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Is $2000 for this machine a good deal?


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We also offer larger full size machines if we feel a location is to small for a certain machine we would suggest a larger machine. This is where working with a distributor that knows equipment and has been in the industry and worked for the manufatures of the machines come in handy. As I said before the combo is not for all locations but it is for some that operators do operate and do well with. Not all small locations are a bust as there are operators doing well with some small locations and some that only operate smaller machines such as the combo.

If you do not belive that a location is worth your time, then pass on it and leave it either to another operator or the location will buy their own machines and operate them themselves.

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I really do not belive that the RS Series is a piece of crap, have you owned any?
My discussion has always been on the combo in general, I was just pointing out that the RS was not a Genisus or Seaga as many were saying.
Paramount makes good machines or I would not sell them.
If you have owned any what exactly was the problem you had with this combo?

Thanks

Lindel

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I see, If you ever do hear of any problems with these models for certain just let um know to contact me and I will be happy to assist.

We even service what we do not sell.

 

 

That's good to know and glad you decided to join and participate.

 

 

As I said before the combo is not for all locations but it is for some that operators do operate and do well with. Not all small locations are a bust as there are operators doing well with some small locations and some that only operate smaller machines such as the combo.

 

 

The biggest problem/concern with combos is that, in general, they are not very profitable. You said that there are operators that are "doing well" that target small locations and operate combos primarily or exclusively. Depends on what you consider "doing well".

 

Let me explain, you know that there is a cost to providing service to a location in addition to the cost of goods and sales taxes. I refer you to the cost of service thread here http://vendiscuss.net/index.php?/topic/8150-cost-to-service/. So going with the thought that a combo operator is at the industry average for cost of goods and generating 80-100 per service in revenue which, in my experience, is typical, then after factoring in the cost to service you might have 20-30 "profit" left. If you purchase the machine for 2000 you are looking at over 5 years to get your money back and make a true profit. I personally don't see that as doing well.

 

If you don't look at it as a business and look at it purely from a cashflow perspective then you can at least make it appear as doing well. In my experiences these machines have been sold using the phrases like,"you can generally make 800-1000 a month with X machines"  But those kind of sales pitches do not take into account many factors.

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TC Vending - What exactly have you had problems with this combo model?

WHat is a real vending machine?

A vending machine is a machine you put money in and make a selection and it dispenses your product, does that not happen with your RS models?

Thanks

Lindel

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Moderator -

The biggest problem/concern with combos is that, in general, they are not very profitable. You said that there are operators that are "doing well" that target small locations and operate combos primarily or exclusively. Depends on what you consider "doing well".

 

Let me explain, you know that there is a cost to providing service to a location in addition to the cost of goods and sales taxes. I refer you to the cost of service thread here http://vendiscuss.ne...ost-to-service/. So going with the thought that a combo operator is at the industry average for cost of goods and generating 80-100 per service in revenue which, in my experience, is typical, then after factoring in the cost to service you might have 20-30 "profit" left. If you purchase the machine for 2000 you are looking at over 5 years to get your money back and make a true profit. I personally don't see that as doing well.

 

If you don't look at it as a business and look at it purely from a cashflow perspective then you can at least make it appear as doing well. In my experiences these machines have been sold using the phrases like,"you can generally make 800-1000 a month with X machines"  But those kind of sales pitches do not take into account many factors.

 

If you use your numbers than any 2000 machine investment is going to be over what you say is 5 years payback and even large or non-combo machines cost over that.
Now let’s look at locations that do make the same numbers as larger machines and are used in locations where 2 machines next to each other do not fit such as a teachers lounge or a waiting area in a tire service center.
Here the combo does very well and is the right machine for the right location.
It is key that the right machine for the right location be used and I have always said that.
You’re right these and other vending machine sellers use the phrase of you can generate or make such numbers as what you said but if you get with a true supplier they will tell you, no one can predict the future so no one can tell you what you can make, but if you do not make what you need to make on a location to hit your magic number for your business, that’s why we do not tell anyone they will make any amount of number because that is just sales tactics and we do not do that. I am not saying the combo is for every location, just that it does have a need in some locations and I have even seen where a locations says " If you want to service my large plant you have to provide our smaller office area a set of machines also, and that is another example of where a combo may come into play.

My conversation was geared towards people saying the machine was a piece of junk, not it was never a piece of equipment you should consider in certain locations.
Many people say things are piece of junk and never even used or seen a certain machine and are just going off of mad operators that paid too much for the machine and now are venting because that is their way to bring down the machine. Facts are facts if you used the RS series machine and had a problem with it then that is what I want to know so we can see who or why the service person you spoke to was not able to fix it.

And it is a fact the RS series is not a Genesis or Seaga as many were saying.
I also would stay away from Genesis as they went out of business and Seaga well that is personal why I do not sell that brand anymore.

Thanks

Lindel

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I tell ya what to make this thread go faster.
If you have a location that space is a issue and a combo may work for you, take a look at the RS Series as I belive they make a good machine.

If you do not like combo machines, do not use them and leave that location to another operator or the location can buy their own machines and operate it themselves.

If you had a problem and owned a RS series combo I would like to know what the problem was and who you worked with to get it resolved.

 

Thanks

Lindel

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If you use your numbers than any 2000 machine investment is going to be over what you say is 5 years payback and even large or non-combo machines cost over that.

Now let’s look at locations that do make the same numbers as larger machines and are used in locations where 2 machines next to each other do not fit such as a teachers lounge or a waiting area in a tire service center.

Here the combo does very well and is the right machine for the right location.

It is key that the right machine for the right location be used and I have always said that.

You’re right these and other vending machine sellers use the phrase of you can generate or make such numbers as what you said but if you get with a true supplier they will tell you, no one can predict the future so no one can tell you what you can make, but if you do not make what you need to make on a location to hit your magic number for your business, that’s why we do not tell anyone they will make any amount of number because that is just sales tactics and we do not do that. I am not saying the combo is for every location, just that it does have a need in some locations and I have even seen where a locations says " If you want to service my large plant you have to provide our smaller office area a set of machines also, and that is another example of where a combo may come into play.

My conversation was geared towards people saying the machine was a piece of junk, not it was never a piece of equipment you should consider in certain locations.

Many people say things are piece of junk and never even used or seen a certain machine and are just going off of mad operators that paid too much for the machine and now are venting because that is their way to bring down the machine. Facts are facts if you used the RS series machine and had a problem with it then that is what I want to know so we can see who or why the service person you spoke to was not able to fix it.

And it is a fact the RS series is not a Genesis or Seaga as many were saying.

I also would stay away from Genesis as they went out of business and Seaga well that is personal why I do not sell that brand anymore.

Thanks

Lindel

 

Its obvious that there are some very different views on combos and having a discussion is not a bad thing so thanks for joining the conversation. A couple of points,

 

Now let’s look at locations that do make the same numbers as larger machines and are used in locations where 2 machines next to each other do not fit such as a teachers lounge or a waiting area in a tire service center.

Here the combo does very well and is the right machine for the right location.

 

From a investment standpoint I would be in agreement with you that in this kind of location having to purchase one machine instead of two would be beneficial for the operator. It probably would also do close to the same revenue as the two machines. My point is that the cost to the operator, time to service, cost of fuel, insurance etc remains the same and with the small capacity of the combo you cannot extend the service cycle longer to allow more revenue to be collected.

 

With your tenure in the industry I'm sure that you are well aware that this is a service business and the key to keeping locations over long periods of time is to follow the three basic rules of vending, keep 'em full, keep 'em clean and keep 'em working. To keep a small capacity combo full I don't see how you can generate much over 100 in sales before the favorite items start running out and you potentially start losing sales, that's why I used the 100 figure in my previous response.

 

 

I am not saying the combo is for every location, just that it does have a need in some locations and I have even seen where a locations says " If you want to service my large plant you have to provide our smaller office area a set of machines also, and that is another example of where a combo may come into play.

 

Total agreement with you here, in fact I have several locations with this exact situation.

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I have a problem with the sellers of these type of machines and how they market them. They are overpriced and the people selling them are criminals. They prey on uninformed people at seminars with get rich scams.

 

They take people's life savings with no conscience and put them in the poor house. They say they will provide support. Give you accounts.

 

What they give you is a account with one person. And this is what you get for $6,000. I have seen this over and over.... Bankrupt after years of saving.

 

Makes me angry...... Very angry to see an elderly couple loose everything.    

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rmorris-Not all people that sell compact combo's are what you call rip off sellers.

There are dealers that do not sell at those high prices and those that do will tell you that the services that come with that price tag are why theya re at that high price, I say those service are overprices also.

I also hate when that happens and is why we do not do biz op or blue sky ourselves as I belive there is a better way of doing it.

Thanks

Lindel

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