Newbie - Full Line or Bulk?

[ABCVending]

Hola,

After reading pages of info on here, still not sure if there is a consensus opinion RE:  if you are going to try vending, (assuming you have at least SOME capital to start with) should you just go ahead and jump into full line or hack away at bulk?  (quite a few people seem to be of the opinion that Bulk-combo-full line is the natural progression of vending)

Say I have $5,000 - $10,000 cash, a full size truck, lot's of material handling/inventory experience (have my own multi-ton pallet jack and a couple of appliance handtrucks) and I have a 3,000 sqf. climate controlled outbuilding and pretty good mechanical ability, seems like I could make a "go" of full line if I am conservative on my growth....

Have seen some smaller players on CL selling off what they call "routes" of maybe 4 - 6 full line machines (one I am looking at has 2 AP 7600, 1 AP LCM3 and 2 Wittern USI 10 select machines for $6,500 - all currently located clustered within 1 mile of each other) - tempting.

Thoughts?

[chrisdunn77]

it is a tough call, and one i have kicked around myself. I like bulk better it takes less time and i am not "locked" into anything. i run my route when i want and/or have time. and if this ever becomes a full time thing i will expand.

[mission vending]

I think you ought to sit down and think about what you want to accomplish. Do you want a part-time flexible gig or do you want something that will hopefully eventually grow to be able to quit the J-O-B? How will you reach your goal?

For example I jumped in with both feet and before I knew it was in way over my head and it took me about 4 years to come up for air. Not the recommended way to get into vending by the way. 

Looking back I wish I had been a lot more thoughtful and careful in my approach and even taken the time to write a business plan. It took me ten years in the business to actually do it and it has helped me become more businesslike in my decision making process.

[coinvestor]

I think you ought to sit down and think about what you want to accomplish. Do you want a part-time flexible gig or do you want something that will hopefully eventually grow to be able to quit the J-O-B? How will you reach your goal?

For example I jumped in with both feet and before I knew it was in way over my head and it took me about 4 years to come up for air. Not the recommended way to get into vending by the way. 

Looking back I wish I had been a lot more thoughtful and careful in my approach and even taken the time to write a business plan. It took me ten years in the business to actually do it and it has helped me become more businesslike in my decision making process.

Great advise mission.

Most community colleges have business writing classes that are great to help you think through things. Like mission, I did this after I was a couple years into things. I could have saved some time and money if I had started this way.

JD

[ABCVending]

I think you ought to sit down and think about what you want to accomplish. Do you want a part-time flexible gig or do you want something that will hopefully eventually grow to be able to quit the J-O-B? How will you reach your goal?

Well, been pondering this for a while - what I'd really like to do is buy a 100 + slip Marina in SoCal with fuel dock, ship store & retaraunt.  Problem is I am about $6,750,000.00 short at the moment.

Short answer is:  $1,000 monthly supplement to my current income - Figure that means 150 bulk heads or 10 full line machines.  Want to get there quick, plan is 1: to quickly aquire 10-12 full line machines in location using capital on hand.  2:  Roll net back into business for expansion - hopefully add 1 machine every 1-1/2 to 2 months using $$$ from the intial 10.  3: involve my 3 teenagers in servicing the machines - give them a little $$ income and teach them some basic business savy - from Inventory Control to Customer Service.

I hope to keep my purchase cost per machine in location down around $1,000-$1,200 ea.  (and stick with newer, well reputed machines: DN, AP etc..)  So far I think the toughest part will be to get the machines for what I want to pay - have made quite a few offers, we'll see how that plays out.

I do have an "in" - have a immediate family member that is the decision maker for a local company 3 buildings, 350 employees, currently 3 snack & 3 Soda - I can get that if ready (time, equipment, etc..) but think I will start smaller just to see how it goes first.

Like the input - great site, thanks