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I need advise before I buy


sterling

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I have been building and refining my bulk vending route for a year now. The sales are ok but not what I expected. I am thinking of buying 28 combo machines to start to actually use vending revenue to live on, however I want to be careful not to buy crap, and be surprised at the lack of sales.

Here is the offer I am looking at 28 combo machines. 16 are placed the average sales they say, is about $200/month. 12 machines need to be placed the guy says he will charge $300/machine to locate. Half the machines are Genesis GO-127 9 snack 6 soda combo, and the other half are Fortune Resources BM 151. The asking price is $9900. I will check out the machines on Monday.

My questions I want to ask someone other that the seller are.

How good is $200/month for a combo. I know Location is key

Does anyone know about these machines, malfunction rates, ease of service, durability

Is $300 locating fee reasonable?

What is the % of profit/gross sales?

 

I directed Sterling over here with a link to T Bird Johnny's discussion about combo machines, but that link doesn't work for him, I'll try again:    http://vendiscuss.com/forums/view_topic.php?id=2548&forum_id=48

I still can't get to this link. I looked up T Bird's profile and have been scanning his posts. Since I know the posters name if I know the subject line I can get to this post. It would be much appreciated.

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Sterling, Welcome to the board! It's great to have you here.

Unfortunately, the post you are trying to access is located in the PLUS section of the board. Since you are still a BASIC member, you do not have access to it. This explains why you are having a difficult time finding it.

Our PLUS section is reserved for members who have at least 20 QUALITY posts. Once you get to 20, let me know and I will upgrade your account. There is some great stuff in the PLUS section so post away!

Steve

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Sterling, I would be very surprised if the numbers you are quoting are correct.

First, $200/mo is pretty good for a combo IMHO. Actually, I think it is amazing. However, even if each machine is doing $200/mo on average, that is $38,400/yr for the placed machines - and he is only charging you $9900!

That doesn't sound right to me.

Also, there are another 12 machines thrown in for that $9900. It just doesn't sound right.

And, in case he meant all 16 do $200 on average, that is way too low.

Perhaps he averages $200/week for all 16 machines? That would sound more reasonable and make the $9900 asking price make more sense.

To answer some of your Q, usually about 50% of your gross is profit. This is a rough number and can go up or down depending on a number of factors.

If he is a good locator (i.e., will get good locations and guarantee them), then $300 is a good price to locate.

I'm sorry I can't answer questions directly related to how good the machines are.

Lastly, if you are going to do this legally (i.e., pay taxes), make sure you understand your state's sales tax laws.

Good luck!

Kevin

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I checked two of the locations today since the guy gave me the addresses hours before we were to meet. They basically are two black metal boxes stacked on top of each other. I meet with another full line vending guy earlier in the day. He said if you buy my machines or not "DO NOT buy combo machines the cans jam and other mechanical problems. When I went to check on the machines there was a note on one that a can jammed. Having two separate sources tell me to avoid it, I did. Does anybody have opinions on the combos. It seems I should only be looking for snack or soda machines?

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Sterling:

The two combos that we have running have  not had any issues in the 4 months that we have been running them. They are newer electronic combos so maybe its age/design. we got these Fro-Macs from Sams club and the locations they are in do OK. So I think they can work in the proper locations. Both are factory settings with under 20 employees, and they do between 100-200 per month gross each.

Regards,

 

Philo

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Sterling:

The two combos that we have running have  not had any issues in the 4 months that we have been running them. They are newer electronic combos so maybe its age/design. we got these Fro-Macs from Sams club and the locations they are in do OK. So I think they can work in the proper locations. Both are factory settings with under 20 employees, and they do between 100-200 per month gross each.

Regards,

 

Philo

Philo.......I did not know you had combos working for you.  Sam's delivered it to your location?  Did you use that white glove treatment they offer on delivery?
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yes. They delivered right to the location. My son and I unpacked and set up pricing. Everything worked very well. I would use Sams again. We had telephone support for set up questions but didn't need to use it.

 

Regards,

 

Philo

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