Advice on buying used machines

[Johnny Ringo]

I'm ready to start getting down and dirty, by actually monetarily investing in my business now.

I've decided that I am willing to purchase a few used machines before I get any locations. One, because I see some great deals that I don't want to miss. Two, because I would like some private time in the garage with my machines...alone...don't worry, I'll bring lots of ones. JK. I would like to tinker around with the machines a bit - seeing how I've never had one before. I'd like to get to know how they actually work and also to practice stocking and taking the money out, so I don't look like a fool the first time I show up on location to do it.

Is it okay to buy an old Dixie Narco 368,440 or Vendo 407,475? I don't know much about model numbers yet, but I think they are all single price, 8 selection. They are only $300. Is it worth buying single price machines? Should I only go for multi-price machines?

There are a couple of used vending machine warehouses near me. One guy is asking $500 for single priced soda, $900 for multi-price, and about $1300 for a snack machine. I don't remember the brand or models on these.

I'm REALLY open to advice on buying used machines.  Buy from a dealer? Scoop up bargains from individuals? Both? Be sure to find locations first?

Thanks,

Johnny Ringo

 

 

[Johnny Ringo]

Well, I purchased my first machine, today. I don't really know what I bought, but it seemed like a fantastic deal, so I did it.

I bought a used USI 3130, 23 selection snack machine that is in good condition. It just needs a new light bulb and to be cleaned a bit. The lady I bought it from really didn't know how the insides worked too much. She said she called a repair man once and all he did was remove a stuck dollar bill. I found the manual for it in the PLUS section, so I'm really happy about that. Also, it was only $150!

[ANDERSONVENDING]

I always buy the machines first .I buy mine off Ebay close to me,I figure I can buy machines cheaper when I buy them on my terms.I got an AP5500 off Ebay for $50 and spent $300 to put a new front and add a dollar bill validator on it . That same machine location ready is $995 to $1295.Go for it and have fun til you have it located.

John

[sbishop]

Used machines are great. I just have a few pointers for you.

Can you repair them? Do you want to learn? If not it is ok, You just need to find someone who will not charge you an amr and a leg to do the repairs.

In one of my previous attempts at vending I dould a guy who worked for a vending copamy doing their repairs. He did side work cheap.

Take johns exapmle $50 for the machine and $300 for parts if you can do the work great.

If you are not as comfortable repairing them, look at the warnties from the used machine vendors

if you buy a used machine for $300 you can get your investment back quick

if it breaks down and you do not have a way to fix it quickly, you will lose the location.

congrats on your first machine read everything you can about it and test out the different features. Have Fun!

[ageevending]

buying cheap machines and rehabing them is a great idea if your going to stay small.

What you have to ask yourself is what manhours are you going to put into the machine to get it location ready? 1,2,3, 10 hours? Whats your time worth 100 per hour? Say your time is worth $25 an hour and you can easily spend 10 hours cleaning painting and repairing the machine. Thats 250 bucks... if its not going on a location... then its sitting in your garage not making money... so its now the time-value of your money has come into play. If it breaks... how much time are you going to spend fixing it? What if a board goes bad... are you going to buy another machine to swap out? Are you going to let is sit broken at a location for a week while you order a part and get it shipped to you? You won't have locations for long.

Save your money... find your locations first, then go buy a machine... get it from a decent rebuilder... the machine you bought you can get for $500 with a new tuff-front on it and best of all if it break in the first couple of weeks, most refurb guys will help you get it running again.

Spend money and time finding locations... that is the secret of this business, not filling it with candy or keeping it working... you can delegate that out to a $10 an hour guy. If your good at sales... sell... Don't waste your talent on the busy work of this business.

[coinvestor]

I tend to agree with agee.When your starting out there is plenty of stuff to worry about without refurbing your own machines:

Business licesnces

Sales tax

Equipment moving

supply purchasing

logistics

scheduling (especially if you have a job too)

How to keep chocolate from melting in July:)

I can see buying the one to play with and learn on, but as a business model its overwhelming. I have sold machines $100 - 200 before and I will say there are reasons I am selling them that cheap. Its not that there are hidden problems, just thats not the equipment that my business supplies to locations. Remember, your equipment is the part of your business that your customers touch. Showing your customers your frugality (and they will see over time), will make them very cost sensative and make it harder to raise prices down the road, and without price increases there will never be funds to update and replace equipment.

I have looked at many routes suffering from this. All the machines are crap, and were close to crap when they were placed 12 years before. In a effort to justify the asking price, the owner rambles off a list of all the crap they had to replace just to keep the machines running.

I am quite frugal in my personal life, but frugality for the sake of frugality will kill you in a business. Investment should be based on return. Sorry for the cliche but, it takes money to make money. Remember business is about giving your customers what they desire, but in a manor that results in profit for you. There are zero locations that if asked would say "I would like to have an old machine with old technology that will most likely break more frequently, if only there was a company that would fill this need". If a location can only support a $150 - $500 machine, then its not really a full line location.

I would hate to see you find your first location, have three machines in your garage, none of which are right for the location, but your out of money and don't have any income. Find a good local refurbisher, tell him your situation. Let him know that if he sends you a referal that you will buy the equipment from him. See if he moves machines.

Sorry, vendors with all old equipment is a pet peave of mine. I like to buy the newest refurbished machine that the location will support.

 

JD

[Johnny Ringo]

Thanks for the responses. You're right. I don't want to spend all my time searching for and refurbishing machines. Also, I want to be able to put some quality machines in my locations.

I think I will start by purchasing cheap used machines. This would be to keep start up costs low and to have a few, so I can learn how they work. After I get a location or two and a little experience then I feel that I would pay a little more and purchased professionally refurbished machines from a used dealer.

[MrEen]

This looks a little spammish to me, but at least the link doesn't work. To those wanting to spam their sites, try to remember the golden rule as dictated by expedia ... DOT COM!!!!

Scott

EDIT: Well, the forum mods are fast. I was replying to some spam that isn't here anymore.

[Johnny Ringo]

I cleaned up that first machine I bought. It's working great. It just needed to be dusted and have a new lightbulb and bulb starter replaced. It does have some paint scrathes and white paint stuck on it from running into walls. Any advice on that?

Also, I just bought my second used snack machine last night. This one needs a little more work, but it was only $100, so I couldn't pass up the deal. I couldn't find a brand, but from the looks of it, I think it is an AP 4000. That thing is a beast!! My friend and I moved it yesterday with an appliance dolly and a pick up. I don't recommend that.

The initial problem is that the keys are missing. Any advice on drilling the lock out or picking the lock?

[Johnny Ringo]

It looks like I have a company break room in my garage now. I just had two refurbished soda machines show up yesterday. Now I have two soda and two snack machines in my garage. Now I can really see how all these things work.

I am going to take the advice of others for future machines. I would much rather pay a $100-$300 more for a machine that is professionally refurbished rather than buying a junk box and spending my time fixing it up. I'm fixing up my snack machines, but I'm really glad I bought refurbished soda machines. Right now, I don't mind fixing them up to learn, but I definitely don't want to be doing that all the time.