new to Vending business

[terry]

So as the title says I'm new to the vending business. I am in contact with Grow healthy vending, I am thinking of dropping 100K on machines does anyone have any input on Grow. This is big step for me but I think the timing is right I would really value any input on my situation.

[AZVendor]

Have you not used the search function to find out what posts have been discussed ad nauseum regarding healthy vending?  And why is this a poll? 

 

If you have 100K to drop on anything I wouldn't do it on a franchise like this in a business you may know nothing about.  Anyone and everyone is jumping on the healthy vending bandwagon (except the veteran vendors) and biz ops for that segment of the vending industry are running rampant.  It's the last place I would place that kind of investment.  This applies to any popular business fad. 

 

If you are convinced that healthy vending is where it's at, and I'm not saying it isn't, then you would be much better off doing your own marketing and getting your own machines and wrapping them with the graphics yourself.  Your money will go a much longer way.  Go out and sell this premise yourself and pick up your own accounts.  I guarantee you that you will have success finding locations because many people in management (the decision makers) believe only they know what's best for their employees or students and will be very receptive to your pitch.  Whether you make money or not at any location is a crap shoot, but so would be the locations provided by a franchisor.  Why give them your money if you can do it yourself?  If you aren't willing to do the selling yourself and just wish to jump into a turnkey business then all bets are off on the healthy segment because you're opening yourself up to being scammed by a fly-by-night biz op.

[RJT]

AZVendor has given good advice. Please use the search function and DO NOT spend any money till you do much less $100k. I will say this depending on where you live you CAN NOT make a living doing all healthy vending. It is impossible to scale it large enough (within driving distance) to have enough accounts to make enough money doing it full time. 

[rmorris1953]

So as the title says I'm new to the vending business. I am in contact with Grow healthy vending, I am thinking of dropping 100K on machines does anyone have any input on Grow. This is big step for me but I think the timing is right I would really value any input on my situation.

$100,000 is a large chunk of change that will take years to payoff if you aren't successful. Can't do it with combos can't do it with machines that cost $5000 and up.

If it were me I would look for someone who wants out of vending. Has good records. Then if he wants 100,000 offer 50,000 to 75,000 for entire route. Including inventory and change in machines. Consider how many miles between stops, what his prices are. Prices on candy need to be no lower than $1.00 and soda at .75 for cans, $1.50 for bottles. Any lower you will loose the accounts when raising prices. With micro markets now any large account maybe at risk and lost due to competition with the big guys.  I have guys in my area that have sold these large accounts to the big guy and have came out really well. And you may also if you know the customer is looking into Micro Markets.  

[terry]

Thank you for advice sorry for making this a pole I press the wrong button and couldn't figure out how to fix it. As you can tell I'm new to the forms too. My situation is I want schools and car dealerships I British Columbia there is legislation banning pop and junk food from all schools, government buildings and public places. I have to offer a healthier alternative.  

[moondog]

So as the title says I'm new to the vending business. I am in contact with Grow healthy vending, I am thinking of dropping 100K on machines does anyone have any input on Grow. This is big step for me but I think the timing is right I would really value any input on my situation.

Terry, that's a very big step and one you probably shouldn't take.  The failure rate of these franchises is astronomical.  You need to read this forum all the way back prior to dropping one cent in the vending business.  The best entry for someone with your resources would be to buy out a retiring vendor in your area.  You must be patient when buying existing routes as most of them will be overpriced.  The classic mistake is buying a bunch of dog accounts off of an active vendor who's just cleaning out his bottom feeders.   Most of us peruse Craigslist for deals on accounts for sale but I must warn you that nine out of ten of these will be duds.  Be ;patient, keep looking and if you see something of interest, run it by us.  Hint; reasonably profitable accounts will need to gross in excess of $500 a month so you can cull out anything that's not in that class.

[terry]

Ok thank you for all your great advice. You guys confirmed my thoughts about spending that kind of money. I have checked out craigs list and there are few used machine in my area 

[hoosier96]

Been there, done that, wouldn't go that route again.  I'll leave it at that.

[tc vending]

I would leave the "healthy" biz op junk alone.You should probably test out a few machines before investing that kinda money to see if you like vending.

[terry]

Thank you all

 

I think a new direction is needed I checked out Kijiji found half a dozen machines that are a little more reasonably priced. There is a route for sale in my area a guy is retiring so going to talk to him tonight. I even found service technician really cool older gentlemen that gave me lots of advice. This industry is very helpful I like that thank you all for input

[RJT]

Thank you all

 

I think a new direction is needed I checked out Kijiji found half a dozen machines that are a little more reasonably priced. There is a route for sale in my area a guy is retiring so going to talk to him tonight. I even found service technician really cool older gentlemen that gave me lots of advice. This industry is very helpful I like that thank you all for input

 

Be VERY careful with buying any route. 95% of the time these are not really worth buying. Very rarely have I seen a route that was any where near the asking price. Some where so bad you could not have given them to me because the machines where so bad and the revenue was so low. It was more work than actually going out and getting my own accounts and putting a good machine in.