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Wish I woulda found this site earlier!


BigLag

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New here to the forum and appreciate you guys posting helpful info. I don't have any machines or locations but am purchasing a combo machine from 1-800 vending today and hiring a professional locator. After I get my first good "guaranteed" location and see what kind of income a location brings in, I'll get more machines and go from there. There isn't a whole lot someone can say at this point to sway me to not buy my first machine like this but I would apreciate any help from there after. Looking to net between 1-2k/mo and would love any advice on the quickest way to get there. I'm from Louisiana btw.

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Welcome to VENDiscuss.  This is a great place to start.

Here is my generic welcoming advice so I don't have to repeat myself:

http://vendiscuss.com/forum/index.php?topic=10922.0

Anyway since your new, before you start buying machines, discuss it with the members here first, or do some searching on the forums.  You might be able to save a ton of money, and keep from getting "taken".

I understand the urge to jump in.  But some patience is a good thing.  (Unless it turns into paralysis by analysis that is.)  You don't have to know everything, but a little more basic information from the members here can increase your likelihood off success dramatically. 

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Great advice but buying one machine isn't exactly "jumping in." I'm not expecting to make $1k/mo off one machine but I have to see exactly what this is all about myself before getting in too deep. If someone could elaborate on how much an average machine nets that'd be great. Btw I just ordered the machine and it should be here in 10 days which is a few days after the locator finds a spot for me. I already own 2 businesses and am fairly familiar with risk/reward and how much work it takes for it to be successful. Here's generally my thinking---and do correct me if I'm wrong... 10 machines averaging a net of $300/mo each which is $3k a month. Not a bad investment eh? Inputs, opinions, arguments are welcome but the past is the past and the machine has been ordered so let's focus on the future. Thx and looking forward to chatting with yall. 

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Welcome to the forums, I do full line, but I have read enough about the bulk business that I can easily say that you are not going to generate ANYWHERE near that kind of revenue on a gross basis much less on a net basis.

I would suggest to do some homework here by reading  past threads discussing average revenues per location.

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OOOPS!!! I just stopped at the 1-800 part thinking it was 1-800 bulk machines. :o

OK so how about the down low on full line? If you do to do approx 800 in gross sales, here are the numbers

Cost of Goods sold, industry average is 50 -55% = approx 440.00

Sales Taxes, in Texas 7.0- 8.25% = approx 66.00

Commission, if applicable, usually 10% = approx 80.00

Cost to service, a combo doing this volume needs to be serviced 2X weekly, this includes gas, insurance, labor, wear and tear on vehicle etc. My YTD cost to service is approx 32.00 per stop X 8 services in a month 256.00

Total 842.00, even if your cost to service is half mine then your net at 800 monthly gross is only 86.00.

If you are financing then you are going to carry it out of pocket until it's paid for. This doesn't even begin to get into the discussion of spoilage of product due lack of volume to move it before it goes out of date.

Combo machines in my experience do well in locations that generate less than 500 -600 gross revenue. The reason? If an account has the potential to generate that kind of revenue then I and most vendors will offer to put full size equipment in there to give them better variety and selection to take it from you.

So my .02 is give it a go if you want, but don't expect to make that kind of money. Vending is a great business, I love what I do, if you are really interested that are a lot of people that are quite willing to share their advice and experiences here. IMO 1-800 combos is not the way to start.

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OOOPS!!! I just stopped at the 1-800 part thinking it was 1-800 bulk machines. :o

OK so how about the down low on full line? If you do to do approx 800 in gross sales, here are the numbers

Cost of Goods sold, industry average is 50 -55% = approx 440.00

Sales Taxes, in Texas 7.0- 8.25% = approx 66.00

Commission, if applicable, usually 10% = approx 80.00

Cost to service, a combo doing this volume needs to be serviced 2X weekly, this includes gas, insurance, labor, wear and tear on vehicle etc. My YTD cost to service is approx 32.00 per stop X 8 services in a month 256.00

Total 842.00, even if your cost to service is half mine then your net at 800 monthly gross is only 86.00.

If you are financing then you are going to carry it out of pocket until it's paid for. This doesn't even begin to get into the discussion of spoilage of product due lack of volume to move it before it goes out of date.

Combo machines in my experience do well in locations that generate less than 500 -600 gross revenue. The reason? If an account has the potential to generate that kind of revenue then I and most vendors will offer to put full size equipment in there to give them better variety and selection to take it from you.

So my .02 is give it a go if you want, but don't expect to make that kind of money. Vending is a great business, I love what I do, if you are really interested that are a lot of people that are quite willing to share their advice and experiences here. IMO 1-800 combos is not the way to start.

So are you saying that in order for me to profit $300 I'd have to gross $3000 from a machine? So if I'm grossing around $500-600 then I'd only make $50-60 a month on a machine?

Anyone interested in a new combo machine for sale?

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So are you saying that in order for me to profit $300 I'd have to gross $3000 from a machine? So if I'm grossing around $500-600 then I'd only make $50-60 a month on a machine?

Anyone interested in a new combo machine for sale?

If I wanted a combo, I would probably bid on the used one on eBay that is still at $199 with about a day left.  ($378 estimated to ship to me though...ugh.)

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So are you saying that in order for me to profit $300 I'd have to gross $3000 from a machine? So if I'm grossing around $500-600 then I'd only make $50-60 a month on a machine?

Anyone interested in a new combo machine for sale?

I will give you 300 for it and pick it up

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So are you saying that in order for me to profit $300 I'd have to gross $3000 from a machine? So if I'm grossing around $500-600 then I'd only make $50-60 a month on a machine?

Anyone interested in a new combo machine for sale?

If you are going to run it as a business by paying yourself for your time and the expenses involved in operating as a business then the short answer is yes. 2500-3000 gross will get you around 300 profit.

If you are working as the owner operator and are figuring only cash in your pocket (salary plus profit) then you can get it with 1200-1500 gross.

This is a penny, nickel and dollar industry.

Penny: How can you lower your unit costs by one or two cents?

Nickel: When do I ask for that .05 price increase?

Dollar: How much did I pay for my equipment?

If your purchased is financed then it will reduce your profit.

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I`m not trying to talk you out of doing full line. We really need more full line guys around here. The bulk guys have us outnumbered something like 20 to 1. ;D

Seriously, vending, bulk and full line can both be very rewarding, but it is hard work. Not the pie in the sky nonsense those guys at 1-800 told you.

If i`ve upset you, I apologize, I know I can be pretty direct at times.

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I`m not trying to talk you out of doing full line. We really need more full line guys around here. The bulk guys have us outnumbered something like 20 to 1. ;D

Seriously, vending, bulk and full line can both be very rewarding, but it is hard work. Not the pie in the sky nonsense those guys at 1-800 told you.

If i`ve upset you, I apologize, I know I can be pretty direct at times.

Not upset, actually glad that you've elaborated with real numbers bc as long as i've been researching everyone wants to either promise the moon or tell me it's a complete waste of time and money. To be fair though to 1800vending, they actually did not promise the moon which is why i trusted them over some of the other companies i've talked to. The machine is not financed, it is paid for in full. I'm looking  for advice on how to move forward from my "mistake" and what to do from this point forward. I bought the machine realizing that it is a risk, but how do you exactly get into vending without a machine anyhow? And I've bought  enough USED junk in my life that required more maintenence than its worth so for my first machine i decided to buy new...whoa what a moron huh? If I can make a decent return, then I'll look further into the bigger machines. BTW, failure is not an option. One day this machine will pay for itself. If it takes 2 or more years, ill make the money then sell the machine then all i lost wa time. but if it pays for itslf in less than a year, tthen im joining youj guys in the vending business.

anyway mission, you're the first person that's tried to help at all besides my salesman and i do appreciate it. So besides selling my machine, what would you say is the best way to make the most of my investment?

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Not upset, actually glad that you've elaborated with real numbers bc as long as i've been researching everyone wants to either promise the moon or tell me it's a complete waste of time and money. To be fair though to 1800vending, they actually did not promise the moon which is why i trusted them over some of the other companies i've talked to. The machine is not financed, it is paid for in full. I'm looking  for advice on how to move forward from my "mistake" and what to do from this point forward. I bought the machine realizing that it is a risk, but how do you exactly get into vending without a machine anyhow? And I've bought  enough USED junk in my life that required more maintenence than its worth so for my first machine i decided to buy new...whoa what a moron huh? If I can make a decent return, then I'll look further into the bigger machines. BTW, failure is not an option. One day this machine will pay for itself. If it takes 2 or more years, ill make the money then sell the machine then all i lost wa time. but if it pays for itslf in less than a year, tthen im joining youj guys in the vending business.

anyway mission, you're the first person that's tried to help at all besides my salesman and i do appreciate it. So besides selling my machine, what would you say is the best way to make the most of my investment?

To make the most of your investment you need to get it on location and make some money. ;D Sorry, couldn't resist that opening.

Anyway, if I was in your shoes I'd get this location up and running and while doing so take some time and learn about the business. There are trade publications you can get for free via e-mail, there is a lot of stuff here in the old threads. Find a couple of good reputable companies that sell refurb equipment, Vendors Exchange is one, where you can buy equipment with a warranty at substantially less then new instead of CL deals. After a couple of months of getting your feet wet and you are still wanting to pursue vending then make a jump to 8-10 locations. This will get you to, or close to, "critical mass" where you have enough sales volume to move product before it expires.

That's a start, let me know if you have more questions, here or PM

Mike

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Thx tbird. And in y'all's experience whats the best place to have a combo machine? Gym, real estate office, apt complex... I am hiring a locator but would still like some opinions.

Could i ask who your locator is before you waste some more money? Lot of scam locators out there!

Combos work well in car repair places small car dealerships

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Apartments probably would not be the best place to start. In my experiences it is where I have had the most problems with vandalism.

It's a numbers game, you are looking for how many people are in the location all day and how many come and go. I'd look for some sort of office or small manufacturing setting. Something like 25-30 people for small manufacturing and 35-40 for some sort of white collar office or professional setting. That ought to get you some decent revenue while you learn how to work the machine. Anything with more people in it will likely already have full size equipment in it and unless they are very unhappy probably won't be interested in "downsizing" their vending options.

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Could i ask who your locator is before you waste some more money? Lot of scam locators out there!

Combos work well in car repair places small car dealerships

Excel is my locator. And I do love a car dealership, that'd be great. I sold cars many years ago and those guys are always getting their customers a drink plus when they don't have time for lunch they suck down a bag of lays. And the service peeps. I love it.

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Apartments probably would not be the best place to start. In my experiences it is where I have had the most problems with vandalism.

It's a numbers game, you are looking for how many people are in the location all day and how many come and go. I'd look for some sort of office or small manufacturing setting. Something like 25-30 people for small manufacturing and 35-40 for some sort of white collar office or professional setting. That ought to get you some decent revenue while you learn how to work the machine. Anything with more people in it will likely already have full size equipment in it and unless they are very unhappy probably won't be interested in "downsizing" their vending options.

Btw mission if the stars all line up the right way and I did land into a killer location I wouldn't at all be opposed to buying a full snack and drink machine to put there if you didn't think that'd be a waste.

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