Cost of automated retail machine

[sterpizzle24]

Have found this forum to be very resourceful. You all have been such a big help in my learning experience!

-Question time-

I have general questions about this new wave of automated vending machines with all this high-technology capabilities. I contacted the company AVT for a estimate on one of these machines and it turned out to be well-overpriced in my opinion. Is there a company out there that offers these same features, but at a reasonable price? 

 

Somebody help me out here!!!! Thank you

[RJT]

We are going to need more information. What are you vending and what "high-technology" are you looking for. Thanks

[QualitySelectionsJ]

Have found this forum to be very resourceful. You all have been such a big help in my learning experience!

-Question time-

I have general questions about this new wave of automated vending machines with all this high-technology capabilities. I contacted the company AVT for a estimate on one of these machines and it turned out to be well-overpriced in my opinion. Is there a company out there that offers these same features, but at a reasonable price?

Somebody help me out here!!!! Thank you

Hi, I have not heard of AVT. Good quality brands like Crane National Snack machines can cost $3000+ and up, new. Dixie Narco beverage machines, $2000+ and up. These are great brands.

If you choose refurbished, like: AP 113 snack ($1000 or so), or Dixie Narco 501-e ($1,200 or so). Some dealers like Vendors exchange sell equipment. You can Google these reputable machines. Also, wait for the other pros on here to reply on this topic, so you can make a good decision.

[sterpizzle24]

Thank you for the reply RJT!

 

I will be vending healthy snacks such as clif bars, luna bars, protein bars etc along with gatorade and powerade etc. I will be in the healthy aspect of vending. And technology such as Intel software a type of machine similar to what I would like would be a Di-ji touch vending machine. I really just want to create more value to the customer and an easier experience with the ever changing technology in the world.

[AZVendor]

If you think the AVT machines are expensive you will find that the full touch screen snack machines with the Intel door on them are about $8-10K.  You would be better off with a standard glass front vender set up with 3 snack/candy shelves and two bottle shelves.  I would purchase a used AMS Visi-Combo vender and then get some of the green healthy vending graphics to put on the metal door.  Heck, you could wrap the entire machine if you want to and you will make quite an impact with all the color.  Keep in mind that the value to the customer is not in the experience of pressing a touch screen, but in the products they buy from the machine.

 

As most here will tell you, if the accounts where you will place machines like this will produce very good sales, you may want to utilize full size snack and soda machines instead of combo machines.  This will allow you more selections and longer intervals between services so that each service will generate more income for the time you spend there.  Combo machines in good locations will require multiple services per week which only costs you money and time.

[sterpizzle24]

Great point AZ I am still in the learning process and there are just so many options out there!

 

With the AMS Visi-Combo would I be able to have software that tells me when my inventory reaches a certain point? I wanted to have the machines enable people to self-vend from their phones. Essentially I just want to have something different from all of the other vendors that are in my area that attracts the customers.

Question: Why is it so troublesome for vending companies to have credit card readers? 

[Golfdogs]

Great point AZ I am still in the learning process and there are just so many options out there!

With the AMS Visi-Combo would I be able to have software that tells me when my inventory reaches a certain point? I wanted to have the machines enable people to self-vend from their phones. Essentially I just want to have something different from all of the other vendors that are in my area that attracts the customers.

Question: Why is it so troublesome for vending companies to have credit card readers?

It's not that it is troublesome to have card readers for a vending company. It's just an added cost. $3-400 for the unit, monthly monitoring fees and transaction fees all eat into the bottom line. With that being said, the additional revenue they may bring in certain accounts may far outweigh the costs.

[RJT]

 Don’t take this the wrong way but if you have set your business model to do healthy vending only you will be disappointed. While I always recommend all vending companies have a healthy choice program in their line up of products doing all healthy does not work in vending.

 

No large operation vending company does healthy vending only for a reason. The largest vending company in the world does not do it and for good reason. I know you are thinking that because others are not doing it you can be different. Yep, you will be different and broke. Trust me stay away and save your money trying to start an all healthy vending company. If their was money to be made in it why arent they doing it or any of the established vendors here?  

 

Sure if you want to do a hand full of target specific accounts it may work in a few (probably not) but how many of those type of accounts do you have within a reasonable service area to your base of operation.

 

On the technology aspect, technology is great but don’t get to overwhelmed with offering all the bells and whistles from the start. Learn the nuts and bolts of operating a profitable vending company then start to blend in the technology as you go and learn.

 

I hope you didn’t take what I said the wrong way. I just hate to see people waste their hard earned money with a business model that does not work.

 

Read, read, and read some more, ask questions before you spend and significant amount of money in the vending industry.

 

Only these machine manufactures are trusted and used by professional vending companies. Crane National, AP, AMS, USI, Royal, Dixie Narco, and Vendo.

 

DO NOT BY COMBO MACHINES!!

 

DO NOT BUY INTO A BIZ OP!!

 

 Is my last TWO and most important pieces of advice I can give you.

 

One last thing, while I appreciate your attitude about customers to "create more value to the customer and an easier experience with the ever changing technology in the world." in the end we are selling convenience food in a metal box that takes money. Clean, full and working is the main things customers want from a vending comapny along with good customer service and variety. 90% of all accounts lost is due to one of those things that have failed. I have offered brand new machines with all the bells and whistles to a customer and they said they were happy with the company they had. Why, because they did all those things I listed the right way.

[sterpizzle24]

Thank you Golfdogs for that advice I always wondered that. And RJT I know you are here to help I am absorbing as much knowledge as I possibly can from numerous sources. Everything you have said is very valuable.

 

And in order to learn the ropes I will be getting my foot in the door with the honor box system(low investment). That way I get use to speaking with my market and changing inventory and just learning the way the business is ran. Then I will start to grow, but being patient I know will be key! 

As far as the healthy aspect I know that is a point in, which people say they want to eat healthy but actually don't. So maybe targeting those people who do(make move to eat healthy) then make a movement(showing that this healthy thing does work) would work in my favor..Just a vision of mine.

 

Just working to change the world for the better one bite at a time

[AZVendor]

Great point AZ I am still in the learning process and there are just so many options out there!

 

With the AMS Visi-Combo would I be able to have software that tells me when my inventory reaches a certain point? I wanted to have the machines enable people to self-vend from their phones. Essentially I just want to have something different from all of the other vendors that are in my area that attracts the customers.

Question: Why is it so troublesome for vending companies to have credit card readers?

It isn't troublesome to install and use card readers, but it is an additional expense as Golphdogs mentioned. There is an activation fee for each card reader and then you will have a monthly access fee of $10-12 and then a transaction fee of approx. 3-5% of the vend price. You do have the ability to remotely monitor your machines and get sales data remotely with some suppliers, called telemetry, but an additional fee is charched for that too. USA Technologies is a good turnkey supplier of card readers and telemetry svcs, and they have a card reader (their G8 model) that can also accept NFC payments from touch cards and mobile phones. In the right location you can see up to a 20% sales lift over cash only, but those locations are hard to find.

[rmorris1953]

Thank you Golfdogs for that advice I always wondered that. And RJT I know you are here to help I am absorbing as much knowledge as I possibly can from numerous sources. Everything you have said is very valuable.

 

And in order to learn the ropes I will be getting my foot in the door with the honor box system(low investment). That way I get use to speaking with my market and changing inventory and just learning the way the business is ran. Then I will start to grow, but being patient I know will be key! 

As far as the healthy aspect I know that is a point in, which people say they want to eat healthy but actually don't. So maybe targeting those people who do(make move to eat healthy) then make a movement(showing that this healthy thing does work) would work in my favor..Just a vision of mine.

 

Just working to change the world for the better one bite at a time

 

 

With that said how many gym memberships are sold that no one uses??? 

[RJT]

Good luck with you endeavor, I wish you the best. Keep us posted on how it’s going.  

 

Thank you Golfdogs for that advice I always wondered that. And RJT I know you are here to help I am absorbing as much knowledge as I possibly can from numerous sources. Everything you have said is very valuable.

 

And in order to learn the ropes I will be getting my foot in the door with the honor box system(low investment). That way I get use to speaking with my market and changing inventory and just learning the way the business is ran. Then I will start to grow, but being patient I know will be key! 

As far as the healthy aspect I know that is a point in, which people say they want to eat healthy but actually don't. So maybe targeting those people who do(make move to eat healthy) then make a movement(showing that this healthy thing does work) would work in my favor..Just a vision of mine.

 

Just working to change the world for the better one bite at a time

 

 

 

Good luck with your endeavor, I wish you the best. Keep us posted on how things are going with your new adventure.

 

Just fyi, your story and your vision is very familiar to many of us on here. I see a post very similar to this one probably once a week or so.  Problem is out of all the post and real success stories on this forum I don’t know of one that involved all healthy vending working out in the end. Something to give some serious thought about.....