malls?

[redmms250713]

Sorry for the silly question, does anyone here have any kind of machines in malls? How do you place them there? What machines work well for you?

[shepherdsflock]

I've only placed bulk machines in malls, not amusement machines. However, here is my experience (for whatever it may be worth): find a mall where the management is apathetic and never tours the mall to enforce policies. Once you've found that mall, don't approach mall management about placing a machine. Instead, find a store in the mall in a good location and pitch them a decent commission to place machines in their storefront. Malls typically want crazy commissions PLUS rent and restrictive insurance requirements. If you go locating in the actual stores, the people running the stores may allow you to place the machine on a reasonable commission (or charity, as I had happen once); avoiding all the hassle of dealing with the mall management and their ridiculous commission and rent structures plus insurance. Restaurants in malls can be very lucrative locations that you might be able to land without dealing with mall management. I had two such locations at one time, but am down to just one now. Might try to score some more, our local malls have been adding more restaurants.

[Y Vending]

I have two machines in a mall location. Getting in the mall wasn't easy but it has payed off. You are right, they do want big contracts with lots of agreements. You will also need a rather large insurance policy. I'm sure this varies with each mall.

 

I work with the assistant general manager and their team at the mall. They are all a very friendly group. I've never had any issues and the contact will keep renewing.

[hanihotdog]

malls are not worth your time.

 

1 they only sign one sided deals.

2. they reserve the right to move your machines wherever they want, whenever they want.

3. they will usually not sign an exclusive deal at the local level.  (corporate almost always will) and then you will get kicked out!

4. they do not want to be your "partner" they usually refuse commission only business. and want a flat rent with 35% over a certain amount.

5. most months you will just cover rent.. the other months you will be paying 35% commission on anything above flat rent.. do the math it ends up like 40% or more on commission for what are usually lousy collections.

 

6. at some point your machines will be robbed and probably damaged.

7. you will replace the machines/damaged parts and it will happen again.

8.  even after all of that hassle you will still be paying rent!!!

 

that said..

 

most contracts renew easily.  we have only "lost" one mall location to a corporate deal.  most locations have dried up.. over 50% vacancies! places that used to pull 1500+ every week now are lucky to make 150!  about half of the malls are still good enough to pay bills, but I would probably not invest the 10,000 in new equipment and do the deal in todays world... 

 

if you have a mall next to your house I would suggest signing a "seasonal" lease.  September through January.. (only if you can easily find a place to put the machines after the lease is up) if it works then I would try to renew for a year.

[shepherdsflock]

Again, I would point you toward mall restaurants. They are typically big traffic generators for the mall and the management will turn a blind eye to your machine being in there since they don't want to bite the hand that feeds them. If the restaurant okays the machine being there, the mall management typically leaves it alone. The only down side is you need to have nice equipment to land those locations and good product mixes to keep the location. They need to see that you're serious and will maintain the machine and keep the product rotated fairly frequently.