Been talking myself out of common sense growth

[joebob051977]

Here I am thinking about the state of my business. It is growing, but too slowly. I have been buying new machines. I love my new Oak Vista 300's, and enjoy having 1 brand to work with excluding my 1st mistakes. I keep telling myself things will start snowballing soon, but it would snowball faster if I invested in some cheap used machines. I know that I can get 10 machines for about $300 or so, and this should at worst bring in $100/mo. I can slowly replace the best performing locations with better machines. I don't know why I have been so reluctant to do this. It is purely common sense. Even if I use a locator, I'd still be better off. 

[Bravo Duck]

Its a viable strategy, the biggest downside is cheap machines break more often and this can sour you on vending in general. Your desire to keep one type of machine is good so if you're going to add an inexpensive machine to the business I'd limit it just one type of cheap machine also. Your best bet is probably Vendstars, they hardly ever break, (except for the chute doors) and they can consistently be found.

[BudLeiser]

Good idea Joe. I recommend this. It works in a lot of ways, cheaper to start with, test more locations at once put nicer machines in nicer locations, growth rate, and perhaps more importantly ROI. I have yet to buy a brand new machine, there is one place that booted a machine and asked me to bring in a nicer one. I still haven't bought a new machine for that place because when I checked what it had made, not so amazing. So I will try and prep one nice and tidy, if it goes in great, if not oh well. $300+initial product+locator = a long time to earn your money back. In fact by the time you earn your money back, your machine won't be so new anymore. Then what, buy a newer one?

[davidsurvz]

I am a living proof that the common sense approach you are thinking about works!

[cavity]

Do it!  Worry about the shiny new ones later on. 

And, by that time, you probably won't care anymore.  You'll like the $$ more than the idea of new machines.   

[davidsurvz]

Do it!  Worry about the shiny new ones later on. 

And, by that time, you probably won't care anymore.  You'll like the $$ more than the idea of new machines.     

I agree with this from my own experience. I only worry about shiny new machines at my nicer locations. I have said time and again people drop quarters into every type of machine I have, no matter how old or new they are. I haven't had any mechanical issues or problems with machines breaking either.

David

[joebob051977]

I have several locations that could get by with a cheap used machines. I think that is the direction I'm going to have to head if I want to grow at a faster rate. Then the locations that deserve good machines can have them. I'll have to keep my eyes open for some deals. I saw some SSF on Ebay, but changed my mind when I saw they needed locks and keys. The lock and key set cost about what a SSF machine is worth. 

[Jax Snacks]

Those "cheap" machines can really cost you if they do not have all of the parts that you need!  Biz-Ops will gouge you for parts or simply not sell them to you at all.  The cost of adding gumball and capsule wheels can be very expensive to the point where it may be better to get the metal machines configured the way you need them.  I spent a small fortune on U-Turn gumball/capsule wheels over the years and will never do that again.  Others have to jury-rig their machines to get capsules or gumballs to vend.  Cheap biz-op machines are just to "candy centric" for my needs.

Jax

[joebob051977]

Jax, I see your point too. I had an issue today with my GMW machine. Somehow, my gumballs were free vending with a slight back turn on the handle. I had only 5 gumballs left. I am glad that it was the last of my double bubble (switched to Ford), but I hate giving candy away for free. I had an issue with an XYZ machine, where the coin shoot got jammed up in the mech and gave money back on candy vends. I really see that there can be real issues with cheap biz-op type machines. That is why I had finally decided to quit fooling around and buy Oaks. But now I am waivering in my resolve because I can see that you can buy used machines for very cheap and therefore grow much faster.   

[Jax Snacks]

I understand and appreciate the economics and quite frankly, I am glad I do not have to make that choice as it pertains to low cost biz-op bargain machines.  It is not an easy decision and there is not necessarily a right or wrong answer.  But one more thing to consider to help keep costs down.  Another option is just go with single heads to start with and upgrade them later to doubles.  Most locations will not mind or care if you add a second head on to the same stand and I rarely ask for permission to do so.  Also, many adult blue collar places tend to gravitate towards just 2 products and the extra choices usually just go to waste.

Jax

[joebob051977]

I'm glad you mentioned running singles. I think tunnel vision set in, and I forget there are other alternatives. There are so many routes to take here in vending, and no one route is the right way. I think that is one of the fun things about running a business.