Maddog3632 Posted October 12, 2013 Share Posted October 12, 2013 So as people may know I am new to this whole thing, I looked at buying a vending route but found they had crappy machines and locations. So, I thought why cant I do this myself and get a good route. So I set out to buy machines and now have a couple snack machines that are quality and a soda machine that I am finding sucks! Today I went on my first stop and knock and to my surprise had great success but am a bit concerned that I am to eager and may take accounts that I really shouldn't take. Please advise. First account: 70 people in an industrial facility, previously had 2 coke machines and a snack. Now I have a bevmax (sucks) and a snack machine. Second account if I want it: 55 welders/fabricators, are willing to get pepsi only and would like a vendor who shows up more than every 4 weeks. Also, current account has crappy seaga machines. Third account if I want 45 people in 3 shifts (15 each) currently have the same service as the second option. Are willing to take a vending machine and one soda machine with pepsi. Fourth Account if I want a car dealership, one of the largest 3 in a town of approximately 75k, however they have 3 vending machines and 3 soda machines but they look like crap. 1 soda and snack in the mechanics area and 1 set in each of the dealership areas. I am going to propose that they put soda machines in all three locations and a good quality snack machine in the service area only. The current vendor does not do a good job, matter of fact they sell the same product in multiple slots for different prices. The guys working there said it was great because they could get products sometimes cheaper than Wally's! So, my day was successful but being new I am wanting to get Pepsi or Coke machines from the bottler and a couple smaller snack machines in second and third accounts. In the 70 person account I am going to put a coke and pepsi machine because they want it. Sorry for the long windedness, any advice? Link to comment Share on other sites More sharing options...
moondog Posted October 12, 2013 Share Posted October 12, 2013 So as people may know I am new to this whole thing, I looked at buying a vending route but found they had crappy machines and locations. So, I thought why cant I do this myself and get a good route. So I set out to buy machines and now have a couple snack machines that are quality and a soda machine that I am finding sucks! Today I went on my first stop and knock and to my surprise had great success but am a bit concerned that I am to eager and may take accounts that I really shouldn't take. Please advise. First account: 70 people in an industrial facility, previously had 2 coke machines and a snack. Now I have a bevmax (sucks) and a snack machine. Second account if I want it: 55 welders/fabricators, are willing to get pepsi only and would like a vendor who shows up more than every 4 weeks. Also, current account has crappy seaga machines. Third account if I want 45 people in 3 shifts (15 each) currently have the same service as the second option. Are willing to take a vending machine and one soda machine with pepsi. Fourth Account if I want a car dealership, one of the largest 3 in a town of approximately 75k, however they have 3 vending machines and 3 soda machines but they look like crap. 1 soda and snack in the mechanics area and 1 set in each of the dealership areas. I am going to propose that they put soda machines in all three locations and a good quality snack machine in the service area only. The current vendor does not do a good job, matter of fact they sell the same product in multiple slots for different prices. The guys working there said it was great because they could get products sometimes cheaper than Wally's! So, my day was successful but being new I am wanting to get Pepsi or Coke machines from the bottler and a couple smaller snack machines in second and third accounts. In the 70 person account I am going to put a coke and pepsi machine because they want it. Sorry for the long windedness, any advice? Sounds like you may have found vending heaven there. The first two are no brainers - blue collar accounts with a good number of people is what you're looking for. The second two could be good also but I'd get those first two running first. I always start with a big soda machine (not a glassfront) and a 5 wide snack machine - if they need more you can always pop another soda machine in. As for the machines, try and avoid the bottlers - you'll end up paying through the nose for those "free" machines. Dixie 501es are good or the Royals if you need something larger. Out here we have a lot of Vendos which I don't care for - I have a number of them inherited with accounts I took over and they're just not made as well as the Dixies or Royals. Avoid the smaller snack machines unless you have space issues - you can often get a 5 wide for less than a 4 or 3 wide (there's a lot more 5 wides available so it's a supply and demand deal). I prefer the old AP7600s or slightly newer 113s but a lot of people here like the Nationals better (beats me). After that it's USI which is a brand I avoid. Link to comment Share on other sites More sharing options...
Maddog3632 Posted October 12, 2013 Author Share Posted October 12, 2013 The third is a blue collar as well. Link to comment Share on other sites More sharing options...
jerry1973 Posted October 12, 2013 Share Posted October 12, 2013 If you can find/afford all the equipment that its going to take for all these accounts, I would say to get them all!! The worst thing that can happen is if they end up being low volume performers. In that case just find your machines new homes. You might even end up with an extra machine or two if locations are not immediately available, but if your going to be a vending company, having an extra machine or two ready to go is not a bad thing. I think all of those locations are worth taking the chance on Link to comment Share on other sites More sharing options...
AZVendor Posted October 12, 2013 Share Posted October 12, 2013 Maddog, you could do very well at these stops if they are equipped in the right way. The dealership has the most promise and I agree with you that they are currently over equipped, but maybe only by one snack machine. My experience with dealerships is that they are moneymakers when the salesmen are just standing around. This would also be a perfect spot for one of your coffee machines. Salesmen drink lots of coffee and this could be a good way to get your foot in the door. I would put a soda and snack in the customer waiting area or the lobby or wherever the public will see them and those will also be used by the sales staff. A soda and snack are good for the shop area as the mechanics probably aren't allowed into the showroom area. One thing you have to remember, when you see the current vendor doubling up on things, it could mean sales aren't as strong as you thing they should be, but you can correct some of that with good service and attention to requests. A soda and snack in the welding shop is a good stop for you. The 45 person account, depending on the kind of work they do, will still always be a 45 person account. I would place the machines and hope for the best. Some small accounts will outsell locations with twice the number of people. Some thoughts: Don't let your prices be known as "lower than Wally's" or you won't be making a fair profit. Your bottom line comes first and must always be the determining factor on your pricing. Go in at the beginning by selling your service, not your prices or commissions (god forbid!). Provide the best service and sell at higher prices. Be wary of your dependence on bottler machines. Sure they provide clean, late model, location-ready machines, but they can be very slow to repair 3rd party machines and if their budget runs out, you're screwed for awhile. You are locked in to only their line of products and they will dictate how much product you have to buy from them in return for the machine, and that product is higher priced. I, too, started with bottler machine and as I grew they became kind of a crutch in that I could order up a "free" machine for a marginal account that I would not have purchased a machine for. The problem comes when you have too many marginal accounts and realize you aren't making the minimum required purchases as required by the bottler. This can put your machines in jeopardy, so be careful. Always have more "owned" soda machines than bottler machines. Link to comment Share on other sites More sharing options...
Maddog3632 Posted October 14, 2013 Author Share Posted October 14, 2013 Does anyone have advice on machines that are appropriate for these types of accounts. I was talking with someone today who felt it was necessary to have updated equipment, IE new 5's for he machines in the three blue collar locations. I understand the necessecity for updated equipment in the dealership but am not sure about the others. I ask this question because I will need to buy 2 or maybe 3 snack machines for these locations. Link to comment Share on other sites More sharing options...
AZVendor Posted October 14, 2013 Share Posted October 14, 2013 I would imagine the dealership is the one you need newer machines in, mainly because they generally have updated showrooms and they want to impress their customers, and with your name on them you could pick up some referral business from those same customers. The blue collar machines probably don't expect more than $1 acceptance but it's not hard to get a machine to take 5's (and doesn't automatically mean you need a 4 tube coin mech either). It is just an additional convenience for the customer. You're most likely to make more money in the dealership and you always want your best equipment in your best accounts. The dealership showroom would be ideal for your Bevmax, if you wanted to put something in place of it at your other account you placed this week. Link to comment Share on other sites More sharing options...
Maddog3632 Posted October 17, 2013 Author Share Posted October 17, 2013 More help needed on this subject. Two of the blue collar establishments each with 45 people already have coke serviced machines. Does it make sense to step into the same venue and provide another drink machine and a snack. Or will it be over saturated with soda options after adding another soda machine. Link to comment Share on other sites More sharing options...
cashman Posted October 17, 2013 Share Posted October 17, 2013 Contact Coke and ask to take over their machine(s) Link to comment Share on other sites More sharing options...
AZVendor Posted October 17, 2013 Share Posted October 17, 2013 If you don't want to take over the Coke machines then have the locations call Coke to have the machines removed. You definitely don't want to compete with them, but if you want to use their machines and they are machines that 3rd party vendors are allowed to use, they will probably transfer them over to you because they still want their name out if front of those eyes. On the other hand, if Coke gets a hair up their golpher, they might just pull them and you don't have to worry about it. Link to comment Share on other sites More sharing options...
mission vending Posted October 17, 2013 Share Posted October 17, 2013 I won't share a location with a bottler. The location gets to decide, them or me. Link to comment Share on other sites More sharing options...
Maddog3632 Posted October 17, 2013 Author Share Posted October 17, 2013 Had not really though about the option of having coke remove or give account to me. Since my product comes from them it seemed like I may be cutting my own head off by doing that. Thoughts? Link to comment Share on other sites More sharing options...
AZVendor Posted October 17, 2013 Share Posted October 17, 2013 It shouldn't matter to Coke because the phone call to remove the machines will come from the location management, not from you. If you want to assume the machines then you will have to make the call to tell Coke your intentions which must then be confirmed by the location. They shouldn't have any problem with that as they will simply empty the machine and change the lock, leaving the machine there advertising their brands. Link to comment Share on other sites More sharing options...
QualitySelectionsJ Posted October 21, 2013 Share Posted October 21, 2013 Had not really though about the option of having coke remove or give account to me. Since my product comes from them it seemed like I may be cutting my own head off by doing that. Thoughts? I'd avoid dealing with bottler machines; you're limited to their products and they charge way too much for product, plus they require a minimum purchase ( at least down here). Don't share locations with other vendors. It may become a big headache for you... Consensus down here is that Dixie Narco and National machines are the most effective. You should be fine with refurbished machines. Check with your local vending dealers and shop around. Just make sure they look presentable. Link to comment Share on other sites More sharing options...
Maddog3632 Posted October 23, 2013 Author Share Posted October 23, 2013 Understood on the bottlers and being at their mercy. Does anyone have magic numbers in regards to expected revenue per person for blue/white collar locations. I have a couple metal/industrial settings with 25 people and am wondering if it's worth it? Link to comment Share on other sites More sharing options...
mission vending Posted October 23, 2013 Share Posted October 23, 2013 For a bottler machine, no. If you can find a working machine for 500 or less in your area its something to think about. 25 in a blue collar place ought to generate about a 40 dollar a week average. Link to comment Share on other sites More sharing options...
moondog Posted October 23, 2013 Share Posted October 23, 2013 Understood on the bottlers and being at their mercy. Does anyone have magic numbers in regards to expected revenue per person for blue/white collar locations. I have a couple metal/industrial settings with 25 people and am wondering if it's worth it? That's a tuff one - there are established expected revenue numbers for white/blue collar but you'd need a lot of accounts for those averages to hold up. For a small vendor those numbers won't mean much. I've got a 20 plus person auto body shop that does $400 a month - soda only. Right now it's easy money but they've been asking about a snack machine which could take it to $600 a month. If you can get a couple of 600 plus can capacity soda machines, you should try those accounts out - the idea being to hit them once a month with the hopes that they'll gross $300 to $400 each. You may also consider putting the 500 bill boxes on your validators. Link to comment Share on other sites More sharing options...
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