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Starting out with Racks


Faith Vending

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My wife and I have been doing bulk vending for about 2 months and we are expanding to racks!! I still am learning about this business but it is obvious where the big $ are. Tap into the kid market. I am doing most of my own locating and it seems there are many opportunities here as well as some pretty stiff competition. However, going in this direction seems not only more lucrative, but less labor intensive over time. If large accounts can be located and placed I would think it could snow ball over time because you could actually get references and testimonials, and really build your business. You could "be a contender" :cool: to quote Marlon Brando.

Anyway, I just thought I would throw this out there to see what everyone thinks and share experiences etc.

I'll keep you posted of our progress. :D

Jim

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Congratulations Jim!!!

You and Eve just keep expanding don't ya!?! :D

What kind of racks are you thinkin' about?

I mean are you buying the racks like Beaver and Northwest offer,

or are you turning some of your 1-800s into racks like West Coast Vending has done.

Dave

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Well I know this opinion will not be popular but this site is for helping one another not just to cheer for each other and to say good job. There are allot of new people on this site that are trying to get into racks WAY to early. 2 months isnt even a service cycle for some operators. There is allot of info on this website. To much in my opinion. You know the joke about the young bull and the old bull looking down on the cows? If you do you will know what Im trying to say. Good luck with whatever you choose to do.

 

Mike

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Jim........its good to hear from you.  I have been following you and Eve's progress.  Eventually I would like to have a few lucrative racks working for me but its too early for me at this point.  Keep us posted on how its going.  Jim........if I were you I would ask Big Mike to explain what he means or PM him and ask.  It certainly would not hurt to do that.

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Thanks T Bird. I will keep everyone posted and hopefully we can all learn from each other. I figured putting together one rack does not cost a fortune and I will locate myself. Since I got laid off last January this has been my full time job and I have to make this work. I love doing this so hopefully I can ride off into the sunset on a homemade rack. I also know you have to have fun with anything you do or what is the point? I'll get off my soap box now and am going to pre-locate my rack TODAY!!:)

Talk to you soon.

Jim

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Hi Jim,

I think you are moving along just fine. Your right. You are not spending much to experiment with rack systems. Just keep in mind that the accounts you are upgrading to double/triples have to have enough foot traffic to handle the additional canisters.

I added 3 setups a couple of months ago and sales really increased. I added 3 more setups 2 weeks ago and they are doing very well. I just ordered two more racks and will be placing them next week in two more locations.

Good luck.

Gary

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Hubby is on his way right now to talk to the GM at the DQ.  I told him if he says no now maybe in a couple of months he might change his mind and to try again.

I am excited he got this appt set up though.............PRAY>>>>>PRAY!!  :D

Eve

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It did not go as planned at the DQ. Both the DQ and the Baskin Robbins/Dunkin Donuts said the same thing; their franchisee agreement would not allow vending machines or racks. They did not have anything in the locations but I still think this is a left handed turn down; they could probably put something in if they really wanted to. It is not what you know.......... Oh well. It is on to the next one!!

Jim

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Jim:

When you go into any of these places consider this; look around for a space that would hold a rack. Ask to speak to the manager about renting the space. Once you get to the manager, show him a picture of the rack and offer him $50 a month. Point out to him that $50 a month for a square foot of space is well above the areas current rate of about $8 /ft for commercial retail space. you might get much better response ( I have;)). The racks should bring in 150-450, location dependent (for me anyways). Good Luck,

Regards,

Philo

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My son has 2. He bought them both through Sam's Club so they are the 5 head Northwesterns. He's pretty excited as they are both located in busy restaurant entrances. Lots of kids & Moms, so he's doing well, although it's only been about 2 months.We also have several soda/snack combos that we bought from Sam's. Mixed results on those placements. I focus on the bulk as it fits best with my schedule, and let junior do the real work!

Regards,

Philo

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Thanks for the help guys; interesting idea Philo. How could they say no..ha ha..:? I just placed my 20th machine for the month today, Craig. You should see my reject pile however. This is truly a numbers game.

Jim

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Wow Jim,

20 placements this month!

Make sure you get your name on the Cheesy Placements Award post. That sounds like a wining month to me.

Gary

Gary, that was my thought exactly.

That is very impressive, Jim. It beats my 3, hands down. Make sure you post it in the Locating Contest Section. Keep up the fantastic work. :D

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Jim:

I try to cut down on the rejections by weeding out certain places. For example everyone knows that pizza places are great vending locations. So unless a new place opened up 5 minutes ago he's been visited by one of the dozens of operators in the area. I tend to focus on different places. As you have found out, places associated with the auto industry or support of it-  repair shops and small manufacturers- seem to be more receptive than retail spots.

Regards,

Philo

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Philo:

I agree; I have about 15% of my locations in retail but I would like to get that up a little for more balance. The others are great but it seems I'll be changing out product frequently to keep them coming back.

A question: if a location has a machine do you move on? Or do you consider competition a good thing?

All the best,

Jim

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Regarding shared locations,

I have one now. It isn't doing too well. But it depends on the type of location. When I had my triple 20 feet away from the gumball kiosk in the mall I would still sell $8.00 or $9.00 worth of gumballs each month. I used to have mostly shared locations when I had my small route years ago. I actually did well but the area and locations supported the machines. I had a few machines in So. Cal. Pretty much anywhere in So. Cal. is high volume. Bloomfield Township Mi. (Where is that?) I lived in Grand Rapids for a couple of years. Just wondering if it is a busy area?? Some shared locations can actually do very well. If you can get the location it might be worth it just to try out. If the location doesn't produce you can always relocate the machine. (Easy for me to say I'm not the one relocating the machine):D 

Just my 25 cents worth.

David

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