bulkvendingwizard Posted December 24, 2012 Share Posted December 24, 2012 I was thinking about buying a couple of cable cars or mall kiosks. Has anyone ever placed machines in a mall? I know they want 1 million in insurance but how much rent or comission do they charge? I heard of one guy who brought in 2K per month off a single kisok with 32 machines. Any imputs on mall locations Link to comment Share on other sites More sharing options...
treadmill Posted December 24, 2012 Share Posted December 24, 2012 Tough to get and the rent is high. Plus you will need to get new to newer equipment as the mall will want nice looking machines. Link to comment Share on other sites More sharing options...
Lake Cities Vending Posted December 24, 2012 Share Posted December 24, 2012 I have a friend that has malls all over Texas. He told me the other day he lost them all. You have to compete against some heavy hitters. At one time he told me he was making over $200,000 a year. I just wonder. Link to comment Share on other sites More sharing options...
dogcow Posted December 25, 2012 Share Posted December 25, 2012 i did crane game in a mall , it did 300-500 a month average, rent was 150 on 12 mo lease or 300 on 6 mo. so not really great but not terrible either the problem was it got vandalized quite a bit and i ended up losing money after u factor in repairs and lost time during downtime i guess my point is , the mall doesnt really care if u make money they structure the agreement so its best for the mall, not for you. Link to comment Share on other sites More sharing options...
lurtsman Posted December 26, 2012 Share Posted December 26, 2012 In my experience, making money off the malls consistently requires having enough size to negotiate with the parent company and force them to accept percentage rent with no base. Otherwise, the cost of repairs, downtimes, and extensive service will destroy any profits you have. I operated within a mall and found that one location took as much time as 25 normal locations. (Dramatically higher vandalism / shorter service cycles / stupid requests / renegotiating contracts each time they were up) All in all, I don't plan to do it again. Link to comment Share on other sites More sharing options...
sherlock Posted December 27, 2012 Share Posted December 27, 2012 I admit I have no first-hand experience...but, I've avoided malls on purpose. Reason: Two of my friendly competitors that did it, HATED IT. One got out by choice, the other was booted out when lease was up because the mall wanted a NEW kiosk in each mall even though the existing ones were in great shape and worth thousands of dollars each. He lost out to someone with new kiosks even after having been in these malls (yes, malls...plural) for years providing great service and on-time rent every month for little ROI. Link to comment Share on other sites More sharing options...
Jax Snacks Posted December 28, 2012 Share Posted December 28, 2012 I admit I have no first-hand experience...but, I've avoided malls on purpose. Reason: Two of my friendly competitors that did it, HATED IT. Ditto. I knew one mall vendor who had 3 large mall accounts. He lost his lease at all three malls in a 6 month period! It wiped him out. He sold off his equipment and his house. He moved back north and got a job in his former profession. From everything I have been reading, it is not a matter "if" but "when" you will lose an existing mall location to a motivated competitor offering more commission, brand new machines with a beautiful wooden kiosk. Another interesting thing I noticed here is that many of the local malls give the bulk vending contract to the existing candy store. I guess so that the candy store has no competition with candy. So yea, someone else can have those malls and stock those 35 different gumball flavors! Link to comment Share on other sites More sharing options...
sweetstop Posted December 28, 2012 Share Posted December 28, 2012 stick with the back room of the stores in the malls, I have a few and they are all above avg. Link to comment Share on other sites More sharing options...
bulkjake Posted December 31, 2012 Share Posted December 31, 2012 stick with the back room of the stores in the malls, I have a few and they are all above avg. The only problem with that is you find District Manager's are constantly revolving. You will eventually get thrown out when a new DM comes in and wants to shake things up by doing things his way. I lost all 8 of my backroom/stockroom mall locations in the last 3 months because of this. Most of the locations were 2+ years old too.. Not a bad source of extra gravy...just saying you can't rely on them too heavily. Link to comment Share on other sites More sharing options...
dkochan Posted January 1, 2013 Share Posted January 1, 2013 I know an operator who basically lost all his mall locations and went out of business. He used to own a Dodge Viper and a Lamborghini. He did really well until he got kicked out of the malls (owned by Simon). If you are going to try to get into malls I would try: 1) Get locations from non-franchise stores in the mall 2) Focus on smaller, local malls / flee market type malls. -- Contact the mall manager for permission to place racks Link to comment Share on other sites More sharing options...
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