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Economic Impact on Full Line


coinvestor

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I have added some business in the fourth quarter, but as the quarter comes to a close it looks like the added business only managed to keep my sales from declining. My fourth quarter sales are always a little lower due to holidays and holiday food, but many of my accounts have started to drop off more than the seasonal norm. I have a large exposure to new car dealerships since this makes up a large percentage of our business, but our sales primarily come from the "service center" side of the dealerships, so until now they have been quite stable. Some of my accounts have begun to cut jobs.

I am finding that it is harder to get new vending accounts. I have added only one since October started. Every account I talk to seems to be taking a "wait and see" with the economy which translates to a "not a good time" to make a change. I am finding it very easy to add OCS customers as more businesses are beating on the bottom line and jump at the chance to save some of that money.

I was just wondering what you guys where seeing in this crappy economy? Have you been able to grow, have you shrunk, or things just the same? Have you been able to pick up new vending accounts? Have any of your accounts closed, or had large layoffs?

Rant: Why is it that in a shrinking economy with rampant deflation, where gold and silver are dropping, where oil has lost 65% of its value, where new cars and flat panel TV's are almost worthless can a Damn candy bar go up 20% in about three weeks!!!!!

Thanks

JD

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I hear you. I have one plastics factory that told me they will be closed from Xmas to Feb. 1 because all their work comes from GM. I'm even seeing a slowdown in OCS interest. It seems like everyone is paralyzed until they get the economic all clear sign.

Regards,

Philo

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I have had similar worries.  One location shut down.  Downsizing work force in another.  Possible closing of another good account.  All my amusements are down straight across the board, and now my full line numbers are decreasing. (not as much as amusements)

Zeke

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 All my amusements are down straight across the board, and now my full line numbers are decreasing. (not as much as amusements)

I think initially my accounts spiked as people were trying not to eat out as much. October looked great, but started diving in Nov. Maybe things will go better in Diet Coke month (thats what I call January:)

 

JD

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  • 3 months later...

I have moved some of my focus on new accounts to the healthcare industry.  Yesterday I added a stand-alone surgery center (pop and snack).  I was able to get in because the previous vender wasn't rotating dated snacks out fast enough.  I have seen a few of my other accounts downsize to the point that I am trying to relocate their machines.  You just have to find industries that are weathering the storm.

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I am brand new to the world of vending. I have been researching and thinking about getting into it over the past couple of weeks.

I have been looking at purchasing an existing route (soda/snack). Have you guys seen a large decrease in sales over the past few months? I'm wondering if that is why some of the people are selling their routes.

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I am brand new to the world of vending. I have been researching and thinking about getting into it over the past couple of weeks.

I have been looking at purchasing an existing route (soda/snack). Have you guys seen a large decrease in sales over the past few months? I'm wondering if that is why some of the people are selling their routes.

 

My sales have stabilized and to be honest I am quite impressed with how recession proof vending really is (or has seemed so far) for the accounts that have not downsized. I do think I have machines at one the GM dealers that will be forced close, but I will have to wait and see. Although the tone of my original post was negative, I was able to grow my business right through the biggest recession of my lifetime and I am grateful for that.

Johnny, I think in my area it seems to be the opposite. Routes for sale are getting bought up quick as people that are laid off are starting businesses. There are virtually no routes for sale in my area as they are bought so quickly.

 

JD

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