Best way to expand route

[sbishop]

Most of you have seen my other post  http://www.vendiscuss.com/forums/view_topic.php?id=5250&forum_id=1

So, The key to making this work is expansion. In the full line section I asked about 3rd party vending programs from Coke and Pepsi. They provide the machine, you have to buy from them. I am not sure I am ready to go in that direction. There is a local guy with 10 soda machines in storage he will sell them for $250 each and I can buy them one at a time. But, I have to some up with the $250 and things are tight right now.

From my first post you will see that positive cashflow is the key to expanding my business. So here is the idea that I think will provide the most bang for the buck.

I can buy 50 Honor Snack Boxes for about $120 + shipping That is $2.40 each. I now have over 100 bulk locations, alot of them are in breakrooms and other areas where I can place an honor box. I can go to the locations that are best suited for the honor boxes and offer them one.

Yes I know that there will be thieft.  I think that the honor boxes will boost the cash flow and allow my to purchase the soda machines. I will also find that some of the honor bos location will be good enough for small snack machine.

I would like to get feed back from people who are doing or have done honor snack boxes.

I have read alot of the post on honor boxes. There is a lot of talk about theift even from honest people who did not have the money at the ime and were going to pay it back latter. I wanted to know if anyone thought that charging $1 per item would go over well. they would not have to worry about having change. I would put in larger bags of chips and choose items that would retail for $1, like candy bars. I think $.75 cent would cause more problem because the might not have change on them and then they get into the i"ll pay latter issue.

 

[nepavend]

You have a valid idea there, especially because you already do full line vending with snacks and know what you are getting into.

I myself would buy the $1 items and not having to fuss with change is a huge plus.  There is one of the ebooks on the book section where the gentleman did exactly this to get started, and let the earnings pay for new machines and upgrades for existing locations whether it be a combo to a soda and a snack, a honor box to a snack machine, to bulk machines, etc. 

If I were in your position I would strongly consider this to get started and upgrade your honor box spots that do well with more standard equipment as you earn profits. 

[sbishop]

thanks for the reply. My only concern about the $1 price tag was if it would go over well with the location. The only other option would be $.50 each. they coulg grab 2 items if they did not have change, but the margin would be too low and that would affect profitability with the expcted theift

[BudLeiser]

Read/Listen to a book called Freakenomics. There is a story (early on don't worry) about a man who may have invented the honor box idea, with bagels in office buildings.

Personally I wouldn't even DREAM of trying that in Orlando FL. Theft here is through the roof. Local small walgreens in a nice part of town (apopka) loses $300 a day to theft. The lowe's I work at loses thousand(s) per day. I can't even leave my lunch in the employee fridge/freezer without people stealing it. Walk away from your box of donuts, bagels, whatever and when you get back it's empty. But if you live someplace nice and decent (seattle) I think its a great idea.

[alyssamma]

Bud, Freakanomics is a good book

[WillisNYC]

Freakonomics is an awesome book! I named my last child by choosing the name on the list of 'predicted to be successful names' that I liked the best.