New to the game, would like some advice

[hawksfan9325]

I've seen those. When we vend them out of snacks we just use a 9 count spiral on a candy tray. The cup sits inside the spiral just right.

What model machines?

 

Yep,  Technivend sells the K-kup adapters for your snack machine.  The machines run $150 to $350 and you can get the K-kups from Sam's for 40 cents a pop and they have a lot of choices.

Cool. Smart idea on the adaptor! 

 

Put a Keurig in there! You want to make some cash at a dealership, put the K cups out there at .75-$1.00 a vend. Trust me. There are a few ways to do K cup service, you could rent them the unit and they buy the coffee from you cash, you could just put the coffee out on the counter and charge to activate the brewer(not as desirable because K cups walk away) either way Keuriegs are a money maker in a sales environment. The sell them the coffee up front for cash is a winning deal, because you don't need to spend the money on a brewer that accepts money, and other than upkeep on the unit(that you might be able to convince them to do for you) you don't really need to do anything other than deliver coffee and collect cash. 

 

An even better approach to K cups is to get the dealership to buy the coffee and provide it free of charge to the employee's, nothing moves faster than free coffee. We had a call center do 1500 cups a week out of a full size vendor that was free to employees.

Hmm. The dealer is 2 story. They offer coffee on the first floor, and the machine would be in the break room, on the second floor. Even if they already offer free coffee on the first floor, do you think it's a good idea to use the keurig on the second floor? Do you guys have a preferred brand of coffee?? 

 

You guys are damn smart :-)

[Mistah Mike]

We use Green Mountain and a few other off brands like Donut House. I am vending K cups out of 181's and 7000's fitted with Revisions doors. Our 7000 set up is all K cups, every tray is a candy tray, so figure 60X9 k cups and you have 540 vends available before a refill is needed, but expect to refill popular flavors more often or add more rows of those flavors to keep everyone happy.

[engineer1984]

Expiration dates on K-cups?

[Mistah Mike]

yes, about 6-9 months I think.

[hawksfan9325]

Wow. This K cup idea is epic. I have a used Keurig machine at my house that I never use. Might as well offer to bring that into the auto dealer, along with the snack machine! 

[wheelermj]

I say go with the credit cards. I have 110 card readers on machines, and less then 5% of those locations don't pay for themselves. I have 1 machine in particular that's located in a college dorm that went from $200 a month to $1000 a month when I added card readers and several that increased over 40% with the addition of card readers , most of the rest increased between 15 and 30%. The part that really surprised me is that I didn't see a decrease in my cash sales, so all my credit revenue is just in addition to my cash revenue, not replacing. My sales increased so much that I am making more now then I ever had without any price increase. If you are really concerned about the card fees, most of the card providers give you an option to charge the customers that pay with a credit card an additional fee for paying with the card. The other part of value that comes with the credit card is machine telemetry. If you take advantage of telemetry, you can know what your machine has sold before you go to the machine. This makes it so you are not wasting time servicing a machine that does not need servicing, and likewise prevent you from having a machine sit empty for days until you go to fill it. You also can get alerts sent to your phone letting you know if a machine loses power, or has gone more than a certain amount of hours since the last sale, and the one that's a huge benefit if you have any food machines, you can get a message if your machine goes above a certain temperature for too long. That one has saved me thousands of dollars in saved spoiled product when my refrigeration units have gone out.

[TKK]

Hmmmm thinking of cc readers too...hmmmmm

[hawksfan9325]

Yeah. I'm thinking with the right volumes of customers, you can kill it with CC. I won't bother with CC for the smaller dealership, but will absolutely use for the library.

[QualitySelectionsJ]

Cool. Do you guys like A&M? They seem super friendly, and offer cheap shipping. No sales tax either. Once I close the account, I'll probably buy the 501.

Keep in mind; it's been mentioned on here before. It's effective to run a couple of brand name machines, because you will eventually have spare parts and knowledge on fixing machines. Don't buy 1 of each brand name manufacturer. I use 2 brands: 1 for soda,1 for snack. You'll be replacing compressors, motors,etc on your machines in the future. Keep it practical.

[RJT]

I would pass on the car dealership myself. To many restrictions and not enough employees for a snack only situation. It might do some volume but find quality locations from the start and you will build a solid vending company. Find a dealership that will allow a drink and snack in the open area for customers and employees.

 

The library may do decent but wouldnt expect much out of it to be honest.

 

I know sometimes people have to start somewhere but I just hate to see people start off with dog accounts just to "learn". Try and pick quality even when it is the smaller type accounts like the car dealerships. I have seen car dealerships do from $100 a week to over $400 it just depends on the dealership.

[hawksfan9325]

I would pass on the car dealership myself. To many restrictions and not enough employees for a snack only situation. It might do some volume but find quality locations from the start and you will build a solid vending company. Find a dealership that will allow a drink and snack in the open area for customers and employees.

 

The library may do decent but wouldnt expect much out of it to be honest.

 

I know sometimes people have to start somewhere but I just hate to see people start off with dog accounts just to "learn". Try and pick quality even when it is the smaller type accounts like the car dealerships. I have seen car dealerships do from $100 a week to over $400 it just depends on the dealership.

 

Yeah. I am still waiting to decide on what I should do with the dealership. They are mad strict. The library has 120,000 "readers" a year walk in and out of the door. I think I can do pretty good business there. The dealership is kind of a last resort. I am trying to get a high volume bank in town too. How do banks do? Not sure how to even estimate a bank. All the good locations seem to be taking by the "C team". 

[AZVendor]

A snack only account, buying the equipment at the right price, might make you some money.  If it doesn't you can simply move the machine somewhere else when you find a suitable location for it. 

 

As to banks, those are white collar accounts and you will do 1/2 the sales volume of a blue collar account with similar body counts.  If it's a bank branch, leave it for someone with mechanical turn knob machines to do, but if it's a regional banking center with many departments and lots of employees, it could turn out pretty good. 

[hawksfan9325]

The bank actually caters to people with subpar credit scores, immigrants, etc. There are 5 total branches in my area, but i am targeting the headquarters. I think there is pretty good foot traffic there, and a small machine could do pretty well. I will see what they have to say. 

A snack only account, buying the equipment at the right price, might make you some money.  If it doesn't you can simply move the machine somewhere else when you find a suitable location for it. 

 

As to banks, those are white collar accounts and you will do 1/2 the sales volume of a blue collar account with similar body counts.  If it's a bank branch, leave it for someone with mechanical turn knob machines to do, but if it's a regional banking center with many departments and lots of employees, it could turn out pretty good. 

[dogcow]

No soda machine?  That many people could do $800 a month but not without the drink machine.  I would avoid any account that only wants a snack machine 

i disagree , snack only accounts can make money. most of the $ is from drinks but i have done well 

at some snack only accounts, the thing is if you cant put it out for the customers forget it, between

that and the commission its just not gonna be worth the hassle unless u have some extra machines

kicking around. i will take any account rather than have machines in my warehouse jm2c

I would pass on the car dealership myself. To many restrictions and not enough employees for a snack only situation. It might do some volume but find quality locations from the start and you will build a solid vending company. Find a dealership that will allow a drink and snack in the open area for customers and employees.

 

The library may do decent but wouldnt expect much out of it to be honest.

 

I know sometimes people have to start somewhere but I just hate to see people start off with dog accounts just to "learn". Try and pick quality even when it is the smaller type accounts like the car dealerships. I have seen car dealerships do from $100 a week to over $400 it just depends on the dealership.

 

lol same thing u taught me, the only diff i would say from my experience is soda-only accounts 

are good learning and good for part timing because u can do them once a month 

and with some $350 equipment. if u arent sure u love vending or u want to learn how to do 

locating and not f--k up on big accounts locate a route of buble front dixie narco drink vendor

u can get them off craigs list for 200-350 each and set them up on  aone month service interval

even bad locations will pull 400-500 a month on can drinks and u probably wont have any 

commission. its nice to do a 10-15m service and pull out $200-300 gross profit. thats my thought

for practice accounts. when u start getting real accts u can sell off the route for a nice profit

or pull the machines for better locations. 

A snack only account, buying the equipment at the right price, might make you some money.  If it doesn't you can simply move the machine somewhere else when you find a suitable location for it. 

 

As to banks, those are white collar accounts and you will do 1/2 the sales volume of a blue collar account with similar body counts.  If it's a bank branch, leave it for someone with mechanical turn knob machines to do, but if it's a regional banking center with many departments and lots of employees, it could turn out pretty good. 

banks are great honor box accounts they suck for vending. 

 

if u have a bank next to another account where u go, put in an honor box, it will help

manage stales and takes all of 5 mins to service. 

[hawksfan9325]

Damn good call on honor boxes. Thanks!

[Mistah Mike]

I need to correct myself about the spiral count for vending k cups out of a snack. Its a 10 count on AP's and 11 on Nationals...

[secund2nun]

Im sorry to say this but you need to search!!! All of these topics have been beaten to a pulp! As a quick summary tho

-No healthy Vending (not really profitable and people want real snacks)

- Those locations do not sound like good locations. Salons etc no. Maybe for bulk Vending. Target places with 40+ employees

- Credit cards only.in locations with WiFi, youll have to raise your pricing, pay a per vend ammount and a monthly charge, plus the readers work on only mdb machines and the readers are also about $300

-insurance yes, but id only do it if you had atleast a couple of accounts. Even then its usually to protect you more than them. Like getting sued, or if tou cause damage. Ins is prety affordable (I pay about 55 a month for a 1 million dollar policy)

- Finding locations, take a day or so and target good areas. Mostly all will have machines already but try to get in. Kick them out, not join them or have another vendor in the same location. You can buy good route deals, and sell your bad ones. Most people want to start regardless (I dont mean rip them off completely) but sometimes I realize im asking way too little for some because thats why I valuate it. Most of the time they dont.like it (imagine a slow moving full.size snack machine and stales). Then they offer to resell it back for less.

Buy machines before a location, its always good to have a few ready. Dont offer comission unless they ask u for it and even then state 20% of net maxxxx. or do what I do, set different commission levels for certain gross works great and makes sence.

You can expect to make atleast $150,000-$200,000 a year gross if your working 40 hours a week. This is service only tho not counting prospecting or buying product.

Personally I work about 15hrs a week (Tuesday 8, wednsday 7) and currently am at 100-110k a year

Welcome! This site is probably my best info asset in this business.

 

 Wow amazing. 

[spdydre]

Stick with your pricing and adjust accordingly.   When I started I had my COG around 50-55% since then I adjusted pricing and am around 39% COG now.  In my area it doesn't matter if a bottle soda is $1.25 or $2.00 people still buy its too hot!!   If you give great service people wont kick you out over pricing.

[MidStateVending]

1. I bought about 10 lower volume accounts for about $8k. Wish I never did! The accounts that make the money are the ones you need to fill every week or more.

 

2. To find new locations, I buy them from other vendors or craigslist. I also setup my own website that gives me steady hits (www.MidStateVending.com)

 

3. Do you have enough accounts to work 40-50 hours? Not yet, but if you ever get to that point you should be set. I have about 20 accounts and I work 3 short days a week... at the most.

 

4. I bought insurance though Nationwide. Just liability. A vendor told me a story where a drunk guy bumped into a snack machine and broke the glass, cutting himself. He sued because the light in the machine was not on.

 

5. If the account is super high volume, I would use a credit card mech.... otherwise not worth it to me. They charge a percent per sale, a monthly fee, a transmission fee, and other little fees which cut deep into my profits.

 

Good luck!

[spdydre]

on the K cup brewers are you using one that you fill or hook up to a direct water line?  I have a few coffee accounts but I have been deciding on using one of the K kup brewers in a few locations.

[Mistah Mike]

We use both

[loach33]

Now see I read some of these posts and think "How do I live in that world?"  I must live on another planet.   I have pop and snack locations that at most I'm waiting 9 days between service calls.  Most are 4-5 days.   How do you go an entire month and still pull $400 out?  

 

I have  a location that will do $500-$600 a month.  I go every 4 business days.  When I get there there will be 6-7 empty snack selections and probably 6-7 more that are down to just 1 or 2 items in that slot.  The drink machine is a different story....I could go 2 weeks on that.  But each service is $90-$100.  I fill that snack machine up.

 

I don't know. Areas of the country are as different as night and day.  Maybe it is this easy and I'm making it too difficult.  Re-reading this stuff causes me to re-examine things.

[moondog]

Now see I read some of these posts and think "How do I live in that world?"  I must live on another planet.   I have pop and snack locations that at most I'm waiting 9 days between service calls.  Most are 4-5 days.   How do you go an entire month and still pull $400 out?  

 

I have  a location that will do $500-$600 a month.  I go every 4 business days.  When I get there there will be 6-7 empty snack selections and probably 6-7 more that are down to just 1 or 2 items in that slot.  The drink machine is a different story....I could go 2 weeks on that.  But each service is $90-$100.  I fill that snack machine up.

 

I don't know. Areas of the country are as different as night and day.  Maybe it is this easy and I'm making it too difficult.  Re-reading this stuff causes me to re-examine things.

How big are your snack machines? Maybe you should add another one or go to a five wide - your service cycle should be dictated by the soda machine or I use $200 as a good service point.

[QualitySelectionsJ]

How big are your snack machines? Maybe you should add another one or go to a five wide - your service cycle should be dictated by the soda machine or I use $200 as a good service point.

How's it going moondog and all? One question I looked up but didn't find in the search is: How often do you recommend servicing a machine/location?

Thanks everyone.

[mission vending]

How's it going moondog and all? One question I looked up but didn't find in the search is: How often do you recommend servicing a machine/location?

Thanks everyone.

 

As often as the volume dictates. Once you have a good idea of the daily or weekly sales you plan your service interval to maimize sales and minimize out of stocks. So it could vary from as often as daily to once every couple of weeks.

 

I look to pull 125-150 per service visit for a soda and snack , whatever the time interval winds up being based on historical sales history.