ThankYouComeAgain Posted February 2, 2011 Share Posted February 2, 2011 I believe the topic title and description says it all. Can you tell me the number of employees you look for when looking for a new account? I do not live in a rural area, so if you throw big numbers at me, it won't phase me. I have someone who is looking to partner deals with me, his company will provide water/coffee, and of course his customers are looking for vending machines for snacks and soda/cola/coke/whatever. Of course the issue is that these companies are small, many times consisting maybe of 100 employees. I've been getting the feeling from someone in the business that 100 employees isn't profitable - especially if I have to provide a newly purchased machine (snack), and then have to check it only to find chump change in the machines every week. I'm very hesitant to get small accounts, which I think is 100 employees and below (is this right?). My line of thinking is this: only look for 400+ employees, where I have to visit the account twice a week to refill/inventory/etc, and preferably in businesses where the employees will use the machines instead of going out to eat every dang day, as is done in a white collar inner city setting when there are many restaurants around. If I'm wrong, I'd appreciate you not beating around the bush and taking me to your own personal seminar of...reality. Thanks. What is your definition of small company, medium, and large? I want to buy and sell in bulk; more money in it, so I want large accounts only (or medium if there is still great $). Link to comment Share on other sites More sharing options...
dogcow Posted February 3, 2011 Share Posted February 3, 2011 are these new businesses, or what, if they are good accts why dont they have vending already? no offense jusdt a question Link to comment Share on other sites More sharing options...
Boazcat Posted February 3, 2011 Share Posted February 3, 2011 400+ is pretty ambitious in my opinion. If you are buying things at Sam's or Costco, then it doesn't matter if you buy a case of 48 snickers or 3 boxes of 48 snickers. I think your reality is that you might be lucky to get a few accounts of 100 customers. The ones with 20 are who will be looking for new vendors because their other person pulled out due to low sales. I have 10 machines and not one is more than 50 employees. Would I like more? - You bet! However... so does everyone else. Good luck! Michael Link to comment Share on other sites More sharing options...
NinnJinn Posted February 3, 2011 Share Posted February 3, 2011 Personally I think your dreaming, and wish you all the best with getting the 400 employee accounts. I know of several companies that have less than 75 employees, usually around 40-50 and the accounts do over $300/week. Personally, I don't care if it is only 5 people in a company, if I am pulling over $100 week per machine, I am not going to be a cry baby about it! You could have a location with 400 people and it not do diddly squat! Link to comment Share on other sites More sharing options...
ThankYouComeAgain Posted February 3, 2011 Author Share Posted February 3, 2011 Ok, if someone wanted to partner deals with you, and asked you what your minimum number of employees are, what would you say? I'm still a little leary with 100, so I'm thinking of saying 150+. Also, what is your definition of small company, medium, and large? I may be able to get into one business that has 900 employees, however, they are white collar employees with many places to go out for lunch near them, and they all make a lot of money (comparatively), and only had 2 snack machines for the whole area, and one cold food machine that did very very poorly. So you can see why I came up with the figure 400 people, maybe 200. Keep in mind, I don't get to do coffe, so sales is only coming from vending machines, and I'd likely have to finance new ones to put into these new accounts. Link to comment Share on other sites More sharing options...
NinnJinn Posted February 3, 2011 Share Posted February 3, 2011 unless it is set in stone that you HAVE to provide new machines, why not go with refurbished ones? I understand getting new, you have less worries about break downs and such hopefully until after the equipment is paid off. At least in my area, white and blue collar folks usually don't rely totally on snack machines for their lunch. They might get a candy bar or chips to supplement it, and most of them will get a drink out of the machine if they are not going out to eat. plus the majority of your snack sales are going to come when they are on their break. Drink sales will be from through out the day and spike during breaks and lunch. Link to comment Share on other sites More sharing options...
JEREMYTINA Posted February 3, 2011 Share Posted February 3, 2011 I only have 3 fulline accounts and they all do well. Only one has over 100 employees and the other 2 have less than 10. I think it's a matter of trial and error. There is no sure fire way to guarantee income from vending machines. Obviously, more people equals a greater potential for income, but you have to start somewhere. All of our equipment so far has been purchased used, but in good condition, and has saved us a bundle. The last location listed below is new and has not paid the machine off yet, but by week 16 it will. Nusing Home 130 employees Revenue:$230 to $270 a week every week from 8 select soda and 40 select snack. Also have a triple head candy here that does $50 a month. Pool Construction and Service Distributor 10 employees Revenue: $85 to $130 per week depending on time of year. Also have a Triple head candy here that does $30 per month. Equestrian Facility 5 employees Revenue: $50 per week soda only Link to comment Share on other sites More sharing options...
ThankYouComeAgain Posted February 3, 2011 Author Share Posted February 3, 2011 Good answers, and I'm glad I got specifics from you JeremyTina. I may reduce my requirement to 100 instead of 400 or 200. My point of view was skewed from what I experienced at that place with 900 employees. If anyone has anything to add about the questions I posed above, I'd love to hear it. Link to comment Share on other sites More sharing options...
Boazcat Posted February 3, 2011 Share Posted February 3, 2011 I may reduce my requirement to 100 instead of 400 or 200. My point of view was skewed from what I experienced at that place with 900 employees. I'm curious why the account with 900 did so poorly... Surely there were 100 or so folks who grabbed a diet coke everyday. I'd jump on that one in a second. Who cares if they go out for lunch! Don't make no sense... Michael Link to comment Share on other sites More sharing options...
mission vending Posted February 4, 2011 Share Posted February 4, 2011 I believe the topic title and description says it all. Can you tell me the number of employees you look for when looking for a new account? I do not live in a rural area, so if you throw big numbers at me, it won't phase me. I have someone who is looking to partner deals with me, his company will provide water/coffee, and of course his customers are looking for vending machines for snacks and soda/cola/coke/whatever. Of course the issue is that these companies are small, many times consisting maybe of 100 employees. I've been getting the feeling from someone in the business that 100 employees isn't profitable - especially if I have to provide a newly purchased machine (snack), and then have to check it only to find chump change in the machines every week. I'm very hesitant to get small accounts, which I think is 100 employees and below (is this right?). My line of thinking is this: only look for 400+ employees, where I have to visit the account twice a week to refill/inventory/etc, and preferably in businesses where the employees will use the machines instead of going out to eat every dang day, as is done in a white collar inner city setting when there are many restaurants around. If I'm wrong, I'd appreciate you not beating around the bush and taking me to your own personal seminar of...reality. Thanks. What is your definition of small company, medium, and large? I want to buy and sell in bulk; more money in it, so I want large accounts only (or medium if there is still great $). There are many variables and no hard and fast rules here. I prefer a minimum of 25 people on location, maybe a little less if there is a lot of traffic and they have access to machines. The thing to look at is cash flow and profitability. If you buy new equipment, for simple math figure 125 a month on 4 year contract/lease per machine. 150 for 3year on snack and soda. Specialty equipment like cold food, frozen about 50 a month more. Add to that COGS taxes, commissions and cost to service and it become difficult to find accounts that will kick out positive cash flow at any but the biggest accounts. I don`t recommend taking on a lot of debt, been there done that and I would not wish the experience on anyone. With well bought used equipment a 50 person location can be quite profitable. I would consider any location with the right equipment bought at the right price. IMO if you are going strictly new you will not only limit yourself the debt load will become crushing. You will be able, for a while at least, stay ahead of the debt curve but when it catches you, you are very likely to crash and burn. If you have a mountain of cash and will pay cash for the equipment then I guess this respose does not really matter. my .02 Link to comment Share on other sites More sharing options...
ThankYouComeAgain Posted February 4, 2011 Author Share Posted February 4, 2011 There are many variables and no hard and fast rules here. I prefer a minimum of 25 people on location, maybe a little less if there is a lot of traffic and they have access to machines. The thing to look at is cash flow and profitability. If you buy new equipment, for simple math figure 125 a month on 4 year contract/lease per machine. 150 for 3year on snack and soda. Specialty equipment like cold food, frozen about 50 a month more. Add to that COGS taxes, commissions and cost to service and it become difficult to find accounts that will kick out positive cash flow at any but the biggest accounts. I don`t recommend taking on a lot of debt, been there done that and I would not wish the experience on anyone. With well bought used equipment a 50 person location can be quite profitable. I would consider any location with the right equipment bought at the right price. IMO if you are going strictly new you will not only limit yourself the debt load will become crushing. You will be able, for a while at least, stay ahead of the debt curve but when it catches you, you are very likely to crash and burn. If you have a mountain of cash and will pay cash for the equipment then I guess this respose does not really matter. my .02 A portion of what I have would be cash to spend on one or more machines, and I'm sorry if I said I'd be buying new, it is refurbished equipment. Thanks for the responses. Link to comment Share on other sites More sharing options...
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