Need advice on a possible new account

[Mike32110]

So my website generated a lead from a very large female clothing store in the largest mall in our city. They apparantly have 200 employees, almost all of which are likely female. They requested a combo machine, a small pop machine for a different area in the basemnt and a frozen food machine.

I am thinking that this has the potential to be a pretty decent accout, however there are a couple of issues that come to mind. First, it's almost all females, which i believe generally would lead to lower sales? Second, they want a combo machine ( I am going to try and convince them to get a pop and a snack machine). And third, they are located in a mall with a huge foodcourt (like 30 places), and I really don't think a frozen food machine would be worth the investment. What do you guys think?

My plan is to convince them to get a large pop machine, small popo machine, snack, and coffee machine. Any advice on this at all? Should I get new machines for a location such as this, or buy a quality used machine?

[dogcow]

Tough call my guess is food court will steal most ur sales if u can get a good deal on equipment go for it. Personally I would start w a drink mach and see how it goes. Cofee would prob do the best also 200 ppl sounds high for a xlothing store maybe all added up but they don't really have 200 there all the time?

[Mike32110]

Tough call my guess is food court will steal most ur sales if u can get a good deal on equipment go for it. Personally I would start w a drink mach and see how it goes. Cofee would prob do the best also 200 ppl sounds high for a xlothing store maybe all added up but they don't really have 200 there all the time?

Well she said 200 employees total, i can't say I've been isnide (it's women's lingerie ), but I'm assuming the majority of those are part time. I would deduce that 200 employees means that any any given time, maybe 20-40 people will be there, and it's open late and weekends. I am meeting her tomorrow in the afternoon to discuss this further. I think that a snack, pop, and coffee machine would do very well there, in that selling cans of pop for a dollar when the food court would sell a small drink for like 1.50. Plus, i'll probably sell lots of bottles of water and haelthy snacks in the snack machine as malls don't have much for small haelthy snacks (granola bars, dried fruit, etc.). I really just think that a frozen food or refrigerated food machine would be a bad investment, do you guys agree?

And what about buying a new machine vs a good quality used one? My logic would be that women would be more influenced by the machine itself with respect to purchasing product, but that's just some stereotyping . At the very least, coming to a store with 200 women working there, it would be a great way to meet some girls ; I work as a Regiistered Nurse and if I hit on peopel at work I get in BIIIIGG trouble .

So what do you guys think?

[Walta]

Food is a loser every time, only do it after you have proven the soda sales can carry the food.

Tell them you will only get the food after the soda is in and if it sell more than 300 cans a week that is only 1.5 soda per employee per week.

Walta

[Mike32110]

Food is a loser every time, only do it after you have proven the soda sales can carry the food.

Tell them you will only get the food after the soda is in and if it sell more than 300 cans a week that is only 1.5 soda per employee per week.

Walta

I figured between the cost of buying a freezer and running it, the machine, and the small markup, I generally had the same conclusion. However 300 cans a week would be a little bit much of a demand, I was thinking that between a snack and pop machine if I could get 100-150 per week I would be more than happy, coffee would be a bonus. Do you think that would work though?

[dogcow]

Well she said 200 employees total, i can't say I've been isnide (it's women's lingerie ), but I'm assuming the majority of those are part time. I would deduce that 200 employees means that any any given time, maybe 20-40 people will be there, and it's open late and weekends. I am meeting her tomorrow in the afternoon to discuss this further. I think that a snack, pop, and coffee machine would do very well there, in that selling cans of pop for a dollar when the food court would sell a small drink for like 1.50. Plus, i'll probably sell lots of bottles of water and haelthy snacks in the snack machine as malls don't have much for small haelthy snacks (granola bars, dried fruit, etc.). I really just think that a frozen food or refrigerated food machine would be a bad investment, do you guys agree?

And what about buying a new machine vs a good quality used one? My logic would be that women would be more influenced by the machine itself with respect to purchasing product, but that's just some stereotyping . At the very least, coming to a store with 200 women working there, it would be a great way to meet some girls ; I work as a Regiistered Nurse and if I hit on peopel at work I get in BIIIIGG trouble .

So what do you guys think?

200 employees = 200 employs onsite...20 employees on site is far different, may be worth a drink machine, here where i am most malls have drink machines but the prices are more steep because they pay rent. anyway see what they want but i would start with a used drink machine. i never buy new equipment , granted it will last u a long time BUT it is very expensive when good solid used equipment can be had for pennies on the dollar. if u arent going to be in the biz long term (Many years) than new equipment will be a losing proposition for you most likely because u will probably end up selling it at a loss. healthy snacks, and cold food dont really make money. nobody eats healthy stuff, they will say they do but they dont really.

if you are an RN do you have contacts at nursing homes/skilled nursing facility if so you are IN those places are goldmines in vending because they dont need a ton of equipment but generate very solid revenue for mid size acct. great accounts if you

can get them work u r network

[Mike32110]

200 employees = 200 employs onsite...20 employees on site is far different, may be worth a drink machine, here where i am most malls have drink machines but the prices are more steep because they pay rent. anyway see what they want but i would start with a used drink machine. i never buy new equipment , granted it will last u a long time BUT it is very expensive when good solid used equipment can be had for pennies on the dollar. if u arent going to be in the biz long term (Many years) than new equipment will be a losing proposition for you most likely because u will probably end up selling it at a loss. healthy snacks, and cold food dont really make money. nobody eats healthy stuff, they will say they do but they dont really.

if you are an RN do you have contacts at nursing homes/skilled nursing facility if so you are IN those places are goldmines in vending because they dont need a ton of equipment but generate very solid revenue for mid size acct. great accounts if you

can get them work u r network

Okay, I will clarify the number of onsite employees, however their longer hours should skew this number, no? So I should be looking to buy good quality equipment that is used but in good shape? I am planning on being here somewhat long term, but I really don't know yet.

Regarding healthy food, haha, I have had a similar experience. People always say they want healty golpher, yet when you put it in the machine it barely moves.

Regarding the nursing homes, I work for the government (like 95% of canadian nurses) and not in a private long term care facility. The hsopital I work at is serviced by the largest vending distributor arround, and half the time I am not exagorating when I say 60-70% of the rows are completely blank (they fill it weekly I believe, when they should be filling it AT LEAST 2-3 times per week). However, all the government hospitals are based on contracts that expire and you put bids in, so i am waiting for my locations contract to expire so I can take over this place .

[moondog]

You might check on the logistics of doing business in the mall. From my experience, you can only service your accounts at certain times and you have to check in with security and use the service corridors which can be the "long way around the barn" often. Make sure you have liability ins. and any required licensing or you won't get in.

Given your situation, this might not work for you at all.

Ps. Measure all your doorways etc. and figure out how you're going to get your equipment in before you buy anything.

[kiwi]

So my website generated a lead from a very large female clothing store in the largest mall in our city. They apparantly have 200 employees, almost all of which are likely female. They requested a combo machine, a small pop machine for a different area in the basemnt and a frozen food machine.

I am thinking that this has the potential to be a pretty decent accout, however there are a couple of issues that come to mind. First, it's almost all females, which i believe generally would lead to lower sales? Second, they want a combo machine ( I am going to try and convince them to get a pop and a snack machine). And third, they are located in a mall with a huge foodcourt (like 30 places), and I really don't think a frozen food machine would be worth the investment. What do you guys think?

My plan is to convince them to get a large pop machine, small popo machine, snack, and coffee machine. Any advice on this at all? Should I get new machines for a location such as this, or buy a quality used machine?

This sort of account is a hard one. Is this a new store or has it been open for awhile? Have they had a vending service before? The questions you have to ask yourself is why doesn't a account with 200 people already have vending machines? Has someone else had machines in there & pulled them because they were not profitable?

If I was you & just starting in vending I would stay away from frozen food machines. I operate frozen food but I have been doing vending for over 15 years. I wouldn't recommend someone just getting to vending to do frozen food but that is just my opinion.

I would pass on this account unless you have the money to try it out & the space to store the machines if it doesn't & you have to pull them out.

I would say this type of account has a 50/50 chance of being profitable but you may want to test the waters with a soda machine if you want too because with this type of account the only way to find out is by trying it.

Good Luck!

What is your website address?

[mission vending]

Yep, stay away from forzen food, its a guaranteed loser in this situation. My best offer going in would be a drink machine and add a snack if sales justify it and even a coffee AFTER that IF the revenue is proven. If you put all this in going in then it will be very difficult to downsize the number of machines when the revenue doesn't support them.

[Mike32110]

Okay, so I will give you the most recent update since it just happened. I went in and checked out the store, there seems to be quite a bit of room for vending machines. There has never been a machine there before. The manager wants one in because although there is a huge foodcourt, it's on the other side of the mall, and with the lines and the walk they generally don't bother going. She was really keen on both a snack machine and a fridge or freezer machine, and generally just wanted a drink machine mainly for water. I personally suggested the coffee machine since I figured it would be easy money if I'm already there, and the markup is huge. She said that on average there are 45 employees working there per day, which doubles in the holiday season ( Late Nov-Dec). She also wanted a small drink machine (insistent on bottles of water) for the basement, as there are an additional 15 employees that work down there per day.

Since she was really insistent on the snack machine I basically suggested that we get a drink, snack, and coffee machine for starters, and I said that if the sales are good enough we could put in a combo cold snack/non-cold snack machine as well, and take out the snack machine. I am also thinking of suggesting that instead of doing that, maybe keeping the snack machine and then getting a smaller refrigeration unit (I can get one used right now for 1k). I figure with 45 people there per day, plus 15 in the basement, it should be good with that. I can get a drink and a snack machine shown here http://calgary.kijiji.ca/c-buy-and-sell-other-Pop-Snack-Cold-Food-Vending-Machines-for-sale-W0QQAdIdZ417542187 , for 800 each (or this bottle drink machine for 1400 http://calgary.kijiji.ca/c-buy-and-sell-business-industrial-Vendo-10-select-pop-vending-machine-W0QQAdIdZ419074085 ), and I can get a saeco sg 2000 with 10,000 vends on it for (1k OBO was the offer), and another guy is asking 1500 for a new one. so all in all, I am looking at an initial 2600-3100 investment, plus delivery. If the combined sales are above 100 per week, I'd be happy to be honest. The stock woutld be large enough that I could easily visit bi-weekly. I am thinking of for the coffee machine allowing the managers access and letting them have free coffee (or giving them tokens), in exchange for replacing the water tanks and the products inside the machine if needed. I also was planning on maybe getting this combo machine new, http://www.uselectit.com/wfData/files/AlpineCombi3000.pdf I'm guessing it's around 5k. I figured it would be a good investment in that it has quite a large capacity. I told her that I figured the sales would be 150-350 weekly, and said that I would only put in the cold food or frozen food machine if the sales were "high enough", so based on me giving those numbers, I think that I am in a good position to justify not putting one in if it's doing say 150-200.

Opinions please? I told her I would give her info on the machines tonight!

[Mike32110]

• The website is www.vendingsource.ca , let me know if you think my commission percent is realistic.
  

I think based on what you guys are saying, my best bet would be to just get the snack and drink machine in, and see how it goes. How high would the sales be before you think it's fair to get the cold/frozen machine inside?

[dogcow]

Okay, so I will give you the most recent update since it just happened. I went in and checked out the store, there seems to be quite a bit of room for vending machines. There has never been a machine there before. The manager wants one in because although there is a huge foodcourt, it's on the other side of the mall, and with the lines and the walk they generally don't bother going. She was really keen on both a snack machine and a fridge or freezer machine, and generally just wanted a drink machine mainly for water. I personally suggested the coffee machine since I figured it would be easy money if I'm already there, and the markup is huge. She said that on average there are 45 employees working there per day, which doubles in the holiday season ( Late Nov-Dec). She also wanted a small drink machine (insistent on bottles of water) for the basement, as there are an additional 15 employees that work down there per day.

Since she was really insistent on the snack machine I basically suggested that we get a drink, snack, and coffee machine for starters, and I said that if the sales are good enough we could put in a combo cold snack/non-cold snack machine as well, and take out the snack machine. I am also thinking of suggesting that instead of doing that, maybe keeping the snack machine and then getting a smaller refrigeration unit (I can get one used right now for 1k). I figure with 45 people there per day, plus 15 in the basement, it should be good with that. I can get a drink and a snack machine shown here http://calgary.kijij...QAdIdZ417542187 , for 800 each (or this bottle drink machine for 1400 http://calgary.kijij...QAdIdZ419074085 ), and I can get a saeco sg 2000 with 10,000 vends on it for (1k OBO was the offer), and another guy is asking 1500 for a new one. so all in all, I am looking at an initial 2600-3100 investment, plus delivery. If the combined sales are above 100 per week, I'd be happy to be honest. The stock woutld be large enough that I could easily visit bi-weekly. I am thinking of for the coffee machine allowing the managers access and letting them have free coffee (or giving them tokens), in exchange for replacing the water tanks and the products inside the machine if needed. I also was planning on maybe getting this combo machine new, http://www.uselectit...neCombi3000.pdf I'm guessing it's around 5k. I figured it would be a good investment in that it has quite a large capacity. I told her that I figured the sales would be 150-350 weekly, and said that I would only put in the cold food or frozen food machine if the sales were "high enough", so based on me giving those numbers, I think that I am in a good position to justify not putting one in if it's doing say 150-200.

Opinions please? I told her I would give her info on the machines tonight!

im with mission ,put a soda machine and see how it goes

also re: ur website, i would not play up the commission angle you'd be surprised how many

business dont care about it. once you bring it up they are gonna want it. i do anything i can

to avoid paying commission. it drives up the prices and that lowers sales and nobody wins

[moondog]

I'd stick to the soda and snack machine setup initially - maybe do coffee if you're comfortable with that. I've never done cold food - it just seemed like a pain (which many of the posts on this forum tend to confirm).

That snack machine is an AP7600 - oldie but goodie - I have a bunch of them and so far they're my favorites. Glad to see the equipment you're looking at is more in line with what you need (don't get overinvested in combo machines - you will regret it).

It seems like the prices in Calgary are on the high side. Here in So Cal we've got warehouses full of refurbished machines that came out of the miles and miles of commercial/industrial accounts that no longer exist.

Ps. If you think the manager is going to dictate mostly bottled drinks then get a glass front drink machine - bottles can be a pain in the standard machines.

PPs. Water is like healthy snacks - they tell you they want it - they just won't buy it.

[Mike32110]

I'd stick to the soda and snack machine setup initially - maybe do coffee if you're comfortable with that. I've never done cold food - it just seemed like a pain (which many of the posts on this forum tend to confirm).

That snack machine is an AP7600 - oldie but goodie - I have a bunch of them and so far they're my favorites. Glad to see the equipment you're looking at is more in line with what you need (don't get overinvested in combo machines - you will regret it).

It seems like the prices in Calgary are on the high side. Here in So Cal we've got warehouses full of refurbished machines that came out of the miles and miles of commercial/industrial accounts that no longer exist.

Ps. If you think the manager is going to dictate mostly bottled drinks then get a glass front drink machine - bottles can be a pain in the standard machines.

PPs. Water is like healthy snacks - they tell you they want it - they just won't buy it.

Well we are starting with the soda, snack, and coffee, since I can get a cheap coffee machine in there so I figure why not. She also requested a popcorn machine, which I don't think will make any money, but if it gets me the client then I don't care to be honest since it costs me like $400.

I showed her the same pictures that I did to you, and she was fine with everything, so I'll keep you guys updated!

Regarding the glass front machine, I can get those, however, I would need to buy them new and I noticed their capacity is really small. check it out : http://www.uselectit.com/wfdata/files/Alpine_VT5000.pdf With 20 drink selections and 6 capacity, that's only 120 total drinks, and 20 possible selections to go empty and make me look unprofessional . I was thinking if the sales are above 200 total, getting rid of the drink machine and putting in a new one: http://www.uselectit.com/wfdata/files/Summit500.pdf . This one has a 500+ capacity, 10 selections, should increase sales a lot.

im with mission ,put a soda machine and see how it goes

also re: ur website, i would not play up the commission angle you'd be surprised how many

business dont care about it. once you bring it up they are gonna want it. i do anything i can

to avoid paying commission. it drives up the prices and that lowers sales and nobody wins

Well to secure the contract I needed to offer the snack machine, but I am very confident that with 60+ staff in per day (100+ starting next month!) that it will be worthwhile, at least compared to my other locations .

Regarding the commission on the website, I figured that's what would draw people into my services, but you think it's better to avoid it?

[Mike32110]

I'd stick to the soda and snack machine setup initially - maybe do coffee if you're comfortable with that. I've never done cold food - it just seemed like a pain (which many of the posts on this forum tend to confirm).

That snack machine is an AP7600 - oldie but goodie - I have a bunch of them and so far they're my favorites. Glad to see the equipment you're looking at is more in line with what you need (don't get overinvested in combo machines - you will regret it).

It seems like the prices in Calgary are on the high side. Here in So Cal we've got warehouses full of refurbished machines that came out of the miles and miles of commercial/industrial accounts that no longer exist.

Ps. If you think the manager is going to dictate mostly bottled drinks then get a glass front drink machine - bottles can be a pain in the standard machines.

PPs. Water is like healthy snacks - they tell you they want it - they just won't buy it.

Also, The machine was listed as a AP 4500, is this correct? Do you have any other info on the type of machine this is, and if it's a good deal? http://calgary.kijiji.ca/c-buy-and-sell-business-industrial-Vendo-10-select-pop-vending-machine-W0QQAdIdZ419074085

They are asking 1250 and 1400 for the AP 4500 and the Vendo-10 select, is this reasonable?

[moondog]

Mike,

Try and find a Dixie 5591 glassfront machine - 45 selections with about a 500 bottle capacity. I see them around here for less than 1K often but I get the feeling that Calgary doesn't have the selection we do.

If you need a machine in the basement, use one of those combo machines you're loaded with.

The AP4500 is a very old machine - a good one but not worth $1200. The soda machine is a decent multiprice machine but again about double what I'd pay.

Maybe we should partner up, forget vending, and just bring in a small warehouse full of good machines into Calgary haha

[Mike32110]

Mike,

Try and find a Dixie 5591 glassfront machine - 45 selections with about a 500 bottle capacity. I see them around here for less than 1K often but I get the feeling that Calgary doesn't have the selection we do.

If you need a machine in the basement, use one of those combo machines you're loaded with.

The AP4500 is a very old machine - a good one but not worth $1200. The soda machine is a decent multiprice machine but again about double what I'd pay.

Maybe we should partner up, forget vending, and just bring in a small warehouse full of good machines into Calgary haha

Like I've said before, when you consider the fact that our dollar is usually worth $1.30 to 1.40, and now it's worth equal or greater, the prices are NOT the same in the US. when I look at US machine prices, my jaw drops. I am VERY MUCH considering importing machines in from the US for the this reason, however, only if it beneficial for me. For example, what would be considered fair for that machine for me to offer?

The person wants the machiens in by this tuesday, so I am trying my hardest to accomodate this. I saw pictures of the dixie 5591 and it would be PERFECT, however, I don't see anythingl ike that with USELECTIT, and they are the only palce I have a dealer with in Calgary.

Honestly, we are like an hour north of the US border north of Montana (I know you american's don't have the best internatinoal geography ), so has anyone ever done any long term importing/exporting? I would be interested if you wanna ship a freight over, haha.

Regarding the basement, I was planning on throwing in one or two of those little CT-48 machines (I have 4 sitting in my basement), as having a combo machine just seemed like too much for this loaction. For combo machines I have an RPD combo machine available, plus a mechanical Saega 9-5 combo machine. If anything I would use the mechanical one, maybe without the top part? (I believe it holds 5 selections, 50 cans each) while the CT 48 i believe holds like 48 cans TOTAL. I am goign to email her in a cuople hours, so let me know asap! Thanks again guys, you are amazing.

[moondog]

Hi Mike,

Offer the guy $1000 for the pair - still too much but I see your problem. Maybe you'll need to do some old fashioned horse trading on this.

As for importing machines, I'd bet Canada got some kind of import tax. I used to go up to BC a couple of times a year and the people I talked to up there were always trying to figure out a way to sneak tv sets across the border. Unfortunately you're pretty far east of Seattle and there are'nt any big cities to the south of you that I can think of so shippings going to be a killer.

You might PM H4UV. He's in Grand Junction, Colorado and might have an idea about getting some equipment up there.

[Mike32110]

Well I doubt I could get it for that price, but I can try. I have two other ideas, I could appease them and bring in an office deli machine, AND a full sized bottle-drink machine, so therefore they would get a few cold food options, a few snack options, and TONS of drink options, what do you guys think? A guy is selling it for 1500 OBO. Another idea is to buy both these machines (snack and beverage, 5,000 OBO for both), I am pretty sure they are a good name. What do you guys think?

http://calgary.kijiji.ca/c-buy-and-sell-other-Pop-and-Snack-Machine-for-Sale-W0QQAdIdZ423048015

http://calgary.kijiji.ca/c-buy-and-sell-business-industrial-seaga-office-deli-vending-machine-W0QQAdIdZ428443996

[dogcow]

2nd link is a crap machine, top one has a solid drink unit, dunno about the snack mach