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Combo machine inside a gym


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Depends on what you want to do... Do you want to go with items that are considered healthy? Do you want to use 100% natural, no artificial flavors, colors and preservatives type products, even if they are not considered healthy under the Fit Pick or other guidelines that use portion size, fat, sodium and carb content as the judging criteria?

If you are just looking for stuff the will sell well in this type of setting here are a few suggestions

For drinks:

Gatorade/Powerade

Vitamin Water/ Sobe drinks

Water and flavored waters, look at a couple of brands a regular and a premium like Fiji Water

For snacks:

Granola and nutri grain

Powerbars if you can get them

Cliff bars

Trail mixes

Pretzels

Baked chips

That ought to get you started let me know if you need more suggestions

Sun chips

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Sounds like a good start with that list, but do you think energy drinks would sell in that environment.  I can get energy drinks for around $1.15 each and sell them for $2.50 each (same price that the gas stations offer).  I would like something with a large profit margin so I can offer an eport cashless system as an option.  Only problem with cashless system is it charges $10/month and 6% of total vend price.

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Sounds like a good start with that list, but do you think energy drinks would sell in that environment.  I can get energy drinks for around $1.15 each and sell them for $2.50 each (same price that the gas stations offer).  I would like something with a large profit margin so I can offer an eport cashless system as an option.  Only problem with cashless system is it charges $10/month and 6% of total vend price.

The energy drink IMO would be a hit or miss kinda thing, I try to go to a gym once or twice a week and most of the folks in there are more health conscious and don't want to get jacked up by all the caffeine. The machine that is in there had several brands at one point and now they are all gone. In a gym where you have a lot of guys doing weightlifting it might work better because those guys fit the demographic that probably drinks that stuff outside of the gym.

Right now the stats on cashless stuff is that the average between cash and cashless transaction is about evenly split. In a gym setting it is likely you would be over 50% of transactions being cashless. So if you go in with slightly higher overall pricing the increased margin on the cash transactions ought to help carry the load.

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I would def. add the cost into the price of the items when pricing.  I think that cashless systems would get greater sales since nobody wants to carry around a wad of cash or quarters while they are working out.  They can just slip a credit card into the shorts/tights/bra or whatever they are wearing.

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I just noticed you have a USI combo. I have one as well....bought it as a repo with only $400 in sales on it..... be careful with the inner door, the lower hinge is crap, opened the door one day and it snapped and the door fell to the ground. You've got a 50-60 lb door swinging on a 1/4" pin in a bracket that is held to the frame with 3 #10 self tapping sheet metal screws.

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I had mine at the house and got the welder out, problem solved. This might not be an option for you though. 

Some larger screws that could bear the weight better would certainly help a #8 would make a difference. I'm trying to picture it, not really sure, but I think you could remove one of the screws and run a small bolt through the bracket and through the frame piece, that would certainly fix the potential problem.

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My opinion....it's too much.  On $1000 gross, you are looking at probably 500 - 600 profit.  Which would take you approx 17 months to pay off.  That doesn't take into account any commission that you may have to pay.  And would you have any protection to prevent you from being dumped within the first 2 years?

I would look for ones that can be paid for it 10 - 12 months max.  Based upon my "needs", I would not pay more that $5000 for the location with machine.

Travis

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Thanks Travis. There is a one year agreement. What if the commission was already accounted for? The account does 1200.00 a month minus 200 a month for commission which equals 1000.00 a month gross which equals 12000.00 gross a year. If you would only pay 5000.00 that would equal 40% of gross. Isn't that a low price? Thanks!

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But still consider, at $1200 a month, you are still looking at 600 - 700 a month profit after removing the Cost of goods.  From that profit, you still have a $200 commission payment, leaving between $400 and $500 a month profit.

At that price point, it will 17 - 21 months to pay back, not taking into account any spoilage (if there are any, refunds, equipment repairs etc).  My own personal opinion, you want a payback model based upon net profit, not gross sales.  With only a year contract, you would want it to be paid for within that time period.  With all of this info, I still stand by my offer of $5000

Travis

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In this case I would agree with Travis. I know I have said 50% as a rule of thumb but that is for full size equipment. The reason being is your cost to service is the same with a combo as it is with a full size soda and snack yet you are likely going to service more often and pull less money which means less profit even with COGS in line.

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Be sure to confirm that figure.  A $1000 a month is a big amount for a combo.  I am just now realizing how often you would be servicing that machine to earn that much money.  Actually $1000 a month is pretty darn good for any location.  So it sounds too good to be true to me.

I would not recommend putting down even 40% based on someones word.  Have one of your route drivers just run the stop with them for a couple of weeks before purchasing.  Most combos are lucky to make $50 a week. 

So caution caution caution on this one.

My two cents.

Poplady

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1200/month sales on one combo?

How many trips per week to take care of this baby ... 4 ?

Are the motors smoking when you show up to fill it?

Be careful ... sellers' memories often round the figures up ... way up.

If it turns out to be true, let us know so we can enter it into the Guinness Book of Vending Records.

I'm so curious ...

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If those numbers are accurate then he is filling it all the way, the machine is just limited in capacity. If the loction really makes that kind of money then full size equipment is justified. I would look really hard at upgrading once the sales are verified unless there is limited space that would prevent it and find a new home or sell the combo.

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That gross does sound high. He said he would let me collect for a month to verify. He visits his combos twice a week. I don't get it why don't vendors who visit acombo machine twice a week fill it up more and go once a week instead of twice a week? Thanks

If he is selling out the machine before each visit....then unless he puts in a larger machine....you have no choice but to make multiple visits or leave the machine empty half of the time.....

Travis

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I have a combo that does about $1200 per month and I fill it on Tuesday and Friday.This location warrants a full size set however the location only has room for a combo.I've had this location since July last year and with the exception of a couple slow months its been pretty consistent.

John

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