Newbie to vending biz in Las Vegas

[vegastud]

Hello everyone,

 

I am a newbie to vending and I am building my plan to get started.  When I get started I would like to grow my business and move from part time to full time.  I live in Las Vegas.  I have a line on my first location.  It is an AA club that currently has two Vendo machines owned and run by Pepsi.  The club corporation board has said they don’t receive anything from Pepsi.  I have also gotten tentative permission to place a snack machine at the location.  The AA club has on average 7 meetings per day with an average of 25 people per meeting.  I frequent the club often and I know from my personal experience the service on the soda machines are terrible, i.e. running out of product and jammed bill acceptors.  When summer rolls around its hot in the club and the machines are ALWAYS empty.

 

That being said, I have been reading and taking notes as much as I can on this message board.  From what I have read the key is start with a soda machine or two.  I have read I would need to get a soda machine that can dispense cans and bottles at different prices.  I have looked at some Vendo and Dixie Narco Models.  They seem to be the standard of soda machines but I still feel like I don’t know enough about them.

 

My main questions: 

 

-What models will dispense cans and different size bottles and different price points at the same time?

 

-What is an average cost for a used soda machine and used snack machine?

 

Here is a list of things I think I need to get started.

 

-2 soda machines

 

-1 snack machine

 

-inventory

 

-brand stickers (to put on machines)

 

-embroidered golf shirt with company name (for when I go out to acquire locations)

 

-business cards

 

-sales/marketing packet for selling

 

-business license

 

-Fed tax ID

 

-trailer (to move machines, I have a truck)

 

-Dutro dolly (to move machines)

 

 

 

I any responses would be greatly appreciated.  And please be critical of my post so I can find out where the holes are in my post.

 

 

 

Thanks

 

Vegas

 

  

[dogcow]

What's an aa club? How many employees? Wbhat are the open hours?

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[vegastud]

An AA club is an alcoholics anonymous fellowship club.  It holds 12-step meetings and also has a large lobby where people hang out and drink coffee, sodas, and bottled water.  There aren't any employees but there is about 150-200 people go to the fellowship on a daily basis, 7 days a week, 365 days a year.  The club is open from 7am-11pm everyday.

[mission vending]

An AA club is an alcoholics anonymous fellowship club. It holds 12-step meetings and also has a large lobby where people hang out and drink coffee, sodas, and bottled water. There aren't any employees but there is about 150-200 people go to the fellowship on a daily basis, 7 days a week, 365 days a year. The club is open from 7am-11pm everyday.

It might be too much as a beginner, but think about doing coffee service too. My AA club does over 500 a week in coffee sales.

[vegastud]

I don't know if I would be able to get a coffee machine in the club. They already have a coffee brewing set up. Many of the old timers at the club are very set in their ways. Many of the people have questioned why they need to bring in my soda machines. I had to convince the old timers that the Pepsi Bottling Group service is not strong and I have tried to sell them on my service. I have not gotten a confirmation yet. When I do, I will make the purchase of the machines, dolly, and trailer.

At this point, my first step is to buy an embroidered golf shirt with my company's logo, business cards, and make a marketing pamphlet so I can go pound the pavement and secure locations. Those things will add up to about $50.

[moondog]

 

Hello everyone,

 

I am a newbie to vending and I am building my plan to get started.  When I get started I would like to grow my business and move from part time to full time.  I live in Las Vegas.  I have a line on my first location.  It is an AA club that currently has two Vendo machines owned and run by Pepsi.  The club corporation board has said they don’t receive anything from Pepsi.  I have also gotten tentative permission to place a snack machine at the location.  The AA club has on average 7 meetings per day with an average of 25 people per meeting.  I frequent the club often and I know from my personal experience the service on the soda machines are terrible, i.e. running out of product and jammed bill acceptors.  When summer rolls around its hot in the club and the machines are ALWAYS empty.

 

That being said, I have been reading and taking notes as much as I can on this message board.  From what I have read the key is start with a soda machine or two.  I have read I would need to get a soda machine that can dispense cans and bottles at different prices.  I have looked at some Vendo and Dixie Narco Models.  They seem to be the standard of soda machines but I still feel like I don’t know enough about them.

 

My main questions: 

 

-What models will dispense cans and different size bottles and different price points at the same time?

 

-What is an average cost for a used soda machine and used snack machine?

 

Here is a list of things I think I need to get started.

 

-2 soda machines

 

-1 snack machine

 

-inventory

 

-brand stickers (to put on machines)

 

-embroidered golf shirt with company name (for when I go out to acquire locations)

 

-business cards

 

-sales/marketing packet for selling

 

-business license

 

-Fed tax ID

 

-trailer (to move machines, I have a truck)

 

-Dutro dolly (to move machines)

 

 

 

I any responses would be greatly appreciated.  And please be critical of my post so I can find out where the holes are in my post.

 

 

 

Thanks

 

Vegas

 

  

 

 

You may want to think twice about moving soda machines - uinless you're an Ox, it's a tall order for most of us to consider doing it ourselves - snack machines maybe but not soda machines.

 

Before buying machines, I'd call around and see what service is available for which brands.  For example, I prefer the Royal machines but few of the repair guys around here have dealt with them so I've had to learn to do it myself, often the hard way.  I don't mind learning how to fix my machines, but the deal is - I'm in the vending business, not the repair or moving business so I try to stay focused on the vending side rather than get sidetracked.

 

That said, it never hurts to have a Dutro dolly handy if only to move a machine around your shop.

[vegastud]

I completely understand about moving machines and fixing them.

A little background about me:

Currently I am a full time bartender, so I have no problem stocking sodas. I also was an Alaskan Crabber on the Bering Sea for 10 years, so I know what it's like to push 1000 lb. crab pots on a boat in 30 foot seas. I also have a tricked out garage/machine shop, i have changed out engines and do all the work on our home. So, give me manual and good chance I can figure it out.

The one tough thing is there isn't a lot of soda machines for sale here in Las Vegas. Conversely, there are a ton of machines in So. Cal. 4 hour drive.

[orsd]

dead on about the socal part

Fyi, soda machines rarely top 8-900 lbs, so you might be able to do it

you'll need something like a lift gate truck though

[moondog]

I completely understand about moving machines and fixing them.

A little background about me:

Currently I am a full time bartender, so I have no problem stocking sodas. I also was an Alaskan Crabber on the Bering Sea for 10 years, so I know what it's like to push 1000 lb. crab pots on a boat in 30 foot seas. I also have a tricked out garage/machine shop, i have changed out engines and do all the work on our home. So, give me manual and good chance I can figure it out.

The one tough thing is there isn't a lot of soda machines for sale here in Las Vegas. Conversely, there are a ton of machines in So. Cal. 4 hour drive.

And what a drive it is - not exactly the scenic route   If you decide to make the trek, give Nick Martinez a call at 909-635-5755 - he's in Upland and has a whole lot full of machines in various states he'd be glad to make you a deal on - I kid him about being the Fred Sanford of Vending.

[dogcow]

Isn't it customary for people to bring snacks of some kind to these meetings?

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[vegastud]

Moondog, Thank you for the info with Nick Martinez. I will definitely give him a call and inquire.  There is just not a lot of soda machines to choose from in Vegas.  I go on the LA craigslist and there are a ton of machines, not to mention there is a vending machine dealer in Ontario (Westway Vending).  Looks like I will be making a drive to So Cal after I secure a location or two.

 

Dogcow, Many people at these meetings do bring snacks, but they are mostly sugar snacks, like safeway or Costco cakes (yuck).  I always want chips to snack on.  so we will see how it goes.

 

As for securing the location inside his AA club, I talked again to the man in charge and was able to get some details about the Pepsi Bottling Group and how they treat this location.  The man in charge says Pepsi gives him $0.05 per bottle sale to the amount of about $20.00 a month.  Doing the math on that means the machines are going through about 400 bottles a month.  Not bad if I can get my machine in there.

 

The current machines in the club are 20oz. pepsi, diet pepsi, mountain dew, 7-up, and Aquafina to the price of $1.25.  my dilemma is that 20oz coke or pepsi bottles are more expensive and harder to buy than 16.9oz bottles.  do you think people would be mad if I got the location and downsized from 20oz bottles to 16.9oz bottles?

 

Lastly, I have exhausted myself from trying to read every post on Vendiscuss.  in terms of moving vending machines, this youtube video gave me a lot of ideas on how I could do this myself.

http://www.youtube.com/watch?v=sg17-gNRY28.

 

Vegas

[AZVendor]

Keep in mind that Pepsi only pays pennies per bottle to manufacture their soda so they are making a ton of profit per bottle, while only giving up 5 cents in commission!!  Because you are not the bottler, you will pay closer to 90 cents per 20 oz. bottle and will have to sell it for $1.50 minimum to make any money and then you'll be paying commission on top of that.  If they require you to charge only $1.25, your net will be about 30 cents/bottle.  If you do 16.9 oz bottles (only widely available from Coke) your cost will be less than for a 20 oz bottle, but you probably won't get your price above $1.25. 

 

Why not consider 12 oz cans selling for 75 cents and still give the same 5 cents per can.  You can offer both Coke and Pepsi products and your cost will be about .25/can bought on sale allowing you to clear .45 per can.  In order to make the same profit from 16.9 oz bottles, your cost on those bottles will have to be 30 cents less than the cost for 20 oz.  Vending cans only will help with your servicing as a machine will hold more cans than bottles and you won't have to fill it as often.  You can also purchase a less expensive machine if you are running cans only as you will only need a single price can machine versus a multi-price bottle-capable machine.

 

As to the issue of moving machines, you may be a big brute, but trying to roll a soda machine up the ramp of a trailer is just asking for trouble.  I know there are vending techs and movers in Vegas so you will be well served to use them for the grunt work until you can afford a truck with a liftgate on it.  I also think there are more machines for sale in Vegas than you know about.  There are several large and small operators and the small guys have to buy their machines somewhere, and I can assure you they don't buy new ones.  Call Mountain Coin, a machine distributor in Vegas, and ask them about a service tech (probably their own), machine movers and any sources for used machines.  They shouldn't have a problem giving you some names of used sellers since their primary business is in new machines and amusements.

[vegastud]

AZVendor, thank u for your post and the direction on Mountain Coin. Would love to find more available machines here in town.

[vegastud]

AZVendor, thank u for your post and the direction on Mountain Coin. Would love to find more available machines here in town.

[dogcow]

I would hold off on a snack machine at first. Based on ur drink projections and assuming they are correct its on the border of an acct that could do well for snacks but there is already food available there free and u will have a problem with stales unless ur ready to put out more snack machines right away. I woluld say I want to give it 3 months to test the waters because its easier to put in equipment than take it away.

In the three months period start building a sales pipeline to get another 2-4 solid soda/snack locs placed. At this point you will have a solid foundation built even if the aa place underperforms in snacks u won't lose tons of $ with stales. Only one snak machine it has to be a killer loc otherwise u will b throwing out tons of stales

If u can't do this I would not bother getting into the soda/snack biz

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[moondog]

Moondog, Thank you for the info with Nick Martinez. I will definitely give him a call and inquire.  There is just not a lot of soda machines to choose from in Vegas.  I go on the LA craigslist and there are a ton of machines, not to mention there is a vending machine dealer in Ontario (Westway Vending).  Looks like I will be making a drive to So Cal after I secure a location or two.

 

Dogcow, Many people at these meetings do bring snacks, but they are mostly sugar snacks, like safeway or Costco cakes (yuck).  I always want chips to snack on.  so we will see how it goes.

 

As for securing the location inside his AA club, I talked again to the man in charge and was able to get some details about the Pepsi Bottling Group and how they treat this location.  The man in charge says Pepsi gives him $0.05 per bottle sale to the amount of about $20.00 a month.  Doing the math on that means the machines are going through about 400 bottles a month.  Not bad if I can get my machine in there.

 

The current machines in the club are 20oz. pepsi, diet pepsi, mountain dew, 7-up, and Aquafina to the price of $1.25.  my dilemma is that 20oz coke or pepsi bottles are more expensive and harder to buy than 16.9oz bottles.  do you think people would be mad if I got the location and downsized from 20oz bottles to 16.9oz bottles?

 

Lastly, I have exhausted myself from trying to read every post on Vendiscuss.  in terms of moving vending machines, this youtube video gave me a lot of ideas on how I could do this myself.

http://www.youtube.com/watch?v=sg17-gNRY28.

 

Vegas

That's Roger Morris, a member of this forum - ask him how much that air tow trailer cost (he drove from Kansas to La Verne, Ca. to get it).  Roger is a professional mover and he doesn't do vending.  He's got all the right equipment and a hell of a lot of money invested to move machines properly.  By the time you made his investment, you could have hired somebody to move several hundred machines.  The point is, there are too many scenarios involved and there is no one "do it all" piece of equipment available.

[vegastud]

Moondog,

 

I was able to contact Nick Martinez in Upland Ca.  What a nice guy.  We talked a bit and he had all kinds of advice, suggestions, and information.  Very, Very nice guy.

 

For what I am looking for he quoted me $1000 for a Dixie Narco or Vendo multi priced, 9 selection, curved front machine.  He told me they are completely refurbished and warrantied.  I am not really looking for a fixer upper machine as my first machine.  I want to hit the ground running with good multi choice  equiptment that wont break down.  He said he could have one or more delivered to me in Las Vegas for about $150-200.  What does that sound like to all of you guys?  Please be honest.

 

Vegas

[mission vending]

Moondog,

I was able to contact Nick Martinez in Upland Ca. What a nice guy. We talked a bit and he had all kinds of advice, suggestions, and information. Very, Very nice guy.

For what I am looking for he quoted me $1000 for a Dixie Narco or Vendo multi priced, 9 selection, curved front machine. He told me they are completely refurbished and warrantied. I am not really looking for a fixer upper machine as my first machine. I want to hit the ground running with good multi choice equiptment that wont break down. He said he could have one or more delivered to me in Las Vegas for about $150-200. What does that sound like to all of you guys? Please be honest.

Vegas

That's a fair price. Get the location and have him deliver direct to the location so you only have to pay to move it once.

[dogcow]

Moondog,

I was able to contact Nick Martinez in Upland Ca. What a nice guy. We talked a bit and he had all kinds of advice, suggestions, and information. Very, Very nice guy.

For what I am looking for he quoted me $1000 for a Dixie Narco or Vendo multi priced, 9 selection, curved front machine. He told me they are completely refurbished and warrantied. I am not really looking for a fixer upper machine as my first machine. I want to hit the ground running with good multi choice equiptment that wont break down. He said he could have one or more delivered to me in Las Vegas for about $150-200. What does that sound like to all of you guys? Please be honest.

Vegas

That's about the right price. Good unit if he is a reputable guy its a good deal. Get an extra coin mech and validator to save some headaches

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[moondog]

Moondog,

 

I was able to contact Nick Martinez in Upland Ca.  What a nice guy.  We talked a bit and he had all kinds of advice, suggestions, and information.  Very, Very nice guy.

 

For what I am looking for he quoted me $1000 for a Dixie Narco or Vendo multi priced, 9 selection, curved front machine.  He told me they are completely refurbished and warrantied.  I am not really looking for a fixer upper machine as my first machine.  I want to hit the ground running with good multi choice  equiptment that wont break down.  He said he could have one or more delivered to me in Las Vegas for about $150-200.  What does that sound like to all of you guys?  Please be honest.

 

Vegas

Yep, Nick's a good guy - he used to own a route and now he does repairs and refurbs machines.  The price sounds okay and the shipping is not much more than you'd end up paying somebody to move the machine even if you found it in Vegas - Nick's got some sort of discount account with a trucking company so he can send a machine almost anywhere for less than $300.  Note; he won't go to Vegas to service the machine under warranty.  If you go this route tell him what you want to vend and he'll set it up for you.