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Warehouse space


EdsVending

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I currently have 2 storage units and have outgrown them. I'm thinking of stepping up to a 1600 sf warehouse space. The advantage will be being able to buy larger quantities of items, being more organized and being abe to keep my product from freezing in the winter. Also I'll be closer to home. The draw back is that I'll be spending an additional 750 per month, which could be used for other facets of my business. Just wondering what some of the bigger vendors thoughts are on this? Thanks in advance.

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I'm curious regarding this answer as well.  I don't like running heaters in the back of the truck at night during the winter time.  I've been considering ways to park the truck inside a heated garage at night during the winter, but haven't thought of a solution that I like.

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I stepped it up 4 months ago, and I kinda regret it. I pay 650 a month. I have so much room but since I lost 4500 worth of accounts a few months ago it really messed me up. I got 4 new accounts which each should make $800 to $1500 so lets hope that helps. I see those 650 as another nice car, or I mean my mortgage is 850 a month for a tri level new home. if I don't grow more in the next few weeks I will be cancelling the contract and working off my home. it does feel good to park your box trucks in the warehouse. however I don't use it at all maybe once a week I go there. I do have about 25 machines there though. its a 3 office warehouse with restroom and all. but last month my route only grossed 9k when it was doing about 12k. my goal was getting the warehouse to organize, andhave a full time employee grossing 20k a month. id be keeping about 10k of that a month which would be great. 7k would go into cogs, 1500 into taxes and warehouse and 1500 to employee. give or take a bit.

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I have spoken about this many times in different threads. I know it is obvious but the key is good account averages. It is critical to have enough revenue per account coming in to cash flow your expenses and be able to grow. Seen this plenty of times where a guy is “one man” and a truck but does not have the cash to grow and not much time either. He is to busy running everything himself and not enough cash flow to hire anyone.  

 

There is a vendor from here (coinvestor) that was in the exact situation as Edsvending a few years back. He brought me in to help him gain some accounts and grow. We concentrated on quality accounts and he has since moved warehouses twice, hired a part time warehouse person, route driver, and bought a second truck with another part time driver in the near future with a couple more accounts we are in the process of getting.

 

This was all done with new or like new equipment and making sure we targeted what one of my former owners called “impact accounts”. He always referred to them as “impact accounts” because those are the ones that “impact” the company the most with a better bottom line, (ie money).

 

Keep in mind there is more to it than just getting better accounts; it may mean an expanded product line and offerings, better, equipment, larger trucks, etc. It also may mean selling off some “dead weight” accounts to free up cash flow, time on the route or acquire better equipment.

 

It also means having a solid selling plan in place because you will always have the possibility to lose accounts in the example of TKK. Coinvestor brought me in to help with both logistics and implementing a solid sales program to slowly grow over time.

 

With vending there are a lot of moving parts in order to make it all work and grow. Keep in mind there is going to be some growing pains along the way where you will have some long days, short on cash, etc until you start seeing the “impact” these stronger, quality accounts.     

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Let me address the original question more direct. The things to factor in is are you out of space? Do you have the cash flow to get a larger location? You will need to determine these factors and if it is a cash issue then you will need to fix that part first. The biggest factor is cash flow then convenience of a larger facility.

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