vendamania Posted June 4, 2015 Share Posted June 4, 2015 How much can a muffer shop with soda only? Can it do $50 a week? Also how do tire shops and just a plain mechanic shop do? Link to comment Share on other sites More sharing options...
EatMoreJunk Posted June 4, 2015 Share Posted June 4, 2015 I have an old Vendo 8 select in a 10 bay mechanic shop, does about $15/week gross. I service it once a month. Only put a machine in there because the owner is a friend. Link to comment Share on other sites More sharing options...
allen watson Posted June 4, 2015 Share Posted June 4, 2015 How much can a muffer shop with soda only? Can it do $50 a week? Also how do tire shops and just a plain mechanic shop do? I have an old Vendo 8 select in a 10 bay mechanic shop, does about $15/week gross. I service it once a month. Only put a machine in there because the owner is a friend. I have a few shops. One does about 100 per week with 15 employees. Another does 50 per week with 6 employees and another does 80 per week with 4 employees and a recycling center with lots of traffic. So you never know. Link to comment Share on other sites More sharing options...
Bvending Posted June 4, 2015 Share Posted June 4, 2015 I have 2 brake shops that average 60 a MONTH each, drinks only. Have a tire shop just drink that's does 40 a week. And a couple full service shops with snack machines that average 30 a week. So like Allen said, you never know. Its worth a shot though because with just drinks u won't have to service as often Link to comment Share on other sites More sharing options...
RJT Posted June 4, 2015 Share Posted June 4, 2015 I will give my opinion and I would find a better location for the machine. If you follow any of my post you will no that I am BIG on $100 a week average for all your machines. You see by what other have posted it most likely will be a low volume account most likely below your $50 a week question. Others say "give it a shot" but to me time is money and moving machines is not a fun job and time consuming. Plus many times once these machines get placed doing right at that $30 to $40 a week mark people tend to leave them because they say "it is making money". In the end after you factor in all cost how much money are you really making? Just fyi the $100 a week average does not mean every machine has to to $100 each. That is ideal but not hard and fast. It means number of machines divided by dollars pulled each week equals $100 average per number of machines you have out. To many below the $100 mark will bring down your average in a hurry. Link to comment Share on other sites More sharing options...
KychrisKy Posted June 4, 2015 Share Posted June 4, 2015 I would take a few hours one day sit n watch how much traffic comes threw there, Even if they have five employees they might do a lot of biz in a single day, Look at the trash can I look n observe what's been thrown away such as cans, bottles, did they bring their lunch etc A trash can tells no lies I've even changed drink/snack selection in a machine if I see something regularly in the trash, you get the idea Link to comment Share on other sites More sharing options...
Bvending Posted June 4, 2015 Share Posted June 4, 2015 I agree with RJT to a certain point. I said its worth a shot but let me clearify..I wouldn't go acquire a machine just for that location, but I would take an older machine that I wouldn't put in an office or nicer place. If it takes me 5-10 min a month to service, then x% of 50 is better than 100% of zero sitting in my warehouse IMO Link to comment Share on other sites More sharing options...
RJT Posted June 4, 2015 Share Posted June 4, 2015 I agree with RJT to a certain point. I said its worth a shot but let me clearify..I wouldn't go acquire a machine just for that location, but I would take an older machine that I wouldn't put in an office or nicer place. If it takes me 5-10 min a month to service, then x% of 50 is better than 100% of zero sitting in my warehouse IMO Believe it or not sometimes it is cheaper leaving them in the warehouse. At times these type accounts can cost you in the end and not making any money or even loosing money. I am not trying to be negative but I have seen this many times with companies I have either worked for or have done consulting for. Don't get me wrong many locations can be a gamble (some are a sure bet) but I would rather have the odds in my favor based on knowledge gained about which accounts do what revenues typically. The most successful full line vending companies do NOT do these type accounts. The ones that have tried it either went out or was forced to sale because they where working themselves to death and not making any real money. How and why do you think Canteen buys so many smaller vendors out? They get them at a deal because people had major cash flow problems. Then after buying them at a pennies on the dollar they turn the route (s) around by getting prices right and pulling the real bad locations. Or they can afford to service them because of market saturation and very little windshield time between stops. Not to mention the rebate/slotting fees they get kicked back on. Link to comment Share on other sites More sharing options...
Bvending Posted June 5, 2015 Share Posted June 5, 2015 While that is true in most cases, you can still be very successful with the accounts canteen doesn't want. You just have to be smart about it. We actually get a lot of accounts from canteens franchise where I am. Don't over service, don't over stock your machines, and be smart about route locations. Believe me you can be very successful on a lower than $100 per machine average. My company has sales of 1.5 million off these accounts. And yes our profits are good. Link to comment Share on other sites More sharing options...
RJT Posted June 5, 2015 Share Posted June 5, 2015 While that is true in most cases, you can still be very successful with the accounts canteen doesn't want. You just have to be smart about it. We actually get a lot of accounts from canteens franchise where I am. Don't over service, don't over stock your machines, and be smart about route locations. Believe me you can be very successful on a lower than $100 per machine average. My company has sales of 1.5 million off these accounts. And yes our profits are good. Lets just say that this account does $50 a week in gross. Now take COG'S out you are down to around $25.00 to $35.00. Lets just say $35.00 left over. Is it fair to say that we take out another $10.00 for fuel, sale tax, insurance, etc. (I know these numbers can vary from state to state and situation) Now we are down to $25.00. Lets assume you want to get paid $25.00 an hour and this stops takes 15 minutes. That is another $6.25 towards labor you paid yourself. That leaves $18.75 positive cash flow. or $75.00 a month. Now lets say you have a changer and and compressor go out (you placed that older machine) That cost you around $300.00 total for those repairs in parts plus 1 hour in labor, plus fuel add another $30.00. (with you doing it yourself) now the total is $330.00 total cost. You will now need to use 4.4 months to be at the break even point (cost of parts and labor) to recoup your money on the repairs. Lets assume everything else went fine for the next 8 months or $600.00 for the year. This does not take into account your other time spent moving the machine, buying product, loading and unloading the product, counting down the money, and any other "duties" needed to own a vending company. It also does not take into consideration any stales, refunds, etc. Now lets just say that everything worked out ok and you cleared the $600.00 for the year on this one machine. What happens if the machine is heavily damaged because of vandalism? The machine cost you $600 to buy and now you are getting close to going in the hole because the machine was almost destroyed by the break in. I am just saying this is a pretty big risk and a lot of work with such a low return. I know this is long and drawn out but I just wanted people to see all the cost associated with doing vending and especially lower volume accounts. I hear people say "well coke and pepsi do these type accounts". Yes they do but they also have a fraction of cost associated with the product. Plus they work off saturation and little window time with their drivers. Why do you think they can pay such high commissions to locations? Sometimes as high as 35 to 40%. Because their margin is so much greater. Link to comment Share on other sites More sharing options...
RJT Posted June 5, 2015 Share Posted June 5, 2015 While that is true in most cases, you can still be very successful with the accounts canteen doesn't want. You just have to be smart about it. We actually get a lot of accounts from canteens franchise where I am. Don't over service, don't over stock your machines, and be smart about route locations. Believe me you can be very successful on a lower than $100 per machine average. My company has sales of 1.5 million off these accounts. And yes our profits are good. Are you the owner? When you say 1.5 million off these accounts is that just off these type accounts and that is total revenue for the company? How many total machines are you guys servicing? Link to comment Share on other sites More sharing options...
vendamania Posted June 5, 2015 Author Share Posted June 5, 2015 Believe me I am a big fan of larger accounts and collecting the most per service. I have a great average in amusement. I don't really see thats its that bad doing $50 a week when the machine will be paid off in like 4 or 5 months. You could service that every 2 weeks and collect a quick $100. If you could do 3 of these type locations in say 2 hours wouldn't that be about $100 an hour? Of course I wouldn't build a route of these type locations… I would rather have a weekly service cycle and collect $200. Link to comment Share on other sites More sharing options...
allen watson Posted June 5, 2015 Share Posted June 5, 2015 I think it also depends on your area's population. I'm in a town of 25,000 so I take everything I can get which is small and smaller. I will take a $35 per week account and service it every two weeks all day long. I often wonder how it is in the big city with thousands of businesses and millions of people. I bet the picking is easy and $100 per machine is the norm and locations just fall in your lap and you can get a whole dollar for a candy bar. Link to comment Share on other sites More sharing options...
allen watson Posted June 5, 2015 Share Posted June 5, 2015 So my phone rang, unknown number, me expecting a service call and its this dude asking me if I am the owner of the machine at "Super Slow Inn". I'm thinking, man that location sucks and I don't want to have to drive 15 miles for a jammed dollar. But the caller says, "I'm the supervisor at Union Pacific, I'm standing in front of one of your machines and was wondering if you can put one of these in our break room?". I know, it doesn't happen everyday but it probably wouldn't of happened at all if I didn't have that little account. Link to comment Share on other sites More sharing options...
moondog Posted June 5, 2015 Share Posted June 5, 2015 So my phone rang, unknown number, me expecting a service call and its this dude asking me if I am the owner of the machine at "Super Slow Inn". I'm thinking, man that location sucks and I don't want to have to drive 15 miles for a jammed dollar. But the caller says, "I'm the supervisor at Union Pacific, I'm standing in front of one of your machines and was wondering if you can put one of these in our break room?". I know, it doesn't happen everyday but it probably wouldn't of happened at all if I didn't have that little account. Maybe you should have put that one in his breakroom since he liked it so much Link to comment Share on other sites More sharing options...
allen watson Posted June 5, 2015 Share Posted June 5, 2015 Maybe you should have put that one in his breakroom since he liked it so much Hahaha. Are you kidding? Just a few days before I was out at a party in the desert and this guy says, "Hey, you better get your machines out". I'm like, huh?? Then he says, "Yeah, I just got laid off from the moving place, they are going out of business". WooHoo!! Easy move from one to the other. Link to comment Share on other sites More sharing options...
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