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Ice cream deal


TKK

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Hey guys, been busy. So we are currently doing great in the school district we got. They made us put timers and that dropped down sales like 2k a day :(

 

Anyways theres a guy who does only ice cream. He has 17 machines in 8 of the schools i currenyly service. He also has 18 machines in another district (high schools mostly). You can tell they sell alot, not as much as our snacks but they do look like they sell alot. They fill them up once or twice a week. I have some places where we go every single day. Well long story short, my contract gives me the rights to put ice cream machines in the campuses. He wants me to buy them, this is what he was asking.

 

34 crane national machines in location

30 in the warehouse

12 oscar gumball machines

Hydrolic trailer

2016 van with freezers

300 surevend new sensor kits

40 new cooling decks for the machines

1000 extra spirals, random parts

2 fastcorp machines

Gross 330k a year, cogs are about 90k. He said sales are prety split down the middle with both districts. 

 

So he said hed sell me 17 in location machines and another 5 extras for 98k. Should i get the district im not in, and just get him out of the schools im in since i have the contract? I could put new usi machines which are 6k each w warranty. His are older surevend cranes they are huge as heck and he did alot of upgrades as he said theyd give him alot of problems, one including adding health timers.

 

I wouldnt mind the extra opportunity especially since we already service them. Maybe put an inverter in our current promasters and sprinters?

 

Anyone doing ice cream?

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I have 2 fastcorp machines, only one on location right now.  The margins are great and I can only imagine how much you would sell at a school.   What LA said about meltdowns is true, but the fastcorp chest freezers hold longer in a power failure and are probably easier to clean up.  I let the mess refreeze and then pull all the sleeves out and wet vac the cabinet (only had to do this once in 4 years thankfully).  If I remember right from your original thread, he is actually intruding on your contract, so I would probably buy him out for the district you are in.  If you buy the other district, what do you do if another vendor gets that contract and throws you out?  And I would take a good look at Fastcorp vs USI for frozen.  I don't know what the capacity is for USI, but my machine has 12 selections with capacity for about 16 boxes of product total, and lots of flexibility in setup.  The new robot system is very easy to program as well.

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6K sounds like more than new for the machines, and the product is not that expensive.  Can't fault him for trying I suppose.  The last Fastcorp I bought was the evolution model, they have a newer line out since then.  The model just previous was the Z400; you might find some older models cheap, but there is no more tech support for models before the Z400, and parts can be hard to find. 

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8 hours ago, TKK said:

Man teachers lounges blow!

Pretty much, yea, but I work them as fill-in's along the routes mostly out of sympathy!  I don't know too many other vendors who will even touch them around here, and I will probably drop the worst of them next year.... I have 2 that don't do too bad.

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I had three ice cream highschool accounts about ten years ago. I made the mistake of buying New  Jofemar ice plus ice cream machines it became a nightmare. The machines compressors  would go out or the belts broke on a monthly basis and when the machines would finally work it took forever to vend the product. I suggest buying a ice cream machine that will vend quickly and are high capacity  the lines are long at high schools and the lunch period is  about 30 minutes.  

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