Are these good machines?

[MVS]

Hi Guys-

So I have my business all set up, and now have only to take the plunge: Buy a beverage machine and place it in an account.

As I am in the Minneapolis area, the only local provider of machines I am aware of is AVS Companies, and on their website, they show 4 new beverage machines you can buy from them here:

http://avscompanies.com/equipment/vending/beverage-vendor.html 

Of the 4, I am guessing the last two are the less expensive, and are probably the two I am considering.

Not sure what they go for (in the $3500 range?), but does anyone know if these machines have a good reputation?

PS: This AVS Companies says they can also help me get set up with credit card swipes/telemetry if I want to.  I sure would like to, since I don't know beans about where else to get that capability, how to install it, or how to use it.  So if I decide to go with that technology as well, is there any reason not to do it through AVS Companies (i.e., Work directly with some cc swipe/telemetry company, whoever that might be)?

I have had NOTHING but GREAT advice from this forum, so thanks in advance!

[MVS]

PS: I should add that this AVS Companies also has a few refurb machines in the $1500 range, but they are 10-15 years old, and look a bit dated (and not sure if that is like buying a used car -risky- or not).  Sure would like to save the money, but don't want to throw money away either, and since I am totally green, and incapable of perforing most of my own maintenance, it feels safer to pay more for trouble free machines...hopefully.

Anything wrong in this reasoning? 

[Poplady1]

First, go on your local craigslist and search for vending (for sale).  I just did.  There are a lot of machines for sale in your area.  Very few vendors buy new equipment unless you have an account that justifies that expense.  I always recommend checking for a small route for sale in your area.  That will give you machines on location, a person to help train you on the machines, getting your product, etc.  You can probably buy a small local route for the amount of money you are going to spend on 2 or 3 new machines.  Just my two cents.

[CajunCandy]

Very good advice from Poplady1!

[lacanteen]

The ,machines in your link are decent, and AVS is a reputable company, and I have known the owners for decades.

As for the refurbished equipment, let us know the make and model and if any upgrades were installed and we'll give you a very biased opinion. 

[MVS]

22 hours ago, Poplady1 said:

First, go on your local craigslist and search for vending (for sale).  I just did.  There are a lot of machines for sale in your area.  Very few vendors buy new equipment unless you have an account that justifies that expense.  I always recommend checking for a small route for sale in your area.  That will give you machines on location, a person to help train you on the machines, getting your product, etc.  You can probably buy a small local route for the amount of money you are going to spend on 2 or 3 new machines.  Just my two cents.

Hello Poplady1-

Thank you for this advice.

In one of my first forum posts here, as a guy just starting out, I asked about buying a route, and was advised by several members against it.

Apparently, many of these routes are sold by "locators," and I was told that if I were to purchase a route as a way to jumpstart my business, I might end up being forced to sign contracts obligating me to purchase more supplies than those routes actually use. 

It was also pointed out that while this could be a way to avoid investing in machines, it also means that I am buying something without gaining ownership to any tangible assets.

It sure would be helpful if someone could lay out the pros/cons for me (I can't do that myself, because I don't know what I don't know).

[AZVendor]

The warnings you refer to sound like warnings against using 3rd party machines from any bottler.  Those are machines that you would never own.  That is not a way to start out.  If you wish to have instant cash flow then buying someone's existing route or company is the way to do it.  However, you must do your due diligence to minimize the chances of falsehoods being presented to you.

[MVS]

Took Poplady's advice and went onto Craigslist and found these machines for sale at what seems like pretty decent prices.

Can anyone tell me if the machines in the first 4 pics are capable of adding credit card swipe/telemetry, in case I go that route in the future?

And, are these good machines?

https://minneapolis.craigslist.org/hnp/bfs/d/vending-machines/6290738752.html

[AZVendor]

Those are all good machines and the prices are great assuming they are complete and the soda machines cool.  The first three are MDB capable and the AP snack will need an aftermarket logic board to go MDB.  The will probably need some work done to them and you can email me at rbepic4gatgmaildotcom if you need parts.

[MVS]

Sweet!  Thank you!

[Poplady1]

You can bank on AZVendors advice.  

[Poplady1]

I forgot to answer your questions about buying a route.  Healthy Vending is a hard business so it's best to avoid it.  Find a few healthy items to offer in your machines to meet the need customers want. Not sure what you mean about locators selling routes. There is a group calling their business Coke Promotions which you want to avoid.  They are not part of Coke and they skip around all over the internet.  Anything that has 800 in the phone, avoid.  Don't buy a bunch of combos.  Don't buy into anything that requires you to buy thru their company.

Probably a good idea to run any route possibilities past this group for opinions.

By saying a small route call your larger vending companies in your area to see if they have any locations that are underperforming that they might sell with or without equipment.  Canteen wants to make $100 a week per machine.  Sometimes they will sell some spots or keep your eye on Craigs List.   

Always be careful, ride with them a few times before buying.  Sometimes your local equipment reseller might have something so stay in touch.  Hope this helps.

 

[rmotion]

Is $100 gross per week a good benchmark for a route. What about factoring the price you paid for the machine, ie: $2000 for a machine that is doing $45 per week? 

[lacanteen]

1 hour ago, rmotion said:

Is $100 gross per week a good benchmark for a route. What about factoring the price you paid for the machine, ie: $2000 for a machine that is doing $45 per week? 

$100/week gross per machine is a is a good place to be. An easy ROI calculation is machine cost X 2.5 = break even on the machine. In your example, a $2000 machine has to sell $5000 in gross sales to pay for itself. A $2000 machine doing $45 gross per week breaks even in 111 weeks. You're not getting rich at $45/week. Just paying for the machine in a little over 2 years. 

[AngryChris]

It really depends on your market.  In my market, getting $50/week PER MACHINE is good.  You can still have problems with stale product if you overfill, but you can generally fill most selections either full or well over half-way full and come back in 2 weeks to restock and collect a good amount of cash without too much work, all while staying under the radar of the big dogs.  Once you get into $100/week per machine, you are now competing with just about every vendor who isn't mega-sized or so small that they only have 3 machines.