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jbl vending va

Area saturation

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Can you over saturate an area?  How do you know when you have??  I have 400 locations and want 4000. Want to hear what everyone thinks about over saturation???

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BCB434    25

4,000 locations,  I think you will  know when you are over saturated when you go locating and every potential spot already has said no or already has at least 1 machine.   

With employees,  expenses,  record keeping,  locator fees,  and not to mention the warehouse you are going to store them in.   

What's even the benefit of bulk vending vs just being an absentee owner of a few subways?  Just asking.

 

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AMD Snacks    116

400 is great to me. The problem I see is that if I get much bigger, I might as well be doing full line since i'd be at it just about as frequently. Not to mention that if you get a certain size you hit the old diminishing returns area, where you have to hire people and vehicles etc, to where you'd make the same as if you had half the locations and no additional costs. 

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am i calculating something wrong?  my employee can service all 400 locations in 11 business days, so that leaves me 9 business days in the month.  so my thought plan is 400 more locations using the same employee and same car..  then if i do another 800 locations he can service them all everytother month .  am i missing something?  trying to learn need input...  thx in advance

 

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AMD Snacks    116

In that case sounds like you're golden. I wouldn't normally think you'd already have someone running a route with 400 locations. I guess I should've asked that in the first place. But with those numbers you're still only at 1600 locations, you going to hire another person?

 

But anywho you have way more locations than I do, so I can't add much to that topic, but to your original question, I was in an area when I first started that was super saturated. Every body and their cousin had a machine somewhere, and a lot of business had their own bulk equipment. I still found locations here and there, but mainly just had to drive out 20 miles or so to get away from the big city before things opened up. Maybe you'll just run into the same scenario where you'll have to expand out. 

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musser    1,024

The limit only exists in your own mind.

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musser im with you.... you gotta out hustle the next guy to get ahead and have some street smarts also!

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AMD Snacks    116
1 hour ago, musser said:

The limit only exists in your own mind.

The limit of how many machines per area? Care to elaborate, i'm always learning myself..

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meaning think out side of the box when it comes to locations.. i personally never prejudge a location if itll produce or not until its placed and i get the results back then...   

 

example of thinking outside of the box.... a grocery chain here has 6 to 8 way racks outfront with a contract on a national level  so i asked if i could put a machine in the breakrooms for the employees and all 6 stores said yes.  3 of them do very well. 

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AMD Snacks    116

Wasn't your original question about over saturation? If you take your example and do that repeatedly, and 3 dozen other vendors in your area do the same, you will eventually run out of places to locate. If you're in a city like Los Angles, which has plenty of competition, you will find it very difficult to find 4000 locations like you mentioned you wanted. But if you're saying just hustle and you'll never run out of locations, then i'm not sure what your original question was even asking. 

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your right we did get off topic abit  musser said saturation is in your mind only and  i think hes right.  meaning over saturation only happpens in your mind if you let it and dont think alittle more creativly..  he brought up a good point... also my original question should have been has anyone come across a saturated area.. i also am working a much large area than most people are i believe

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Kevinator    20

I don't know that you can saturate an area. Every business that has a storefront or office, if its commercial property and you can get a machine in there, put one in.

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AMD Snacks    116

I can agree that there's always potential in an area. Businesses close, change hands or management, vendors get lazy (how I just took over a location recently) or retire and what not. But for rapid expansion, i.e. growing tenfold, I think you'd have to cover a large area and branch out. The time just wont work out that there's good locations to be had in abundance in one area. Otherwise no one would ever leave a certain city and save all the hassle of gas and traffic. 

I'm spread across several cities with my route, and there are cities I don't really go crazy trying to locate because there's just soo much competition it would tie up all my time weeding through the scraps. That being said, I have a regular job too, if I had all day to locate and focus on vending, (which you might) it's a different story. 

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musser    1,024

How many locations, once they get to know you, can you up grade. Push out the other guys rack etc. see if they will take a crane etc etc

Edited by musser

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musser    1,024

I live in a small town with NO businesses. Every location I have is "somewhere else"

Edited by musser
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vendtex    55
On 8/10/2017 at 0:36 PM, musser said:

The limit only exists in your own mind.

and body

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rodney69    353

I must be missing something, 1st, why are 400 locations taking 11 days a month?  Are they racks?  If not and they're candy machines,  they probably don't need serviced monthly.  We service on 60 and 120 day cycles. So 400 locations equals about 6 days a month.  We're not there yet,  but about that in equipment in less locations and takes 3 days a month to service.

As for saturation,  when you've tried every location,  and you have every o ff of them that makes the minimum that you're willing to live with.  

I know vendors that have .10 machines doing circle gum and service once a year.  Also know some that don't keep anything under 20 a month for doubles. 

It's all in what you're willing to accept,  more importantly,  how far you're willing to drive, how's many you'll hire. 

Look at NEN, they put the equipment out,  then hire precooked oin the area you service. 

Area is only as small as you want it to be on your mind.  Saturation is limited to what you accept. 

It also changes daily.  Someone closes, opens,  or changes their mind about wanting a machine every day. 

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musser    1,024

I agree Rodney. Service schedules depend on sales averages at each location. Properly scheduled a single person can service a lot of locations.

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correct rodney   and i meant 11 days of service not 11 days every month, we service every 60 days also unless the location cant go that long which i have about 8 locations that get service every 3 to 4 weeks

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gumhead    6

Hello Rodney,

I'm a little foggy today - what's oin?

See red below.  Thanks

----------------------------------------------------------

Rodney's post:

I must be missing something, 1st, why are 400 locations taking 11 days a month?  Are they racks?  If not and they're candy machines,  they probably don't need serviced monthly.  We service on 60 and 120 day cycles. So 400 locations equals about 6 days a month.  We're not there yet,  but about that in equipment in less locations and takes 3 days a month to service.

As for saturation,  when you've tried every location,  and you have every o ff of them that makes the minimum that you're willing to live with.  

I know vendors that have .10 machines doing circle gum and service once a year.  Also know some that don't keep anything under 20 a month for doubles. 

It's all in what you're willing to accept,  more importantly,  how far you're willing to drive, how's many you'll hire. 

Look at NEN, they put the equipment out,  then hire precooked oin the area you service. 

Area is only as small as you want it to be on your mind.  Saturation is limited to what you accept. 

It also changes daily.  Someone closes, opens,  or changes their mind about wanting a machine every day. 

Edited by gumhead

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rodney69    353

Auto correct! 

Hire people to run it.

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