My new plan of attack!

[AngryChris]

I have gotten fed-up with issues lately.  Small customers thinking that machines can be moved easily/for free... customers thinking that we (vendors) pay almost nothing for the products that we sell and we should sell candy bars for 50 cents because Walmart is selling candy 2-for-$1.  Machines breaking-down in accounts that don't do a lot of volume.  Customers wanting credit-card readers when the money doesn't warrant it... yadda yadda yadda.  I am fed-up with this.

 

You know... over the past 2 weeks I have been struggling.  When I say struggling... I mean it's probably the part that we all go through.  The stress has been high.  The expenses have been high.  The HEAT has been high.  There just isn't much room for good attitudes (not when you're throwing temper tantrums like me).  I'm normally an optimistic and happy-go-lucky guy but I just haven't gotten a break lately.  I need time to sit down and enjoy my LUNCH and I haven't really gotten to do that... it's just a run through the drive-through window at Wendy's so I can eat it on the way to the next repair.

 

I was thinking.. "Well if I sell out, I can easily pay off all of my debt!"  Then I thought... "Wait a minute... everyone goes through a rough phase."  If I were to bail out because I am sick of stress.. I am going to be in for a big surprise when I go back to some previous full-time job that was stressful.  Why?  Because I will be at a stressful job with little freedom.  I figured that I need to restructure things, reorganize, and get better.  So here is my plan.

 

I want to invest in at least ONE new machine at every new location.  That means that I need locations worthy of new equipment.  I have a few models in mind but lets say I get one of my favorite soda machines such as a Vendo 721.  It's going to cost me roughly $3,000 for that machine.  I could pair it up with a refurbished snack machine for an additional $2,000.  I could add credit card readers and be ready to go for about $6,000.  To do this, I need accounts that gross $10,000/year.  This shouldn't be too difficult to find but the trick is that I need to be able to sell them on the concept of getting a "brand new soda machine" or "brand new snack machine" that may be equipped with credit card readers.  If I can break-even in 2-years, I will be doing well.

 

The idea is that my accounts will justify the equipment.  The equipment will be more reliable and look better in the long-run.  I shouldn't have to worry about parts breaking very often.  I have had a 721 on location for 3 years in a dusty location and the ONLY thing that I have had to do was clean the evaporator coils and change out the validator a few times.

 

I don't want to go for accounts that are too big and want food or coffee machines.. but I should be able to easily squeeze commissions in there if the topic gets brought up.  I just want to start using my current base to allow me to go after these medium-size accounts.  I have enough small-accounts to keep me busy and keep the cash-flow coming in properly but I need to make a change soon.  I'm working full-time without the full-time income that I need.  I think it's time to stop buying equipment on-location in small accounts and start selling myself as a legitimate business.  Most of the bigger boys don't even know I exist but I am going to make my move soon.

 

Please share your thoughts!  You guys are my vending e-Family!

[Golfdogs]

I have gotten fed-up with issues lately. Small customers thinking that machines can be moved easily/for free... customers thinking that we (vendors) pay almost nothing for the products that we sell and we should sell candy bars for 50 cents because Walmart is selling candy 2-for-$1. Machines breaking-down in accounts that don't do a lot of volume. Customers wanting credit-card readers when the money doesn't warrant it... yadda yadda yadda. I am fed-up with this.

You know... over the past 2 weeks I have been struggling. When I say struggling... I mean it's probably the part that we all go through. The stress has been high. The expenses have been high. The HEAT has been high. There just isn't much room for good attitudes (not when you're throwing temper tantrums like me). I'm normally an optimistic and happy-go-lucky guy but I just haven't gotten a break lately. I need time to sit down and enjoy my LUNCH and I haven't really gotten to do that... it's just a run through the drive-through window at Wendy's so I can eat it on the way to the next repair.

I was thinking.. "Well if I sell out, I can easily pay off all of my debt!" Then I thought... "Wait a minute... everyone goes through a rough phase." If I were to bail out because I am sick of stress.. I am going to be in for a big surprise when I go back to some previous full-time job that was stressful. Why? Because I will be at a stressful job with little freedom. I figured that I need to restructure things, reorganize, and get better. So here is my plan.

I want to invest in at least ONE new machine at every new location. That means that I need locations worthy of new equipment. I have a few models in mind but lets say I get one of my favorite soda machines such as a Vendo 721. It's going to cost me roughly $3,000 for that machine. I could pair it up with a refurbished snack machine for an additional $2,000. I could add credit card readers and be ready to go for about $6,000. To do this, I need accounts that gross $10,000/year. This shouldn't be too difficult to find but the trick is that I need to be able to sell them on the concept of getting a "brand new soda machine" or "brand new snack machine" that may be equipped with credit card readers. If I can break-even in 2-years, I will be doing well.

The idea is that my accounts will justify the equipment. The equipment will be more reliable and look better in the long-run. I shouldn't have to worry about parts breaking very often. I have had a 721 on location for 3 years in a dusty location and the ONLY thing that I have had to do was clean the evaporator coils and change out the validator a few times.

I don't want to go for accounts that are too big and want food or coffee machines.. but I should be able to easily squeeze commissions in there if the topic gets brought up. I just want to start using my current base to allow me to go after these medium-size accounts. I have enough small-accounts to keep me busy and keep the cash-flow coming in properly but I need to make a change soon. I'm working full-time without the full-time income that I need. I think it's time to stop buying equipment on-location in small accounts and start selling myself as a legitimate business. Most of the bigger boys don't even know I exist but I am going to make my move soon.

Please share your thoughts! You guys are my vending e-Family!

Many, many questions come to mind as I am nearly the same position as you. I just start by asking how much debt do you have? Going and spending 6k on new accounts is justifiable if your current debt load is manageable. But, if you're in the hole 50-60 grand, I'm not sure if it feasible.

Btw, I've had six validators go out this week...wasn't expecting that!

[tc vending]

I have made the changes you speak of moving from small account to medium account recently. I get threatened by 30 or 40 dollar account the other day their machine is gone the bigger account dont threaten. I moved into blue collar places 50 to 100 ppl most of them and they don't require new equipment just has look nice and work. This has caused our sales to rise a lot. We also changed the way we do business professional business card, uniform polo, and website to advertise us on the web. Knowing whats going on with other vending companies in your area helps too.

[moondog]

I have gotten fed-up with issues lately. Small customers thinking that machines can be moved easily/for free... customers thinking that we (vendors) pay almost nothing for the products that we sell and we should sell candy bars for 50 cents because Walmart is selling candy 2-for-$1. Machines breaking-down in accounts that don't do a lot of volume. Customers wanting credit-card readers when the money doesn't warrant it... yadda yadda yadda. I am fed-up with this.

You know... over the past 2 weeks I have been struggling. When I say struggling... I mean it's probably the part that we all go through. The stress has been high. The expenses have been high. The HEAT has been high. There just isn't much room for good attitudes (not when you're throwing temper tantrums like me). I'm normally an optimistic and happy-go-lucky guy but I just haven't gotten a break lately. I need time to sit down and enjoy my LUNCH and I haven't really gotten to do that... it's just a run through the drive-through window at Wendy's so I can eat it on the way to the next repair.

I was thinking.. "Well if I sell out, I can easily pay off all of my debt!" Then I thought... "Wait a minute... everyone goes through a rough phase." If I were to bail out because I am sick of stress.. I am going to be in for a big surprise when I go back to some previous full-time job that was stressful. Why? Because I will be at a stressful job with little freedom. I figured that I need to restructure things, reorganize, and get better. So here is my plan.

I want to invest in at least ONE new machine at every new location. That means that I need locations worthy of new equipment. I have a few models in mind but lets say I get one of my favorite soda machines such as a Vendo 721. It's going to cost me roughly $3,000 for that machine. I could pair it up with a refurbished snack machine for an additional $2,000. I could add credit card readers and be ready to go for about $6,000. To do this, I need accounts that gross $10,000/year. This shouldn't be too difficult to find but the trick is that I need to be able to sell them on the concept of getting a "brand new soda machine" or "brand new snack machine" that may be equipped with credit card readers. If I can break-even in 2-years, I will be doing well.

The idea is that my accounts will justify the equipment. The equipment will be more reliable and look better in the long-run. I shouldn't have to worry about parts breaking very often. I have had a 721 on location for 3 years in a dusty location and the ONLY thing that I have had to do was clean the evaporator coils and change out the validator a few times.

I don't want to go for accounts that are too big and want food or coffee machines.. but I should be able to easily squeeze commissions in there if the topic gets brought up. I just want to start using my current base to allow me to go after these medium-size accounts. I have enough small-accounts to keep me busy and keep the cash-flow coming in properly but I need to make a change soon. I'm working full-time without the full-time income that I need. I think it's time to stop buying equipment on-location in small accounts and start selling myself as a legitimate business. Most of the bigger boys don't even know I exist but I am going to make my move soon.

Please share your thoughts! You guys are my vending e-Family!

I think it used to be Steve (Caserrie) tag line that bigger is not better. I am personally done with the marginal accounts for all the reasons you mentioned. You couldn't swap me 10 scrub accounts for one good one. Just getting bigger is not the key to success in this business. That said, I realize that the good accounts don't grow on trees, you just have to add them slowly until you have enough to meet your goals and then you can easily afford to put some newer machines in.

[reel]

Hi Chris,

 

Whilst being on the other side of the world I certainly feel and share your stress and frustrations. It must be the month of May as this has been one of my worst months for over a year in terms of things going wrong with machines and costing lots of money,  smaller account customers complaining over very little etc............unfortunately I find some customers tend to think they are very valuable to your business when in fact those same accounts complain about anything and of course these are always the ones that spends the least each week!.

 

On the other side of this the large accounts that turnover $500 plus each week in sales what to hammer us on pricing and are more concerned with what they will get out of the machine in terms of rebates   than us, gosh its very very frustrating at times. This month I have wondered whether I was either brave or stupid in entering into the vending world. One thing this business certainly does is sucks your cash as theres always something unexpected that turns up which wasn't planned for and  costs you money.

 

I think the ideal account is one that has a weekly sales turnover of say $150 to $250 each week, its big enough to be profitable and not to large for them to try and dictate to you regarding prices, I believe you simply have more control and can prices your products at a level where you can make a reasonable profit  and return on investment.  Of course the biggest challenge of all is finding these locations and that's lots of hard work door knocking. I find from my own experience that people can take a long time to make a decision to change operator and its not getting any easier. Right now I am still talking to potential sites from my first call over 6 months ago, theres no doubt  whilst I feel door knocking yourself is the best approach in trying to find new business its the consistent and regular followup from that first visit is where the key is in converting these potential sites into customers.  

 

I presume the Vendo721 is the can machine with the live product display?. I have stopped buying ant drink machines without a live display as theres no doubt with this feature it increases sales over a fully enclosed front machine. Have you considered buying some secondhand Dixie 501e and the smaller 276e drink machines with a live display, I have both of these machines and I regard them very highly in terms of trouble free operation and overall reliability.

 

Best wishes with your business.

[QualitySelectionsJ]

I have gotten fed-up with issues lately. Small customers thinking that machines can be moved easily/for free... customers thinking that we (vendors) pay almost nothing for the products that we sell and we should sell candy bars for 50 cents because Walmart is selling candy 2-for-$1. Machines breaking-down in accounts that don't do a lot of volume. Customers wanting credit-card readers when the money doesn't warrant it... yadda yadda yadda. I am fed-up with this.

You know... over the past 2 weeks I have been struggling. When I say struggling... I mean it's probably the part that we all go through. The stress has been high. The expenses have been high. The HEAT has been high. There just isn't much room for good attitudes (not when you're throwing temper tantrums like me). I'm normally an optimistic and happy-go-lucky guy but I just haven't gotten a break lately. I need time to sit down and enjoy my LUNCH and I haven't really gotten to do that... it's just a run through the drive-through window at Wendy's so I can eat it on the way to the next repair.

I was thinking.. "Well if I sell out, I can easily pay off all of my debt!" Then I thought... "Wait a minute... everyone goes through a rough phase." If I were to bail out because I am sick of stress.. I am going to be in for a big surprise when I go back to some previous full-time job that was stressful. Why? Because I will be at a stressful job with little freedom. I figured that I need to restructure things, reorganize, and get better. So here is my plan.

I want to invest in at least ONE new machine at every new location. That means that I need locations worthy of new equipment. I have a few models in mind but lets say I get one of my favorite soda machines such as a Vendo 721. It's going to cost me roughly $3,000 for that machine. I could pair it up with a refurbished snack machine for an additional $2,000. I could add credit card readers and be ready to go for about $6,000. To do this, I need accounts that gross $10,000/year. This shouldn't be too difficult to find but the trick is that I need to be able to sell them on the concept of getting a "brand new soda machine" or "brand new snack machine" that may be equipped with credit card readers. If I can break-even in 2-years, I will be doing well.

The idea is that my accounts will justify the equipment. The equipment will be more reliable and look better in the long-run. I shouldn't have to worry about parts breaking very often. I have had a 721 on location for 3 years in a dusty location and the ONLY thing that I have had to do was clean the evaporator coils and change out the validator a few times.

I don't want to go for accounts that are too big and want food or coffee machines.. but I should be able to easily squeeze commissions in there if the topic gets brought up. I just want to start using my current base to allow me to go after these medium-size accounts. I have enough small-accounts to keep me busy and keep the cash-flow coming in properly but I need to make a change soon. I'm working full-time without the full-time income that I need. I think it's time to stop buying equipment on-location in small accounts and start selling myself as a legitimate business. Most of the bigger boys don't even know I exist but I am going to make my move soon.

Please share your thoughts! You guys are my vending e-Family!

I hear you. Can you move equipment from those annoying accounts to your new accounts. I like to think that there still exist down earth people at potential, new accounts that will make biz pleasant. Card readers I don't even offer, as I'm rarely asked and people usually think of change and dollars when they see a vending machine. Makes things simple.

[QualitySelectionsJ]

Even at very large shopping malls (in Miami), I have not seen one person using a card reader at a machine ever, only cash.

I just don't think it's something people like or trust doing at a vending machine.

In retail stores,I see a ton of card use, lol...

[allen watson]

You know what's better than a new machine? Great service. You know what's better than great service? Nothing! Here's two examples of outfitting two locations, each in the $10,000 per year range, both hotels.

 

Hotel #1 has 4 machines, two snacks and two sodas.

 

Hotel #2 has 4 machines, one snack and three sodas.

 

Hotel #1 has a nice AP123 and a vendo 721 on the 1st floor by the free breakfast area and an AP500 (refaced with upgraded bill val) and a vendo "ancient single price".

Cost to outfit: $3,200.00 - $2,000 for the snack, $600 for the 721, $300 each of the 2nd floor relics.

 

Hotel #2 has a repainted AP7000 and a Vendo 721 on the 1st floor next to the ice machines and a DN "ancient single price" on the 3rd and 4th floor.

Cost to outfit: $2,000.00 - $500.00 per machine x4

 

None of the machines have card readers.

Hotel #1 requested them but decided to put in an ATM machine instead. Win, Win.

Hotel #2 doesn't care either way.

 

Total investment: $5,200.00 for 8 machines and two cranking locations.

 

Results: Money in the bank.

 

Remember, it's not how much you make, it's how much you save. You can make a million dollars a year, but if it costs you a million to make it, you really haven't made anything! Do not set a goal to break even. Set a goal to make enough money that you have some left-over at the end of each month. Neither of these two hotels asked for new machines. What they wanted was great service. The previous operator had new machines but terrible service. New machines only guarantee one thing - an new machine.

[Golfdogs]

You know what's better than a new machine? Great service. You know what's better than great service? Nothing! Here's two examples of outfitting two locations, each in the $10,000 per year range, both hotels.

Hotel #1 has 4 machines, two snacks and two sodas.

Hotel #2 has 4 machines, one snack and three sodas.

Hotel #1 has a nice AP123 and a vendo 721 on the 1st floor by the free breakfast area and an AP500 (refaced with upgraded bill val) and a vendo "ancient single price".

Cost to outfit: $3,200.00 - $2,000 for the snack, $600 for the 721, $300 each of the 2nd floor relics.

Hotel #2 has a repainted AP7000 and a Vendo 721 on the 1st floor next to the ice machines and a DN "ancient single price" on the 3rd and 4th floor.

Cost to outfit: $2,000.00 - $500.00 per machine x4

None of the machines have card readers.

Hotel #1 requested them but decided to put in an ATM machine instead. Win, Win.

Hotel #2 doesn't care either way.

Total investment: $5,200.00 for 8 machines and two cranking locations.

Results: Money in the bank.

Remember, it's not how much you make, it's how much you save. You can make a million dollars a year, but if it costs you a million to make it, you really haven't made anything! Do not set a goal to break even. Set a goal to make enough money that you have some left-over at the end of each month. Neither of these two hotels asked for new machines. What they wanted was great service. The previous operator had new machines but terrible service. New machines only guarantee one thing - an new machine.

And let's not forget...a new machine is only new when it arrives. It never stays 'new'.

[tc vending]

Your right allen pushing older machines that make return on investment faster is the way to go. You do well in hotels I have never done one?

[allen watson]

Where I am, hotels are good. More and more they are switching over to their own in-house stores.

[mission vending]

I have gotten fed-up with issues lately.  Small customers thinking that machines can be moved easily/for free... customers thinking that we (vendors) pay almost nothing for the products that we sell and we should sell candy bars for 50 cents because Walmart is selling candy 2-for-$1.  Machines breaking-down in accounts that don't do a lot of volume.  Customers wanting credit-card readers when the money doesn't warrant it... yadda yadda yadda.  I am fed-up with this.

 

You know... over the past 2 weeks I have been struggling.  When I say struggling... I mean it's probably the part that we all go through.  The stress has been high.  The expenses have been high.  The HEAT has been high.  There just isn't much room for good attitudes (not when you're throwing temper tantrums like me).  I'm normally an optimistic and happy-go-lucky guy but I just haven't gotten a break lately.  I need time to sit down and enjoy my LUNCH and I haven't really gotten to do that... it's just a run through the drive-through window at Wendy's so I can eat it on the way to the next repair.

 

I was thinking.. "Well if I sell out, I can easily pay off all of my debt!"  Then I thought... "Wait a minute... everyone goes through a rough phase."  If I were to bail out because I am sick of stress.. I am going to be in for a big surprise when I go back to some previous full-time job that was stressful.  Why?  Because I will be at a stressful job with little freedom.  I figured that I need to restructure things, reorganize, and get better.  So here is my plan.

 

I want to invest in at least ONE new machine at every new location.  That means that I need locations worthy of new equipment.  I have a few models in mind but lets say I get one of my favorite soda machines such as a Vendo 721.  It's going to cost me roughly $3,000 for that machine.  I could pair it up with a refurbished snack machine for an additional $2,000.  I could add credit card readers and be ready to go for about $6,000.  To do this, I need accounts that gross $10,000/year.  This shouldn't be too difficult to find but the trick is that I need to be able to sell them on the concept of getting a "brand new soda machine" or "brand new snack machine" that may be equipped with credit card readers.  If I can break-even in 2-years, I will be doing well.

 

The idea is that my accounts will justify the equipment.  The equipment will be more reliable and look better in the long-run.  I shouldn't have to worry about parts breaking very often.  I have had a 721 on location for 3 years in a dusty location and the ONLY thing that I have had to do was clean the evaporator coils and change out the validator a few times.

 

I don't want to go for accounts that are too big and want food or coffee machines.. but I should be able to easily squeeze commissions in there if the topic gets brought up.  I just want to start using my current base to allow me to go after these medium-size accounts.  I have enough small-accounts to keep me busy and keep the cash-flow coming in properly but I need to make a change soon.  I'm working full-time without the full-time income that I need.  I think it's time to stop buying equipment on-location in small accounts and start selling myself as a legitimate business.  Most of the bigger boys don't even know I exist but I am going to make my move soon.

 

Please share your thoughts!  You guys are my vending e-Family!

 

As others have already said in form or another, new is not necessarily better.

 

From your post the biggest issue seems to be dealing with the unexpected demands on your time and unexpected expenses. It can be a struggle to maintain positive attitude when everything seems to going wrong..... I know the feeling well..... been there done that.

 

Unless you have the cash on hand to buy the new equipment that means taking on debt, which if you are already feeling the pinch will only aggravate the situation and increase your stress level even more. You don't want to take on debt with the expectation that the additional cash flow will pay for it, sometimes it does and sometimes it doesn't. IF you are going to take on debt then my recommendation is to only take on payments that you can afford even if the machines are in the garage without impacting your operation.

 

Some unsolicited advice..... you are very, very close to being over one of the major hurdles you will face as your business continues to grow so keep your eye on the ball.

 

1. Evaluate you current financial position and establish the minimum that you need to pull from the business to just get by.

 

2. Next look at the business and determine if it can realistically support that expense and still provide additional funds to pay for growth as well as build up some reserves, if it can't then you are faced with some difficult choices on how to either cut your expenses or increase your income. Maybe even a dreaded PT job. I had to do that at one point, I spent 5 months working graveyards at a convienence store to get over the hump. It really, really, really sucked but I got through and over it.

 

3. If you are cash flowing well enough then focus on building some reserves, both personally and for the business. When you have cash in the bank it solves a lot of those life hassles and annoyances without causing high levels of stress. So when the inevitable does happen it'll be like water off a ducks back.

 

Keep your eye on the prize buddy.

[metrovending]

 Angry Chris I feel like ive made it over the hump. I spent 18,000.00 cash last year on growing my business. This includes inventory, moving equipment, buying equipment, etc.

 

Until you level off its going to be tight, it costs a lot of money to grow.

 

Have you checked with your local bottlers? I just got 5 more 501Es from Pepsi Thursday. They delivered two direct to locations & 3 to my warehouse. This has really allowed me to grow, I now have about 25 bottler machines out & have a great relationship with Pepsi

 

Great post by Mission

[AngryChris]

Many, many questions come to mind as I am nearly the same position as you. I just start by asking how much debt do you have? Going and spending 6k on new accounts is justifiable if your current debt load is manageable. But, if you're in the hole 50-60 grand, I'm not sure if it feasible.

Btw, I've had six validators go out this week...wasn't expecting that!

 

My debt isn't that high, thankfully.  I know what you mean with the validators.  It really does suck!

 

 

I think it used to be Steve (Caserrie) tag line that bigger is not better. I am personally done with the marginal accounts for all the reasons you mentioned. You couldn't swap me 10 scrub accounts for one good one. Just getting bigger is not the key to success in this business. That said, I realize that the good accounts don't grow on trees, you just have to add them slowly until you have enough to meet your goals and then you can easily afford to put some newer machines in.

 

That's part of the whole thought process.  I have enough dogs now that I can afford to take more risks.  I just really need the higher income without running around all the time to swap out coin mechs and validators.  It's not that I have too much equipment out there, it's that it doesn't make enough money to warrant running around so much (although I really have just had a few bad weeks).

 

 

I think the ideal account is one that has a weekly sales turnover of say $150 to $250 each week, its big enough to be profitable and not to large for them to try and dictate to you regarding prices, I believe you simply have more control and can prices your products at a level where you can make a reasonable profit  and return on investment. 

 

I agree and these are what I refer to as "medium size" accounts.  They don't necessarily ask for food/coffee and I have NO issues swapping out bill acceptors.  In fact, I am more than happy to make them $5 capable or even $10 and $20.  It's fun to make these machines look good and work good when the profits are good!

 

 

I presume the Vendo721 is the can machine with the live product display?. I have stopped buying ant drink machines without a live display as theres no doubt with this feature it increases sales over a fully enclosed front machine. Have you considered buying some secondhand Dixie 501e and the smaller 276e drink machines with a live display, I have both of these machines and I regard them very highly in terms of trouble free operation and overall reliability.

 

Best wishes with your business.

 

The vendo 721 is the latest model machine (that I know of) from Vendo.  It vends pretty much anything that any other can/bottle machine vends but without shims.  It comes in live display or solid front.  I don't mind 501e's or 276e's or even royals.  I just really like the fact that I (or a potential employee) could easily convert the machine from cans to bottles or visa-versa without needing any parts.  It has less to do with reliability and more to do with looking VERY attractive and being easy to operate.  I have seen what happens when you get too large and you rely on employees to fix things.

 

 

I hear you. Can you move equipment from those annoying accounts to your new accounts. I like to think that there still exist down earth people at potential, new accounts that will make biz pleasant. Card readers I don't even offer, as I'm rarely asked and people usually think of change and dollars when they see a vending machine. Makes things simple.

 

I could.. but a lot of my equipment has been on location for years and years (as I bought many of them on location) and they need a major refurbish job.  To do that, I need space.  I don't have enough space right now which is why I am so gung-ho about getting better accounts.  The card reader idea is a dual benefit idea for me.  I do want to offer credit card readers to accounts that will actually use it and I want to have it as a selling point.. but the BIG reason is because I have really considered giving telemetry a second thought.  I don't want to put the card reader on everything though.  I agree with you.

 

 

Even at very large shopping malls (in Miami), I have not seen one person using a card reader at a machine ever, only cash.

I just don't think it's something people like or trust doing at a vending machine.

In retail stores,I see a ton of card use, lol...

 

As I mentioned above... it's not just about making extra money from the reader.  I truly don't believe that a card reader will make you any profits until you reach accounts that are well over $350/week gross.  I actually think being $5, $10, and $20 capable is more profitable.

[AngryChris]

You know what's better than a new machine? Great service. You know what's better than great service? Nothing! Here's two examples of outfitting two locations, each in the $10,000 per year range, both hotels.

 

Hotel #1 has 4 machines, two snacks and two sodas.

 

Hotel #2 has 4 machines, one snack and three sodas.

 

Hotel #1 has a nice AP123 and a vendo 721 on the 1st floor by the free breakfast area and an AP500 (refaced with upgraded bill val) and a vendo "ancient single price".

Cost to outfit: $3,200.00 - $2,000 for the snack, $600 for the 721, $300 each of the 2nd floor relics.

 

Hotel #2 has a repainted AP7000 and a Vendo 721 on the 1st floor next to the ice machines and a DN "ancient single price" on the 3rd and 4th floor.

Cost to outfit: $2,000.00 - $500.00 per machine x4

 

None of the machines have card readers.

Hotel #1 requested them but decided to put in an ATM machine instead. Win, Win.

Hotel #2 doesn't care either way.

 

Total investment: $5,200.00 for 8 machines and two cranking locations.

 

Results: Money in the bank.

 

Remember, it's not how much you make, it's how much you save. You can make a million dollars a year, but if it costs you a million to make it, you really haven't made anything! Do not set a goal to break even. Set a goal to make enough money that you have some left-over at the end of each month. Neither of these two hotels asked for new machines. What they wanted was great service. The previous operator had new machines but terrible service. New machines only guarantee one thing - an new machine.

 

I fully agree with you Allen.  My big downfall right now is that I have 4 major vendors in my area that I deal with on a regular basis.  Of those 4, one offers credit card readers on EVERYTHING (and the rest of us kind of laugh about it), one offers CHEAP pricing (and we all kind of hate that), and the other two are pretty good as long as their drivers do their job.  One of my problems right now is that I have enough equipment out there to run a full-time driver crazy.  Being that I am the only driver for my own business, I have to do it all.  I NEED to cancel some smaller accounts but I also need to get some idle equipment out of my garage and on locations.  After I do that, I can start cancelling smaller accounts and fixing that equipment up and sending it out there.  

 

I am not trying to buy new EVERYTHING mind you... I want my equipment to look nice, work well, and be easy to service.  Sure, I could buy up every refurbished 501e that I see out there but seriously... the good ones cost about $1400-$1800 location-ready.  May I go this route?  I might, but then I am stuck with the snack machine dilemma.  A decent snack machine costs $1400-$1800 as well and many of them are prone to part failures.  What I really want is to have 2-3 years of major cash-flow increases without significantly increasing my repairs.  The only way to do that is to get better equipment out in the field and get better accounts so it's all a selling point and a convenience for me.  It costs more... but I think it is a good idea in the long run.

 

By the way... I don't know how you got a 721 for $600 unless you meant a 720.  I don't want any more 720's  .  The 721's will run $1800+ around here (IF you can get them) and they are roughly $2900 new.

 

 

 Angry Chris I feel like ive made it over the hump. I spent 18,000.00 cash last year on growing my business. This includes inventory, moving equipment, buying equipment, etc.

 

Until you level off its going to be tight, it costs a lot of money to grow.

 

Have you checked with your local bottlers? I just got 5 more 501Es from Pepsi Thursday. They delivered two direct to locations & 3 to my warehouse. This has really allowed me to grow, I now have about 25 bottler machines out & have a great relationship with Pepsi

 

Great post by Mission

 

 

It's hard to build a 3rd party relationship with Pepsi right now.  They only offer machines with electronic locks right now and my price would go up quite a bit if I could even get product.  The problem is that, without a commercial property, I don't think I can even get product from Pepsi.  Coke doesn't even offer 3rd party equipment in my area anymore to the best of my knowledge.  I DO have a good relationship with 7up though.  I probably spend $1400/month in bottles right now and maybe another $1000 in cans.  Your post was very uplifting though.  Thank you for that.

[AngryChris]

As others have already said in form or another, new is not necessarily better.

 

From your post the biggest issue seems to be dealing with the unexpected demands on your time and unexpected expenses. It can be a struggle to maintain positive attitude when everything seems to going wrong..... I know the feeling well..... been there done that.

 

Unless you have the cash on hand to buy the new equipment that means taking on debt, which if you are already feeling the pinch will only aggravate the situation and increase your stress level even more. You don't want to take on debt with the expectation that the additional cash flow will pay for it, sometimes it does and sometimes it doesn't. IF you are going to take on debt then my recommendation is to only take on payments that you can afford even if the machines are in the garage without impacting your operation.

 

Some unsolicited advice..... you are very, very close to being over one of the major hurdles you will face as your business continues to grow so keep your eye on the ball.

 

1. Evaluate you current financial position and establish the minimum that you need to pull from the business to just get by.

 

2. Next look at the business and determine if it can realistically support that expense and still provide additional funds to pay for growth as well as build up some reserves, if it can't then you are faced with some difficult choices on how to either cut your expenses or increase your income. Maybe even a dreaded PT job. I had to do that at one point, I spent 5 months working graveyards at a convienence store to get over the hump. It really, really, really sucked but I got through and over it.

 

3. If you are cash flowing well enough then focus on building some reserves, both personally and for the business. When you have cash in the bank it solves a lot of those life hassles and annoyances without causing high levels of stress. So when the inevitable does happen it'll be like water off a ducks back.

 

Keep your eye on the prize buddy.

 

This is the post I was probably looking forward to the most!  You are always full of valuable knowledge when it comes to the ins and outs of our industry.

 

I have been doing much of what you advised here.  I have concluded that I am not really growing my debt much (which is a good thing) but I am also not paying it down.  Yes, the problem is that I keep getting hit with unexpected expenses.  I normally wouldn't mind them but they are happening at the SAME TIME as when I am investing money in upgrades to my existing equipment.  As we all know, upgrades don't pay for themselves immediately so I am left with far more expenses than I had planned.  I am also back to working part-time just to help pay the bills but it is what it is.  I am so used to working 50-60 hours/week that one part-time job doesn't really effect me but I am working on my house at the same time.  It's hard to have the time (or the money) to do it all.  I even thought about hiring someone to run the route so I could work full-time but I couldn't see that as being a viable option.

 

I concluded that I need to get better, more profitable accounts.  I love my accounts that do $75-$100/week in sales and I upgrade them often with minor things (upgrading to $5 acceptance or maybe some LED lights, etc..) not just to keep them happy but to attract more sales.  I have many accounts out there that have fallen off the deep end though.  One account was part of a package-deal.  They used to gross $25-$30/week out of a CD 7/5 and an AP 7600.  Now they are down to about $15/week between BOTH.  They also said that the pop machine is drawing too much power from their circuit since they moved some more stuff to that circuit so they need the pop machine gone.  I would GLADLY cancel them but they asked (nicely) for a small can machine and I have a CD-6 sitting around that would be perfect.  I am almost positive that I will tell them that I have to pick the AP up as the sales don't justify any snack machine there.  As much as I don't like revision doors (I think they are ugly), I really think that this is a machine that could really use it.  The door is actually in excellent shape but I could make this thing handle a huge account if I put some money into it.

 

I just have too many accounts that have gone down-hill and I need to cancel some equipment or pull my bottle machines out of the slow locations and fix them up to send them out to the better locations.  I also have a 501e that is sitting in an automotive shop doing about $10/week.  It's got to go.  I have a Royal 650 sitting in my garage next to an LCM4.  I mean, it's some nice equipment and it's just sitting there.  Maybe I didn't quite right but my goal isn't to buy new just because it's "new" but I want very late-model equipment.  If I saw a 2-year USI, National, or AMS snack machine for sale for $2,000, I would grab that thing in a heartbeat... but the local vendors here have those things on lockdown.  I can't get anything like that.  The best I can do is settle for AP 113's or National 157's and stuff from that generation because the distributors KNOW that the big dogs will pay for the late model equipment when it comes in so they get first dibs on it.  I'm just trying to roll with what I've got until I have the ability to really negotiate with my distributors.

[metrovending]

This is the post I was probably looking forward to the most!  You are always full of valuable knowledge when it comes to the ins and outs of our industry.

 

I have been doing much of what you advised here.  I have concluded that I am not really growing my debt much (which is a good thing) but I am also not paying it down.  Yes, the problem is that I keep getting hit with unexpected expenses.  I normally wouldn't mind them but they are happening at the SAME TIME as when I am investing money in upgrades to my existing equipment.  As we all know, upgrades don't pay for themselves immediately so I am left with far more expenses than I had planned.  I am also back to working part-time just to help pay the bills but it is what it is.  I am so used to working 50-60 hours/week that one part-time job doesn't really effect me but I am working on my house at the same time.  It's hard to have the time (or the money) to do it all.  I even thought about hiring someone to run the route so I could work full-time but I couldn't see that as being a viable option.

 

I concluded that I need to get better, more profitable accounts.  I love my accounts that do $75-$100/week in sales and I upgrade them often with minor things (upgrading to $5 acceptance or maybe some LED lights, etc..) not just to keep them happy but to attract more sales.  I have many accounts out there that have fallen off the deep end though.  One account was part of a package-deal.  They used to gross $25-$30/week out of a CD 7/5 and an AP 7600.  Now they are down to about $15/week between BOTH.  They also said that the pop machine is drawing too much power from their circuit since they moved some more stuff to that circuit so they need the pop machine gone.  I would GLADLY cancel them but they asked (nicely) for a small can machine and I have a CD-6 sitting around that would be perfect.  I am almost positive that I will tell them that I have to pick the AP up as the sales don't justify any snack machine there.  As much as I don't like revision doors (I think they are ugly), I really think that this is a machine that could really use it.  The door is actually in excellent shape but I could make this thing handle a huge account if I put some money into it.

 

I just have too many accounts that have gone down-hill and I need to cancel some equipment or pull my bottle machines out of the slow locations and fix them up to send them out to the better locations.  I also have a 501e that is sitting in an automotive shop doing about $10/week.  It's got to go.  I have a Royal 650 sitting in my garage next to an LCM4.  I mean, it's some nice equipment and it's just sitting there.  Maybe I didn't quite right but my goal isn't to buy new just because it's "new" but I want very late-model equipment.  If I saw a 2-year USI, National, or AMS snack machine for sale for $2,000, I would grab that thing in a heartbeat... but the local vendors here have those things on lockdown.  I can't get anything like that.  The best I can do is settle for AP 113's or National 157's and stuff from that generation because the distributors KNOW that the big dogs will pay for the late model equipment when it comes in so they get first dibs on it.  I'm just trying to roll with what I've got until I have the ability to really negotiate with my distributors

You should try and sell that account that has the 7/5  machine for 500.00 and pull your snack machine. I know they said it draws too much current but unless its a 1/2 horse compressor chances are it wont draw much more current than the CD6. Then you have spent between 100.00 to 150.00 and haven't solved the problem. How long will it take to pay for that move? The correct answer is too damn long, sell that 7/5 on location for whatever you can get & move on. If you sell the 7/5 for 300.00 you have made a years worth of profit ASSUMING you didn't have one service call on that equipment in a year.

 

Every account has to pay their way, no exceptions. This is the business model I live by, I don't care if I have the vending at my mom's business I won't hesitate to pull it, sell it, relocate it depending on the age of equipment, if I have an account for it, etc.

[AngryChris]

To be fair, the cd6 was going to be installed on a separate circuit in a place where the cd 7/5 can't fit. I would sell them the soda as is for $150. I think I will consider that.

[Poplady1]

I just don't see a vendor getting large accounts without offering credit card readers and at least a frozen food vendor.  I suppose you can hook some of them with 125 emp and under without the bells and whistles. 

 

Mfg accounts really need those food machines for shift workers.  For years there was a rumor that one of the largest vending companies in S.Ca hooked accounts by offering frozen food vendors "on a 90 day trial".  If they sold enough product to justify them leaving the machine they would leave it.  If not,  they would pick it up and leave the customer with a 3 year contract.  We all joked saying the company only had a few frozen machines that they kept moving around to get new spots.

 

Well good luck to all.

[snack dude]

Chris

Close your eyes, Hold your hands out in front of you, hum slighly and repeat INNER PEACE three times.

 

THEN QUIT FEELING SORRY FOR YOURSELF AND GET OUT OF NAMBI PAMBI WORLD

AND GET OUT THERE AND KICK SOME MOTHER FU*KING golpher YOU JACKWAGON

 

There,  pep talk is over

[metrovending]

Serenity now!, Serenity now!............... to quote a little Seinfield

[AngryChris]

Chris

Close your eyes, Hold your hands out in front of you, hum slighly and repeat INNER PEACE three times.

THEN QUIT FEELING SORRY FOR YOURSELF AND GET OUT OF NAMBI PAMBI WORLD

AND GET OUT THERE AND KICK SOME MOTHER FU*KING golpher YOU JACKWAGON

There, pep talk is over

If I ever need a coach or motivational speaker, you're hired!

[snack dude]

If I ever need a coach or motivational speaker, you're hired!

your welcome

[Golfdogs]

your welcome

But don't hire him to teach grammar...

[snack dude]

But don't hire him to teach grammar...

Hey,

I Learnt good in skool

I was the highest in my klass by a good foot