wallstreeterww Posted December 14, 2013 Author Share Posted December 14, 2013 Here's an opinion from one of their victims If you want to lose a TON of MONEY, then be a Sprout Operator. I would never recommend ANYONE to give these people a dime. They took our money and never looked back. We got new machines, were promised these machines would do certain things, they do not. The machines aren't the problem though, SPROUT HEALTHY VENDING is the PROBLEM. They are CROOKS and will take your money and run. They will promise you profitable locations and in return you get locations that act as storage units for your product to sit and expire. You will make countless trips to your machines not to fill them but to empty them of expired product. All because Sprout places your machines in horrible, non-profitable locations. Locations that they make you think will perform. They will tell you, "This location is going to be great because they have 1000 members." Or, "this location is willing to get rid of their current vendor for Healthier Vending choices." When you deliver your machine, you find out they never planned on getting rid of the current vendor, they are just adding your machine. You end up with under performing locations. Then when you confront Sprout with the problems, they will blow you off. They will tell you they owe you profitable locations, but they will never follow through. They won't answer your calls or emails. DO NOT do business with SPROUT HEALTHY VENDING. They are a SCAM and will take $1000's upon $1000's of your dollars!!!!! Wow, I didnt expect to get this many responses on this subject. Thanks guys. Moondog, the reason why I posted this question is because we were looking for locations and I happened to come upon a guy selling a few of his sprout locations , and we actually took a look at his numbers and they were very good gross wise. The machines were in excellent locations (one at a huge medical spot and the other at a school) so we figured if they got him these excellent locations why shouldnt we go straight to the company and get the locations cheaper? I would love to chat with you in pm about them before we make any commitment on locations. The reason why I didnt check back here is because I didnt see any responses yet, Glad I checked back in today Link to comment Share on other sites More sharing options...
wallstreeterww Posted December 14, 2013 Author Share Posted December 14, 2013 After looking at this http://www.franchisegator.com/sprout-healthy-vending-llc-opportunity/ I would have to say that Sprout Healthy Vending is a total scam to take your money just masquerading as being pro healthy. Liquid Capital Required: $50,000 Net Worth Required: $50,000 Total Investment: $50,000 - $300,000 My advise to anyone looking at Sprout Healthy Vending would be to listen to the "narrow minded cronies" on this forum unless you want to lose 50 to 300k. Thats not what we would get though. for 33k we would get 5 top line locations with 5 machines. When we (me and my dad) saw the ad on craigslist in which the guy had 2 locations for sale they were excellent locations. One hospital was the size of a small city and they had one machine and another one about to be placed also. He showed us his gross revenue which was very good, granted there were other vending machines there but the location was big enough to handle many machines. There are actually people that would lend us the money for these machines so we wouldnt actually be putting any money down from our own pocket. Smells like plants in here all of a sudden - combo machines that are approaching $600 a month average gross? Hmmm Any ideas on where I can get some "healthy" BBQ pork rinds or Flamin' Hot Cheestos ? Ps. Thanks Randy for being closed minded and simplistic No plant here Moondog, Ive been on this forum for a while, Just trying to get a feeling for what everyone thinks about this before officially getting in. Link to comment Share on other sites More sharing options...
TKK Posted December 14, 2013 Share Posted December 14, 2013 There are actually people that would lend us the money for these machines so we wouldnt actually be putting any money down Thats even worse! Getting a loan is not a good idea especially for biz op. I hate to say it but your getting suckered in. Those 33 k can get you 30-45 good machines and can kill this gross. Alot of beginners font like to take advice in this forum and it always seem to have their minds already set up. Link to comment Share on other sites More sharing options...
RJT Posted December 14, 2013 Share Posted December 14, 2013 FYI, Both USI (Wittern Group) and Crane National have in hose finacing with decent terms if you are looking from terms on equipment. USI even gives you the first 90 days with no payments. Why cant you get your own locations? If you plan on staying in vending you had better have a plan to get your own locations. Why is that guy selling his locations if they are doing that great? In this hospital does he have the other vending as well as the healthy only machines or is it done by two seperate companies? Link to comment Share on other sites More sharing options...
AZVendor Posted December 14, 2013 Share Posted December 14, 2013 One hospital was the size of a small city and they had one machine and another one about to be placed also. He showed us his gross revenue which was very good, granted there were other vending machines there but the location was big enough to handle many machines. There are actually people that would lend us the money for these machines so we wouldnt actually be putting any money down from our own pocket. Wall Street What you are speaking of in this quote is kind of scary to a vending operator. It sounds like you are describing a scenario where the healthy machine is owned by a separate vendor from the other machines on the property and there are substantially more machines on the premises that are doing the bulk of the sales with normal vending products. If so, I can assure you the other snack machines are running rings around the one healthy machine in sales. His sales are probably only because the machine is in a secluded area with a captive audience that doesn't have access to the other products they would honestly prefer to buy. You never want to play second fiddle in an account. You either want it all or nothing as the sales this machine is doing means nothing if the account decides it doesn't want two vendors (a contract could be meaningless unless you are willing to go to court), the competition starts vandalizing your machine, your machine mysteriously gets unplugged or turned to the wall, etc. I am curious, too, as to the reason he is selling the machines. I would bet it's because he is uncomfortable with the hospital account or the machines aren't really doing the business needed to break even. If you're serious about this purchase, (it sounds like your mind is made up) then check his bank deposits against his "gross sales" to verify what he's telling you - he should be forthcoming and willing to do so. If he isn't running his business in a way that allows you to substantiate his reported sales then you can't be sure he's telling you the truth. Something sounds fishy here. Please be careful, don't be willing to give him his original investment back and, as already pointed out, don't borrow money for a Craigslist deal. Link to comment Share on other sites More sharing options...
RJT Posted December 14, 2013 Share Posted December 14, 2013 I found this info for you also. http://www.unhappyfranchisee.com/healthy-vending/ http://www.unhappyfranchisee.com/tag/vending-ripoff/ Wall Street What you are speaking of in this quote is kind of scary to a vending operator. It sounds like you are describing a scenario where the healthy machine is owned by a separate vendor from the other machines on the property and there are substantially more machines on the premises that are doing the bulk of the sales with normal vending products. If so, I can assure you the other snack machines are running rings around the one healthy machine in sales. His sales are probably only because the machine is in a secluded area with a captive audience that doesn't have access to the other products they would honestly prefer to buy. You never want to play second fiddle in an account. You either want it all or nothing as the sales this machine is doing means nothing if the account decides it doesn't want two vendors (a contract could be meaningless unless you are willing to go to court), the competition starts vandalizing your machine, your machine mysteriously gets unplugged or turned to the wall, etc. I am curious, too, as to the reason he is selling the machines. I would bet it's because he is uncomfortable with the hospital account or the machines aren't really doing the business needed to break even. If you're serious about this purchase, (it sounds like your mind is made up) then check his bank deposits against his "gross sales" to verify what he's telling you - he should be forthcoming and willing to do so. If he isn't running his business in a way that allows you to substantiate his reported sales then you can't be sure he's telling you the truth. Something sounds fishy here. Please be careful, don't be willing to give him his original investment back and, as already pointed out, don't borrow money for a Craigslist deal. The best way to check his sales/volume is to ask for his invoices of purchases of goods and then compare that to his sales. People sometimes don’t deposit what they could and others may deposit more than taking in because of a secondary source to float the business. See if his invoices of purchased products match up to said sales. Link to comment Share on other sites More sharing options...
Maddog3632 Posted December 14, 2013 Share Posted December 14, 2013 Wall Street, it sounds as if the advice is a consistent stay away! I am not big but do believe that you should start with a few traditional accounts and then if you really feel like healthy is your cup of tea go after it then. I think you will find healthy doesn't do as well as they may be saying. With an investment as large as this I suggest sitting and watching use patterns for a full 8 hour day to see the true use. Link to comment Share on other sites More sharing options...
wallstreeterww Posted December 14, 2013 Author Share Posted December 14, 2013 There are actually people that would lend us the money for these machines so we wouldnt actually be putting any money down Thats even worse! Getting a loan is not a good idea especially for biz op. I hate to say it but your getting suckered in. Those 33 k can get you 30-45 good machines and can kill this gross. Alot of beginners font like to take advice in this forum and it always seem to have their minds already set up. FYI, Both USI (Wittern Group) and Crane National have in hose finacing with decent terms if you are looking from terms on equipment. USI even gives you the first 90 days with no payments. Why cant you get your own locations? If you plan on staying in vending you had better have a plan to get your own locations. Why is that guy selling his locations if they are doing that great? In this hospital does he have the other vending as well as the healthy only machines or is it done by two seperate companies? RJT, in San Diego we have tried to get our own locations but all of the good ones are taken by this company called Rainbow Vending so with regular vending its virtually impossible to get your foot into the door of a location like that big hospital or a school. The last 2 locators that we wanted to hire couldnt find anything good for us. I didnt know that USI has their own financing plans. Ill check them out. In the hospital he has only a healthy vending machine next to an elavator, and he is ordering another machine that will be in soon. He is getting out of the business cause he says he has a deal outside of the country for some import-export busines so he has to travel back and forth alot. Wall Street, it sounds as if the advice is a consistent stay away! I am not big but do believe that you should start with a few traditional accounts and then if you really feel like healthy is your cup of tea go after it then. I think you will find healthy doesn't do as well as they may be saying. With an investment as large as this I suggest sitting and watching use patterns for a full 8 hour day to see the true use. Maddog I have been in vending for more then 5 years, but we only have one 1.5 accounts and they together are netting 700 a month for us. The problem is any Good accounts(over 50 employees) in our area are all owned by rainbow vending. Link to comment Share on other sites More sharing options...
RJT Posted December 14, 2013 Share Posted December 14, 2013 That is going to be the same anywhere in the country that ALL good accounts are taken by someone. ALL vending companies face the same challenge. It is not impossible because vending companies do it everyday.You have to have patience, be persistent and be creative, to get good accounts. That is the only way to get them not with all healthy vending. Does this guy have a contract with the hospital that is transferable to you? If not what’s to say this Rainbow Vending (or another company) couldn’t come in and take it away from you and you would be stuck with machines and no account. If this is about getting locations you are going to have to get locations yourself or hire a professional in your area that has vending sales experience top knock on doors for you. If you are not willing or able to knock on doors yourself and get accounts you are going to have a very hard time with success in vending. That’s just the facts of vending. The reason you didn’t have much success with the locator service because it is slim and none for someone to call large accounts over the phone and secure accounts. Some people have had some luck with appointment setting companies that just call and set you appointments but it is up to you to close the deals. If you are buying from any company based on them getting you locations you are buying for the wrong reason. Link to comment Share on other sites More sharing options...
moondog Posted December 15, 2013 Share Posted December 15, 2013 RJT, in San Diego we have tried to get our own locations but all of the good ones are taken by this company called Rainbow Vending so with regular vending its virtually impossible to get your foot into the door of a location like that big hospital or a school. The last 2 locators that we wanted to hire couldnt find anything good for us. I didnt know that USI has their own financing plans. Ill check them out. In the hospital he has only a healthy vending machine next to an elavator, and he is ordering another machine that will be in soon. He is getting out of the business cause he says he has a deal outside of the country for some import-export busines so he has to travel back and forth alot. Maddog I have been in vending for more then 5 years, but we only have one 1.5 accounts and they together are netting 700 a month for us. The problem is any Good accounts(over 50 employees) in our area are all owned by rainbow vending. Sounds like you need to start considering locations in North County as that's where most of the growth is in San Diego. Don't let the price of gas inhibit you from getting some good accounts up north. I live in the San Gabriel Valley but do most of my work in the Inland Empire because that's where the biz is. I drive a hundred miles round trip to service ten machines a day - that works out to $5 extra to service each machine plus the 2 hours driving. Link to comment Share on other sites More sharing options...
wallstreeterww Posted December 16, 2013 Author Share Posted December 16, 2013 Sounds like you need to start considering locations in North County as that's where most of the growth is in San Diego. Don't let the price of gas inhibit you from getting some good accounts up north. I live in the San Gabriel Valley but do most of my work in the Inland Empire because that's where the biz is. I drive a hundred miles round trip to service ten machines a day - that works out to $5 extra to service each machine plus the 2 hours driving. Moondog, I dont mind going to North County (escondido, carlsbad and that area) if there are good locations to be had there. Im trying to get it started as wereally need to stay here in this weather cause my dad has advanced prostate cancer and my mom is in anursing home in a vegatative state from a massive stroke and we would rather be near here then to move to vegas, But the last locator we wanted to hire told us that there arent any locations like we wanted in our area. If there are good locations in north county I dont mind at all servicing them if they are quality locations. I dont mind the gas at all. That is going to be the same anywhere in the country that ALL good accounts are taken by someone. ALL vending companies face the same challenge. It is not impossible because vending companies do it everyday.You have to have patience, be persistent and be creative, to get good accounts. That is the only way to get them not with all healthy vending. Does this guy have a contract with the hospital that is transferable to you? If not what’s to say this Rainbow Vending (or another company) couldn’t come in and take it away from you and you would be stuck with machines and no account. If this is about getting locations you are going to have to get locations yourself or hire a professional in your area that has vending sales experience top knock on doors for you. If you are not willing or able to knock on doors yourself and get accounts you are going to have a very hard time with success in vending. That’s just the facts of vending. The reason you didn’t have much success with the locator service because it is slim and none for someone to call large accounts over the phone and secure accounts. Some people have had some luck with appointment setting companies that just call and set you appointments but it is up to you to close the deals. If you are buying from any company based on them getting you locations you are buying for the wrong reason. Well the guy that was selling his personal accounts has a contract with the government since its a VA hospital, but his price was a bit high out of our range. I believe that location has probably been sold allready (not sure which one he sold but he did sell one of them) and I believe the school location he hasnt sold yet. But sprout got both those locations for him. The hospital has no problem having many machinea nd being a money maker for all machines in there as it is very busy, but since its a government owned loaction it isnt easy getting in there. Link to comment Share on other sites More sharing options...
wallstreeterww Posted December 16, 2013 Author Share Posted December 16, 2013 Sounds like you need to start considering locations in North County as that's where most of the growth is in San Diego. Don't let the price of gas inhibit you from getting some good accounts up north. I live in the San Gabriel Valley but do most of my work in the Inland Empire because that's where the biz is. I drive a hundred miles round trip to service ten machines a day - that works out to $5 extra to service each machine plus the 2 hours driving. Are the locations worth the servicing? Link to comment Share on other sites More sharing options...
RJT Posted December 16, 2013 Share Posted December 16, 2013 If the contracts are not transferable then they are no good to you once you buy the accounts. It seems by your tone that you might have made you mind up about trying this one way or another so I am not sure there is much more I can say to help you. If you have not read my book I suggest you do that first before you decide to do anything in vending. If you don’t have it PM me and I will send you a free copy because I just hate to see people make mistakes that can cost them a lot of money. Plus if you have other family involved it can cause some problems between family in these situations. I hope you make the right decisions…… Link to comment Share on other sites More sharing options...
spdydre Posted December 16, 2013 Share Posted December 16, 2013 H.U.M.A.N is the biggest waste of money. No wonder the owner is in Forbes magazine as the "#1 vendor" hes scamming everyone lol Link to comment Share on other sites More sharing options...
dogcow Posted December 16, 2013 Share Posted December 16, 2013 these kind of threads give me a knot in my stomach. I HAVE BEEN THERE I wasted $ and time against the advice of others. it seems like there is no changing his mind but the fact is its an expensive mistake. If you have been working a few years(?) and haven't got an account you haven't been trying. Learn about sales. You don't need to land a school or hospital. Try some factories, try some hotels/motels, big coin laundries, telemarketing firms, YMCA. Anywhere with shift work is great. If you're not comfortable with sales get some sales books. "The accidental Salesperson" is a good book explaining how to get into B2B sales in a non threatening low pressure way. Get some books on cold calling and appointment setting, like this one. It sounds like you are taking the word of a "locator" as gospel. You need to SELL in this business. You need to get out there and do it. If you aren't comfortable cold calling then use a fronter/appt setter but you need to be the face of your business and you need to learn how to sell. The fact is NO ONE else is going to care about your business like you do. A locator's objective is to get the most money for the least work. They get the same $ if they secure an acct in one day or one month. So if he looks around and can't find any easy scores he is going to tell you to forget it. Get some books on selling and just start knocking on doors, after each failure get a notebook and write down what you could have done to address their concerns or objections. Buy a business contact database online they run about $100-200.00 for a single state info. and they will come with an excel sheet listing business contact info. You can filter it by SIC code or biz type to find what you need. The biggest one of all YOU MUST FOLLOW UP. Every account I have ever pitched ends up on my follow up list. I follow up once every quarter to once every 6 mo depending on the objection. You never know what might change at a location. Management and ownership changes all the time, vending companies change hands, route ppl change, service issues arise, etc.. Just keep following up until something pops. Link to comment Share on other sites More sharing options...
moondog Posted December 16, 2013 Share Posted December 16, 2013 Are the locations worth the servicing? They gross at least $1,000 each time I go (twice a month) - it definitely covers the gas. Link to comment Share on other sites More sharing options...
wallstreeterww Posted December 16, 2013 Author Share Posted December 16, 2013 They gross at least $1,000 each time I go (twice a month) - it definitely covers the gas. Is this per machine, per location and are these snack and soda machines? If the contracts are not transferable then they are no good to you once you buy the accounts. It seems by your tone that you might have made you mind up about trying this one way or another so I am not sure there is much more I can say to help you. If you have not read my book I suggest you do that first before you decide to do anything in vending. If you don’t have it PM me and I will send you a free copy because I just hate to see people make mistakes that can cost them a lot of money. Plus if you have other family involved it can cause some problems between family in these situations. I hope you make the right decisions…… RJT, we were close to making up our minds (meand my dad) but after going through this thread we arent as positive about it anymore. Link to comment Share on other sites More sharing options...
moondog Posted December 17, 2013 Share Posted December 17, 2013 Is this per machine, per location and are these snack and soda machines? RJT, we were close to making up our minds (meand my dad) but after going through this thread we arent as positive about it anymore. These are snack and soda accounts - $1,000 gross for all ten machines. This is my low point but I"m still doing $500 gross margin (before deducting expemses) so it's decent money Link to comment Share on other sites More sharing options...
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