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New Account Wants Video Games/"Jazzed up MAchines


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I just got a call today from a guy who runs a place where he sees hundreds of families every weekend (I am quite excited about that). I am going to see his place on Monday.

 

He told me he already has several machines, but is tired of maintaining them/servicing them.  

 

He told me he wants me to add some machines, get his in tip-top shape, and to Make Them Look Better - this is what confuses me - though I'm guessing he might want masking, colorful stuff, etc. . Does anyone have any familiarity with making a machine look better? I don't want to look like a complete idiot when I meet him and he starts asking for suggestions.

 

He also wants video games. I told him I don't do those but wouldn't be opposed to considering it. 

 

Just wanted to hear some thoughts if anyone has them, I think this will be one heck of an account. I don't want to bite off more than I can chew - but really - big accounts like this are why us vendors put up with small accounts where you often wonder if you're even making money! SO - I have to make the jump at some point, why not now?

 

Luckily - I have some CC readers on the way! 

 

 

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I looked into game machines a while back for one of my hotel accounts, and I decided to pass on that.  I did help them get a game operator in (who would not try to get my vending!) rather than jump into games.  I'm sure there is a lot of positive in games, but wanting to do things top shelf, I priced out some of the newer game machines and was floored by the prices.  Here is my thinking - everyone has personal electronic today, so whatever games they like the carry with them.  A coin op game has to offer something above the experience of playing on your own device.  Interactive play, immersive setups, multi-player games, etc.  Those get crazy expensive to buy, and the customers are not gentle with them so repairs are frequent.  Redemption games (tickets or prizes) are a whole other level of operation, and laws vary from state to state on which of those constitute "gambling".   I chose to keep my main focus on the food and beverage operations... although I have branched out on some things since then, I still avoid games. 

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When you go into the games then your customer will be wanting the newest , latest games and they aren't cheap and new games are coming out regularly.There's definitely good money to be made in games but the cost is also great . I stay away from the game end of vending myself but maybe you could find a video game operator and sell this account to that operator . I sell accounts that I don't want for some reason, it's better to make something off of the account.


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I'm always suspicious when something like this happens.  The problem is that people lie, they exaggerate, or they don't know what they are talking about.  Before moving onto graphics and things, let's talk about what you need to look for at this location.

He says he sees hundreds of families every weekend.  I have no idea what that is, but it makes me believe that families are coming and going rather quickly.  Any place where people come and go fast, people are often not looking at vending machines too much because they'll leave and stop for some fast food later.  That's not to say it doesn't do well, it might, but just be aware that seeing a lot of foot traffic doesn't necessarily mean good sales.

He says he already has a few machines.  You need to pay close attention to what those machines are and ask what's wrong with them.  It's possible that they are very problematic and old.

Next, look at the prices.  If they are too low, then there's a good chance that the sales will drop significantly if you raise them where they need to be AND/OR there's a chance that he doesn't want you to raise prices.  If the prices are seriously low, that's a HUGE red flag.

Try to gauge his knowledge of vending and look at the expiration dates on the products.  If you notice a lot of things expiring, or if the person doesn't seem to know nothing about stocking machines at all, then you can't trust their word on how much things sell.  Sometimes (but not always), what people want is for a vendor to come in and give them everything they dreamed of.. all while they don't have to pay their own money for it.  There's also the chance that the account just isn't good and he's trying to get money because he thinks having several machines at one location makes it a "good location" and therefore of value.

If you see that the machines are old (get the model numbers), dirty, in need of major upgrades, low priced, and full of expired products, then you have two options at that point.  You offer to replace the machines (and provide your own) but offer LESS equipment.... or you walk away.

Here's a funny story.  While I was working the other job I had while I grew my vending business, I ran into a guy who was the owner of a small manufacturing plant.  He had about 17 employees.  Somehow we got to talking and he mentioned that I can come over to his place (just down the road) any time and look at the machines and offer him a better deal.  His only demand was that his employees could get "a candy bar and a can of soda for no more than $1.00 combined).  I was really more interested in seeing WHAT they had there than actually making a deal.  I arrived at the location and found my way to the vending area.  There I saw not one, not two, but FOUR machines.  There was a 3-wide USA with chips AND candy at 50 cents and pastries and cookies around 75 cents.  I couldn't believe it!!  At the time, the going rate for candy was about 55 cents per unit.  The company was LOSING money every time they sold candy!!!!! And no, this wasn't a huge company but a well-known local vending company.  Next to the USI 3-wide was a can machine selling 12 oz cans for 50 cents each.  On the far end was a 276E selling 20 oz BOTTLES for $1.00.  And in between the two can machines was none-other than a FOOD MACHINE.  When it was all added up, there were a good 15 varieties of soda, 24 varieties of snacks, and various selections of COLD FOOD products all for an account with about 17 employees!!!!!!  Even if every employee spent $20/week, the account STILL would not ever be profitable.  Furthermore, most of the chips were expired!!!!  That was the day when I realized that you should never get too desperate to get an account.  Some accounts are lucky to have what they already have, and some customers believe that they deserve more than they already have when the reality is that they need equipment taken away.  I did talk to the owner later that day as I had promised to, and I told him I couldn't offer them a better deal and I walked away.  The company that serviced them is notorious for old machines and very low pricing, and they are pretty much a non-competitor for anyone.  I think their business model has been to keep the prices so low that you can offer a terrible service and still get away with it.  That company is way bigger than me but I could take their accounts if I wanted to, but no one (including me) wants those accounts anyway.

On the other hand, it could be a real good account LOL.

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It sounds like another location that wants everything for nothing and for you to foot the bill.  Don't get so excited over every potential account.  Check them out and see what's going on and how you can improve their vending.  Most locations don't really need all they want and they don't usually support more than a soda machine.  You must do your due diligence on each location.  You also want to stay away from any amusement machines. They don't do anything near what they used to and you need to focus on one part of vending at a time.

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