Vending expansion pros/cons.......need some input

[kai1836]

So I'm coming up on 18 months at this and am faced with some big decisions to make over the next 30 days or so.  I have been pleased with the results of my route purchases over the last year and how my sales have increased. Right now though I'm considering full line as well as bulk. I'm wondering. Comparing investments would 1000 dollars invested in full line return more or less than 1000 dollars invested in bulk? I am coming into some capital to further my business and would appreciate the input. Also the amount isn't 1000.00....just threw the number out as an example. Thanks.

[Hillbilly]

I think in the long term it would be higher.  Short term however it would be lower. Because of the amount of capital needed.

[Profits]

Bulk has a much higher ROI, but makes a much smaller piece of the vending pie.  The bulk of money to be made is in full-line.

You'll make more per hour of service with bulk.  You'll make more money over-all, albeit with a lot more effort in full-line.

It just comes down to your personal objectives.

[lisa vending group]

as most you are aware i have been vending bulk for about 3 months. my idea was to lock in 100 locs,so far i have 52 and moving as fast as i can.in answer to your question i am building within the route.i am being asked for cig machines to sanitary napkins. i think i need to focus on my plan and build within the routes.do you have locs for full line.it seems to take more of your time, but true you make larger amounts of cash. I looked to buy at least 3 routes ,all small, but when i descovered the enormous moving/sliding parts and the cost of repairaprox.50% profit but 50%of cost and the hours and labor. ipassed wish i could be more help, but good luck in your decision ron

[s.weir]

I have crunched number for days on end over this and I figure it is basically just whatever you prefer.  It definitely takes more capital for full line and it has aspects that are so much more work then bulk (moving machines, locations (harder then bulk), product is heavier and more abundant, ect.), however with that said each location has more POTENTIAL room to make you a much larger sum of profits.  I have full line and I enjoy it, but I am also getting into bulk because the opportunity arose for some good priced machines and I have some great locations lined up.  Plus...you guys seem to all love it 

[agrantha]

I am just getting into full line only because a location owner asked.  I like bulk vending better.  You keep it simple and profits add up.  If you are in bulk vending long enough a location owner or manager will ask you to put in full line machines.  I have been in bulk vending now for 5 months.  Last week, in one location which I had a triple, the manager asked me to put in another bulk candy machine.  I now have two triples at that location.  Today a business owner asked me to put in a snack drink combo machine.  I can’t see how a person can have several locations without someone asking for full line machines at some point. 

[JPVendCo.]

I am just getting into full line only because a location owner asked.  I like bulk vending better.  You keep it simple and profits add up.  If you are in bulk vending long enough a location owner or manager will ask you to put in full line machines.  I have been in bulk vending now for 5 months.  Last week, in one location which I had a triple, the manager asked me to put in another bulk candy machine.  I now have two triples at that location.  Today a business owner asked me to put in a snack drink combo machine.  I can’t see how a person can have several locations without someone asking for full line machines at some point. 

when a location asks you to put in full line, i suggest asking questions. I had a location ask me to do full line at their location, and after asking a few questions, found that they previously had soda and a snack machine there, but the last vendor pulled out because of sales. consider foot traffic, and employee count before spending hundreds of dollars on machines, that won't get used! I can accept a 15 dollar a month bulk location, but not a 15$ full line loc.

[sherlock]

I have crunched number for days on end over this and I figure it is basically just whatever you prefer.  It definitely takes more capital for full line and it has aspects that are so much more work then bulk (moving machines, locations (harder then bulk), product is heavier and more abundant, ect.), however with that said each location has more POTENTIAL room to make you a much larger sum of profits. 

Great post.

I personally have not done full line, but looked at the numbers HARD last year when I was getting started in vending and had to decide whether to do full-line or bulk.

I chose bulk and am glad I did.

It was the right choice for ME.

But...it had NOTHING to do with the return on my investment and EVERYTHING to do with what was better in line with what I am capable and willing to do for a living.

Don't worry so much about what will give you the biggest return.

First worry about what it is you are willing and capable of doing to earn your living.

Otherwise you may wind up like so many...earning a good living but unhappy.

If you have the desire and ability to do both full-line and bulk...may as well start the full-line with the upcoming availability of cash....I mean, if your ability and desire is in place, why wait to chase that goal/dream? You already started the bulk side.

If instead, you do not have the ability and/or desire...meaning, you're just after the buck...think twice.

You already enjoy bulk...why go full line just for the sake of money. It may sour you to vending and you may be throwing good money towards full-line when you could have used it for the bulk you already like so much.

[mission vending]

Great post.

I personally have not done full line, but looked at the numbers HARD last year when I was getting started in vending and had to decide whether to do full-line or bulk.

I chose bulk and am glad I did.

It was the right choice for ME.

But...it had NOTHING to do with the return on my investment and EVERYTHING to do with what was better in line with what I am capable and willing to do for a living.

Don't worry so much about what will give you the biggest return.

First worry about what it is you are willing and capable of doing to earn your living.

Otherwise you may wind up like so many...earning a good living but unhappy.

If you have the desire and ability to do both full-line and bulk...may as well start the full-line with the upcoming availability of cash....I mean, if your ability and desire is in place, why wait to chase that goal/dream? You already started the bulk side.

If instead, you do not have the ability and/or desire...meaning, you're just after the buck...think twice.

You already enjoy bulk...why go full line just for the sake of money. It may sour you to vending and you may be throwing good money towards full-line when you could have used it for the bulk you already like so much.

I don`t think I could say it better. Do what you love and the $$ will come. I have had many many opportunities to get into bulk but have chosen not too. Why? Each type of vending business comes with its own set of headaches, pitfalls and headaches and I have chosen to only have to deal with one.

my.02

[The Mage]

I was looking into full line, but I am not ready for that.  For me full line doesn't fully fit my goals unless I have an employee or employees.  And I have decided to wait until the political field is a little more stable, and I can be sure of what I am getting into with having an employee.

Right now I like the idea that while I plan on hitting some machines this week, it usually isn't a problem for me to wait a week or two.  In fact I try to make sure most machines are set up so I can skip them and they are fine the next time I do the route.  Also I know my product is going to last a while.  I can hit sales and stock up as long as I don't go overboard.

While I know that there are problems that can arise, like the call I got today that my sticker machine was not dispensing, that isn't as big a deal.  If an out of order sign is on a bulk machine for a day or 2, or even a week, most people are not going to get too upset.  (Remember, I said most.)  But your big machine goes down, they most likely want it fixed today.  Many people bring change and bills for lunch or breaks instead of food.

I can see the profits here, but I am not just looking for the profit.  I am also looking for the freedom.  Even though i was recently looking at purchasing a full line route, I decided to let it pass and stick with bulk.

But that is just me, and my goals.  Everyone must find what is right for them.

[agrantha]

Near the end of our conversation the owner did ask me to at least provide a drink machine if not both drink and snack.  I think I will try a small drink machine.  This is a small office space and one of those small drink machines may work in this environment.  I currently have a bulk candy machine in this location doing more than $30.00 per month.  Shouldn't I be able to find a small drink machine for $150-$200?  I don't mind sodas since they don't spoil.  But, I am concerned about the cooler breaking down.  I am willing to gamble with a small amount of cash on this location.

Maybe in the future I should only choose locations that already have a drink and snack machine.  That way they don't ask me for one.

Thanks for all your input.

[sherlock]

Maybe in the future I should only choose locations that already have a drink and snack machine.  That way they don't ask me for one.

Don't know if you're joking, but in case you aren't...

The solution for you IF you decided you do not want to do full-line is not to avoid being asked for full-line services.

Instead, find someone in your area that does full-line and has no interest in bulk.

That way if someone asks you for full line, you can provide the lead to your full-line friend and take care of both, your friend and your location.

I have no interest in full-line, so if one of my locations asked for it, I'm getting a hold of Mission Vending a.s.a.p.

[Jax Snacks]

I am just getting into full line only because a location owner asked.  I like bulk vending better.  You keep it simple and profits add up.  If you are in bulk vending long enough a location owner or manager will ask you to put in full line machines.  I have been in bulk vending now for 5 months.  Last week, in one location which I had a triple, the manager asked me to put in another bulk candy machine.  I now have two triples at that location.  Today a business owner asked me to put in a snack drink combo machine.  I can’t see how a person can have several locations without someone asking for full line machines at some point. 

Here is something else to consider when approached for a full line machine.  Arrange for a swap deal with a locator(s) that deals in both bulk and full line.  Tell the locator you have a solid "yes" for a full line machine and want to swap that location for some bulk locations.  I did that years ago with a locator who did both lines and it worked out pretty well.  I think 3 or 4 bulk locations in exchange for a solid soda machine location is fair.  I hate "waisting" a full line lead, but have no desire to get into full line.  Gotta love free locations!

[sherlock]

Here is something else to consider when approached for a full line machine.  Arrange for a swap deal with a locator(s) that deals in both bulk and full line.  Tell the locator you have a solid "yes" for a full line machine and want to swap that location for some bulk locations.  I did that years ago with a locator who did both lines and it worked out pretty well.  I think 3 or 4 bulk locations in exchange for a solid soda machine location is fair.  I hate "waisting" a full line lead, but have no desire to get into full line.  Gotta love free locations!

That's a great idea Jax.

I guess the only hard part is finding the proper locator.

No locator around here does BOTH full-line and bulk...do they?

[agrantha]

I am not against full line.  It’s just that I am a little nervous about entering it since I have never done it before.  Bulk vending is just so simple that I never got nervous before entering it.  I will just buy a small cheap drink machine and see how it goes.  I am going to have to learn at some point anyway whether I can or want to do full line.  This is an ideal learning situation because this is not a large location. 

If I do a location swap, I feel the owner may be offended since we have a good relationship.  This is the way we are here in the stix of North Carolina.  O0

If this opportunity want cost much, I will give it a shot.

[Quarter Master]

Agrantha,

                    Now that you have looked at the front end of full line (the money), ask yourself if you have the means for the backend work. What I mean is: Do you have-money to buy equipment ?

                                                                                                      means of moving equipment ?

                                                                                                      either knowledge or someone to fix

                                                                                                      broken machines ?

                                                                                                      time & money for product ?

I'm not trying to talk you out of anything, just hoping you have thought this all the way thru.

[agrantha]

Islander

I think you may have talked me out of it.    I have non of the above.  I am scraping my candy machines now trying to pull together the cash.  I was thinking maybe I should take the phone number off of a drink machine at one of my other locations and give them a call.  What do you think.  Maybe I should ask them if they have any unwanted machines.  Maybe they will let me use it in exchange for a commission and they transport the machine and do all the repairs.  The machine would still belong to them.  This would be ideal because I can afford the product. Doesn't Coke do the same thing?  I am really brain storming now.

[Quarter Master]

Well it sounds like you're talking about third party vending and you have to go over to the full line side and start asking questions over there. I only do bulk because that's what I can handle. I have been asked numerous times if I could provide drink or snack machines from locations and had to reply"no I don't provide that type of equipment, however I do have a working relationship with a couple of good people who do.Here's their name and number and I will call them also to expect your call."I've been doing this for a couple of years and we each get locations for each other.It works out both ways.

[mission vending]

I have no interest in full-line, so if one of my locations asked for it, I'm getting a hold of Mission Vending a.s.a.p.

Ditto for me and bulk requests.

[s.weir]

Shouldn't I be able to find a small drink machine for $150-$200?

Agrantha if you need a small reliable pop machine for that price range try a CT-48 I know many people who have luck with them in low volume locations.  Personally I try not to have low volume locations so I try to rarely use them  .

[kai1836]

  Update:  I had found a full line route for sale and have been contacted back by the seller......the route is a good price for the cash flow and I think I may give it a go.  12 snack/soda locations with multiple machines on location......cash flow looks good am going to see it next week. Will report back the outcome if something happens.

[agrantha]

Agrantha if you need a small reliable pop machine for that price range try a CT-48 I know many people who have luck with them in low volume locations.  Personally I try not to have low volume locations so I try to rarely use them  .

Thanks S. Weir  O0

[22443360]

Tryed both bulk and full line, first it was full line, but i didnt like the ROI, so I quest. 2 years later, my eys was opened towards bulk, the ROI is much better on a bulk machine, thats my experiance, and much less work, its much more passive.