Thoughts on what this location will do

[jayhawk22]

I'm curious for some income projections from you guys on my new location.  I am placing a 45 selection snack machine & a 10 selection soda/drink machine in the location.  The location is in a hotel in a town of 50,000 people.  It has an indoor pool with slides, an arcade & bar.  It is a very nice facility.  I will price the canned soda & most snacks at $1.  Also, these are my first snack & soda machine & I just am curious what to expect.  Thank you.

[jayhawk22]

What is the best selling energy drink to sell out of soda machines?  I checked at Sam's today & they sell Monster & Red Bull.  Red Bull is pricier & I assume it sells better?  Also, they will be going into a machine at a hotel.  How much should I vend them for?  Thank you.

[WillisNYC]

Couple things, WHY are you vending cans in a hotel?  I sell bottles in mine for $1.75  It has been ages since I saw cans in a hotel around here except in mini bars.  I don't know what percentage you are paying to the hotelier, but I think you would make more money with bottles than cans.

As for Red Bull, it is difficult to vend from most 'standard' machines,  Not knowing your equipment, Monster is probably your better choice since it vends from most machines.  In a hotel I would sell Monster at $2.50 per can. 

My soda machine in a 300 room hotel here in NJ that is not as nice as yours does  $300/week on average and the snack machine does $200 with most of the snacks at $1. 

How many rooms does your hotel have?  The bigger it is, the more you will sell.  Where are the machines?  Do many people walk by them?  Will folks walk by them going to the arcade/pool?  How many floors in your hotel.  Most hotels havea  soda machine on every floor.  All these things figure in to how much you will make there. 

[jgoldenmba]

WillisNYC,

What commissions are you willing to give to get a hotel?

[WillisNYC]

Good question....I tried to find that out for a long time when I first started in this business.  I purchased a route that had the hotel in it and found out that they paid 30% on sodas and 20% on snacks.  However, all the snacks are priced at $1 for chips, cookies, cakes and candy so my margins are the same or better than ones with $.75 chips.  The bottles are priced at $1.75 and if you do the math, the numbers come out reasonable even with a 30% commission. 

[jayhawk22]

Cans are just alot more accessible around here.  The local Sam's sells Pepsi cases for $6.  Also, the local grocery stores regularly run soda on sale for $5 a case.  I didn't even see bottles of Pepsi products at Sam's.

[Beach Bum Vending]

Sams  does have bottles  and I would look online if not in store they order for you in a day or two. 

Hope That helps good luck.

How is location doing what kinda numbers?

[jayhawk22]

Thanks sn.  I wonder how the profits compare bottles to cans.  The hotel said they don't care what I put in.  I just thought cans would be easier to buy without waiting for orders to arrive.  Also being able to stock up when cans are on sale.  I appreciate all comments!