massmann Posted August 30, 2009 Share Posted August 30, 2009 I came across a guy servicing his machines and asked him how he got started because I was interested. Before he could reply his wife said we want to sell. They have 150 machines (I believe) in four parts of a pretty popular mall. Besides trying to get a loan for whatever their asking price is what else would I need to do to get started? What papers or documents do I need? Any help or advice will be appreciated. Oh and are there any books that assist with starting up bulk cany vending business? Can't seem to find anything. Link to comment Share on other sites More sharing options...
BluePlate Posted August 30, 2009 Share Posted August 30, 2009 Massmann, Welcome to the form. The bulk vending business is fun and a great way to suppliment an income. Is the mall the only "location". Malls tend to be a little diffent animal then other bulk vending. First, some malls look at each kiosk as a "location" four kiosk will add up to 4 locations. Malls will also want liabilty insurance. Expect to pay the mall about 50% of gross, that really limits you to gumballs (which is not a bad thing). Malls also look at vending as specialty leasing and they will not sign more then 12 months at a time. As far as papers and documents, not sure what you mean. You can run the business as a sole propietor or set up a simple LLC (recomended). Some States require licensing, but it is often minimal for bulk vending. Let us know how you make out. Link to comment Share on other sites More sharing options...
BluePlate Posted August 30, 2009 Share Posted August 30, 2009 OH, one more thing......if you go for a loan, I would not go longer than your lease.....you could get stuck with kiosks. Also make sure they own them, this may sound funny - But there are 3 or 4 larger national companies that hold many of the malls, he just may service the route, I have heard instances where people try to sell the route. Link to comment Share on other sites More sharing options...
mxer518 Posted August 30, 2009 Share Posted August 30, 2009 If you need some advice on financing the machines I can let you know which company I have been using for all of my vending capital needs for a few years now. Banks will very rarely ever give out money on anything that is vending related. Link to comment Share on other sites More sharing options...
dsimms Posted August 30, 2009 Share Posted August 30, 2009 If you need some advice on financing the machines I can let you know which company I have been using for all of my vending capital needs for a few years now. Banks will very rarely ever give out money on anything that is vending related. I seen a wizard gumball machine in my local mall that was forsale...$1400 it looks kinda run down...maybe worth $100 at best... Link to comment Share on other sites More sharing options...
cavity Posted August 30, 2009 Share Posted August 30, 2009 I believe the reason it has a "for sale" sign on it is because the mall management will not allow them to have a candy/gum (food) machine. All food needs to be in the food court or vended from an approved kiosk vending co. (mall wants to make the $$). So, they put the sign on to remain within their lease agreement. Link to comment Share on other sites More sharing options...
dsimms Posted August 30, 2009 Share Posted August 30, 2009 I believe the reason it has a "for sale" sign on it is because the mall management will not allow them to have a candy/gum (food) machine. All food needs to be in the food court or vended from an approved kiosk vending co. (mall wants to make the $$). So, they put the sign on to remain within their lease agreement. why does the mall or the vendor just move it to the food court...? it seems the price is padded, maybe he is trying to make some of his lease back up by selling at a high price...I am not sure, but I do not think a brand new machine sells that high does it? if that was really true then all soda machines would have to be moved to the food court as well, they are all throughout the mall...then again, you really can not control on where people take their food...most will sit down in the food court to eat, while others wonder around or into the movies... Link to comment Share on other sites More sharing options...
cavity Posted August 30, 2009 Share Posted August 30, 2009 Apparently you don't understand... Link to comment Share on other sites More sharing options...
dsimms Posted August 30, 2009 Share Posted August 30, 2009 Apparently you don't understand... we are just guessing. We really do not know the reason for the forsale sign, maybe he just wants to get rid of the junk machine, who knows... Link to comment Share on other sites More sharing options...
GotLocs Posted August 30, 2009 Share Posted August 30, 2009 Besides trying to get a loan for whatever their asking price is what else would I need to do to get started? You need broad scope advice...good advice! Vending offers fantastic opportunities for earning profits, but it also offers fantastic opportunities to blow considerable amounts of money...in this case, money you DO NOT have. You are doing the right thing by asking these questions, but I think you should go deeper than the questions you have asked. Depending upon your desired goals, this mall opportunity may be one to consider. So...what are your goals? If your primary answers involve safety and security of your equipment, a fun place to visit, your love of shopping, prestigious environment, high risk ventures and high traffic possibilities then you might stay on this track. If your primary answers are profit potential, longevity of accounts, low risk, business security and ability to pay on a debt then you may not be on the right track. One fantastic thing about vending is the ability to find a niche for yourself, perhaps a few accounts that begin to meet your goals (financial or otherwise)...then duplicate that process until your goals are fully achieved or you alter your goals. In this case, as a new person looking at vending for the first time I would recommend that you learn as much as possible about a bunch of different vending opportunities before you make a move...especially a move that involves debt service. There are a number of directions you can go within the vending industry that allow you to "try things on for size". Perhaps using COH (cash on hand) to purchase a few low cost machines selling low cost product to learn about the industry and how to achieve your goals...THEN...jump in wildly like the rest of us did! Even then, I would recommend moving slowly with shopping mall accounts. Here are a few reasons: It's risky! (It's a single account. If you loose the account, you can no longer service the debt. How are you going to nail down another shopping mall account the next day to put all your machines into?) It's low profit! (Nearly every mall in America has discovered a method for draining nearly every dollar of profit from operators of these machines in the form of unreasonable lease arrangements and/or absurd commission requirements.) It's not necessarily good business! (Potentially, all of your eggs are in one basket. Economic climates severely affect shopping malls. You wouldn't be gaining one of the greatest advantages the vending business has to offer...diversified risk.) It's expensive! (Compared to many potential moves in the vending business, shopping mall accounts typically sell at a multiple times earnings that is beyond the scope of reason or prudence. Investors like yourself look at the traffic potential in a shopping mall and automatically assume profit. This is not the case in many instances...and likely, not the case in most instances when compared with other vending opportunities out there.) Hope some of that "hot air" helps! Link to comment Share on other sites More sharing options...
cavity Posted August 31, 2009 Share Posted August 31, 2009 dsimms, the machine is NOT really for sale so to speak. They put the sign on so they can continue to earn .23 cents per vend without mall management getting on their case. "We sell gumball machines - honest, really we do, sort of thing" But, I'm sure if some moron wanted it that bad, they would sell the darn thing. Link to comment Share on other sites More sharing options...
massmann Posted September 3, 2009 Author Share Posted September 3, 2009 I Want to thank everyone for the advice. After reading and doing research on your info. I have decided not to give mall over 50% of my earnings. My next question I am thinking about incorporating. Any opinions? Other option is sole pro. Link to comment Share on other sites More sharing options...
alyssamma Posted September 3, 2009 Share Posted September 3, 2009 Massmann, look at this thread: http://vendiscuss.com/forum/index.php?topic=5975.0 Link to comment Share on other sites More sharing options...
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