, I'm talking commission toys and gum, not charity candy.

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