Questions about starting a route/business

[jamesmick430]

Hey everyone. I'm considering starting an amusement vending route as a side business (at least for now, would like to do it full time in the future). The centerpiece of my business would be skill cranes. I would be starting out with a Toy Taxi or something similar and placing it in a truck stop. There is a Pilot near where I live. It used to have a crane, but it was removed, most likely because the establishment needed the space (it was a UFO Catcher after all). I'm thinking they may opt for a smaller crane. I think the best way to go about this is secure a location and then order the machine since I have no space at home to store one. Here are some questions that I have:

 

1. Since this truck stop would be my first location, should I go ahead and get a business license and all other necessary permits before approaching the store manager? I would think so because it shows you are smart and organized.

 

2. How do I approach the establishment manager and what's the best way to pitch my product/service? I know how to be a salesman, but how do you as a vendor go up to the manager/owner and pitch your product? 

 

3. What kind of commission do you typically pay to the establishment for a crane? I've researched this, and it seems that most are at 35%. What percentage should I offer as a starting point to the negotiation?

 

4. Since Pilot Travel Centers are a big company, do you approach the general manager or do you have to go to the district manager or someone higher up? Does the general store manager have the authority to let you place a machine? 

 

5. Is there a contract or placement agreement? If so what do these documents typically contain?

 

6. At this truck stop, there is already a vendor in there with a coin pusher and arcade games that cost a penny. Does the establishment and vendor typically sign an exclusivity agreement saying that no competing companies may place machines?

 

Thanks for taking the time to read this and I look forward to hearing your responses

[orsd]

Peelots and other truck stops and national chains usually have contacts with nationwide groups. But it doesn't hurt to try.

[jamesmick430]

Peelots and other truck stops and national chains usually have contacts with nationwide groups. But it doesn't hurt to try.

 

Thanks for you reply, orsd. Does anyone else have any input? Thanks again.

[Toad]

Great idea. Go ahead and buy all your license and permit now, before you figure out how this business works, it will save valuable time. I also think its a great idea to spend thousands of dollars on a single new machine , before you have a home for it or even talk to a location first. Piolt truck stop should be about the best location you can ever get, your so lucky your the first one who thought that was a good location for a crane , otherwise im sure there is no other reason there is not one there either and the existing vendor will be kicking himself for not thinking that first. Im sure the other vendor already in there wont mind if you place it there. Btw, Ive never seen one at mcdonalds either, so there is another great location to try. I also heard if you buy cranes in quantity, that you can save lots of money. After all, Money saved is money earned, so just spend all you have or better yet, mortgage your home and borrow as much as you can!

[PerformaVending]

To the uninitiated, Toad is being sarcastic- but he makes a good point here.

 

Getting into amusement vending is far more difficult and expensive than other facets of vending, and offers some of the most difficult challenges in terms of locating and operations. You will want to do a LOT of homework before making a move on any purchases. Talk to locations, and get a feel for what places might have you. If you haven't located before, I would seriously recommend a few bulk machines to learn the ropes on. They're far less expensive, and considerably more forgiving when you're just getting started (both in terms of operations and financially). The few amusement operators I've ever met in person all run their amusement businesses in addition to an existing full-line vending business, as the full-line business affords most of the infrastructure needed to run an amusement route in terms of licenses, transportation, and finances- not to mention you're in the same "size" range for locating. I do not recommend getting into amusements without some prior experience in vending- be it bulk, full line, or otherwise. While we can help you with a lot of things, there will be things unique to your operation that you'll likely have to learn to do on the fly, and you will make mistakes if you've never done this before. I cannot stress enough that potentially learning a lesson the "hard way" on a handful of gumball machines is going to be far less traumatic than learning them on a $2K claw machine.

 

Of course, you are free to pursue this venture however you wish- we will be happy to assist you any way we can regardless of how you wish to proceed. Know that I don't wish to dissuade or discourage you from this sort of vending- rather I don't want you to get stuck in a financial mire as so many have before. Whatever you do, good luck!

[Toad]

Oh my! Performa! Every thing you just said was so right on, for real, great advice !

[PerformaVending]

Oh my! Performa! Every thing you just said was so right on, for real, great advice !