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cold food vending


jerrybrecko

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I have always done soda and snack machines.  I was told if I am doing $150 per week in a soda/snack location, I would easily be doing $300+ per week by adding a cold food vending machine and selling sandwiches wraps salads and string cheese.

 

Just want other peoples thoughts on operators that have these types of set ups.

 

Does 50% of your sales in a location come from cold food vending?

 

Is it worth getting into?

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I have always done soda and snack machines.  I was told if I am doing $150 per week in a soda/snack location, I would easily be doing $300+ per week by adding a cold food vending machine and selling sandwiches wraps salads and string cheese.

 

Just want other peoples thoughts on operators that have these types of set ups.

 

Does 50% of your sales in a location come from cold food vending?

 

Is it worth getting into?

Who the heck told you that ?  Cold food machines are only good for securing premium accounts that require them and are to be avoided if you can.  Definitely not something you want to push.  The stales on those machines can eat up your profits pretty fast.

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i will try to clarify what mission said......

NOT ONLY NO, BUT HELL NO

I have three food machines in accounts that that I would love to pull but cant because.......

A) If I do I will lose the account

B) The accounts are so good that I can accept a loss on the food machine.

c) I currently have two food machine out of five that does not lose money and they have three shifts and the only day they close is christmas day.

 

Thats why when accounts ask me about cold food I apologize and say that if they have three shifts with about 25 people per shift I will not even consider it.

One 8 to 5 shift you might as well throw your out on the highway and watch it blow away or go buy lottery tickets with it at least you have a chance at that.

Sorry was that too harsh.......

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Cold food is a loss leader.  I have a cold machine for sandwiches, yogurts etc as it was required by contract....however I wish I could dump it.  On a good month, I do about $125 - $200 in sales.  I net profit about 1/2 that.

 

Now the crappy part.  The unit recently failed.  It cost me almost $600 to fix.  I had to throw away about $40 in merchandise as well.  So the failure cost me about $640.

 

Now, remember my profit on a monthly basis is somewhere around $70-$100 and you can see that it will take me somewhere between 7-9 months just to break even.

 

Over the last three years, I have had the cold machine fail twice.  After the first failure, I removed most of the truly perishable items and replaced them with cup-o-soups, mac and cheese, canned fruit etc.

 

Frozen is only marginally better since you have a longer expiration date....however you still have to be ready for a freezer failure.  As I was told....it's not a matter of "if" it will happen, but "when" ..... and it will.

 

Travis

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