Zeke Posted January 11, 2008 Share Posted January 11, 2008 Anybody run Bulk stands? Need info on 35" Impulse bulk stands....includes stand , 3 column sticker machine, (2) 2" capsule heads, and (4) bulk head singles. They are asking for 835.00 for the deal plus 2 year warranty. does not include shipping. I have a possibility of putting out 35 of them over short period. Would have to finance the deal. The contract would be 3 years from Jan 15th. Plus I have to pay a locator fee of 250.00. I am also running cranes and possible kiddie rides with them. I am not that familiar with the bulk side, so I just want to make sure the return on my investment is good. To aquire the deal I would have to buy from Impulse. Thanks Zeke Link to comment Share on other sites More sharing options...
CraigMc Posted January 12, 2008 Share Posted January 12, 2008 I think that price point is close to what you could get with other manufactures. You need to also add in the cost of the locator. If that price includes a decent location then I think you have done well. Care to share with us all how to go about getting this deal ? Craig Link to comment Share on other sites More sharing options...
West Coast Vend LLC Posted January 13, 2008 Share Posted January 13, 2008 Keke, I am going to buy just about the same set ups next week from http://www.Candymachines.com Their prices $869 is about the same as everyone else. Their 10 column comes build already. The only thing I will have to pay extra is shipping. They will also give you discounts for larger quantities. The only one better is Amerivend but they are out-of-stock on everything. Gary Link to comment Share on other sites More sharing options...
Zeke Posted January 13, 2008 Author Share Posted January 13, 2008 Craig, the deal is with a national management company. They were awarded the Safeway account nationally which is estimated over 1500 stores. I would typically be a subcontractor of the deal. The only problem is that I would have to purchase all equipment through their "Guy" , and if I had to finance the deal it also would go through their "guy". The location fee and their commision would also be part of the deal. Commission is 7% for the management company and 30% to the location for skill cranes, its 42% total commission for the Bulk vending, and 55% for the kiddie rides. This business is all about locations. I used to run a route of Safeways with skill cranes back in the 90's in the Maryland, Virginia, DC area. I know that they a re a good location. So for me it's worth taking a shot. I just wanted to know if the equipment was worth buying. 42% seems like a ton of cash for bulk. Does this sound right? I don't mind the extra 7% for the skill cranes( I usually give 30%) due to the locations being solid, but 42% foro bulk seems high. Thanks Zeke Link to comment Share on other sites More sharing options...
Smiley Posted January 13, 2008 Share Posted January 13, 2008 I'm assuming this is the stand you are required to buy: http://www.bhmvending.com/Amusements/Impulse%20Industries/impulse_Designer35_Rack.html If you break down the value of each piece of equipment, you are pobably overpaying but it's not a complete ripoff. As far as the other aspects of the deal, unfortunately 42% and $250 placement fee is in line with what it takes to get a store like a Safeway. Sometimes the rate is lower and the fee is higher but you're in the ballpark. My biggest problem here is you don't have enough equipment to maximize your sales. At a bare minimum you need a 9 stand and a 4 column sticker in an average safeway. The better stores would require even more equipment. You are giving them only two - 2 inch capsule machines? Ridiculous. The most important issue: Return on Investment. Do the warranty + shipping bring the cost up to $1,000/stand? Is there sales tax in the state(s) you are going to operate? If we assume $3,000/year/store in sales. (And that might be overly optimistic.)- Do you have any experience merchandising toys and stickers? It seems not. It's not as easy as it looks. And you've only got 2 top cap machines and 3 sticker columns. 25% margin after Commission, COGS, Gas tolls and misc. expenses you can turn your $1000 into $2,250 plus whatever the used equipment is worth after 3 years (not much). And that's pretty much a best case scenario, machines could get moved into bad spots, vandalism and our industry is in a negative trend right now, so it seems like a very marginal investment. If you are inexperienced with bulk vending I would recommend against this deal for you. Finally, for reasons that I could explain if needed, there is a very slim chance that you will hold onto this location with the same equipment longer than your 3 year contract. Do you have to take all of the equipment in a store or can you stick to the cranes? Link to comment Share on other sites More sharing options...
Zeke Posted January 13, 2008 Author Share Posted January 13, 2008 Smiley, I'd rather just do cranes. It's what I know. But I would rather have a location with two pieces if I could afford it. I appreciate your comments. I have a couple of days to get it all sorted out. Hopefully I will make a good decision. Zeke Link to comment Share on other sites More sharing options...
Smiley Posted January 15, 2008 Share Posted January 15, 2008 Zeke, On second thought, I think the sales from one of these units will do maximum $2400/year. That makes the deal much, much less attractive. I think I would have to pass. Link to comment Share on other sites More sharing options...
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