sabr5 Posted March 18, 2017 Posted March 18, 2017 Hello, I am trying to get started in the Vending business. My wife has a friend with a few machines she is trying to sell. What type of machine should I start out with first? (Snack or Combo). She has a Snack, a Combo and a Beverage machine. Any advice would be appreciated!!
deee_z Posted March 18, 2017 Posted March 18, 2017 Welcome to the forum. Hopefully these machines are on location. Just do it small to start and learn about the machines. Grow it when you are ready!
AngryChris Posted March 18, 2017 Posted March 18, 2017 There are three ways to get into the business. You can start with a couple machines and grow from there (recommended), you can buy a small existing route with enough machines and revenue to keep you busy for a day or two (only recommended under certain circumstances), or you can buy a complete business with at least one full-time route that is capable of supplementing some income (not including the loan payment). Of the three, the third option (buying a complete business) is the hardest and the least recommended because a newcomer doesn't have the experience to run such an operation. If there are multiple routes, then it's almost impossible to operate unless the business is completely managed with existing employees and the operation is 100% passive income. Aside from that, the reward is possibly good (but not gauranteed), the risk is high (guaranteed), and the chance of you actually wanting to call this your new career is completely uknown. Now, focusing on the other two options (ie. starting with a couple machines or buying a small existing route), we can break down both. Starting off with a few machines (even on location) is a low-risk way to see if you're even into the business. Should you decide that it's not for you, you have very little money invested in the business (as long as you don't pay an arm and a leg for your first few machines). The downside to starting small is that you have a problem with stales, primarily on snack machines. The reason for this is because, unless you have good locations, you simply won't sell enough of each individual product out of the cases (or variety packs) that you buy and you'll end up having some products left over that are past expiration date and should be removed from the machines. Let's say you even have a can machine with 8 selections, but the location you have generates $30/week in can sales and they primarily only buy mountain dew, coke, and diet pepsi. If that's the case, the other 5 selections are at risk of expiring. You could leave them empty... but someone might occasionally want a 7up and they might get upset if it's not there. You end up having to buy an entire 12-pack or 24-pack of each variety of soda. Once you have several soda and snack machines out there, you can start spreading the products out and having them sell faster, allowing you to reduce your expired products a little, but the next problem is that you need enough product to fill all of the machines but you also don't want to get too much product, so you still may end up with as many stales until you get way more accounts or better accounts. As for buying an existing route, the benefit is that you usually have enough revenue to produce a decent profit. You are capable of reinvesting back into the business or pay yourself a little. You also get the benefit of selling enough product fast enough that you can buy several cases of various products at a time with little risk of overbuying (if you know what you're doing). There still may be a problem with stales, but the percentage of stales in an existing route should be far lower compared to the revenue than that of a couple machines. When I first started, I would bet that 10-25% of my chips expired from one week to the next. I have more stales now than when I first started, but I have WAYYYYY more revenue. The downsides to buying an existing route are that you invest way more (thus, a higher risk to lose money if you decide it's not for you and you try to sell out) and you NEED to start upgrading your vehicle to carry the amount of product you'll be needing. You'll also need to dedicate extra time to the route for service calls and repairs. The general recommendation here is to start off with a can machine and find a decent location (ie. hot factory with 20 employees) or several locations and see if it's for you. If your locations are generating decent revenue ($50+/week from a can machine) then it may be worth while to invest in a snack machine too. Once you get your feet a little wet, you can really decide if you want to jump into it or not. It's just hard for all of us here to tell anyone to jump straight into the business because we all know how difficult it can be at times. We all went through the dark ages of vending and we have all had absolutely terrible days where everything went wrong. Keep in mind that virtually every business has its ups and downs so vending isn't any worse. It's just that you don't have to spend thousands and thousands of dollars just to see if you like it. You can buy a can machine from a local distributor and have it delivered to the location for maybe $800 and you can start being a vending operator right then and there. As for the "someone that someone knows" having a few machines, the important thing is to find out how much money the locations generate, what kind of machines they are (make AND model), and how much she's asking. With that information, if it's accurate, we can tell you if it's worth trying or not.
sabr5 Posted March 18, 2017 Author Posted March 18, 2017 Thanx for the info. I will get more information and come back for an update!!
sabr5 Posted March 25, 2017 Author Posted March 25, 2017 Ok I have more info. My wife's friend is offering 1 Dixie 276 Beverage machine and 2 Snack machines for $3,500 is this a good deal?
Chard Posted March 25, 2017 Posted March 25, 2017 There are not many ways this could be a good deal (unless the two snacks are brand new or are very profitable where placed)Sent from my SM-T350 using Tapatalk
AngryChris Posted March 26, 2017 Posted March 26, 2017 7 hours ago, sabr5 said: Ok I have more info. My wife's friend is offering 1 Dixie 276 Beverage machine and 2 Snack machines for $3,500 is this a good deal? That's not enough information. The 276 could be an old single price 276 can vendor or a newer 7 select 276E. The snack machines could be worth anything from nothing to several thousand depending on the models. You need all three model numbers, ideally with pictures. Also, you need to know how much the locations are grossing, assuming they are part of the deal. So far, it doesn't sound like a good deal at all.
sabr5 Posted March 26, 2017 Author Posted March 26, 2017 1 hour ago, AngryChris said: That's not enough information. The 276 could be an old single price 276 can vendor or a newer 7 select 276E. The snack machines could be worth anything from nothing to several thousand depending on the models. You need all three model numbers, ideally with pictures. Also, you need to know how much the locations are grossing, assuming they are part of the deal. So far, it doesn't sound like a good deal at all. I know its the 7 select version and there is no locations as part of the deal. They are in his garage right now!!
AngryChris Posted March 26, 2017 Posted March 26, 2017 That's good if it is a 276E then. The 276E, in perfect condition, is probably worth no more than $1800. And I mean everything works perfectly and everything is clean and location-ready. If things are slightly worn, the value drops because the machine looks uglier to customers. In reality, a 276E in good shape with everything working is probably worth $1,000. having said that, the two snack machines need to be VERY nice and late models in order to make $3500 a good package deal. I think you would be better off starting off with a can machine that works good for $500 though.
sabr5 Posted March 28, 2017 Author Posted March 28, 2017 Coke Royal 660 Soda Machine 9 Selections can or bottle vend . $1000 is this a good price?
sabr5 Posted March 28, 2017 Author Posted March 28, 2017 12 minutes ago, lacanteen said: If it's location ready, yes. No its not on a location I will have to have it delivered to a location
darkinthepark Posted March 29, 2017 Posted March 29, 2017 57 minutes ago, sabr5 said: No its not on a location I will have to have it delivered to a location By "location ready", he means that it is in 100 percent working condition and ready to be put into a location of your choice.
AZVendor Posted March 29, 2017 Posted March 29, 2017 On 3/25/2017 at 9:17 PM, sabr5 said: I know its the 7 select version and there is no locations as part of the deal. They are in his garage right now!! Not a good price at all for idle machines. They sound old.
sabr5 Posted March 29, 2017 Author Posted March 29, 2017 12 hours ago, darkinthepark said: By "location ready", he means that it is in 100 percent working condition and ready to be put into a location of your choice. ok So yes it is location ready
sabr5 Posted March 29, 2017 Author Posted March 29, 2017 5 hours ago, AZVendor said: Not a good price at all for idle machines. They sound old. No their not old they were in a school a month ago but the person had to remove them due to new management
AZVendor Posted March 29, 2017 Posted March 29, 2017 Still too expensive for idle machines unless they are relatively new. Sounds like she is trying to get her investment back from whatever she paid for them. Without the snack model numbers no advice can be given though.
AngryChris Posted March 29, 2017 Posted March 29, 2017 4 hours ago, sabr5 said: No their not old they were in a school a month ago but the person had to remove them due to new management By old, we mean they were manufactured decades ago. I have some 30+ year old machines on location still making money.
lacanteen Posted March 29, 2017 Posted March 29, 2017 1 hour ago, AngryChris said: By old, we mean they were manufactured decades ago. I have some 30+ year old machines on location still making money. That's why he's angry.
sabr5 Posted March 29, 2017 Author Posted March 29, 2017 Do most of you guys have both Vending and Gumball machines?
QuikVend Posted March 29, 2017 Posted March 29, 2017 I would say there's a mixture of those who only do one or the other and those who do both (myself included).
AngryChris Posted March 30, 2017 Posted March 30, 2017 I have done honor boxes and vending simultaneously but I currently only do vending.
sabr5 Posted March 30, 2017 Author Posted March 30, 2017 Sorry to keep asking you guys random questions and such but how do you move your Vending machines around? Handtruck, Dolly?
AngryChris Posted March 30, 2017 Posted March 30, 2017 A mover who brings his helper, his box truck with a liftgate, a pallet jack, appliance dolly, cardboard, 4x4 blocks, and many other handy tools.
Corvus Corax Posted May 12, 2017 Posted May 12, 2017 Moving machines is no joke. I have a box truck with a liftgate and an appliance dolly with kickoff wheels, and the first crappy serpentine can only machine I moved by myself almost killed me five or six times. Then I found out it wasn't worth half what I paid for it. Small soda machines weigh 500+ lbs. Good two piece dollies cost $500 bucks, and liftgates are usually worth more than the truck they are attached to. You can try dipping your toe in, but this water is deep and cold.Sent from my SAMSUNG-SM-G900A using Tapatalk
Recommended Posts
Archived
This topic is now archived and is closed to further replies.