Just starting out

[The Mage]

I have been thinking about getting into vending for years, and finally decided to take the plunge.

I do not have any vending machines placed as of yet.  I have received my first vending machine from eBay, took it apart, and gave it a thorough cleaning. 

Also I am looking at possibly purchasing an existing bulk vending route in the next week.  (In talks right now.)  We'll see how that goes.  But I see it as a kick start into the business, plus if the numbers are right, it should pay for itself in the next 5 and a half months.  (Less if I can tweak it.)

I have done enough research to know not to buy new machines, and to go slowly, not buying a whole bunch of non-located machines at once, at least until I am comfortable getting them placed, or have locations already set up.

One piece of advice I have found and agree with, but doubt I will be following, is to find the locations before even buying the machines.  Makes sense, but since I currently do not know when I will be getting machines, (eBay and Craigslist,) so I would prefer to get them first.  I dislike the idea of overpaying for a machine just because I need it now.

My first goal is to bring in enough to cover all future expansion without any further out of pocket expense.  (Actually if I do purchase that route, I may be close to hitting that goal.)

[Beer980]

Welcome to the group. Stay with the plan and you should be ok. Run the deal by the members here and we can give you pointers on the purchase.

[The Mage]

Actually, the purchase should take place Monday, so I don't think there's enough time to discuss.

Pretty much 18 3-head machines, 15 in locations.  $1K

He estimates $200 - $300 gross a month.  I am hoping I can bump that up a little.

I am assuming he is leaving the candy in place, (I'll have to check it's freshness,) and with having less candy to buy initially, I am considering that a good deal.

I am also thinking of offering to pay in 4 payments.  ($250 each.) That way it would be partially paying for itself.  (And I can do that deal without incurring any debt.)  The question is would he accept that offer, and if not, will he accept less if paid in full.

[The Mage]

3 are commission.  (30%)  I am assuming the rest are charity.  If so, I will probably be changing the charity association.  (If not, then I probably will still add the charity to them.)

[The Mage]

I kind of thought so too.  (I don't think I'd offer any more then 20%, if anything.)

Although there is one place locally I am thinking of attempting to place in a few months.  Potentially 10 or more locations, but I have a little inside knowledge that they would only allow machines if they were affiliated with a specific charity, and I have been thinking of offering 20% gross commission to them specifically for their charity.

I see this as a perfect location for those road runner style gumball machines, but I do find those machines expensive, even on eBay.

[G-man422]

Welcome to Vendiscuss Mage.  It sounds likea good deal with the 18 triples.  Feel free to ask any questions that come up, and good luck!

[The Mage]

Not sure if I should keep posting here, or start another thread, considering I have already introduced myself...

I have met with the vendor selling his route, mentioned above, and have agreed to purchase his route.

He is retired, started the business with another retired friend, who since passed away, so at this point it seems that he just wants out.

I did attempt a little negotiating, mostly for payments instead of all up front, but I saw it as a good deal, and he wouldn't budge.  Although he did say as part of the deal that he would not empty the machines, and I can have whatever it has made in the past week and a half.  (But we are doing to deal tomorrow, so hopefully he isn't emptying the machines as I type this.)

He also said he has some sticker machines he says he does pretty well with.  (Relative term I assume.)  But I don't know if this would be anything I would want to get into.  I have not researched this like I have the candy, and add in my lazy idea of not having to deal with sales tax.

I'll just stick with what I have, and get the kinks worked out before I expand.  Plus as I have said before, from this point, I want all future investments into the business to come from the profits.

[cavity]

I would buy the sticker machines too.  If you don't like the idea of working with them after a few months, you could most likely sell them for as much, if not more, than what you buy them for with this guy that really wants to get out of the business.

[G-man422]

Congrats Mage.  You can keep posting here or start another thread in the "Bulk Vending" section if you like.  Cavity makes a good point.  I'm not trying to push you to do anything, but the beauty of sticker machines is that there is no spoilage per se with product.  Sometimes sales do slow down, but then you just swap out another product and you have no spoilage.  Best of luck.

[p-love]

sounds like you got a pretty good deal mage, you are off to an impressive start!

i agree with cavity about picking up the sticker machines too, if the price is right and you have funds available.

i look forward to reading more about your vending journey...

[The Mage]

I would buy the sticker machines too.  If you don't like the idea of working with them after a few months, you could most likely sell them for as much, if not more, than what you buy them for with this guy that really wants to get out of the business.

There are half as many sticker machines as what I just bought, and the price is twice as much.  I really cannot say if this is a good deal or not.  But regardless, I am resisting the urge to grow too fast.

After a little time, and a little research, if he still has them I may make an offer on them.  This was something I was not expecting to come up, and again without knowing anything about what I might have been getting myself into, I figure it's best not to add any more debt to what I have already incurred.