spdydre Posted March 12, 2010 Share Posted March 12, 2010 Well I figured I since I just started full line I would post up thread to let people know the downs and ups of the business and realistic expectations. I have been a member for months but studied this business through the forums for about 7 months and picked up alot of information before I decided to take the plunge. I am currently a college student in Houston,Texas and my plans are to build this into a full time business by May 2011. I first began by contacting Coke,Pepsi and Dr. Pepper to try and set up an account for 3rd party vending since my budget is limited. Coke and Pepsi did not work out but I was able to get my account set up with Dr. Pepper. Initially the told me I could have cans or bottle machines just call them with the location info and purchase a 20 case minimum per machine a month. I posted ads in craigslist for vending service and received one location but it was 45 miles away I went business to business but wasnt having any luck so I decided to try a locator. I went ahead purchased a can machine on location from Eddie Bauer for $900. This is a truck customizing shop that has no a/c so it looked promising. The machine wasnt set up so I had to get flavor labels, set the pricing for cans and load the machine. I didnt know how to do any of this and this process took me 3 hours lol. Once I got everything loaded the coin mech wouldnt give change from the $.10 slot and kept jamming. I didnt want the machine to be down on location so I found a local coin mech fixer and purchased a refurbished coin mech for $100 and he taught me how to install it at his shop. I went back and installed the new coin mech only to have the owner tell me he wants a bill validator installed asap. I didnt know how to install one so I called a tech to come out the next day and he never showed up. Frustrated I went back to the coin mech shop picked up a mars refurbished validator for $75 asked the old man what to do and went back to my location and installed everything myself Finally I had my first location set up and I moved on to my next location which was another mechanic shop around the corner. This one I decided I would call Dr. Pepper and have them drop off a 3rd party machine and this location just wanted a can machine and I told them I would set pricing at .65. I called my sales rep and gave him the location info to drop off the machine and he says ok. I then get a call the next day from him saying they have set the delivery date up and are sending a 20 oz soda machine I told him I specifically told the owner I would place cans and price at .65 because he did not want bottles laying around his shop. The Dr. Pepper rep then tells me they dont make as much profit off of cans and are not in the business of helping vendors make money and he went back to the account and re-sold them a 20 oz machine to place! I asked him if he could place a can machine for me again and then he tells me they cant give out can machines unless I have 10 20 oz machines. I tell him fine go ahead and make the placement and he asks me were I want my checks sent too. I told him I do not want a commission check I will be servicing this acocunt and he pretty much asks me if I'm sure about that because the bottles are heavy etc etc etc. After 30 minutes of going back and forth we finally come to agreement and he says he will set me up to service the machine and it will be dropped off in 10 days. 3 weeks later I still havent heard from the rep and neither has the location. He didnt answer or return calls or emails I sent. I figured he most likely skipped out on me so I went back to the account and talked to the owner and told him I would get a can machine and he was wondering where his machine was after being told it would be there in ten days. I picked up another refurbished single price can machine and it is being placed. As of March 2 I had two accounts set up with single price cans ready to go. I have one more location in the works for another soda machine and that should fo in within the next week. Today I serviced the first mechanic shop that I purchased and I pulled $10.75 Not a good start but I can say I have learned alot in the past 3 to 4 weeks just trying to get off the ground. I will see how this location does the first month then go from there this one might need to be moved but then I see it getting better once the summer heat comes I will monitor it month to month to see. My second location I will set the service interval for two weeks so I will check back next friday. Hopefully I can update as I go along so document my adventure. As of 3/12/2010 service One Mechanic shop open M-F---$10.75---9 day service Mechanic Shop two--not serviced yet Location 3 going in next week Link to comment Share on other sites More sharing options...
spdydre Posted March 15, 2010 Author Share Posted March 15, 2010 Received this email from my Dr. Pepper Sales rep today I'm not surprised these guys will give you the run around time and time again. I already placed my own machine in this location and I sent this email a month ago. I am not using 3rd party AT ALL what a mistake that was. I will continue to build my business with used/refurbished machines I get from a local guy here. Good morning Andre, Gary and Son’s was deemed too small for a placement. Additionally, We are not going to be able to place any equipment for you as a “Third Party Vendor” until you have 5-7 placements under our “Full Service program (We do all the work for you and you receive a monthly commission of 10%) Since you have no track record in the beverage business, we would like to see you first take a step in this direction in order to establish a stable relationship with your company. Link to comment Share on other sites More sharing options...
sbishop Posted March 15, 2010 Share Posted March 15, 2010 Since I got set up with Coke, I have 1 machine that was delivered, and 1 machine that I have been waiting for since December(I put in a snack machine w/ a can satalite so they have something) I have taken over 4 apartment complexes with coke machines onsite, and I just ordered another coke to replace a 10yr old machine at another apartment complex. I have mixed feelings. I am not secure in giving an expexted delivery date to a loc, but this is the easist way for me to expand. I do plan to take over more apartments that have machines on them. That seems to be an easy conversion. My goal is to build cashflow to the piont where I can buy machine as I go, but for now I need them more than they need me! Link to comment Share on other sites More sharing options...
spdydre Posted March 15, 2010 Author Share Posted March 15, 2010 In my situation its not even worth it I can get refurbished ones for $600 a piece. The agreement was that if I find a location they place the machine. Now he changed his mind and said they need 5 to 7 locations from me and start on commission? I dont think so they gave me the option of commission or service the machine myself and now they are trying to just stick me on commisssion unbelievable dont trust these bottlers or rely on them for your business no matter how good you have it with the sales rep. Good thing I dont have 40 3rd party machines out there they could pull them from location at any instant and the rules constantly change to suit them and their profit. Not good for your business Link to comment Share on other sites More sharing options...
WillisNYC Posted March 17, 2010 Share Posted March 17, 2010 Congrats on joining the revenue board Spdydre! Good to see you take the plunge. Sorry to see you have so many troubles getting started but actually starting is half the job! I have mixed feelings about my 3rd party coke relationship too. They treated me pretty well at the beginning but then cut me off with the rest of New Jersey vendors. If you can establish a relationship with them when you are bigger I would consider it because the one thing you will always be short on in this business is capital. 3rd party solves part of that problem. However, I do agree with your response to the situation you describe with Dr. Pepper. You have to find people who keep their word and not change the deal on you in the middle of the stream. If they do change I think it is entirely appropriate to stop doing business with them. Link to comment Share on other sites More sharing options...
spdydre Posted April 16, 2010 Author Share Posted April 16, 2010 I will try and update this monthly. Was able to get my next single price soda machine placed at a collision shop with ten employees. My first location did horrible at only 53.00 but at least its better than sitting in the garage. I had to service the other location because it was vending two sprites at once because I did not change the setting to vend only cans and it was set to vend Water bottles. One of the shop guys pretty much cleared out the whole sprite selection I only had about 12 sodas left in the column after a week because of this On the bright side I have two other locations in the works that should go in the next couple of weeks. Mechanic Shop one-$53.00 one month service Mechanic Shop two-26.00 one week service Collision Shop-not serviced Link to comment Share on other sites More sharing options...
mxer518 Posted April 17, 2010 Share Posted April 17, 2010 For just a soda machine 53$ in one month isn't all that bad, for what I call idle machine which are ones that would otherwise sit in storage making nothing, might as well have it do something and make a little. Link to comment Share on other sites More sharing options...
spdydre Posted April 17, 2010 Author Share Posted April 17, 2010 For just a soda machine 53$ in one month isn't all that bad, for what I call idle machine which are ones that would otherwise sit in storage making nothing, might as well have it do something and make a little. Yes it is still cool down here in houston. Once the summer extreme heat and humidity comes hopefully the numbers pick up. None of these places have a/c except the collision shop but that is just the small office not the shop. I plan on just doing soda machines for now until I get about 30 then come back and offer the accounts I have snack machines so I can spread out the product across a few snack machines instead of just getting one snack machine now with alot of product Link to comment Share on other sites More sharing options...
mission vending Posted April 17, 2010 Share Posted April 17, 2010 Once you do start getting into snacks I'd suggest planning on taking the plunge and getting up to 12-15 snack machines as quickly as possible. With that number of machines out and careful management of inventory you can get your out-of-date losses down to almost nothing. Link to comment Share on other sites More sharing options...
spdydre Posted June 6, 2010 Author Share Posted June 6, 2010 I have been very busy and havent had time to update. Since my last post I have acquired a new location with a soda and snack machine at our international airport in addition to two new locations which are both Coffee/soda Accounts. In the deal for the route I also acquired the owners complete business and his Coke Flo agreement. I wanted to stay away from 3rd party but the Coke sales rep I have been in contact with is pretty easy going and their terms are not too strict like Dr. Pepper. I didnt plan on doing Coffee or snacks this soon but I couldnt pass up the deal. I bought the complete route at 25% of gross sales. I will update my numbers in a few weeks once I get settled into running the new route. Link to comment Share on other sites More sharing options...
spdydre Posted June 17, 2010 Author Share Posted June 17, 2010 Well back for an update I have been busy the past few weeks. I purchased a small vending company and with that purchase I am now one of three vendors to cover our large airport. I also took over his Coke-Flo agreement and have two pretty good coffee accounts. It has been pretty crazy so far running around and taking care of everything. I will be making a alot of new setups throughout the summer at this account because they are already requesting machines in new spots. I will try and keep this updated at least once a month if i can to show my progress. Here are May/June #'s Mechanic Shop one- 82.55--one month Mechanic Shop two-66.02--one month Collision Shop-78.00--one month Distribution Center-not serviced placed this week Airport-296.00---one week service soda/snack Real Estate office-37.00--one week service for soda also coffee account Car Care Shop-not serviced placed this week--soda and coffee account Link to comment Share on other sites More sharing options...
WillisNYC Posted June 17, 2010 Share Posted June 17, 2010 Congrats on your success! Enjoy the rush of these early successes and continue to build upon them. Success breeds success. That confidence that you gain with every new account makes the next one that much easier. And the bigger you get, the more comfortable you feel saying no to terms that you are not comfortable with. Best of luck with that new airport account, it sounds like a winner! Link to comment Share on other sites More sharing options...
spdydre Posted August 9, 2010 Author Share Posted August 9, 2010 I have been busy so I havent updated in awhile. I slowed down on new locations last month to get the airport account in order and take a break from the hectic madness over there. I have two new spots lined up at the airport and also another distribution center waiting on a soda machine. I should have these in place the next couple of weeks. I have not yet decided if I want to move the slow performing locations with a single soda machine just yet. They are averaging $45-$65 gross per month. I really am liking the coffee side of this business last month my real estate office used $300+ worth of coffee and I only go once a month. I wish I had 50 of these lol. I will update my numbers for both months at the end of august. Link to comment Share on other sites More sharing options...
spdydre Posted August 18, 2010 Author Share Posted August 18, 2010 I am going to try the 5 hour energy in my snack machine at the airport and see how sales do. I should be receiving the shims from 5 hour next week to vend them. I am really excited to see how it turns out. I did my biggest pull for one day between services which was $93.10 from that one account last night. Link to comment Share on other sites More sharing options...
spdydre Posted August 30, 2010 Author Share Posted August 30, 2010 Well this has been a rough few weeks my vending vehicle got stolen last week so I was unable to get the airport and real estate serviced for one week and the machines were empty so I lost a weeks worth of sales I have also come across some stipulations as to the new spots on the airport due to some bottler contracts in place so I am limited to the area I can place equipment for now so the new spots are taking a little bit longer to get into place than expected. I also got rid of the car care shop because they refused to pay for the coffee I delivered and wanted it for free. It was not a good location in the first place so not a total loss. Other than that I have a few new leads for locations from friends and my website so I have to start picking things back up. I received my shims from 5 hour energy in the mail so I am going to get those into the snack machine at the airport to try and boost sales a bit hopefully. Here are August # pulls for one month Mechanic Shop one- 67.65 Mechanic Shop two-47.00 Collision Shop-55.00 Distribution Center-93.00 Airport-476.95 Real Estate office-135.35--bottle soda/156.29 coffee Link to comment Share on other sites More sharing options...
spdydre Posted August 30, 2010 Author Share Posted August 30, 2010 double =post Link to comment Share on other sites More sharing options...
spdydre Posted September 18, 2010 Author Share Posted September 18, 2010 Well on for the updates. Placed a second soda at the airport as well as one soda at a flooring company that one of my friends works at. I have another mechanic shop lined up as well as a large apt complex that I can hopefully place by the beginning of october. All of these locations I got through friend referral and facebook so far I havent used a locator since my first two locations so that is saving me a bit of money to spend on machines instead. The airport area i service is expanding to another terminal with 200 new pilots and 10 new aircraft and they will need more machines over there so I am pretty excited! I still havent utilized my 3rd party soda machines I am just buying my own for now. I might try and use 3rd party for the apt complex because its 4 floors but I will have to see how many they will actually need. Link to comment Share on other sites More sharing options...
mission vending Posted September 18, 2010 Share Posted September 18, 2010 Looks like you've got some pretty high peaks and some pretty low lows going on lately. Just keep on working at it and over time things will smooth out for you. Link to comment Share on other sites More sharing options...
NinnJinn Posted September 18, 2010 Share Posted September 18, 2010 Very wise choice on saving the third party for the Apt complex with stairs! Link to comment Share on other sites More sharing options...
spdydre Posted October 6, 2010 Author Share Posted October 6, 2010 Very wise choice on saving the third party for the Apt complex with stairs! Well guess I spoke to soon I hit another small bump in the road this week when my main machine supplier said he quit and is not selling machines anymore! I have a couple other contacts but their can machines are about $850 and up and I was paying $500-$550 refurbished with him. He also delivered For right now it looks like I have to utilize the 3rd party and craigslist again since I have a few locations waiting on me and $1000 machines are out of the question. I contacted my Coke rep so lets see if they are in a giving mood this month. More updates to come Link to comment Share on other sites More sharing options...
spdydre Posted February 5, 2011 Author Share Posted February 5, 2011 well just to update since my last post I have been pretty busy. I have added 4 snack and 6 soda machines recently on the airport. I have stopped locating and now am trying to just get areas in and around the airport but it has been a bit of a slow task so far. I have my website and facebook up and going to help me market a little better and get my name out there.. I will have to update my stats once I get the route running smooth. I am a little bit behind on where I would like to be but I think being patient is best. This year I would like to get at least 50 machines out on location by June we will see how it goes. Link to comment Share on other sites More sharing options...
amc-vending Posted February 5, 2011 Share Posted February 5, 2011 Hey Spydre, the company I purchase machines from are constantly taking truck loads of machines down to Houston, They have been gone through and completly refurshed. and are reasonable priced. If you want drop me a email or pm and and I will put you in contact with them. Link to comment Share on other sites More sharing options...
spdydre Posted July 24, 2011 Author Share Posted July 24, 2011 Well havent updated in 6 months but took a break to work and save up more money for expansion. Around Feb. I had so many accounts wanting equipment I had to let alot of good ones go because I did not have equipment to support the requests! I shut down picking up new accounts and advertising. So I have kept my current route steady going the past 6 months and am ready for a big expansion in the next year. I came short of my June 2011 goal so I have alot of work to do but I am now more prepared than before. Hope to have a good second year in business! Link to comment Share on other sites More sharing options...
spdydre Posted August 11, 2011 Author Share Posted August 11, 2011 Well gave locating another try this week and I had no luck I only had one offer from a small college of 200 students but they wanted food service for the faculty and students which I cannot do. I also have my in person salesman locator on the hunt this week as I am going to start trying to pick up more areas in and around the airport. Locating is harder than I thought but I will keep trying as long as I get one haha I am not a good salesman. I am going to shoot for majority soda locations and utilize the third party through coke agreement I have to get a jump start from my long break away. wish me luck! Link to comment Share on other sites More sharing options...
spdydre Posted August 25, 2011 Author Share Posted August 25, 2011 Well the past week I proposed my services to two accounts one is an office with 50 employees and a chain of schools contacted me through an ad I placed on craigslist. I made my proposal to both accounts on the equipment I could set up etc and havent heard back yet from the office. The school contacted me and they said they would forward my prices etc along with a few other vendors to the main contact to be reviewed then they would contact me. Ugh so I guess I am playing the waiting game, I might do a followup if I dont hear anything in a week. I had put together a booklet with pictures of the machines and prices together at kinkos to help me market myself better when I am locating but I still need brushing up on my sales skills I am a horrible salesman haha I was so nervous. I guess this is a trial and error until I get it right. Well back to locating! Link to comment Share on other sites More sharing options...
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