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My thoughts on "Healthy VENDING"


RJT

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Indeed RJT!

In my opinion, an account that justifies a combo is account that does not justify my services. Ill just give them canteen's number.

 

LOL that is awful nice of you. Believe it or not they bought out a company a few years ago using combo machines and I think have since abandoned the whole thing. 

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Hmmmm, I must be doing things wrong then.  I use a lot of AMS combos with their high capacity can shelf.  Really like the machines and they are working for me.  It all depends on the location/client/business model.

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Yeah, it holds 120 cans.  I guess what caused me to chime in is when people speak in absolutes.  I can tell you I would not have acquired my largest accounts without a combo machine.  Either they knew what machines they wanted or I had no other option due to space.  Yeah, I service them a lot but it's better than another company servicing them.  

 

You're right, whatever works for you, works.  Don't automatically dismiss a machine because it's a combo or a location because they want a combo or that's all that space will allow.

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exactly.

sure, theres "rules of thumb".... but everything in vending is situational.

sometimes I get a place that has a decent amount, but small breakroom and only has 40"

you cant turn them down. I just sell machines but logic is the same for vendors.

 

I think someone starting out or "smaller" vendor should still take medium sized (combo spots).

especially if theres not alot to pick from in there area. You take what you can get and build from there.

gotta start somewhere.....

 

I dont know alot of vendors who only have big places... thats ideal though of course.

but thats like saying... " I only drink bottle water, tap water has flouride"...if youre thirsty enough or need the convenience, you'll drink whatever is available. Established vendors though tend to have a reserve and can be more picky if they want.

 

Sincerely,

Shawn “Skip” DeLuca

1-800-592-4220  x103

Shawn@globalvendinggroup.com

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exactly.

sure, theres "rules of thumb".... but everything in vending is situational.

sometimes I get a place that has a decent amount, but small breakroom and only has 40"

you cant turn them down. I just sell machines but logic is the same for vendors.

 

I think someone starting out or "smaller" vendor should still take medium sized (combo spots).

especially if theres not alot to pick from in there area. You take what you can get and build from there.

gotta start somewhere.....

 

I dont know alot of vendors who only have big places... thats ideal though of course.

but thats like saying... " I only drink bottle water, tap water has flouride"...if youre thirsty enough or need the convenience, you'll drink whatever is available. Established vendors though tend to have a reserve and can be more picky if they want.

 

Sincerely,

Shawn “Skip” DeLuca

1-800-592-4220  x103

Shawn@globalvendinggroup.com

 

Its not a matter of established vendors being "picky" they make decisions based on experience. Established vendors that have tried a combo machine knows they are a loosing battle on many fronts. Like I said you are either working yourself to death to keep them full or you are dealing with a low volume account. 

 

If you are dealing with size constraints that is one thing but like that lady that had that YMCA using combo machines she was not only working herself to death keeping them full she (even with four on location) she lost the account because of not keeping up and also the account was offered two five wides with more selections. 

 

Like I said combo machines have their place in vending they just dont have a place with me or anyone I consult with doing them in stand alone accounts that justify vending and have the room for full size equipment. 

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Its not a matter of established vendors being "picky" they make decisions based on experience. Established vendors that have tried a combo machine knows they are a loosing battle on many fronts. Like I said you are either working yourself to death to keep them full or you are dealing with a low volume account. 

 

If you are dealing with size constraints that is one thing but like that lady that had that YMCA using combo machines she was not only working herself to death keeping them full she (even with four on location) she lost the account because of not keeping up and also the account was offered two five wides with more selections. 

 

Like I said combo machines have their place in vending they just dont have a place with me or anyone I consult with doing them in stand alone accounts that justify vending and have the room for full size equipment. 

I understand what youre saying, but to me thats more of a guideline than anything.  I know alot of "big" vendors who have combo's.

you just match machine's with size of location, its that simple, however, sometimes you have to bend....some people might think its not worth bending or not worth having small-medium sized spots. Cool, I get it,  but alot of vendors do both.....it's that simple. I think were all just beating a dead dog and sort saying the same things.

 

Anyhow, to get back to original post and thread.... HEALTHY Vending??? well, sure you can do it, but me and alot of other guys say "dont put all your eggs in one basket, be flexible, shoot for the highest traffic places you can..regardless of healthy or junk food, the people there are a bigger factor, more so then the product". IMO Whatever gets you in the door though is good! most machines can do both. Just need drink flexibility on your soda machines.

 

Boom, thread closed!!!   :'(

 

Sincerely,

Shawn "Skip" DeLuca

1-800-592-4220  x103

shawn@globalvendinggroup.com

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I understand what youre saying, but to me thats more of a guideline than anything.  I know alot of "big" vendors who have combo's.

you just match machine's with size of location, its that simple, however, sometimes you have to bend....some people might think its not worth bending or not worth having small-medium sized spots. Cool, I get it,  but alot of vendors do both.....it's that simple. I think were all just beating a dead dog and sort saying the same things.

 

Anyhow, to get back to original post and thread.... HEALTHY Vending??? well, sure you can do it, but me and alot of other guys say "dont put all your eggs in one basket, be flexible, shoot for the highest traffic places you can..regardless of healthy or junk food, the people there are a bigger factor, more so then the product". IMO Whatever gets you in the door though is good! most machines can do both. Just need drink flexibility on your soda machines.

 

Boom, thread closed!!!   :'(

 

Sincerely,

Shawn "Skip" DeLuca

1-800-592-4220  x103

shawn@globalvendinggroup.com

 

I am not trying to be an arrogant gopher but but have you ever owned, or managed a vending operation? If so how many years and what size? 

 

I realize you sell machines and nothing wrong with that but I have over 14 years managing, or owning actual vending operations so I know what works based on my experience. 

 

No large vending operation does combo machines, or all healthy vending and their is a reason for that. You said a lot of vendors do and you would be correct. That does not make it the correct thing to do.

 

A person can possibly make enough money with that business model if they are a one man operation. What happens if they get sick and cant work the route for a month or so? Now they don't have enough money to pay someone to fill in plus pay themselves. Now what? That is the problem with vending is you have to build large enough to get yourself in a position of hiring at least one route driver and still make enough to pay yourself. If not you are one car wreck, broke leg, surgery, cancer, etc from loosing everything. The fact is you have to scale fast and large enough or you can get yourself in trouble quickly. I see this all the time in my consulting work.  

 

Just like you mentioned "whatever gets you in the door". I can tell you that I could get in many doors doing things like cold food, coffee, ice cream, etc that doesn't mean it makes sense to do it. 

 

I know you are trying to sell machines and I don't blame you that is what you do for a living but wouldn't it make better sense to have successful vendor and sell them machines for a looong time than have a handful of vendors buy machines they never should have and place them in account they never should have and fail and never sell them another machine. You can sheer a sheep any times but you can only skin the once. 

 

Look on Craiglist and I will show you tons of people that bought a bunch of Sega/Antares combos that they failed with. Combo machines are usually the most posted on CL for a reason because of the failure rate of people trying that business model. 

 

Would I do an high volume account with three day a week service  with a combo machine that I drove by everyday because they didn't have room for full size machines? Yep, sure would. Would I do this same account and have to drive 15 miles out of my way? No, because the service time would eat up any extra profits I am making in the volume. So, yes combo machines have their place but it is just a very limited in how they fit into a large vending operation. 

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Youre obviously talking about the very large vendors. However, Pepsi and Coke are the biggest vendors out there. They dont do snack machines, does that mean snack machines are a bad idea, not money makers? Someone thats asking a question on here about healthy vending obviously isnt Canteen. So i dont think telling them always stay away from combo's is good advice personally. 

Im talking about more realistic vendors. the type of people that would read on here. (not saying a huge vendor wouldnt)

 

The reason all the crap combo's are out there, is because #1 people cant get parts so they sell them (too many generic manufacturers hopped on the combo train) #2 people that just want to give vending a try, that arent super committed tend to buy combo's... or they get a really small spot that hardly sells anything. FYI there's a alot more used soda and snack machines for sale then used combo's (naturally because there's more in market)....and alot more combo's in locations then on craigslist!

Now lets be clear, Im not some big combo advocate or anything, I do alot more fullsize then combo but i 100% believe combo's are a viable option for certain situations!

 

Ive been selling machines for 10 yrs. I have personally (just me, not my company) dealt with at least 4k customers. probably 2k which are vendors or recent "start ups". My buddy makes 80k locally vending and he has everything from crappy old combo's to 6k jofemars. Big locations, small spots + medium sized. Coffee, coldfood, combo's you name it.  

 

Truth is probably 80% of medium sized vendors use combo's and everything else.. I really could back that up with sales data too. (lets say medium is 15 or more locations) Im guestimating but that cant be far off.

 

#1 rule in most any business is being flexible and knowing your customers/audience...also location location location! 

(I think its pretty obvious to even a newbie you dont put a combo in a big spot, or do coffee and cold food for 50 people)

 

Alot of vendors dont live in big cities or are competing with alot of saturation, so yeah, I say take what you can get, aim high of course.

But not everyone can land a school or factory for every spot, If so, please give me some tips so i can help my people out! : )

 

I say ...never say never! To each their own though. 

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Youre obviously talking about the very large vendors. However, Pepsi and Coke are the biggest vendors out there. They dont do snack machines, does that mean snack machines are a bad idea, not money makers? Someone thats asking a question on here about healthy vending obviously isnt Canteen. So i dont think telling them always stay away from combo's is good advice personally. 
Im talking about more realistic vendors. the type of people that would read on here. (not saying a huge vendor wouldnt)
 
The reason all the crap combo's are out there, is because #1 people cant get parts so they sell them (too many generic manufacturers hopped on the combo train) #2 people that just want to give vending a try, that arent super committed tend to buy combo's... or they get a really small spot that hardly sells anything. FYI there's a alot more used soda and snack machines for sale then used combo's (naturally because there's more in market)....and alot more combo's in locations then on craigslist!
Now lets be clear, Im not some big combo advocate or anything, I do alot more fullsize then combo but i 100% believe combo's are a viable option for certain situations!
 
Ive been selling machines for 10 yrs. I have personally (just me, not my company) dealt with at least 4k customers. probably 2k which are vendors or recent "start ups". My buddy makes 80k locally vending and he has everything from crappy old combo's to 6k jofemars. Big locations, small spots + medium sized. Coffee, coldfood, combo's you name it.  
 
Truth is probably 80% of medium sized vendors use combo's and everything else.. I really could back that up with sales data too. (lets say medium is 15 or more locations) Im guestimating but that cant be far off.
 
#1 rule in most any business is being flexible and knowing your customers/audience...also location location location! 
(I think its pretty obvious to even a newbie you dont put a combo in a big spot, or do coffee and cold food for 50 people)
 
Alot of vendors dont live in big cities or are competing with alot of saturation, so yeah, I say take what you can get, aim high of course.
But not everyone can land a school or factory for every spot, If so, please give me some tips so i can help my people out! : )
 
I say ...never say never! To each their own though. 

 

 

Sure if you want to hire me to help you I will be glad to do that for you and give you a lot of tips you need.  Better yet send me your customers to buy the consulting and as they become more successful you will have more chances selling them even more equipment. Did you read my book yet? It has some good info but not sure you will follow like the guidelines I put in it. 

 

BTW, I am not talking Canteen vending but now that you mentioned them they a few years back they bought out a fairly large combo machine vending operation (Multimax) and I think they have since scrapped that all together because I haven't seen their machines out as of late. Coke and Pepsi is a entirely different animal all together because of the millions of dollars they make beyond vending. Vending is a very small portion of their revenue. Also just FYI, both Coke and Pepsi both do full line vending. It is just done through one of their distributor franchise branches. One was recently sold to Canteen in my area called Classic Foods that was a Coke organization.  

 

You mention your buddy doing $80k a year which is respectful the BIG question is how much money is he making in PROFITS. You could have a vending operation doing a million a year and not be profitable. I know one in particular that did north of a million a few years back and had a profit of just over a $1000.00. I know because I heard it direct from the owner/president of the company. We talked about mistakes made, and other issues that contributed. 

 

I consider "medium" size vending operation to be 2 to 12 routes and a revenue of  200k to around 8 million. Anything below $100k a year is a small operator usually a one man show. 

 

The key is NOT being flexible it is having only quality accounts. Its like any retail business location, location, location if you want a solid business. You have to build your vending operation around solid locations. 

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I am not trying to be an arrogant gopher but but have you ever owned, or managed a vending operation? If so how many years and what size? 

 

I realize you sell machines and nothing wrong with that but I have over 14 years managing, or owning actual vending operations so I know what works based on my experience. 

 

No large vending operation does combo machines, or all healthy vending and their is a reason for that. You said a lot of vendors do and you would be correct. That does not make it the correct thing to do.

 

A person can possibly make enough money with that business model if they are a one man operation. What happens if they get sick and cant work the route for a month or so? Now they don't have enough money to pay someone to fill in plus pay themselves. Now what? That is the problem with vending is you have to build large enough to get yourself in a position of hiring at least one route driver and still make enough to pay yourself. If not you are one car wreck, broke leg, surgery, cancer, etc from loosing everything. The fact is you have to scale fast and large enough or you can get yourself in trouble quickly. I see this all the time in my consulting work.  

 

Just like you mentioned "whatever gets you in the door". I can tell you that I could get in many doors doing things like cold food, coffee, ice cream, etc that doesn't mean it makes sense to do it. 

 

I know you are trying to sell machines and I don't blame you that is what you do for a living but wouldn't it make better sense to have successful vendor and sell them machines for a looong time than have a handful of vendors buy machines they never should have and place them in account they never should have and fail and never sell them another machine. You can sheer a sheep any times but you can only skin the once. 

 

Look on Craiglist and I will show you tons of people that bought a bunch of Sega/Antares combos that they failed with. Combo machines are usually the most posted on CL for a reason because of the failure rate of people trying that business model. 

 

Would I do an high volume account with three day a week service  with a combo machine that I drove by everyday because they didn't have room for full size machines? Yep, sure would. Would I do this same account and have to drive 15 miles out of my way? No, because the service time would eat up any extra profits I am making in the volume. So, yes combo machines have their place but it is just a very limited in how they fit into a large vending operation. 

Its like you read my mind^ ^-^ !

 

No large operators will have any combo machines. Maybe 1 or 2 that came from buying out another company. IMO there is practically no point for them if you are trying to run a business. Anyways, if I say the word "combo" to any of the companies here locally that operate thousands of machines, theyll probably laugh at me.

 

Also, if I ever come across an account, (which I have) that is using combo machines and its large enough for full size machines, im gonna use that in my advantage to sell the account on the fact that I will be providing full size name brand equipment, that will often not only work better, but also hold wayyyyyyyy more product types and product capacity.

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I disagree that "there is practically no point for combos if you are trying to run a business".  It's working for me and I'm sure it's working for others.  I have full size machines too.  If you all run across anyone wanting to dump some AMS combos for cheap (since combos are worthless), let me know, I'll buy them!  I guess what is driving me crazy with this thread is speaking in absolutes.  All it takes is one example to prove your point wrong.  

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... youre talking about the TOP TIER OF VENDING. I dont think you should tell a conerstore to be walmart...

thats all im saying. they dont have the resource or the financial backing!! Its un-realistic... tactics are and should be unique for that particular vendor and i really dont believe same rules apply to everyone. 

 

Again, im not the "Combo Congressman" or anything.... but there's really nothing anyone can say to me to make me believe combo's or healthy vending arent viable sometimes. Im not saying you do a whole route of them.... but there are usefull and reallistic for certain situations. Respectfully.

 

Im talking about the majority of vendors and startup's  (or someone that would ask a question on whether healthy vending is even good, like the original poster), Majority of vendors are made up of "small families". This vending industry is very scattered. Im not really against anything youre saying, Of course, its better to have a huge route full of big spots that have full size stuff, buts to me, in this world...thats a mute point, not that its wrong....but were speaking of different worlds. 

 

I just dont want a startup with 15k to read this thread and say ... "ok, im only going to do full size stuff no matter what, no healthy, and only if i can piece together a huge route, thats the only way it works"....if so, They'll never get into vending!   I think they should do the best they can with what they can afford, and locations they can get. Again, not everyone can start off huge, and there damn sure aint no locators Ive heard of that can do that for them. If you can find me 3 locations right now with 100+ people then honestly, we can do some real good business together. Im serious. 

 

@PHX1 ..... thats basically what i tell people if they ask how to pull good accounts that already have someone. Offer them bigger better machines and faster service. go to the site, if the units are all jacked up ,empty or dont fit etc. then go talk to somebody there.


Honestly, I think most of us here believe and understand the same things.....this is just one of those type threads that can run forever, Im out of energy hahah!!

 

Hope everyone out there has a good night and made some $$ today!!!

 

Sincerely,

Shawn “Skip” DeLuca

1-800-592-4220  x103

Shawn@globalvendinggroup.com

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... youre talking about the TOP TIER OF VENDING. I dont think you should tell a conerstore to be walmart...

thats all im saying. they dont have the resource or the financial backing!! Its un-realistic... tactics are and should be unique for that particular vendor and i really dont believe same rules apply to everyone. 

 

Again, im not the "Combo Congressman" or anything.... but there's really nothing anyone can say to me to make me believe combo's or healthy vending arent viable sometimes. Im not saying you do a whole route of them.... but there are usefull and reallistic for certain situations. Respectfully.

 

Im talking about the majority of vendors and startup's  (or someone that would ask a question on whether healthy vending is even good, like the original poster), Majority of vendors are made up of "small families". This vending industry is very scattered. Im not really against anything youre saying, Of course, its better to have a huge route full of big spots that have full size stuff, buts to me, in this world...thats a mute point, not that its wrong....but were speaking of different worlds. 

 

I just dont want a startup with 15k to read this thread and say ... "ok, im only going to do full size stuff no matter what, no healthy, and only if i can piece together a huge route, thats the only way it works"....if so, They'll never get into vending!   I think they should do the best they can with what they can afford, and locations they can get. Again, not everyone can start off huge, and there damn sure aint no locators Ive heard of that can do that for them. If you can find me 3 locations right now with 100+ people then honestly, we can do some real good business together. Im serious. 

 

@PHX1 ..... thats basically what i tell people if they ask how to pull good accounts that already have someone. Offer them bigger better machines and faster service. go to the site, if the units are all jacked up ,empty or dont fit etc. then go talk to somebody there.

Honestly, I think most of us here believe and understand the same things.....this is just one of those type threads that can run forever, Im out of energy hahah!!

 

Hope everyone out there has a good night and made some $$ today!!!

 

Sincerely,

Shawn “Skip” DeLuca

1-800-592-4220  x103

Shawn@globalvendinggroup.com

 

Well that is exactly what I am trying to do. I am trying to save people the heartache of doing stuff that is pretty well documented that it does not work. It may work for a very small select few but is NOT a viable way to start or do vending. I think you are missing the many points I and others have made. I know you said you have been selling machines for 10 years but huge difference than actually running an actual vending operation.

 

You talk about the "top tier" of vending. I can tell you that if you plan on competing and actually making a living in vending you had better act and run your vending operation like a "top tier" vending operation. If not you will be out of business about as fast as you got in it. Vending is probably one of the most tried and failed businesses of all those tried other than the restaurant business. The reason most fail is thinking combo machines or healthy vending is the way to go.  You not only have to have good service, good product selection, the correct equipment, etc you also have to know how to run the business side of it. Many of the "top tier" vending companies actually do very well at the business side but do a terrible job at the service side yet they stay in business. Why? Because the smart bean counters figure out the business side. They just need the correct service side to make it complete.    

 

I have given you fact after fact as to why it is NOT the way to do business and so far (unless I missed it) you have only said you need to be versatile, and you know one guy doing $80k a year and he has some combo machines.  I have given many examples of why the business model does NOT work and that doing them makes very little business sense. 

 

I have already said many times in this thread and in my original post that healthy and even all healthy can work with limited success. Also combo machines do have their place in vending but again in a very limited capacity that actually makes sense. Denver Healthy Vending is a good example that it can work. However it is also due to his area. You act like I never said do either and that is not what I said at all. However, you are not going to convince me that it can work past those limited amounts. The reason you will not convince me is from my experience. 

 

I just want people to realize their is more to it than "well if Denver Healthy Vending made it work, I can to". When 90% of the time that is not going to be the case. 

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