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My Plan...thoughts?


PitbillSox
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First time poster, long time lurker!

I own a seperate business that will take some time to grow, so I need some extra money to make ends meet. I think this gives me an advantage of starting off part time and grow this business since I'm not completely dependent on the income!

Initial Goal: Get 40 machines. This will give me, roughly, a $10K gross....which is what I'd like to make a year to start. I know, sounds easy to do, but I have a few "ins" that I can use.

How I plan to get in:I'm an elected official in my city, which immediatley makes people think of me as a good samatarian helping out the city. Plus, I'm going to donate to the Jimmy Fund (a huge cancer research group in my state). Basically, I go up to the manager/property owner and in a nutshell say "hi, I'm NDame616 and I'm a City Councilor here. I own a vending company where we donate money to the Jimmy Fund. Can we use that space over there to help find a cure for cancer in children?" I will also have a flyer with this information on it. And no, I don't feel bad for asking them a loaded question "do you want to help find a cure for cancer in kids" because I AM donating to a charity. Am I "using" the Jimmy Fund? Probably. But I'm using them with a monthly donation to their cause.

Machines: Used VendStars if I can find them, if not I'll buy new. I will go with 2 heads.

Growth Plan: Buy and place 5 machines. Cool, great. Buy and place 5 more. Cool, great I'm 1/4 there! Buy and place 10 more. Sweet, halfway there! Buy and place 20 more. Sweet, I'm at my goal! Constantly evaluating their placement and after 3 months moving anything doing less than $15-20 a month.

Secondary goal: 88 machines. That will, more or less, pay my mortgage. I'm thinking I'll have this by the New Year. (I kid, I kid)

Continued Growth plan:Each month send my locations a letter letting them know how much money my business has raised for the Jimmy Fund and include 5 business cards with a $25 referral bonus if they find me a location (after it's placed for 2 months)

Thoughts?

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Better organized than most new posters. Focus on the flaws first:

Initial goal income won't happen, because you are buying a few machines at a time, it will be at least april before you are at 40 locations self locating. Those are months of income where you only have part of your fleet out there. I'll come back to this.

How you plan to get in: Not bad, I load my presentation to make it harder to say no also.

Machines: Vendstars are triples, going with 2 heads means not doing vendstars. Used vendstars is a fine way to start, but it means GB won't be in your line up, and you would want break rooms instead of front of house. Vendstars are not strong enough to survive the beatings of children. You'll need to refine this part. If you use double heads, expecting 20$/month even in gross sales will be pushing it.

Growth plan is fine, it may take some serious time to relocate well enough to push all your machines up that high.

Secondary goal: You never know, if you take serious stock of all the criticisms on here it is very possible.

Continued growth: It's a good plan if it works. I would be happy to give referral bonuses, but they usually want to give leads instead of openings. I can drive down the street and several leads.

Best of luck on your goals. This goes into the top 5% for best laid plans prior to buying the first machine.

Also, because it was unclear, never buy vendstars from the company. You can get them new in box for about 40$ getting them second hand. The place's warranty is a bunch of junk.

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The machine aspect of it is something I certainly need to fix.

And the initial goal of making $10K my first year is what I would like to PROJECT to make. eg....machines in good spots make roughly $20-30 a month so if I 40 machines out there making the low end, I should come close to my goal. Even placing 40 machines in 4-5 months isn't too bad. Maybe I'll buy 10, 10, 20. I just wan tto start, get my feet wet, grow small, grow medium, grow large, grow to an employee doing the route.

What do you mean "gb won't be in my lineup"?

Do you suggest I but, say 10 machines then place them, buy 10 more, place them, then finish off the goal with 20 more? I just don't want tons of machines laying around my house. My fiancee would kill me :)

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I have all of my vendstars at front entrances of locations, maybe the kids just take better care here? But I have never had problems.

Also, I have gumballs in my vendstars also.... They vend just fine, and make average $5 a week at the locations I have them at. (Granted you have to get the gumball wheel.)

My suggestion, place the machines as you buy them, dont let them sit around when they could be making money!

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I have all of my vendstars at front entrances of locations, maybe the kids just take better care here? But I have never had problems.

Also, I have gumballs in my vendstars also.... They vend just fine, and make average $5 a week at the locations I have them at. (Granted you have to get the gumball wheel.)

My suggestion, place the machines as you buy them, dont let them sit around when they could be making money!

So how many should I buy at first to "get my feet wet"? Maybe I'll start with 10 rather than buy 5 and then 5. Save with shipping!

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So how many should I buy at first to "get my feet wet"? Maybe I'll start with 10 rather than buy 5 and then 5. Save with shipping!

I don't know your location, but if you're ANYWHERE NEAR a good-sized city, you shouldn't have to worry about shipping.

Since it's not a good idea to buy them new from the biz-op, you are going to get those Vendstars used.

I see plenty of used Vendstars for sale cheap as I review Ebay and Craigslist in many of the larger cities.

See if you can't find some locally before paying to have someone ship them to you.

It may be worth the drive to save on shipping AND you get to inspect the machines in person before giving up your cash.

GOOD LUCK!

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Yea that makes sense. I think I'm going to try to find a lot of 10 or so first, buy those ($400 or so...?) place those, then 10 more, then jump into my initial goal and buy 20. Basically, every Friday I plan on going out and locating for a few hours, and then it will be locating/filling machines on Friday....

I plan on completely guilt tripping the owner into a "so, will you help me cure cancer?" to get them located....but every month when I service them let them know that they are doing a good deed by working with me, since they are helping out a good cause.

How many people have this as their full time gig?

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Here is the flyer I'm dropping off at the businesses:

What is Candies4aCure?

We are a vending service around Marlborough and the surrounding area in which we work with the Jimmy Fund to donate money to help them find a cure for cancer.

What is The Jimmy Fund?

The Jimmy Fund is a Boston-Based research center that helps fight cancer at the Dana-Farber Institute. More than 90 cents per dollar raised is directed toward Dana-Farber's ultimate goal — eradicating cancer and related diseases, and the fear they engender.

What can you do to help?

Nothing except give us a two-square foot location to put the machines. We service, fill, and fix the machines while providing your customers a great service: fresh candy that they want, will make them happy, and will help fight cancer.

Why should you let us set up a machine?

It’s a great cause: We are helping fight cancer and research the disease.

It’s no cost for you: You don’t have to donate anything to help donate money to fight cancer.

Your customers want it: Everyone wants a gumball or a quick snack!

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Sounds like you have the right idea as far as placement of machines.

And I would suggest looking into CList also, 10 machines would be a great start. Keep one at home(or all if they really need a cleaning), take it apart, clean it all out... Get to know the machine. Not much too it, I like them, easy to work on and user friendly.

Clean all the canisters, candy shoots and spill trays... Appearance is everything in this business.

Once you are somewhat established and comfortable with the equipment you can then better judge if you can handle 10, 20, 50 or 100 more machines.

Just be cost efficient, I wouldnt spend much more than $50 a machine. And would only pay $50 for a NEW vendstar or one on a good/decent location.

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Keep searching CL, or search ebay, auctions only, sort by distance.

The comment about vending gb, meant unless you buy a custom wheel you may not be able to vend gumballs.

10 should be a max for your initial start up. I've found much more success with locating on monday's than on friday. Friday the person who makes decisions usually decides to leave early.

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There isn't anything on Craigslist in my area like that......

I never said to look on craigslist for that.....I got mine from talking to people. I called the number on a few different machines.  Some might think its rude, but it works!

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Also be patient, and ready to pounce.  I lost out on 5 double heads with stands at a decent price because I didn't act in time.  But I am not worried because I know there is another deal around the corner.

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Also be patient, and ready to pounce.  I lost out on 5 double heads with stands at a decent price because I didn't act in time.  But I am not worried because I know there is another deal around the corner.

Agreed. I was angry at one point after missing out on excellent deals on double heads, and on some 1800 triples in the same week or close to it. I found other solid deals later though. Focusing on getting my wife in state tuition so we can afford a huge expansion. (By end of spring I should be over 100 locations) Due to lack of money, I have to keep myself from browsing craigslist/ebay. I will start selling off some of my machines this summer on ebay, because I can get far more than I paid, and as I pay down my vending debt, I can use the money for more machines (purchased for well under market value). I prefer cash flow to capital gains, but there are times when you need to make a quick buck so you can afford more long term investments. ( I expect the machines to have about an 8-10 month payback period with the locating cost included. Ones I self locate are usually paid off in 6 months. Counting the cost of product sitting in the machine as part of the start up costs) So move quickly when the right deal is found, but know that there will be more great opportunities.

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