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How do you grow your business....?


newvend
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Just wondering how you increase your vending business.

What methods have you used in the past to grow and expand your business and place more vending machines out there..? Does advertising /cold calling work best for you..?

Maybe just handing in brochures or using computer technology works better for you..?

Would like to hear any ideas you might have and what has worked for you.

Thanks

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Newvend,

For me, cold selling has always worked the best. You know what you want to place based on the equipment you have or are planning on buying. You know the type of products you want to sell and the type of accounts that you want to be in. You have to look around your area or beyond, and put together a plan of targeted accounts.

Once you start placing equipment and building your customers confidence, you will be able to add equipment to your existing accounts as well as pick up other similar accounts. The more accounts you have the easier it seems to find more. You begin to show that you are confident in your sales pitch and potential accounts can see that.

I would try this first and if you are not cut out for cold selling, find someone that is and tell them exactly what you want. Of course, you will have to pay them to do that.

 

Remember: There is no one that will have the same passion for your business as you.

Gary

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Gary,(and all others)

I have seen plenty of discussion in the Bulk area about "the value of a route"

In full line..How would you value the route?  is it income?, machines? both? 

I have seen a full line route offered and I have played with the idea of investigating it..BUT I have no background here...I do not know how to handle the care and feeding of these type of machines..

Any and all thoughts appreciated

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Value of a route, is what the vendor is selling it for and what you are willing to pay! :D

Jay you have a full time job if I remember correctly, would you be able to service machines on a weekly or bi-weekly basis?

Bulk vending has more profit per vend then full line, full line has more dollars per vend. Full line has the potential for more spoilage then bulk. And of course the deal breaker for some, full line cost more to start-up.

Not really answering your value question, but the advice in the last year from most has been as low as 50% to 100%. Machines not on location would have to be valued at a replacement cost and here you never seem to get a straight answer. I posed a question last year when this advice was flowing freely, and everyone was saying buy cheap,offer less. The question was " How would you value your existing route" and there was not one reply.

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Grumpy,

At least it is an answer...As for my "full time job"  I have been a Realtor for over 23 years...If you consider "Everyday you work and Everyday you don't"  Full time..Yeah

The good part is that 2008 is a slower year and I have made it my goal to build the bulk route to handle most of the day to day bills...ie; mortgage, retirement...

When I get there which I can smell form here..I can make the decision as to make this full time or just play both sides of the table...When the Real Estate market is good..I love the paychecks..When it is not...man this stinks...So the Bulk Vending is designed to takle the pressure off and give me options...

So the hope in this question is to look to the future and formulate the process ..if a deal is presented, I would like to understand how the rest of this community would valuate it

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Ok Jay, this is actually part of my next installment of Grump's View. But here goes, last year I was in the process of buying a full line business, at that time vendors were selling for 100% to 90% of gross sales. When I valued and made my offer it was slightly below 75% of his last years financial papers. You are in the real estate business, I'm sure you have contacts that could help you evaluate an ongoing business. (business real estate specialist) And this specialist may have information for many areas of your country pertaining to vending business sales. Yes I'm aware that only large vendors would use the service of a real estate pro, but it may give a guideline to what is happening in the industry across the nation that will help you evaluate a smaller deal.

Whew!

Personally I would search out an on going business over starting fresh. Just remember that the location itself has no more value then the cost of a locator.

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