mission vending Posted January 30, 2013 Share Posted January 30, 2013 Yep, sounds like a pretty good oppotunity. Link to comment Share on other sites More sharing options...
cvending Posted January 30, 2013 Share Posted January 30, 2013 Good to hear the ride along went so well. I assume that answered many of your own questions. Now all you need to do is decide if you would be comfortable if you went ahead. I am sure that you already checked his prices. You din't want to buy the route and then increase pricing immediately. Hopefully that are high enough for you to be able to maintain for a few months. Best of luck Link to comment Share on other sites More sharing options...
indiana Posted January 30, 2013 Author Share Posted January 30, 2013 Thanks! Pricing looked ok. With a few exceptions, it looks like he made prices double wholesale cost. It keeps the math easy and seems to be working well for both the business owners and the route owner. Link to comment Share on other sites More sharing options...
TKK Posted January 30, 2013 Share Posted January 30, 2013 Double wholesale is not a very good idea at all. Maybe if you either have hundreds of locations or don't care about it just to make some extra cash. I mean that's 50% cog not including taxes and gas etc. If u get that storage unit you'd be at like 85% cogs without it about 65% cogs that is definately not a good plan. You will make $30,000 in a year and spend $20,000 Link to comment Share on other sites More sharing options...
dogcow Posted January 30, 2013 Share Posted January 30, 2013 Did money look right? That's not a bad deal at all. I would replace the coke machines with your own. I've found good machines from $200-$500....I'd definately change those. That's good that it can be more efficient. I think once a week is perfect for high locations. Just make sure you accommodate your vends. Like the best place I have I was going once a week coke was always gone. Thenbi did 2 rows gone again. Now 3 and now its good 3 columns? what capacity is the machine? Link to comment Share on other sites More sharing options...
TKK Posted January 30, 2013 Share Posted January 30, 2013 What I meant is I used 3 rows of coke.. Link to comment Share on other sites More sharing options...
dogcow Posted January 30, 2013 Share Posted January 30, 2013 What I meant is I used 3 rows of coke.. yeah i am saying what capacity is ur machine , u should consider a larger machine if its under a 501 to increase sales and reduce service times. it sounds like ur machine is too small Link to comment Share on other sites More sharing options...
TKK Posted January 31, 2013 Share Posted January 31, 2013 It's a vendo 3 cans deep I think it fits about 50 cokes a column Link to comment Share on other sites More sharing options...
moondog Posted January 31, 2013 Share Posted January 31, 2013 It's a vendo 3 cans deep I think it fits about 50 cokes a column It's a Vendo 511. You should switch out to a Royal GIII if you spot one - the big ones hold about 800 cans and you can arrange your space to sales where one button controls three columns so it doesn't look weird with three buttons all having the same selection Thanks! Pricing looked ok. With a few exceptions, it looks like he made prices double wholesale cost. It keeps the math easy and seems to be working well for both the business owners and the route owner. Double wholesale is the norm unless you're in a high commission location like an airport or Disneyland Link to comment Share on other sites More sharing options...
TKK Posted January 31, 2013 Share Posted January 31, 2013 Yea actually the first button vends 2 columns Link to comment Share on other sites More sharing options...
dogcow Posted January 31, 2013 Share Posted January 31, 2013 Tkk do u understand what cogs means? Link to comment Share on other sites More sharing options...
RJT Posted January 31, 2013 Share Posted January 31, 2013 Double wholesale is not a very good idea at all. Maybe if you either have hundreds of locations or don't care about it just to make some extra cash. I mean that's 50% cog not including taxes and gas etc. If u get that storage unit you'd be at like 85% cogs without it about 65% cogs that is definately not a good plan. You will make $30,000 in a year and spend $20,000 Really? What precentage are you at? Link to comment Share on other sites More sharing options...
cvending Posted January 31, 2013 Share Posted January 31, 2013 I wish I could have my COG be 50%. I don't know where you buy your product but, snacks are typically .27-.28/unit and sell for .60(not bad-a little less than 50% COG) but candy costs for best sellers are .55-.58/unit and sell for .85(65-68% COG) Average it all together and you are way above 50%...at least for us. Link to comment Share on other sites More sharing options...
TKK Posted January 31, 2013 Share Posted January 31, 2013 I guess here locally prices are way higher Cost...sale price Cookies .26/$1 Chips .38/$1 Chex/gardettos .26/$1 Small tgif .20/.75 Nutty bars .25/$1 Combos .43/$1 Crackers .16/.65 Peanuts .16/.65 Zingers .46/1.25 Cup cakes .48/1.25 Tx cinnamon .48/1.25 Soda Coke sprite 7up fanta sunkist Dr p pepsi .20-.27 a can / .75 Ppwerade 20 oz .50-.60 /1.25 Monster 16 1.23/2.25 COG cost of goods If you buy $1,000 of product and made $2,000 1k/2k is 1k 1k profit Minus expenses, taxes, liabilities-net income/profit Link to comment Share on other sites More sharing options...
TKK Posted January 31, 2013 Share Posted January 31, 2013 I guess here locally prices are way higher Cost...sale price Cookies .26/$1 Chips .38/$1 Chex/gardettos .26/$1 Small tgif .20/.75 Nutty bars .25/$1 Combos .43/$1 Crackers .16/.65 Peanuts .16/.65 Zingers .46/1.25 Cup cakes .48/1.25 Tx cinnamon .48/1.25 Soda Coke sprite 7up fanta sunkist Dr p pepsi .20-.27 a can / .75 Ppwerade 20 oz .50-.60 /1.25 Monster 16 1.23/2.25 COG cost of goods If you buy $1,000 of product and made $2,000 1k/2k is 1k 1k profit .50% cog Minus expenses, taxes, liabilities-net income/profit I noticed I put your cogs would go up with your storage etc. I meant expenses and a lot less net income. I think I am about 35-40% cogs. I do hunt good deals for example last month small donut gems were .16 a pack and sell for $1 all day long. Cokes this week are on special here 4 Pepsi product 12 packs for $10 and 4 coke product 12 packs for $11 I also sell Mexican chips and candy which has a super low cog. I wouldn't price any different. These prices work great for me. Everyone knows food and everything is high and getting higher As long as I am less than the gas station I am prety competitive here I don't sell chocolate or starbursts skittles etc...52-.55 cost and I wouldn't sell for over $1 Those sales mess up the opportunity cost. You sell say 1000 chocolates You pay $580., net $420 Those sales could have gotten you more Say they buy $500 of chips and $500 cookies Still make $1000 $180+$130 You pay $310 net $690 I've never had complains or requests for candy and chocolate Link to comment Share on other sites More sharing options...
TKK Posted January 31, 2013 Share Posted January 31, 2013 Sorry about misspelling I only log on here on my cell Link to comment Share on other sites More sharing options...
dogcow Posted January 31, 2013 Share Posted January 31, 2013 it depends on ur locations from what u have posted u have kinda low tier locations, when u get into big locations they demand premium products, so ur cogs goes up because of the skew on pasteries and candy i agree with u, for me i prefer to do hotels and laundries only because they dont care what i put in the machine so i can use the cheap products with long expiry, but if ur aiming to get into the bigger accounts they will require a premium mix, also adjusting ur prices can pick up ur volume somewhat in a slow location. Link to comment Share on other sites More sharing options...
cvending Posted January 31, 2013 Share Posted January 31, 2013 TKK, I envy your pricing. Here in the midwest things are a bit different. candy .55-.58 sells for .85. Snacks cost.26-.28 and sell for .60, pastry costs .48-.58 and sell for .90-$1.00. Soda costs are $8.32/cs and(.346/can) and sells at .60/can. You do have better margins. Also, we could not get away with not having top name brand chocolate candies. If we don't offer them, someone will Link to comment Share on other sites More sharing options...
TKK Posted January 31, 2013 Share Posted January 31, 2013 wow thats crazy! .60 a can? If that was the case here i would probably just stick to bulk as my bulk is lower cogs about 25% or so. cvending, what size route or company do you operate? I have been able to kick out some of the big vendors locally eventhough they pay comission and lower prices because of some selections i offer. that is my main pitch with them. I ask them without being racist, what do you think would sell in this location. they reply with spicy, mexican candy, etc. Then they tell me their current vendor only provides the same selections (lays classics, fritos, reg cheetos, doritos, chocolates). I tell them i have Hot cheetos, Hot funyons, munchies, hot fries, vickies chips, many mexican candy/chips. i tell them i do not use bottles because they frequently cause missvends and you can usually get 2 12oz cans for the price of a 20oz bottle. sure enough even though the prices are higher, the sales raise in those locations. I actually did try chocolates and candy. id buy thos skittles mix (reg, sour, tropical, and 2 types of starbursts) id buy the sour punch, and snickers, kit kats, reeses, hersheys. they did ok, but once replaced with other products sales went up, COGS down. it works for me. maybe you get a place where theres chocolate addicts and dont want anything else. also regular coke sells like 40% of my soda sales, then dr pepper/sprite, and then mt dew, orange, apple. i am sall though, were talking about 11 machines (8 coke, 4 snack) so i can actually afford to go get the price match deals on coke/pepsi products at wallmart and save. if i doubled screw that id get it all at sams. Link to comment Share on other sites More sharing options...
ruff84 Posted February 14, 2013 Share Posted February 14, 2013 How is this going? Did you take over the account yet? Link to comment Share on other sites More sharing options...
indiana Posted February 15, 2013 Author Share Posted February 15, 2013 Hello! Sorry not to update this thread (or post anywhere else here) in the last week or so, it's taken a great deal of time and energy (certainly much more than I originally anticipated) reviewing everything and otherwise completing the transition process. I'm happy to report that I successfully took ownership of this route last week! For a couple weeks, I scoured the financials and tax returns, I also showed all the information I had available with some professors I still keep in touch with from business school. I've spoken with my accountant and business attorney about the opportunity. I've had countless conversations with the previous owner, as well as rode along with him for two weeks servicing each location and verifying income coming out of the machines. I spoke with the owners/management about their vending needs and expectations at the locations where possible. After analyzing what I could (and over thinking most everything) I pulled the trigger. Money has been transferred, and the business is now mine. There are still some logistics issues that I need to iron out--such as securing my own cargo van (currently renting) for the driver, as well as streamlining the process of him picking up inventory and depositing cash at the bank. But all in all, things are working smoothly so far. Link to comment Share on other sites More sharing options...
TKK Posted February 15, 2013 Share Posted February 15, 2013 So you want to buy a van and hire a driver to service/ collect/ deposit? Link to comment Share on other sites More sharing options...
indiana Posted February 15, 2013 Author Share Posted February 15, 2013 I actually already have a driver, he was inherited with the route. He is very knowledgeable about the route and is a familiar face at the locations. His first day working for me is today. I need to purchase my own van now, and figure out a few more things. Just details. Link to comment Share on other sites More sharing options...
TKK Posted February 15, 2013 Share Posted February 15, 2013 How much r u gonna pay him? Link to comment Share on other sites More sharing options...
indiana Posted February 15, 2013 Author Share Posted February 15, 2013 I wouldn't want my employer disclosing how much I make in an open forum, so I won't disclose the wage he earns here. But--I will say that I'm doing my best to pay him generously. I realize that his knowledge of the route and ability to service my locations during the week is extremely valuable, so I'm happy to pay him well for his hard work. If things work out and otherwise run smoothly over the next year, as they already have the last two years he's worked the route, I plan to increase his pay, too. Link to comment Share on other sites More sharing options...
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