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New To Vending- what machines are must avoids?


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Stay away from Seaga and any other imported machines like Gaines and Fortune. Use only US made machines from Dixie Narco, Vendo, Royal, Crane/National, AMS, USI/Wittern and Automatic Products.

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I've seen really bad reviews on Seaga. Do you feel the same? First machine. First location.

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There are many machines out there that should be avoided.  While Seaga probably tops the list, you also want o avoid any Genesis, Antares, older serpentine USI machines or any Vendo older than 10 years.  Combos in general are a bad way to start.  My preference would be to get a nice Royal GIII, 660 model as these are very reliable machines and work well for a soda only location (which is where you need to start).

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My niche so far is health clubs- I have 4 interested and 1 secured location. Soda seems pretty straight forward and will get there. But looks like I jumped in to a difficult starting choice with health clubs.

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To "piggie back" on the question for the Experts... :rolleyes:  What is the best snack machines......I m sure it is like Chevy and Ford......But really what is the difference bw a Crane 148 vs. AP 113 vs. Rowe 5900 Jr.  Now I know that some of the sizes are different obviously, but comparing roughly the same size........is there any value/price difference with those.....We may be expanding too so looking for the best bang for the book on good used machines.......

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My niche so far is health clubs- I have 4 interested and 1 secured location. Soda seems pretty straight forward and will get there. But looks like I jumped in to a difficult starting choice with health clubs.

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If "health clubs" are going to be your niche you have bigger problems than just picking machines. I suggest you research the many post on here about "healthy" vending. 

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I've def seen the horror stories and problems. Doesn't mean they cant succeed though. One I'm not getting conned into a franchise, I'm not buy crappy over priced equip, each club has 1000 or more members, pay zero profit sharing, own my machines, taking it one machine at a time, im an advocate of health and fitness myself, what else.... Please share if you have suggestions. I'm willing to learn- that's why I'm here. But from a business standpoint everything appears to be good.

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To "piggie back" on the question for the Experts... :rolleyes:  What is the best snack machines......I m sure it is like Chevy and Ford......But really what is the difference bw a Crane 148 vs. AP 113 vs. Rowe 5900 Jr.  Now I know that some of the sizes are different obviously, but comparing roughly the same size........is there any value/price difference with those.....We may be expanding too so looking for the best bang for the book on good used machines.......

While I own mostly AP machines, which have been very good overall, I think now the way to go would be an AMS with the Sensit 3 system if you can find a good deal on one.  I would avoid the Rowes as they are are not Mdb compatible and they have their own range of issues - they've also been out of the vending business for many years so parts support will be hit and miss.

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I've def seen the horror stories and problems. Doesn't mean they cant succeed though. One I'm not getting conned into a franchise, I'm not buy crappy over priced equip, each club has 1000 or more members, pay zero profit sharing, own my machines, taking it one machine at a time, im an advocate of health and fitness myself, what else.... Please share if you have suggestions. I'm willing to learn- that's why I'm here. But from a business standpoint everything appears to be good.

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Let me ask you a few question for you to think about.

 

Why does NONE of the top (biggest) vending companies offer all healthy vending? 

 

Why do you think it was somewhat easy to get the accounts to begin with? 

 

I will answer theme for you. Because they already know it does not work and the accounts are fairly easy to get because no one wants them (that are experienced at vending) because they know they do not work. 

 

You are not the first and will not be the last that think all healthy vending is a great niche business. I have been in the industry for going on 15 years now during that time I have done every position in vending and was sales and operations manager to for two medium/large vending operations. Then started my own vending operations over 5 years ago, along with written a well regarded book on vending and also do consulting in the industry. I say all this because I can tell you with all that experience and knowledge I would NEVER do all healthy vending accounts. It is a struggle to do some with just a limited selection at places like YMCA, s and other "healthy" locations. 

 

If you are wanting to actually get into vending then you need to appeal to the masses and have a "healthy" program within that has limited selection offerings at accounts that need or want them. If you are doing it thinking you are going to fill some "niche" and it is because you like and believing in "healthy" then save your money and start a health store, gym, or some other healthy business besides "healthy" vending. 

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No where did I say all healthy vending company. I referred to a niche in this particular post. This is one area I will work at servicing. New machines, new education of foods, the surge of all natural, GF, organic being available in major brands, calories listed on everything now have people making smarter choices in the last 2-3 years. Now with that said I plan on offering all the crap. That would work great in most places. I just think all you old timers thought u could slap a machine and some healthy crap in it and call it good.

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No where did I say all healthy vending company. I referred to a niche in this particular post. This is one area I will work at servicing. New machines, new education of foods, the surge of all natural, GF, organic being available in major brands, calories listed on everything now have people making smarter choices in the last 2-3 years. Now with that said I plan on offering all the crap. That would work great in most places. I just think all you old timers thought u could slap a machine and some healthy crap in it and call it good.

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This "old timer"  is about what makes business sense. I turn down accounts like this all the time and same goes for schools and any other such accounts with so many restrictions and demands. If would take the time to actually read some of the post here this has been talked to death. If you find some of my old post (or read my book) you will see I am not about "slapping some healthy crap" in a machine. I talk about having an actual healthy program in you vending model. However, I also talk about make other facts about the business side of it. 

 

What I am telling you what you are trying to do with this account many have tried and 98% of the time it does not work. Could these few accounts work? Maybe, but the problem is scale. Lets say you have a few all healthy accounts. Most things you buy wholesale require you to buy by the case. If you do not sell through the items you will toss them in the trash and loose money. One of my YMCA accounts require we keep a selection of healthy items. The machine is branded showing healthy choices, the items are marked in each slot showing the healthy items, prices are in line with most the other items, etc. I still struggle to sell through many of the selections before they go out of date. Keep in mind I only run 5 to 10 "healthy" items at any given time.  Also keep in mind in traditional vending 70% of your money is made with only about 30% of the items. Apply that to all healthy and it starts to get tough very quick. All healthy in schools can somewhat work because kids just want to spend their money on something and the "freedom" that comes along with buying and picking something they want. Also many all healthy folks have failed even in schools. 

 

This advice is not medicine you don't have to take to help you. It is free advice from an "old timer" that is very well in-tune with the latest trends in vending, snack food products, trends, etc. 

 

If you are bound and determined to do these accounts be sure and check back with us after you have had them 6 to 12 months and let us know how it is going. 

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I use Dixie narco and AP, I don't have much experience with other brands so can't offer to much advice there, but I love my DN and AP's, I recommend them (I use them because that's who my supplier sells). Good luck with the health clubs! Make sure you're allowed to stock it how you want to. I started a couple accounts 50/50 healthy/ junk, it's slowly dwindling down to 20/80 healthy/junk. I prefer eating the healthy stuff but it doesn't vend as well, however, most of my accounts are blue collar areas. I'd be excited to read your 6 month report. Most of it is trial and error, see what products/machines work best for you and follow the numbers. Good luck and welcome to business!

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Thanks! Yeah I'm definitely proceeding with caution. Ha. It's an upscale club, 1000 members. I decided to go with the Mercato 2000 16 selection. Stocking your basic health snack brands, but also supplements from Qwest and Progenex. Two higher end brands. The machine is equipped with a CC reader making the $3 transaction easier. I know there will be plenty of trial an error. Im close to closing a Jiffy Lube deal. Same machines because of space. These would be packed with pure junk food!

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Thanks! Yeah I'm definitely proceeding with caution. Ha. It's an upscale club, 1000 members. I decided to go with the Mercato 2000 16 selection. Stocking your basic health snack brands, but also supplements from Qwest and Progenex. Two higher end brands. The machine is equipped with a CC reader making the $3 transaction easier. I know there will be plenty of trial an error. Im close to closing a Jiffy Lube deal. Same machines because of space. These would be packed with pure junk food!

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I hate to tell you but that Jiffy Lube account will be just as bad as the health club but only with "junk food". Why dont you take the time to learn what accounts are best to target because that is more important than what machines to buy.  Good equipment is important but you have to have them in good accounts. 

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Yup got it. Let me guess tire shops bad. Sports complexes bad. Auto care and dealers bad. Hmmm.... Landed a large 150 employee medical office complex. Yup thats bad too. This isn't rocket science man. It's finding locations that have a high volume of foot traffic where people wait around or gather and our prone to snack or crave a drink. Yea if it was some po-dunk oil shop with one bay I totally see that. When it's a large oil and service station servicing well over a 100 unique visitors a day then why is there even vending. There is nothing wrong with any location if you prepare and create a plan. You have a solution-based intelligent conversation with the owner, you look at numbers, needs, average wait times, etc... I suggest posting solutions or suggestions, not saying oh that spot is bad too. Maybe ask if the new company knows the traffic numbers. The history of the location, if they had vending or not. You probably sell more books that way.

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I'll tell you that I'm not an old-timer. I've been in the Vending industry for almost 10 years now but I started young. I've serviced many different accounts and the problem with healthy stuff is that the people who really want "healthy" stuff want stuff that doesn't go in a vending machine. They want a fresh sandwich, some fruits and veggies, etc.. The people meeting half-way will go for a granola bar or some other decent tasting alternative. Everyone else will only buy junk. The point is that there's a good chance that you won't have what they want and your sales can suffer. On the other hand, the account could be alright. There's no telling. However, you shouldn't go crazy buying new equipment or anything too big. If you overstock, you can lose a lot of money.

There's nothing wrong with trying to take a market share in a specific niche market but if you feel so ready to invest into Vending then I strongly suggest you find some blue-collar manufacturing place with 30~ people and get a nice used bottle machine (setup to vend cans) and a nice used 4-wide snack. You'll be able to learn a lot so that you can go after the bigger accounts.

Vending isn't rocket science like you said, but no business is rocket science except maybe the manufacturing of aeronautical stuff. But let's be real, it is EASY to lose a big account. Competition can be fierce. If a machine breaks down and you don't know how to fix it, what do you do? You need to learn more before you jump in big IF you are worried about the risk to your investment. If you aren't worried then by all means, buy new equipment and find a manufacturing facility with 100+ factory workers. Four big accounts like that could yield you enough money to afford a larger vehicle and possibly more.

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Great feedback thank you! I'm fully aware of the dreaded all Health machines. I probably used the wrong word in niche. My company vision is a full service company. Now with that said people who tired healthy and failed may want to revisit. The choices are amazing and much improved in the past 2-3 years. New packaging and countless options. I feel like my location is a great start. I've never seen a machine that offers premium nutrition bars and supplements in a high end location demanding that type of service. My USI all snack machine, only 16 selections, is an appropriate learning machine. From his retail sales that he is passing on to vending because it was too much work tells me it will be too small- but I'm ok with that. Also, I'm listening to everyone here saying be cautious. If it works out and volume is good I'll just buy a new and larger machine and place the 16 option someplace else to test. Thankfully I avoided the combo ordeal and I'm not spending $3000, $4000, $8000 on a machine. I have the situation where this by no means is my living income. The goal is very simple. 3 machine by end of 2017. 3-5 machines by end of 2018. That's it. From there after 2-3 years look at where I'm at and how I'll move forward. Long term I'd love to operate 15-19 machines- that's it. This is for my kids really. Investing in their future hopefully creating some income for them and work.

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Yup got it. Let me guess tire shops bad. Sports complexes bad. Auto care and dealers bad. Hmmm.... Landed a large 150 employee medical office complex. Yup thats bad too. This isn't rocket science man. It's finding locations that have a high volume of foot traffic where people wait around or gather and our prone to snack or crave a drink. Yea if it was some po-dunk oil shop with one bay I totally see that. When it's a large oil and service station servicing well over a 100 unique visitors a day then why is there even vending. There is nothing wrong with any location if you prepare and create a plan. You have a solution-based intelligent conversation with the owner, you look at numbers, needs, average wait times, etc... I suggest posting solutions or suggestions, not saying oh that spot is bad too. Maybe ask if the new company knows the traffic numbers. The history of the location, if they had vending or not. You probably sell more books that way.

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Sounds like you have it all figured out. Good luck to ya. 

 

Buy the book its cheap $1.99 on Amazon you actually might lean something if you would listen, instead of think you have it all figured out and seem to refuse to listen to folks that have years in this business and been there done that". 

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Yup got it. Let me guess tire shops bad. Sports complexes bad. Auto care and dealers bad. Hmmm.... Landed a large 150 employee medical office complex. Yup thats bad too. This isn't rocket science man. It's finding locations that have a high volume of foot traffic where people wait around or gather and our prone to snack or crave a drink. Yea if it was some po-dunk oil shop with one bay I totally see that. When it's a large oil and service station servicing well over a 100 unique visitors a day then why is there even vending. There is nothing wrong with any location if you prepare and create a plan. You have a solution-based intelligent conversation with the owner, you look at numbers, needs, average wait times, etc... I suggest posting solutions or suggestions, not saying oh that spot is bad too. Maybe ask if the new company knows the traffic numbers. The history of the location, if they had vending or not. You probably sell more books that way.

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I dont care what the traffic count is. I have had machines in the larger oil change, car wash, etc type locations and they are usually not that great at all. Most I saw out of a large high volume car wash/oil lube place was about $150 a week in drink snack revenue. This is with 20 plus employees and over 50 to 200 cars a day. I have also had the 4 bay oil change places that barley did $75 a week total in drinks and snacks. 

 

Sorry but "healthy" options are not that much different now than they where even 5 years ago. It has gotten somewhat bigger with options but that has nothing to do with what actually works when it comes to vending. Their where plenty enough selections 5 years ago to know 98% of the time it will not work. I have ran the high end stuff, dried fruits, power bars, energy bars, protein stuff, baked stuff, organic, gluten free, fresh fruits in cold food machines, etc, you name it I have done it and it did NOT work. 

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$1.99? You're doing it all wrong. You need to offer the book is free and just make your money off inflated shipping costs.

Trust me, I've been in marketing for 15 years.

[emoji12]

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See I believe our opinions of what is successful are extremely different. I would love for my first machine to make $150 a week. That's a grand slam! As I become more tenured, experienced, multiply the machines as I previously stated what my goals are. Of course I'm going to adjust all of those return on investment numbers.

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$1.99? You're doing it all wrong. You need to offer the book is free and just make your money off inflated shipping costs.

Trust me, I've been in marketing for 15 years.

[emoji12]

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See I believe our opinions of what is successful are extremely different. I would love for my first machine to make $150 a week. That's a grand slam! As I become more tenured, experienced, multiply the machines as I previously stated what my goals are. Of course I'm going to adjust all of those return on investment numbers.

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Actually I am doing it right. I charge $1.99 for the book free shipping but it advertises my consulting business.

 

I said that $150 was for the total account drinks and snacks not one machine. 

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I have 50 plus locations. I have one location that is more of an office with 75 people and it barely cracks $100 a week. They claim to be all about health, but the majority of items that are gone are junk food. I have multiple health items in the machine that barely move. I have another machine shop with 10 people and it does $100 a week. So traffic count can't always be an indicator. But we do know certain types of locations will outperform others, so try to focus on those locations.

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Guess I will get I here, too. If we are still answering the original question, I have a maxim on vending machine quality and selection:

Lesrn the list of good manufacturers - it is much shorter than the long list of existing, current, future, or soon-to-be-rebranded bad manufacturers.

Pro tip: AZVendor's post has the exhaustive list of manufacturers. Seriously.

Caveat to the maxim: Wittern Group/USI/FSI/Fawn/U-Select-It probably has a few trademarked names in their portfolio that have not yet been put on their machines. Whichever name it has, though, most of the newer ones look and operate just fine. (We own a bunch and like them.)

Other pro tip:

SmartyV, you may have already researched enough to know that statements against import machines are neither biased nor unfair. For the few foreign machines that are worth having, the scarcity (and, thus, cost) of parts, service, and expertise are deal-killers. That fact is simple enough on the surface, and deeper analysis of the logistics and marketing only serves to prove it moreso. (Although, I do still hope that Italian/Dutch pizza vending machine works and finally gets marketed in the U.S.)

LB

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