Baby Item Vending

[sbishop]

OK I have been looking at this for a few months. there are some biz opps out there. here is one of them:  www.kiddiecastle.com

I am not buying into a biz opp, but i do have a snack machine that I am not using. We have 4 malls, an outlet shop, and the airport. I just spoke with the leasing dept of a mall that has a kids play area at one end near the bathrooms and the food Court.

They are willing to let me sign a 3 month lease with the option to renew for a year. She told me they usually charge a base rent plus a commission. In my case they will do the 3 month lease for 40% of the gross, then if I sign for a year the will decide if they are going to change depending on the sales of the machine.

So, what do you think? Should I go for it? I need to find a place to buy individually packaged diapers, and decide what to carry. the other issue is the two rows of candy/cracker slots. What do I put in those? Can I change them out with trays from another machine that is down?

I am temped to just Jump right in, but I want some feed back first.

[sbishop]

Any feedback? I would like to hear some opions before I sign the lease.

I have found sources for diapers and changing kits for $.55 - $.65 each. I am looking at other selections.

I still am not sure about the candy rows. I think I could fill one of them. Then disconect the other and put a banner or sign over it.

[Mercury]

Put handy-wipes or something like that in the last one. Personally, I woudn't mess with diapers. Seems like every parent here that has a baby is toting around a HUGE bag o'stuff. Doesn't seem like you'd sell many. Also, don't you need several sizes of diapers?

Who knows? Might be worth the risk.

Merc

[sbishop]

Put handy-wipes or something like that in the last one. Personally, I woudn't mess with diapers. Seems like every parent here that has a baby is toting around a HUGE bag o'stuff. Doesn't seem like you'd sell many. Also, don't you need several sizes of diapers?

Who knows? Might be worth the risk.

Merc

The idea is that they run out. I have been looking at a couple of options. I have seen 4pks of different sizes. there are also changing kits that have a diaper, wipes, and a disposable counter cover for about the same price.

I have to be carefull, they want a list of items or catergories of items that i will vend. so I can not put just anything.

I was thinking of putting bottled water for room tempature water for bottles.

Once i get a list of items I'll post them with suggested prices.

[sbishop]

Even though no one seems interested, i"ll continue to update you on the project.

I have been doing some calulations and here is what I have come up with.

Mall Commission: 40%

COGS:                30%

Sales Tax:            8.25%

Total                78.25%

This leaves me 21.75% or 22 cents for every dollar sold. The only way I can see this working is if there is enough sales volume to switch to a base rent lease after the 3 month trail period.

[sbishop]

Would have to be some serious high volume. 40% is quite high.

I am going to meet with the leasing people on Fri. I would like to see what the base rent option would be. I plan to do the 3 month trail at 40% to see the sales volume before I commit to a yr lease.

[dperry]

Any feedback? I would like to hear some opions before I sign the lease.

I still am not sure about the candy rows. I think I could fill one of them. Then disconect the other and put a banner or sign over it.

How about some OTC stuff for the moms and dads too, like tylenol, pepto, etc?

[sbishop]

How about some OTC stuff for the moms and dads too, like tylenol, pepto, etc?

Sounds like a good idea. I am not sure how well they will vend. I was thinking of attaching one of those small medical vendors to the side.

[mxer518]

if you want any help with any medical or personal care product vending let me know, that is a good portion of my business. Its a whole different animal than pretty much any other kind of vending, I would be happy to help.

[soco]

Having been a mom with babies/toddlers I was trying to think about what I always wanted when I was on the go with them.  I have to say good, healthy things for them to chew on or distract them with were more important to me then wipes etc....animal crackers, juice boxes, fruit roll or fruit chews, those soft fruit bars like fig newtons but shaped like granola bars, because generally at food courts there isn't much.  I often thought that McD's should sell jars of organic baby food (Ikea does).  Don't know if you can vend jars in that machine you've got.

[sbishop]

If you look at the items they sell in the kiddie kastle, you sill see the they agree with you soco.

Ok I went to the leasing agent at the mall and we looked at some locations, talked about other vending needs( they want a redbox).

They said that their standard vending commission is 40% If I was willing to pay a base rent of $250 then the would change it to 30%. So, I would pay $250 plus 30% of anything over $833.

I think that I would need to focus more on snacks for the kids and a few emergency items to get the sales volume I need.

I also found out that there are serveral different vendors selling gumballs. I think i could jum in the mix if I wanted. I am also thinking of putting in some toy/sticker vending on the 40% deal and just jacking up the price to cover the commission.

[mxer518]

Malls are the real deal, they require a high commission but in every case that i have installed equipment it was more than worth the investment and the commission they wanted. These locations are great additions to your vending portfolio for both equity as well as having a quality reference source for getting larger locations down the road.