dlsnyder65 Posted December 28, 2012 Share Posted December 28, 2012 I bought 12 Oak gumball machines for $250.00. It also came with enough parts to put together four more machines. Some of them I had to paint and they came out great!! So far they all seem to work!! I need to get some stands and I will start marketing next week. Link to comment Share on other sites More sharing options...
mission vending Posted December 28, 2012 Share Posted December 28, 2012 I bought 12 Oak gumball machines for $250.00. It also came with enough parts to put together four more machines. Some of them I had to paint and they came out great!! So far they all seem to work!! I need to get some stands and I will start marketing next week. Welcome, sounds like you are off to a good start. Link to comment Share on other sites More sharing options...
GagesVending Posted December 29, 2012 Share Posted December 29, 2012 Sounds like you're on the right track! I started with 2 1800s and a NWTP and now have a successful route of 28 locations, so if you have the will, you can do it! Have you decided what products you're going to sell? Gumballs everyone seems to use because they're cheap, however I don't have luck with them, so I don't. My best sellers are Reese's Pieces, Peanut M&Ms, Mike&Ikes and Skittles. Let me know if you have any questions, It'd be a pleasure to give you any advice I can! Link to comment Share on other sites More sharing options...
dlsnyder65 Posted December 29, 2012 Author Share Posted December 29, 2012 Thank you for the words of encouragement. I really appreciate your help and I do have a few questions for you. 1) Are you using a charity? I am thinking about signing up with NCCS. 2) When you start a new location, do you normally put in one head or two heads? 3) I was originally thinking of going with m&m's and skittles but I was worried about cost. My 11yr old daughter said I should stay away from runts and gumballs. Sounds like it might be good advice. Where are you purchasing your product? How much do you initially put in a machine? Thanks again, Dave Link to comment Share on other sites More sharing options...
GagesVending Posted December 29, 2012 Share Posted December 29, 2012 Those are great questions! 1. Charity: I've only heard great things about the NCCS. I've heard they do something like provide you with a sticker for each machine and you simply pay $1 per machine/month. I actually donate 10% of my total sales to Safe Haven Humane Society (animal shelter). If you're looking for a consistent, simple charity program, NCCS would be a great option. 2. Machines selection: I actually mostly use triple head machines. I recently got a great deal on Craigslist for some brand new Beaver machines, so I've made those into double heads. I only have one location with a single head and that's because that's all that would fit in the space the owner allotted me. Use your own judgement based on how many heads you place. For low traffic locations, a single is appropriate, but in the high traffic locations, I put as many as I can. I got a location at a Chinese buffet, and I put 2 double heads in there. I would start out with a double head, so you can reserve or "claim" enough space for your machine, and if it doesn't do well, turn it into a single head. 3. Candy: No plain M&Ms!!! Go with Peanut M&Ms, they sell great, but for whatever reason plain M&Ms don't sell in any venue I've tried. I only end up throwing away my plain M&Ms; I've recently completely swapped them out from all of my locations. Skittles have done well for me with both adult and kids. I originally thought the same way as your daughter when it comes to gumballs and Runts. One of my first Chinese restaurants the owner required I use Runts and gumballs in the triple head machine and my choice for the third...well that machine has been there for about 2 years, and they do just fine. A competitor in my bowling alley location uses Runts and they sell out there. Only use gumballs and Runts if there are a lot of kids in the venue. I buy MIke&Ikes($6.99/4.5lbs.), Hot Tamales($6.99/4.5lb,) and Peanut M&Ms($7.99on sale/56oz.) at Costco. Reese's Pieces($2.79 on sale/15 oz.) and Skittles ($2.29 on sale/14oz.) at Target. Here, in Oregon, those are the best deals I've found. Target has the Reese's and Skittles on sale a lot, so I only buy them on sale. If you have a Target Redcard, you get 5% off your total purchase, everytime you shop, so that helps too. I use my own judgement on new locations on how much to fill them. I start with at least half way full, but no more than 3/4 full. The only one I fill to the top is my bowling alley. Good luck Dave, and feel free to let me know if you have any other questions! Gage Link to comment Share on other sites More sharing options...
GagesVending Posted December 29, 2012 Share Posted December 29, 2012 Dave, thinking back to when I first started out in vending, when I got some ideas for possible locations that would do well for a candy machine, if they currently had a machine(s) there, I would turn around and forget about it. Don't be afraid to compete! If they have candy machines, that's a sign that 1) the management is open to the idea of having vending machines there and 2) it shows that it must make some money, or else the vendor wouldn't bother having it there. I have numerous locations that I share with 1,2,3 and even 4 other operators in the same building! If you get approval for a location that currently has vending machines, sell something a little different than the competitor. (If you notice say, Peanut M&Ms sell well in the other guy's machine, try Reese's Pieces in yours because it's a very similar product.) Also keep your equipment looking it's best. Having a clean and well stocked machine can make the difference between the customer putting their quarter in your machine, rather than the other guy's. I've also noticed my competitors flee after a month or two when my machine has been placed there, either because my service was better, leading to the other guy getting his machine kicked out or because his/her sales drastically dropped because of the upgrade. Be confident and proud of your service, as your customer service is the leading factor in keeping your accounts! Link to comment Share on other sites More sharing options...
dlsnyder65 Posted December 29, 2012 Author Share Posted December 29, 2012 Thanks Gage....I truly appreciate the advice. I probably would not contact the owner if I saw other vending equipment in the establishment. I do not even know who the competition is at this point. Many years ago I took a job selling commercial signs in San Francisco. My boss at the time told me that most of the competition was lazy and if I presented myself in a professional manner and followed through on my commitments I would do well. I suspect the same principal would apply here as well. I do have one more question for you. How much candy do you normally put in a machine when it is a new location? Dave Link to comment Share on other sites More sharing options...
GagesVending Posted December 29, 2012 Share Posted December 29, 2012 I had the same outlook on competition as well, until a locator secured a location where there was another machine there. I thought: "Well, I paid the locator, I'm taking it anyway!" It didn't matter, I still did well, so I continued to take on the competition. If you don't compete a little, at least, you will find that you're locating options are very limited. One competitor you'll notice is TyVend LLC. I used to work with them and they operate all over the Northwest. They are very competitive! Just a thought... Fill the new location's machines about halfway. That gives a nice look, but won't break you if it doesn't sell well. Make sure you have your candy dispensing settings set appropriately or you will either: not make money, or irritate your customers by not vending enough for a quarter. Vend Around: 7 Peanut M&Ms, 13 Reese's Pieces, 13 Skittles, 10 Mike&Ikes or Hot Tamales, 1 gumball, 12 Runts. At these amounts you should make money, but also make your customer feel satisfied. Link to comment Share on other sites More sharing options...
dlsnyder65 Posted December 29, 2012 Author Share Posted December 29, 2012 I really appreciate your taking the time to answer all these questions..I noticed that my machines have different wheel sizes so I need to figure out what I can vend. The diagrams that they show on the Oak website are not the most helpful. You had mentioned that you use a locator. Does it make sense to use a locator? Which locator do you use. I have been in outside sales for a long time so I am not gun shy. I am also a corporate recruiter and have two kids so time is a factor. I have read to many horror stories from people getting into this business and spending their life savings before they have one machine out there and I refuse to do this. I am taking your approach and starting slow and looking for deals on equipment. I really do not need the cash right now so I figure everything I make I will just re-invest into equipment. Finally are you vending stickers and tattoo's? I saw on the Oak website where they are selling refurbished sticker machines for $50.00. I have spent a fortune on these damn things over the year with my kids. I guess it come down to location huh? lol Link to comment Share on other sites More sharing options...
GagesVending Posted December 29, 2012 Share Posted December 29, 2012 I use to use Kickstart locations. They do alright, but charge $42-52 per triple head location, just depending on what warranty you buy. A double head they charge $40-50. I started using Locators R Us. They charge about half, but don't truly "secure" locations. I've only actually placed one machine, when they sent me about 4 "locations." You truly get what you pay for. People are in and out of this business all of the time, because they simply don't know what they are doing. They go pay top prices for machines and expect extreme amounts of sales. Doesn't always work that way! Out of my 28 locations, only one does over $60/month; my bowling alley, which Kickstart locations got me. I have the same outlook on my profits. I reinvest almost everything I make, which has brought me to 28, soon to be 29 or 30 locations. It truly takes money to make money! I am not currently vending stickers and tattoos, but one of my Chinese restaurants owners requested one. I would like to, because they do sell well. I used to work with a major vending company (they have about 5,000 locations!) and they had sticker machines with most of their racks, and they made good money! Pick the product that sells well (don't be cheap!) and you'll make money. Place these in restaurants, bowling alleys, I've heard they do well in barber shops and bars too! I have great success with putting Reese's Pieces and Peanut M&Ms in the bars by the way. It may not seem that adults are into candy, but let me tell you, the drunks pop quarters in my machines like they pop bottles! $50 is a great deal on tattoo machines! They are very expensive new ($200-600+), Before placing them though, learn how they work. I've been a vending, I guess you could say tech for over a year, and those sticker machines get jammed A LOT! Know how to repair them before placing them. Link to comment Share on other sites More sharing options...
GagesVending Posted December 29, 2012 Share Posted December 29, 2012 Oh, Kickstart locations gives you your first location free! You aren't even obligated to order anything from them. Why not take the freebie and see what you think? Kickstart is easy to deal with. You simply provide your info and the zip codes you want your location and the type of venues you'd prefer and they will email you a location with a schedule drop off time. Try it out! This is their site: http://kickstartlocations.com/ Link to comment Share on other sites More sharing options...
bullyfrog Posted December 29, 2012 Share Posted December 29, 2012 I would recommend you read through the locator discussions about kickstart before you actually give them any money. Sent from my EVO using Tapatalk 2 Link to comment Share on other sites More sharing options...
dlsnyder65 Posted December 30, 2012 Author Share Posted December 30, 2012 Thanks for the tip Gage. I will check them out. You mentioned that only one of your locations makes over $60.00. What should I expect the average two headed unit make per month? Here is an idea that I have been thinking about which I believe could open a few doors which you might want to try. When I originally thought about doing this I was thinking of going after pre-school centers. I have a child in pre-school and there must be 75 to 100 kids. I live in a small community and I believe there are at least 20 pre-schools in the area. With all the concerns in regards to diabetes and childhood obesity I thought it would make sense to vend sugar-free candy. I have also been looking for a charity that with diabetic children. Have you tried this? As I have been researching this I see three issues which I need to resolve. 1) the cost of sugar-free candy would eat your profits. Could I move to .50 and would they still buy it? 2) I would need to change all the machines to .50 or put in single heads. Does it make sense to do this? 3) I have not found a charity that I can work with. I looked at couple of them but they wanted an upfront commitment which I am not ready to do. What do you think? Link to comment Share on other sites More sharing options...
GagesVending Posted December 30, 2012 Share Posted December 30, 2012 I personally have not tried vending sugar free candies. People have thought well, if you can get a doctor's office or dentist's office location, then you should vend sugar free candies, which I don't have either of those types of venues. Honestly, I would just stick with regular namebrand candy. Everyone knows M&Ms, Skittles, etc. It just adds some authenticity to your business, I think. When I installed my machine in the bowling alley, the guy at the counter looked at the products in my machine, and he said: "Oh yay! Good candy! I'm gonna go get some quarters right now!" He was all excited because the other candy machine there was a dirty Vendstar, completely empty. The mechanisms are fairly expensive, so I wouldn't suggest upgrading all of your machines to 50 cents. I had a double head with 50 cent mechs in it and it did terrible for sales, people figure it's a lot to pay for a handful of candy. (You can almost buy a whole candy bar for that at a store.) I like your idea of scoping out local common issues in your community! It may touch certain people that you are trying to support diabetes, as the location owners may have personal experience with diabetes, so that's a great idea! Keep looking to see if there is some sort of organization that you can just send a donation like once a year. I'm actually not even signed up or anything with my charity, I just use the honor system and donate my portion as a personal donation. I actually used to have a preschool location that I got through a buy-out, but it got kicked out because there was one child there that had peanut allergies. One person ruined it for everyone, so keep that in mind when you're locating. That was a Vendstar triple head and it did about $13-17/ month. Many people on here are shooting for $7/mech. (If it's a double head, you should be getting at least $14/month in sales.) Link to comment Share on other sites More sharing options...
dlsnyder65 Posted December 30, 2012 Author Share Posted December 30, 2012 Huh...I was expecting a bit more in sales per month. Is $14 a month your net after the cost of candy? I was at walmart this am and they have no candy or sticker machines. They had two crane machines one of which was broken. Might be worth a phone call. I have been looking around my area and there does not seem to be much competition. I hardly see any candy machines.. Link to comment Share on other sites More sharing options...
GagesVending Posted December 30, 2012 Share Posted December 30, 2012 No, unfortunately not, $14 per month for a double is gross sales. haha You can't get a machine at Walmart! Walmart is contracted with NEN. (National Entertainment Network) NEN is the largest vending company in the country and they are contracted with Walmart, Kmart, Fred Meyer, Mega Foods, etc. Walmart cannot allow you to put your machine in their store, simply because of the contract. These big chain company stores are very tough to get your machines in because of company rules. I actually have 2 Figaro's Pizza locations. I got them through a buy-out, so I have no idea how the original operator obtained those locations, but you could try your local Figaro's, if you have those in your area. That's good that there's not much competition; so it wouldn't hurt to pitch some places. Mostly you should try local businesses, because it's way easier to get into them and you don't keep getting sent to someone else to get to the decision maker. If I were you, I would get that free location from Kickstart (which you can reject if you don't like the location, you're not stuck with it, they will find you something else) and place it and go from there. You will then have a little experience. That experience and reputation does matter! I've gotten several new accounts because I have experience and you may impress the decision maker by telling them that you have machines at (_______). Link to comment Share on other sites More sharing options...
dlsnyder65 Posted December 31, 2012 Author Share Posted December 31, 2012 Wow..Is it really worth the work? I was thinking I would make at least $20.00 per machine per month. At $7.00 per machine it hardly covers the cost of candy. Link to comment Share on other sites More sharing options...
GagesVending Posted December 31, 2012 Share Posted December 31, 2012 That's the thing...is it really worth it? But great location+great product=great success! I pulled $75 for the month from my bowling alley triple head this morning. My single head with peanut M&Ms does $25/month. It's worth it if you get those great locations, if not, then it's just a hobby for fun! Link to comment Share on other sites More sharing options...
dlsnyder65 Posted December 31, 2012 Author Share Posted December 31, 2012 I guess I better not quit my day job huh...lol My wife and kids already think I am crazy. I have gone this far so I will go and place the machines next week. I do not think there is much competition out here. Thanks for all your help!! I will let you know how it goes next week. I will also call the locator and see if they can get me a place...Have a great New Year!!!! Dave Link to comment Share on other sites More sharing options...
GagesVending Posted December 31, 2012 Share Posted December 31, 2012 Keep your day job! You're not crazy, you're just looking for a fun way to make some extra money! Good luck on placing the machines and let me know how that goes! Happy New Year to you too! Gage Link to comment Share on other sites More sharing options...
GagesVending Posted January 9, 2013 Share Posted January 9, 2013 Hey Dave! How's business? Have you gotten any of your first machines placed yet? I actually got a new Mexican restaurant location the other day, but I have to pay 25% commission. I'm curious to see as to how you're doing! Link to comment Share on other sites More sharing options...
dlsnyder65 Posted January 9, 2013 Author Share Posted January 9, 2013 Hi Gage, Congrats on your new location!! I just received my labels and business cards yesterday. I made a few calls yesterday and had no success. I was thinking of going out cold calling tomorrow. I contacted quick start and I am waiting for the free location. Do you find it better to cold call or telemarketing? Link to comment Share on other sites More sharing options...
GagesVending Posted January 9, 2013 Share Posted January 9, 2013 Good to hear back from you, Dave! Sounds like you're off to a great start! I got a Mexican restaurant (not the one I just told you about, but a different one) just by a cold call. It took about 1 minute. I called, spoke right to the owner and she said "Yes, if you can find a place for it, that's fine!" You'll find that the managers are not in a lot. Good times of the day to reach them are between 2-4pm. Especially with restaurants because it's a downtime and they won't be as rushed and are more likely to say yes. It's good to here that you're getting that free location! If you don't like the location, turn it down. Don't place it, just decline and they will find something else. If you are tough on them, you'll get results! If you decide to cold call yourself, have a spiel and use the same spiel everytime you call, as you will build confidence. Link to comment Share on other sites More sharing options...
GagesVending Posted January 9, 2013 Share Posted January 9, 2013 Hi Gage, Congrats on your new location!! I just received my labels and business cards yesterday. I made a few calls yesterday and had no success. I was thinking of going out cold calling tomorrow. I contacted quick start and I am waiting for the free location. Do you find it better to cold call or telemarketing? Oh, don't get discouraged with not getting a yes. It's a numbers game, like many say. Usually about one in ten. Once you get your first location secured yourself, you'll feel that it was worth all of the disappointment getting turned down before! It's a great feeling and I'm confident it won't take you long to get a few machines placed. Link to comment Share on other sites More sharing options...
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