Dave P Posted February 13, 2011 Share Posted February 13, 2011 I am seriously considering bulk vending. I have been in professional sales for most of my life seeking and finding locations should be a skill I have from my current job. In looking at the reveue sections of the forum I saw figures similar to $5.00 for one location and $10.00 for another. Most of these seemed like they were from an operators very first pull from his very first placement. My question is once you are in the business for more than a year and you are rotating out of bad locations -What is a reasonable amount to expect from a single locations from a two headed machine. Let say at the end of a year you have 40 locations. Another factor I live in suburbs of Washington DC. I know it will vary widely but I would really appreciate anyones input on this. Many thanks for your counsel on this item. Regards, Dave P Link to comment Share on other sites More sharing options...
amc-vending Posted February 13, 2011 Share Posted February 13, 2011 The national average per head is 7.00, but I have some locations that do over 50.00 a month and have some (need to pull) that do less then the natl avg. I leave a machine on location for at least 90 days after placing to give it a "chance" to do better. changing product mixes etc. If after that it is still doing lousy then I will find another location and move it. Link to comment Share on other sites More sharing options...
Dave P Posted February 14, 2011 Author Share Posted February 14, 2011 The national average per head is 7.00, but I have some locations that do over 50.00 a month and have some (need to pull) that do less then the natl avg. I leave a machine on location for at least 90 days after placing to give it a "chance" to do better. changing product mixes etc. If after that it is still doing lousy then I will find another location and move it. Thanks for your reply. I am thinking about focusing on two headed machines. If you had to make a guess what percentage of machines do you think do in excess of $12 per head. Also what have been your experience for the best locations. Many thanks for you help. Link to comment Share on other sites More sharing options...
The Mage Posted February 14, 2011 Share Posted February 14, 2011 There is kind of a game played here. You place a bunch of machines. Then you modify/adjust to see if you can bring up your lagging locations. Then you pull the worst ones. You can see about upgrading some locations. Then you start the process over again. (Honestly these events can overlap.) As you grow, you will be able to decide what you think is a minimum you will accept from a location to make it worth your time. As you grow, and get better, as well as build a group of good locations, your minimum will increase. There are a few things to take into account with this. Depending on product, some locations can produce a better profit with a lower gross. Then there is if you are paying a charity, a commission, or nothing to a location. Most of my locations are free and clear. As a result I am willing to take a lower return on them then if I had to pay commission. Right now my worst location does less then $5 a month. (Triple) But I actually have a reason not to pull it. The daughter of the person I purchased my first route from works at this location. (I think she is in charge there.) I would like to purchase his 9 sticker machines (2 of which are already in 2 locations that I have candy in,) and don't know how they would react to me pulling this machine. Plus it keeps a little connection there. We didn't come to an agreement, but last I knew, they were still for sale, so I may try again. But after I buy the machines/locations, or find out he no longer has them, the machine is moving. (Or if a location comes up, and I don't have a machine at home ready to go.) Link to comment Share on other sites More sharing options...
agrantha Posted February 14, 2011 Share Posted February 14, 2011 Dave Mage is correct. There is one very important factor I would like to add. You first must really like vending in order to be successful. If not, you will end up selling your route even if you are grossing $50.00 per location. In saying that, you will never gross $50.00 per location unless you really like vending, because you will not last long enough to get to that point. Passion is key. Vending is like any other business. The passion is what gets you thru the downs. Link to comment Share on other sites More sharing options...
Russell A Wilson Posted February 14, 2011 Share Posted February 14, 2011 vendstar told me i would make $1.00 per day per VS is that not tru? Link to comment Share on other sites More sharing options...
dperry Posted February 14, 2011 Share Posted February 14, 2011 Dave Mage is correct. There is one very important factor I would like to add. You first must really like vending in order to be successful. If not, you will end up selling your route even if you are grossing $50.00 per location. In saying that, you will never gross $50.00 per location unless you really like vending, because you will not last long enough to get to that point. Passion is key. Vending is like any other business. The passion is what gets you thru the downs. Wow! How true that is! I don't exactly make a lot of money in Vending, but it keeps me occupied and give me something to look forward to doing. vendstar told me i would make $1.00 per day per VS is that not tru? It can be true, in certain circumstances. It's not likely with candy tho. When being given figures like that, it's always best to trust, yet verify. Link to comment Share on other sites More sharing options...
amc-vending Posted February 15, 2011 Share Posted February 15, 2011 Wow! How true that is! I don't exactly make a lot of money in Vending, but it keeps me occupied and give me something to look forward to doing. It can be true, in certain circumstances. It's not likely with candy tho. When being given figures like that, it's always best to trust, yet verify. I do have 1 candy location that does 50.00+ a month, but most of the locations that 50.00 and above are toys locations. The best places I have found are ice cream places, pizza places for toys. One place I have a triple head has told me to move a rack in. I have some apartment complexes that do around 20.00 or so a month in candy. One asked for a rack - but I am pulling it - it does lousy. I have some upscale hair salons that do about 30.00 or so a month. The figures vendstar, u-turn give you or anyone is way over inflated in the real world. I almost went with a biz-op, but found the forum and it has saved me lots of costly mistakes. hope that helps you out Link to comment Share on other sites More sharing options...
minivend Posted February 15, 2011 Share Posted February 15, 2011 Our company philosophy is to secure "high volume kid traffic" accounts. If the location doesn't produce a minimum of $200 per month in sales then its not worth dealing with. Having equipment and product inventory in "poor" producing locations is a waste of time..Focus on quality not quantity.. Link to comment Share on other sites More sharing options...
JEREMYTINA Posted February 15, 2011 Share Posted February 15, 2011 Our company philosophy is to secure "high volume kid traffic" accounts. If the location doesn't produce a minimum of $200 per month in sales then its not worth dealing with. Having equipment and product inventory in "poor" producing locations is a waste of time..Focus on quality not quantity.. You must be describing rack locations. I have a number of high traffic kid locations, and my racks are only pulling around $100 or so a month. If we are talking about single, double, or triple head locations with candy and toys, you are not going to make those numbers. I would also reiterate that no one KNOWS what a location is going to bring in when placed. But every business model is unique and yours must be working for you if you are in business and earning a profit. Link to comment Share on other sites More sharing options...
minivend Posted February 15, 2011 Share Posted February 15, 2011 Yep..all of our locations are rack locations..When we evaluate a new location, to determine if we want to do business with them, we can usually tell what kind of numbers it will do per month..Again, we are very selective in what accounts we will do business with..As you know, a rack of equipment (8 or more heads) loaded with product can be a little costly..throw in a sticker machine and a sports blaster or sports zone and the numbers keep climbing.. Link to comment Share on other sites More sharing options...
dperry Posted February 15, 2011 Share Posted February 15, 2011 Yep..all of our locations are rack locations..When we evaluate a new location, to determine if we want to do business with them, we can usually tell what kind of numbers it will do per month..Again, we are very selective in what accounts we will do business with..As you know, a rack of equipment (8 or more heads) loaded with product can be a little costly..throw in a sticker machine and a sports blaster or sports zone and the numbers keep climbing.. Wow! It must be nice to be in a position to be able to pick and choose which location is good enough, and which isn't. If I were to limit myself like that, then I "might" have one single location on my route. Link to comment Share on other sites More sharing options...
agrantha Posted February 15, 2011 Share Posted February 15, 2011 I think time is a major factor in building a high income route. After putting machines in several locations, some of them will be monster locations. After several years you will have several monster locations. Just keep locating. As vendors quit, die off, etc., you will acquire those locations. Time, patience and persistence is the key. For example, I have only been in the bulk vending business for 1 year. I only have 6 locations. One does $50/mth. 4 locations do $30 to $40/mth and one does $10/mth. At this rate it may take me years to build a high income route, but it is possible if you are active. If you live in a ghost town this may not happen for you. Link to comment Share on other sites More sharing options...
havending Posted February 15, 2011 Share Posted February 15, 2011 I agree with Mini we won't just go anywhere either. Over the years we have learned hot to cherry pick locations. Link to comment Share on other sites More sharing options...
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