Fairgrounds Approached Me

[RikaKazak]

One of the local fairgrounds approached me and is unsatisfied with their current soda vendor.  They'd like me to take over, but I'll be honest, I only have a VERY tiny amount of full line experience (I only run snack/soda machines to keep accounts exclusive if I already do their amusement vending).

However, this account seems to be pretty good.  They want 5-7 soda machines, and a "couple" snack machines.  Problem is I only have 1 soda machine right now (dixie narco 501e) so I will have to be buying soda/snack machines if I land this account.

Question:  Where would I buy new machines?  Where should I buy used machines?  (if they require new, I'd go that route, but I'm 90% sure they'll be ok with just quality used machines, problem is I've only ever bought used off of craigslist before, and I can't just randomly buy 7 used machines)

2nd question:  What machines would you guys recommend?  1 soda is outside, rest is inside.  I love dixie narco's...but I usually just buy "whatever the random craigslist person is selling if the price is good enough" lol.

Thanks in advance guys.  I'm a little bit overwhelmed, so any random tips/advice is appreciated.  

[Vendo Mike]

Given your area I could put you in contact with a distributor but a simple "vending machine distributor near me" in google would get it done.  Our website ( www.vendoco.com ) has resources to help people find distributors as well.  They should be able to get you pricing on used and new so you can make an informed decision.  

I'm happy to answer any equipment questions you might have.

[NYCandyMaN]

if machine are going inside, they will most likely want newer looking machines with credit card and all bells and whistles, but the truth is the refurbished machine you can buy at full price will be the same machine you can pick up from cl also, machines are usually refurbished by changing out the doors, the fridge usually stays the same, so it looks like new. buying a new machine is not worth it unless pepsi or coke is giving them to you for free, and that means youll have to buy stock from them as well. find a few good combo machines to start off with, but not the small combo, a large combo, mothing that can handle 200 to 400 products, get like 2 of those and go from there. if they want different machines in different places, then youll have to get them all separately, i would go for the small combos at that point, putting a combo machine saves space, yes youll be filling it often, but when that happens youll know when you need to expand.

[AngryChris]

I'm itching to read Randy's response.

[Southeast Treats]

When you say "fairgrounds" I get the image of a place that hosts special events, so your machines will only be used during events, would that be correct?  So the first concern I have is the location worth the effort?  How many and what type of activities go on, and will there be food trailers or other competition?  Since they already have a vending operator, they probably will want the existing machines replaced one for one, so you should also evaluate the current placement.  If there is a commission structure in place, will they share any revenue numbers with you to help gauge the sales history? 

It would also help if you know why they are dissatisfied with the current vendors.  Knowing their problems will let you avoid the same mistakes.  If they want larger commission or lower vend prices, look out. 

If the current vendor is a small company, you may be able to make a deal to buy the equipment already on location (if it's worthwhile and still acceptable to the location), but that requires a diplomatic approach after you have the deal, so don't count on that.  In any event, you will need the capital for the machines and initial inventory, as well as card readers.  I would want card readers, with DEX data from all machines on an account like that, to insure you keep them properly serviced.

All that said, Dixie 501e's, Royal 650/660's, or Vendo V21 series would all be good units.  You may want to upgrade some inside locations to glass front drinks with DN 5800's.  For snacks, consider if ambient machines are OK for the locations where they want them.  You may have to look for chilled snack units.  Otherwise, any good 4 or 5 wide snack should work as long as it can handle cards and DEX. 

If you are good with fixing up used equipment, get busy shopping the usual sources.  Get a storage unit if you need room to store a few machines while you work on the deal.  You can always sell off the machines later if the deal falls through and you don't need them elsewhere.  Hit up the refurb dealers last if you can't find enough machines otherwise.  It's tempting to finance some new equipment, but also a good way to burn up a lot of cash you will never see again. 

Otherwise, you could reach out to your local bottlers and see if any of them will work with you as a third party operator.  The usual deal is they loan you the drink machines and you agree to buy all your drinks thru them at their (higher) prices.  You would also have to buy a minimum number of cases each month based on how many of their machines you have (could be 10 to 15 cases per machine per month).  You will still need to buy snack machines and credit card readers.  It's sometimes a pain in the rear to work that deal, but you save a ton of capital up front.  You can usually mix in some of your own machines (makes the quota easier to reach), or phase the bottler machines out as you go. 

[RikaKazak]

So I was approved by the fairgrounds board, and now they're just waiting to mutually terminate the contract with Pepsi.  They're upset that Pepsi isn't delivering product frequently enough (the fairgrounds is stocking the machines, they also no longer want to do that) and the machines are constantly staying empty for long periods of time.

I won't be paying a commission.

They have events with food trucks, and without.  They want the snack machines for when they don't have food trucks, that way they'll still have some sort of food there (like during gun shows or precious metal shows etc.).  Soda and snack machines will be on even when there's food trucks.

I reached out to coke's bottler 3rd party rep.  Waiting to hear back.

[RikaKazak]

Here's a craigslist ad I saw...any advice?  https://spokane.craigslist.org/bfd/d/spokane-snack-soda-combo-vending/7269791215.html

[Vendo Mike]

Check everything closely and do your due diligence when it comes to bottler equipment. Take the serial number and call the manufacturer to find who purchased the unit originally.  With that you can call that bottler and determine if it's legitimate or if that unit is "missing" from their inventory. 

 

[Southeast Treats]

3 hours ago, Vendo Mike said:

Check everything closely and do your due diligence when it comes to bottler equipment. Take the serial number and call the manufacturer to find who purchased the unit originally.  With that you can call that bottler and determine if it's legitimate or if that unit is "missing" from their inventory. 

 

I Think they mean they are trying to get equipment loaned from the bottler, not buying used equipment.... but that is good advise for anyone buying.  And for loaned equipment, it's always good to keep your own records of what machines you receive and especially what machines you return.  I have seen bottler records get messed up and they come to you trying to get you to reimburse for a missing machine that you turned in, but if you have good records they will be OK.

 

[Southeast Treats]

3 hours ago, RikaKazak said:

So I was approved by the fairgrounds board, and now they're just waiting to mutually terminate the contract with Pepsi.  They're upset that Pepsi isn't delivering product frequently enough (the fairgrounds is stocking the machines, they also no longer want to do that) and the machines are constantly staying empty for long periods of time.

I won't be paying a commission.

They have events with food trucks, and without.  They want the snack machines for when they don't have food trucks, that way they'll still have some sort of food there (like during gun shows or precious metal shows etc.).  Soda and snack machines will be on even when there's food trucks.

I reached out to coke's bottler 3rd party rep.  Waiting to hear back.

That sounds really good.  Don't try to be the discount vendor, set reasonable prices that will be profitable for you.  (Those food trucks will charge sky high and will hate you if you undercut them too much).  Congrats, that should be a nice account!

As for the craigslist ad, I don't know anything about that reseller, maybe someone west coast will have some feedback for you. 

[AZVendor]

Don't be surprised if Coke says no though they will generally be more willing the more machines you need to install.  They will also like the idea of replacing Pepsi. Keep in mind there will be minimum product purchases to meet and maybe a lease fee per machine.  This could also be a boondoggle if Pepsi ignores them because sales are real low or very up and down. You have to assume that they began by giving better service, so why aren't they now? That's the $64,000 question. Also, that CL ad is spamming everyone all over the country.

[Georgia bulldog]

Be careful talking to Coke if Coke believes they can make a sizable profit on this account they will sent their Salesman to out bid you. I have seen this happen They are a big company with lots of resources. The way Coke will do this is offer nice new signs and advertising to the fairground. I have been in the vending business for 30 years and have seen the big bottlers take accounts from independent vendors the excuse is while we gave the account all the free signs and the soda 

machines so we might as while service the Machines our self and please always remember Coke and Pepsi will come to like y’all are best friends their not they are the competition.

[Vendo Mike]

16 hours ago, Southeast Treats said:

I Think they mean they are trying to get equipment loaned from the bottler, not buying used equipment.... but that is good advise for anyone buying.  And for loaned equipment, it's always good to keep your own records of what machines you receive and especially what machines you return.  I have seen bottler records get messed up and they come to you trying to get you to reimburse for a missing machine that you turned in, but if you have good records they will be OK.

 

I was speaking to the link they shared for the used equipment reseller on Craigslist. I saw a lot of branded equipment in those photos.

[RikaKazak]

Thanks for all the advice guys, I'm learning a LOT!   

I found a refurbished AP LCM2 ($2,295 with free shipping to me), soda will be a mix of vendo 540 and dixie naro 600 and 542.  They're refurbished and $1,995 per machine free shipping.

Any input on those machines?  The account only wants bottled soda no can.  (last time I bought a machine I paid $150 for a dixie narco 501...so I'm worried those prices are sky high, but I did just buy from a random on craigslist)

[Vendo Mike]

11 hours ago, Georgia bulldog said:

Be careful talking to Coke if Coke believes they can make a sizable profit on this account they will sent their Salesman to out bid you. I have seen this happen They are a big company with lots of resources. The way Coke will do this is offer nice new signs and advertising to the fairground. I have been in the vending business for 30 years and have seen the big bottlers take accounts from independent vendors the excuse is while we gave the account all the free signs and the soda 

machines so we might as while service the Machines our self and please always remember Coke and Pepsi will come to like y’all are best friends their not they are the competition.

Unless it's extremely visible and consider a good place for market share, I doubt that Coke would undercut.  They want to sell syrup with as little overhead as possible.  If they can sell syrup and have branding in a place where a 3rd party will (1) purchase that syrup at a markup and (2) pick up the product and (3) fill and maintain the machine without Coke labor,  that is a win across the board.   

[AngryChris]

1 hour ago, RikaKazak said:

Thanks for all the advice guys, I'm learning a LOT!   

I found a refurbished AP LCM2 ($2,295 with free shipping to me), soda will be a mix of vendo 540 and dixie naro 600 and 542.  They're refurbished and $1,995 per machine free shipping.

Any input on those machines?  The account only wants bottled soda no can.  (last time I bought a machine I paid $150 for a dixie narco 501...so I'm worried those prices are sky high, but I did just buy from a random on craigslist)

My input... Those prices seem a little steep if only for equipment cost.  It's not so bad if it includes delivery

[RikaKazak]

I forgot to mention those prices include a credit card reader and delivery on each machine. 

[AngryChris]

28 minutes ago, RikaKazak said:

I forgot to mention those prices include a credit card reader and delivery on each machine. 

Is that a 600e?

[orsd]

Apple leisure posted yesterday about wanting to unload some equipment. Maybe PM him?

 

[davendor]

Dixie Narco 600e models are tall, won't fit in some places  - as far as price, machine prices vary by location, so it depends where you are

 

[RikaKazak]

On 2/24/2021 at 10:15 AM, AngryChris said:

Is that a 600e?

I believe so, yes.