Coffee service

[bil10219]

I have a commission based soda/snack customer who wants me to install a single serve coffee vending machine. He owns a music store that gives lessons. His purpose is twofold: He and his customers want coffee available and He is looking to generate another commission source. His business has been down recently so I'm guessing the volume wont be real high. Maybe 5-10 cups a day. Are there some small coin op units available that would be cost effective like Kuerig? Or am I better off trying to talk him into OCS where I would provide the Kcups and supplies and sell them to him? Any pitfalls you can think of?

Thanks in advance, Bill

[Hillbilly]

Just my .02 but how much commission do you think he would want?

I have a Keurig and order my coffee direct from them and it is about .51-.53 a cup. Now I don't mind paying for an excellent cup of coffee.  Especially if I can pick the brew.  That being said I would probably pay around $1.00 - 1.25 a cup but I don't think most people would.

Would he tell people it costs money?  A lot of them would think it was free. Then how many would pay for it? And if you are wanting to pay comm it would have to be at least $1.50 for you to recoup your investment in the machine.  It will still take a good while in my opinion.

They do make excellent coffee though.

[bil10219]

Thanks for the reply Hillbilly. We hadn't discussed commission numbers yet. But we had talked about $1.00/cup. I get $1.00/soda there and he gets 20% on them. He was initially looking for a coin op set up with him getting a %. Where the Kcups will be out in the open, I would expect that there would be some pilfering. And I give them to him to control, how many would disappear as his employees take them home as a souvenir??? Hard to tell.

Bill

[dogcow]

. He owns a music store that gives lessons.

if you dont mind me asking, what kind of volume does the location do based on the equipment you already have there?

[RJT]

The easiest way to do this and cheapest (if you have a snack machine there) is to buy a single cup brewer that uses the pod style (k-cups, cartridges, etc) coffee. Then sell the pods out of the vending machine. You account supplies the or pays for the cups, creamers, sugar, etc. If you are charging enough for the pods you may be able to include the sugar, creamer, cups at no extra cost.

To maximize sales of the coffee you just need a sign at the coffee station area that says to buy the coffee pods from the snack machine.

Good luck and let us know how it goes.

[RJT]

if you dont mind me asking, what kind of volume does the location do based on the equipment you already have there?

That is the BIG question. In you original post you say he is looking for "another commission". If this guy is expecting vending to help cover his bills the he needs to get into vending. Some people have this idea that they want to make big money off their vending in their facility. Commission is just a way to supplement their electrical cost of having the machines, and such at these small accounts. I usually stay away from commission all together if it is a low volume account.

I would not get to deep in this account with more expense of equipment. Most places like this give complimentary coffee to their clients not worrying about how to make money off of it. Sounds like if he is that worried about making money off vending he may not be in business much longer anyway.

[mission vending]

I would agree with RJT`s analysis, especially the part about him likely not being in business much longer.