Looking for used machines

[jgoldenmba]

I'm brand new to this forum and the vending world. I'm getting ready to purchase my first machine and locate it. I would like to find a dealer in the Maryland area, preferrably a used machine that will deliver it for me. Anyone know of any in the area?

Thanks,

Dan

[RJT]

A few questions first before I can lead you in the right direction.

Is their a reason why you want to buy through a dealer? Dealers are great in some situations but your better deals are on Craigslist. As far as delivering is their a reason you cant deliver them yourself? Are you not physically able or just don’t have the truck, and moving equipment? Trucks and moving equipment can be rented.

A few other questions….

1. Do you have the machines placed yet?

2. If not where are you going to try placing them?

3. Do you have a business plan?

4. Are you planning on growing or just staying with a few machines?

5. How handy are you?

6. What is your starting budget?

I have a few others but we can start with these....

I just bought three nice snack machines off Craigslist that just need a little TLC for $300 each. A little paint and  new fronts and they will look great.

[mission vending]

I would recommend using a dealer for your first few machines until you learn how to operate and maintain them. I`d start with the usual google search and find a few within a reasonable distance. Then pay them a visit, ask lots of questions. When you find someone that will take the time to show you stuff then you likely have found someone you can business with.

CL can have great deals but IMO should be left to more experienced vendors that know what to look for to avoid problem machines and unpleasant surprises.

Be careful of those making big promises and get it in writing. This is a cash business and that tends to attract people willing to take advantage of those that are new

[devin1986]

I was recently in the same boat. I ended up buying a "nice looking" machine off CL, and got lucky. It's also nice if you have a friend or an experienced vendor who can help you locate the right machine, and give you a run down of the mechanics, setting prices, etc.

Don't be afraid of craigslist, but see if you can get some outside help on what to look for.

[jgoldenmba]

RJT,

I do not have the machines placed yet.I assume I should locate them prior to buying?

I plan to place one in a very busy auto repair shop and another in a blue collar factory. These are my first accounts I plan to approach.

I don't have a business plan in place.

I want to place as many machines as I can handle by myself. At this point I don't want to grow any larger than that.

[RJT]

I suggest you research the different types of machines and prices. I would buy used from Craigslist if possible so you can save yourself some money.

Auto repair shop can be hit or miss. Blue collar factory can be good but do you know who their current vendor is? What makes you think you can get the location? Does the factory have cold food? Coffee? Bill changer?  I would suggest a business plan. Yes, I prefer to have locations before equipment. However in you case I would not shy away from buying my first set of drink snack machines first then find the location. This will give you a chance to mess with them and get used to them. Then I would secure your second location and then buy machines.

I would do a lot of research before buying or approaching anyone about doing their vending.

[jgoldenmba]

Did you guys get insurance and your business licenses before placing your first machine? Or did this come later?

I understand some locations can demand more time than others... but for average machines, but roughly how many can one person do part time? I want to build this estimate into my business plan.

[jgoldenmba]

One other question: I have $3000 I can spend to purchase a machine or two to start off with and then I plan to use the proceeds from the machines I own outright to purchase additional machines. What do you guys think of this approach? I have credit lines I could use, but I think starting slower until I get my feet under me might be the right thing to do...??

[WillisNYC]

Unless you have signifigant assets to protect, I would not worry about insurance until your first location asks you for insurance.  You can then buy insurance as needed. 

Also, check into 3rd party soda machines.  Coke, Pepsi, Snapple and a few others offer machines for free as long as you buy product from them.  This will keep your capital costs low while you start up. 

Depending on what you mean by part time, you can have a large number of accounts and still do this part time.  The key thing is to locate accounts where you have 24/7 or weekend access to them since you will be servicing the locations before and/or after your regular working hours.    Office buildings are not typically open on weekends, but service stations, auto dealers and many others are. 

The key to this business is being able to get your assets located and in position cheaply enough that they will pay for themselves in a short period of time.  I aim to get a machine paid for in 9 months.    So if I buy a snack machine, I anticipate it will gross $50/ week and make a 'profit' of $25/week after just COG.  That adds up to $100/month profit if it is a 'good' location.  If I buy the machine for less than $900 and I didn't have to repair it during the 9 months, it will be 'paid off'.  Then it will generate money to buy new locations.  However, you will quickly find that 'averages' don't mean much.  Your first machine may make $20/week or it may make $100 gross.  It can be very difficult to tell in this business.  Also, drink machines can be highly seasonal with business doubling or tripling during the summer and falling off to a trickle during the winter in some locations. 

Nearly all prices in this business are negotiable, so pretend you are at a flea market and haggle, haggle, haggle with whoever you are buying machines from.  Make offers for half or less of what they are offering their equipment for.  Depending on how desperate they are, they may accept.  Craigslisters are especially prone to this since many people overpay for their equipment.  Even if they don't accept your 'half' price, they may come down to a price you can accept. 

With hard work and a little luck, you could buy 6 snack machines with your $3000 and get 6, 3rd party soda machines to get you started in this business.    This may sound a little unrealistic to some, but I know it is possible if you work hard enough and look hard enough.  I would set that as your goal and settle for ending up with 4 locations set up with your 'start up' money.  (And that includes moving costs as well since many dealers/people will move machines as part of the purchase for little or no cost.)  4 to 6 locations should be easy to handle part time and give you a good feel for what this business is like.  Then you can decide if you want to get more serious about this business.

[jgoldenmba]

WillisNYC,

Thank you very much for your post. It is very informative. I will look into the third party machines. I'm assuming you sign some contract with the third party to keep the machine in that location for x amount of time? Say I place 6 machines and buy product from Pepsi or whoever, if three of the locations are doing great would you eventually get a machine you owned in there? If so, how long would you have to leave the third party machine there before making the swap?

Also, is there a way to check and see if a person is a machine's rightful owner. I just found a snack machine and a drink machine for $300 each on CL. That seems like a great price if they work. Can I be sure they aren't stolen or something?

Thanks again...

[WillisNYC]

All third party machines I know of have asset numbers stamped into a plate that is affixed to the machine.  Sometimes in multiple places and often with a label saying the property is of 'Coca Cola' or something to that effect.  If a machine has an asset number from Coke or Pepsi, it is most likely a third party machine and can't be sold.  If you call the company with the asset number, they will tell you where it is supposedly located and maybe even who they are 'lending' it to.  I have done this a number of times with competitors machines just to find out who 'owned' a particular location. 

I have multiple 3rd party machines located on my current route with no plans to replace them.  All the bottlers repair and service the machines for no charge in addiiton to placing the machines at no charge.  A route may be worth more with 'owned' machines but you should only be concerned with that when you are ready to sell a route or location.  Other vendors opinions on 3rd party machines vary, but it is not something I would be concerned about when starting up.  You want to preserve your precious capital to make as many smart location 'investments' as possible.  3rd party machines help with this tremendously.   

I have found drink and snack machines on CL for similar prices in the past.  No the machines are not necessarily stolen...the owner may just wish to get them moved and lowering the price is one way to do it. 

[jgoldenmba]

Thank you!

As for these "smart locations"... when placing the machines, do you have any insight what might make a location worthy of my precious few pennies and my own machine or a third-party candidate?e

I'm trying to google the third party info for Pepsi and Coke, haven't come up with much yet.

Do you think being August, a strictly soda, approach is a bad idea with winter coming? If I did snack and soda, would you recommend a combo machine or one of each?