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Lots of other operators in my new account, is it a threat to my sales?


GagesVending

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I recently got a new location for a SuperPro triple head candy machine. I filled it with Skittles, Mike&Ikes and Reese's Pieces. The location is a Mexican Restaurant with a UTurn Terminator, a sticker/tattoo machine with 1" capsules on either side, and a 4 head Beaver setup on a bookshelf filled with gum and 1" capsules. I placed the machine myself with no commission (although I know at least one of the other operators is paying 25% commission). I never even told the owner about my charity, although I intend to donate 10% to charity, she was eager to allow my machine in the restaurant. Should I be concerned about all of the other machines?

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I would make sure that she "REALLY" understands that there is no commission involved. I have had mexican locations where they shake their heads yes to charity then are looking for commission the next time you service (which I gave 25% and stayed in). If there is no money in it for them and you never told them about the charity I kind of wonder why they would be eager to have your machine in the location. The other machines will cut into your business as you will cut into theirs but as long as you offer something different then the others you can still make money.

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Well actually the owner owns three Mexican restaurants, I got the one through Kickstart (as a charity, which I've serviced before). I decided to attempt to get the other two or at least one. I got one. I told her I own a specific machine in her other restaurant, and I wanted to know if I could place one in another location. She was very nice and had no problem whatsoever. It was way easier than I thought! There was no language barrier with her, she speaks perfect English; I definitely know what you mean though, I've experienced issues with the Chinese restaurants. I speak some Spanish, so the Mexican restaurants are pretty simple for me.

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If possible find something that the others are not running like specific flavored gums and really clean your machine on every visit. It amazes me how many vendors do not clean their machines. The clean machine always stands out. Keep us posted on how it does and good luck.

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Thanks! I appreciate the support! When I service it in about a month, I will post it. Clean machines, yeah and empty machines! That Uturn operator has a machine at both of the Mexican restaurants this lady owns and both and dirty and empty. That operator has some great locations, and it's a shame he/she doesn't maintain them, as it gives people like you and I a bad name.

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I was in your same situation several years ago. Just starting out, a lot of prime locations with machines, charity sponsors, and undoubtably the underdog. However, I had determination, perserverance and ... clean working NW TriplePlays. With biz card, flyer and determination I hit every location I found a nasty dirty machine. Some were down right gross. Once the DM saw my machine and knew that I'd schedule them weekly (cleaning and to ensure my "employee" was still working), they were willing to give me a shot.

I monitored the product and sales (candy levels of competitor machine). I adjusted accordingly. Changing product can make a world of difference, the color of your machine can too. A bank had 2 TriplePlays plus mine in their lobby. Sales were average for me there. Then I changed the PMM the day the blue ones came out. Sales went up that month. Then I added 1" capsules, again sales climbed. The other two machines stayed with same product. And then, I changed the machine for a difference color (still a TriplePlay). Within 2 months I was the ONLY bulk vendor there. I also apply the 4-way test (Rotary International) to my biz practices.

As for commissions, one location was getting 20%. Owner informed me competitor came in one day offering 50% but was shown the door. Amazed at his reasoning... but it finally hit home upon hearing, "the commission is not what is important, knowing you will be here weekly, the machine works, is full and clean means more than that commission". I had 5 of his video store locations. Something to think about.

Hope this helps, and keep us informed!

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I was in your same situation several years ago. Just starting out, a lot of prime locations with machines, charity sponsors, and undoubtably the underdog. However, I had determination, perserverance and ... clean working NW TriplePlays. With biz card, flyer and determination I hit every location I found a nasty dirty machine. Some were down right gross. Once the DM saw my machine and knew that I'd schedule them weekly (cleaning and to ensure my "employee" was still working), they were willing to give me a shot.

I monitored the product and sales (candy levels of competitor machine). I adjusted accordingly. Changing product can make a world of difference, the color of your machine can too. A bank had 2 TriplePlays plus mine in their lobby. Sales were average for me there. Then I changed the PMM the day the blue ones came out. Sales went up that month. Then I added 1" capsules, again sales climbed. The other two machines stayed with same product. And then, I changed the machine for a difference color (still a TriplePlay). Within 2 months I was the ONLY bulk vendor there. I also apply the 4-way test (Rotary International) to my biz practices.

As for commissions, one location was getting 20%. Owner informed me competitor came in one day offering 50% but was shown the door. Amazed at his reasoning... but it finally hit home upon hearing, "the commission is not what is important, knowing you will be here weekly, the machine works, is full and clean means more than that commission". I had 5 of his video store locations. Something to think about.

Hope this helps, and keep us informed!

how can you service it weekly with a bulk account?? thats like working for 2 bucks a hour if you service it that often..

ron

http://www.blazingquarters.com

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I recently got a new location for a SuperPro triple head candy machine. I filled it with Skittles, Mike&Ikes and Reese's Pieces. The location is a Mexican Restaurant with a UTurn Terminator, a sticker/tattoo machine with 1" capsules on either side, and a 4 head Beaver setup on a bookshelf filled with gum and 1" capsules. I placed the machine myself with no commission (although I know at least one of the other operators is paying 25% commission). I never even told the owner about my charity, although I intend to donate 10% to charity, she was eager to allow my machine in the restaurant. Should I be concerned about all of the other machines?

I have found a kinetic machine can seriously clean up at this type of location. For instance, a $.25 gumball pinball should pretty much corner the market for GB sales at this location. At that point, the U-Turn and the Beaver rack are fighting a losing battle by offering GB's at all.

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Thanks Rick! I pitched her with a triple head so I feel like I shouldn't change up the machine. I also don't vend gumballs. I found that I have the best luck with Peanut M&Ms, Mike & Ikes, Skittles and Reese's Pieces, so I'm really only using those with the exception of a few locations because of requests/popular choices.

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  • 3 weeks later...

I have a Mexican restaurant that I had all to myself for several months and then one day two uturns showed up next to my machine. I was selling 1" toys at 50 cents, and he was selling gumballs, bouncy balls and 1" mystery mix capsules for 25 cents, plus candy. I was really worried that his machines would kill my revenue. But, my revenues stayed the same. My theory is that the following factors attract customers to my machine rather than his:

1. His machines are beat up and dirty.

2. His products were not labeled.

3. His candy looked like leftovers from a couple of years ago. Faded and cracked.

4. His mystery mix toys are very cheap looking. The toys I sell are certainly premium level products compared to his; and my product displays draw customers from his non-labeled products.

I've been monitoring his product levels, and the only thing that sells is the bouncy balls. At 25 cents his profit margins have to be thin. And, judging by the area code from his phone number on his charity sticker, he's driving about 120 miles one way to service those machines. I'm guessing he has a big route and services it while passing through the area, but that location by itself can't be making him much money.

The moral of the story is don't get discouraged too quickly. Look for weaknesses in your competitors and take advantage of them. Offer better products and keep your machines clean.

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Have you contacted him to see if he would like to sell the location to you given the quality of his equipment and the distance he travels ?

No I haven't. Mostly because I don't want to buy any Uturn machines. I'd rather just wait patiently for him to put his machines somewhere else.

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I've done buy-outs before, but I'm not going to pay high prices. I only buy cheap! :) I don't like UTurns either! They are an absolute pain to service! I always dread having to service the one that I do have. I keep my machines clean and full, as I service monthly. I'll be servicing this location this week, so I'll let you guys know how it did!

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Here's a pic of my Taqueria Alonzo location I was referring to. I went today to service it for the first time. As you can see, it's clean, full and has good product. This month's sales were $4.75...not good! I'm just now getting into capsules, so I'm thinking about getting my SuperPro outta there and putting a double head with capsule toys and gumballs in it.

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