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tblake05

Recommendations for "new" machines

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So Check this out.  2 months ago I secured another location with a snack machine and a soda machine.  Once I had the OK.  I went to a local machine service/sales shop.  Picked out some machines and send pictures to the owner of the new location.  We agreed on two machines.  2 months pass and they contact me to tell me I can install the machines (location wasn't ready up until now).  So I put them in.  Two days later they contact me and tell me they don't like the machines and they wanted "New" ones.  The company I got them from take in trades, take them apart, clean everything, fix whatever needs to be fixed, and makes them work as new.  Essentially reconditioning them.  Although my machines have a few scratches here and there, they are both very nice, relatively modern machines and work 100%.  But they want "New".

Upon hearing this, I half felt like packing them up and taking them out of there.  Cause in my eyes, we were in agreement to the ones we chose were adequate.  However, this could potentially turn into a very profitable location.  Maybe my best.

That said, I may shell out some money for two new machines, a snack and a soda.  So I want to choose something that is easy to use, trouble free, and that will be in service for a long long time.

For soda I want at least 10 selection with bottles or cans, and snack maybe a 36 selection.  Any suggestions?

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I like the DN glass front machines, but can they take cans?  If they drop cans, will the cans survive, or will I end up with a sticky mess inside the machine?  Thanks!

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I try to stick with current model used/ refurb machines.. it's easier said than done as they are very hard to find on the market.

Using a revision door on an older machine also gets you that 'new' look at a discount. 

If this account doesn't project to do at least 100/ week per machine you need a to have a frank discussion with the owners about the numbers here, and what is realistic for them to expect.

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Could we see a photo of your refurbished machines and know a little bit about the location you are installing. Office, warehouse, mfg or ?

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Crane merchant, USI 35xx, AMS sensit III for snack.

DN 5800-4, Vendo V21, Royal RVV 500 Plus for drink 

 

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5 hours ago, nvb said:

 If this account doesn't project to do at least 100/ week per machine you need a to have a frank discussion with the owners about the numbers here, and what is realistic for them to expect.

Kind of what I was thinking.  I see it being a very profitable location indeed.  But 100.00 a week may be pushing it.  Summertime the soda machine may hit a little over 100 a week, but snacks, I doubt.

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5 hours ago, Poplady1 said:

Could we see a photo of your refurbished machines and know a little bit about the location you are installing. Office, warehouse, mfg or ?

Here's the two I placed there, both very nice machines in my opinion, and look well paired together.  This will be a brand new car dealership that is opening.  Either way, by the grand opening date, there is not enough time now for any vending business to get 2 new machines in there.

Not sure what some people expect with the vending business.  For them to think that new machines are affordable while keeping prices low and paying sales/income taxes plus rising product costs.  It just doesn't add up.  Maybe they want their cans of soda 1.50 and their candy bars 2.00 each.

I mean, I see maybe 100.00 each a week while the dealer is newly opened, however, as time goes on and the newness goes away, foot traffic will decrease.

Just irks me that I sent them pictures and everything was good, bought them, paid delivery, and filled them, and now they aren't good enough.  Which is why part of me wants to just list both machines on craigslist as a pick up on site and let them sell, cut my losses and let some other patsy come in there with "new" machines and see what happens with prices then.

IMG_3665.JPG

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Those machines look good not sure how you please this location.

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Car dealerships can be a golpher to work with, they want everything and sales are not usually THAT good.  They like to treat you like a car buyer, bait and switch, back end loading, whatever.  You have some nice machines for them, tell them sales have to prove out before you will consider any more upgrades.  Walk if you need to, that equipment can make you money elsewhere just as easily.

 

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I had something similar happen to me once. It was a brand new building that looked like a casino with its decor. The sales justified purchasing a new machine in that case, but it was still very frustrating. Your machines look decent, and if they sales don't justify new machines, I would walk. I had no regrets leaving sites that had an "entitlement mentality". Some people will never be happy. What happens when your new machines become old? Will they want an upgrade again?

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Those look acceptable to me. Get card readers on them. That may be what makes them look "new" to some of the decision makers there. 

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1 hour ago, Snickers said:

Those look acceptable to me. Get card readers on them. That may be what makes them look "new" to some of the decision makers there. 

Agreed 100%. 

Maybe LED upgrade kits too if available for those models.

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Those are nice machines, the 3500 looks particularly snazzy in my personal opinion. If it’s looks they’re talking about then they are being unreasonable.

You might want to ask a couple clarifying questions to narrow down their complaint; whatever you do (and no matter how justifiably frustrated you are) try to treat their complaint seriously, but direct it your way. So they say they aren’t new enough, you respond that you’ll be updating them with the latest credit card readers or this or that. Pretend it’s unthinkable they are talking about cosmetics and it’s possible they’ll see they’re being unreasonable and agree with your “solution” to save face. No guarentees but I’d give it a shot.

Also for a car dealership and for machines that nice, you most definitely want card readers.

Hope you’re able to find a solution,

Benjamin

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If you are bringing in $100 each machine weekly that is $9600 annual. Keep the account 3 years $28,800 or 5 years $48,000.  Thats why vendors try to please especially new "new" car dealers.  These machines are okay but that snack is older.  If you sell the account be sure to let the buyer know they want new machines and also give them the income figures.  If I were the buyer I would take it off your hands and get a 5 year agreement with them based on new machines.  Then I would put these on another location and bring in what they want, new machines with credit card readers on them, those increase sales 28% percent as per automatic merchandiser (plus my vendors.) But this is my two cents.  During my years in vending I never had a new auto dealership that wasn't worth the investment and I certainly don't have trouble now when offering one to my group.

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4 hours ago, Poplady1 said:

If you are bringing in $100 each machine weekly that is $9600 annual. Keep the account 3 years $28,800 or 5 years $48,000.  Thats why vendors try to please especially new "new" car dealers.  These machines are okay but that snack is older.  If you sell the account be sure to let the buyer know they want new machines and also give them the income figures.  If I were the buyer I would take it off your hands and get a 5 year agreement with them based on new machines.  Then I would put these on another location and bring in what they want, new machines with credit card readers on them, those increase sales 28% percent as per automatic merchandiser (plus my vendors.) But this is my two cents.  During my years in vending I never had a new auto dealership that wasn't worth the investment and I certainly don't have trouble now when offering one to my group.

The consensus I have seen on this forum is that car dealerships aren't what they used to be unless you can get add in a coffee service with it.  Card sales obviously help but $100/week per machine seems to be on the higher side of estimates.  Dealerships (professional, fully staffed) often do anywhere from $40-$100/week from what I have seen.  If the sales aren't there then there's no reason to put in new machines.  Better to walk away if necessary and let someone else waste their profits on new machines that won't pay off for 5+ years.

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Yes, 40-100 a week seems reasonable to expect for the machines given the location.  With 100 being on the HIGH end of the spectrum on hot weeks during the summer....  40.00 a week being more reasonable.  Say 60.00 a week average.  I just can't see spending over 10k on 2 new machines plus delivery, possibly to maybe break even in 5 years or more given the cost of product, inflation, quarterly sales tax, income tax, costs associated with card readers, machine breakdowns.... List goes on.

If these two machines can't stay, I think we may walk.  Just not worth it.  Let someone else have the account and the expense associated with buying brand new machines.

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Follow up to everyone.  We left these two machines at this location.  Fitted them both with LED instead of fluorescent lighting and added card readers.  Which seemed to make everyone happy.  (At least I didn't hear any more about having new machines).

As far as sales go.  There have been pretty OK weeks, and there have been slow weeks.  The location is off the beaten path and I am unsure they will ever be super busy.  We average 40-50 each machine in sales a week.

Also I'd like to point out that I was there today doing regular maintenance, cleaning, things like that and an employee mentioned that they take turns buying cases of soda for employees to share throughout the week.  As I walked out, I noticed a case of diet dew behind the counter.  Yeah..... awesome.

Now I am glad I didn't go all out on two new machines and kind of want to sell the location off.  Anyone interested?

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