RADIO STATIONS AND TV STATIONS

[ROGERS VENDING]

Anybody have any TV or Radio Stations?  Do they do well?  I'm looking at buying a small route that is nothing but TV and Radio Stations?  Supposedly, the machines do $25 to $50 per month.  She has 3 in one building... I didn't know that many people worked at the TV Station....

They are Vendesign, the 4 in 1 carousel... That's not what I wanted but.... she said they're metal coin mechs.  Supposedly, only 2 mechs have broken out of 8 machines in over 5 years.  Are these machines OK?  They don't break a lot?  Do they take too long to service?  She said they only take 10 minutes to service... IS that true?

I get 8 Vendesigns in 5 locations.... 2 radio stations, 2 TV stations, 1 restaurant...

Supposedly, they do $25 per machine (a month) on avg.  They used to be better but she only services them every 3 months now because they want out of the business.  They pull about $500 every 3 months and she confessed the machines are out of candy at times.  When they first started and were servicing the machines regularly, some machines grossed $40 to $50 per month.  Does this sound believeable?

Also, I get a few extra cannisters and 3 Vendesign machines ready for placement.

SUMMARY OF OUR PHONE CONVERSATION:

5 locations with 8 Vendesigns = $500 every 3 months (3 hours to service)

3 Vendesigns stored in her garage

a couple of extra cannisters and a few bags of candy

$1,700 for all

Good or Bad???

I'm running the route this week but she just serviced the machines last week...  and she's about to have surgery so I must buy this week... she didn't seem pushy or anything... what do you think?

[g_r_vending]

I would only pay for the locations and machines. Therefore 5 locations at $50 per location=$250

And 8 machines worth maybe $100 each=$800 would not offer more than $1050 for the route, her sales cant be proven and therefore you have to be able to re locate or sell the machines. IMO

[ROGERS VENDING]

THANKS, gr... There's also 3 Vendesign machines not on location... You're saying you wouldn't purchase those machines?  I'm gonig to buy some used Northwesterns next week (hopefully).  Vendesign wasn't in my plans.  What do you think about the Vendesign machines?  I just found the review section.  I'm going to see if I can dig anything up.   How fast they can be serviced?  How often they break?  etc...

[Honda man]

Rogers vend, I just contacted a guy in Canada who's been running a route for the past 6 years, using Vendesigns and Uturns. I hope this is useful to you, Ernie.

Heres what he had to say about them:

Hi Ernie,

Vendesigns are excellent solid machines. I've had my business for 6years and use them and UTurns. Vs not as pretty, but easier to keep looking clean. Heavy base/machine also makes the Vs better for locations with rougher-use customers. Only four candy choices makes servicing, hauling product, easier for you... Use 8bin UTurns if you have good locations that would value the extra choices.

Avoid entrances and windows: freeze candies in winter, melt'em in summer. If located in entries, you can always load machine with hardest candies. If wet or slushy floors, get plastic mats to protect machine from rusting and 'bleedying' rust from bottom edge onto floor: Cdn.Tire has clic-together shop/yard mats, pretty cheap, worth getting along with location. Some are pretty fussy about what and where machine is doing, in the way? or helpful?

MECHS can be a problem - Cost a bunch for new (RPM vending on EBay is good). First couple years, using used machines, I was tuning-up/rebending several warped coin wheels every month. Eventually, got'em all working smooth and trashed the worst ones, now only tuning-up 1 every couple months.

Candy bin dispensers: Mike'n'ikes and jelly beans get clogged in teeth/cylinders, so you gotta check/clean'em regulary, especially in hot humid conditions. All candy has tendancy to stick a bit in hotter moister weather, so you gotta shake the bins a bit when collecting quarters and checking stock.

I always have a clean candy bin with me to change-out, so I'm not picking at the stuck candy in front of customers. Good idea to clean and circulate some canisters every month - Shows location people you care for sanity more than the superficial wipe and polish of machine's exterior.

[Beer980]

I think you need to play down your interest in those machines. Tell them you do not have a good feeling by what you have read about those machines and don't waver on that point. $1700 is a bit much with the way it has been serviced. The numbers are hard to prove and possible kickout from no product. I really don't have a good feeling offering over $900 for the whole route and that may be a little much. If they won't budge then offer to buy just the locations to put your machines in them for $50 each. Tell them they can see what they will get for the machines on Ebay if they like. I have a route for sale here in my town that I have an inquiry to them about the particulars. Right now I know the route is not serviced very well and has 32 1-800 machines located. He is asking $1800 OBO and that is a little high from what I know about the route. With all things being equal this route by me is 4 times the size as the one you are looking at for the same money.

[ROGERS VENDING]

Thanks for the help guys!

You don't think it being Radio and TV Stations makes it worth the price.  She said they have had these locations for 5 years and she's supposedly got tax returns to prove income... The only thing I liked about it is the fact that I should be able to collect $400 income every 8 weeks on just 2 to 3 hours service time..... add a few more down tonw locations and I've got something worth while one day after work.  All these places have security check ins.  One of the TV Stations has more than one building and that's the reason for 3 machines at this location. Supposedly, her husband has contacts and that's how they got the locations in the first place.

It would be nice to have a small route to help get things rolling and learn the ropes. 

[Quarter Master]

Ahhhhhh, now all the info is coming out.Her husband has contacts-that means a really good chance of you or anybody else getting kicked out. IMO-I'd stay away from this "deal".

[ROGERS VENDING]

I guess the reason I was interested is this:

It's going to cost me $75 to $100 a piece just to find 2 used, cheap double heads or a cheap triple and a single.  I say this because the Vendesign has 4 mechs/cannisters per machine.  I don't know if they're any good, but they at least look slick. So 11 machines times around $100 per machine equals $1,100 total for the machines.  Then if I pay a locator $50 per location that is 8 timess $50 equals $400 for the locations.

That's $1,500 right there.  And wouldn't you think TV and Radio Stations would be good locations??  Two of the stations are the local NBC and ABC affiliates.  They've been on location for over 5 years.

I do understand where you are coming from, I'm just throwing a different spin on it.  Do you still feel it's a bad deal?  Just want to totally convince myself here...

[Beer980]

You need to see that contract they have with the locations. See what the commission % is. Let them show you the tax returns as proof to get a better idea. Ask to speak with the contact who signed the contracts to see how much they are being paid to verify the tax forms. Where does it say you will retain the rights to the location if they sell to you in the contract or do you need a new contract? You need a no deal clause if the locations kick you out when you take over the route too if possible. I still don't feel very good about spending more then $900 but if it is real good evidence and you can take the hit then maybe give it a shot. We don't know what area you are in because your profile is incomplete but I would think Craigslist might yeild a better deal on used machines to have located by you or a locator.

[ROGERS VENDING]

Beer,

Thanks for the advice (and Honda and gr)...  I think I can get everything you mentioned from the lady, but after hearing some good things (for once) about one of the locators on this site, I've decided not to purchase the machines.

I'm going to pick up some used Northwestern 60's on Friday and pay the highly recommended locator $50 per machine... I'm getting a real good deal on the Northwesterns.... Double heads (on stand) for $40 a piece.... Single head (on stand) for $20 a piece.  I think there pretty old machines but are supposed to be in working order.  He said some are a little scratched up and could use a touch up paint job...  I'm going to take a look at them... I really don't know what to expect.  The price seems too cheap.  The guy is a retired Major League ballplayer (15 year vet) who's in the radio business  ( I know it's him, recognized his voice and name).

He said I would get enough extra globes and mechs to never have to buy parts for the machines...

I will fill out my profile in the coming weeks.  I'm just pressed for time right now.  Doing lots of research, about to pick up machines, fill out the DBA, tax ID, etc, etc...