chad Posted April 14, 2011 Share Posted April 14, 2011 Thinkign about getting into snack and soda vending. I answered an ad on Craigslist the other day. The guy was selling 10 locations for 11000. These weren't already established locations. He said they would be found for me and he would help me get set up with Coke with free machines. I asked him why I wouldnt be able to just get the free machines myself and he told me that he has been doing this for 15 years and knows how to get the machines. He said that if I tried that I would probably get denied. Is that so? How can I go about getting set up with some free machines? Link to comment Share on other sites More sharing options...
snack dude Posted April 14, 2011 Share Posted April 14, 2011 Thinkign about getting into snack and soda vending. I answered an ad on Craigslist the other day. The guy was selling 10 locations for 11000. These weren't already established locations. He said they would be found for me and he would help me get set up with Coke with free machines. I asked him why I wouldnt be able to just get the free machines myself and he told me that he has been doing this for 15 years and knows how to get the machines. He said that if I tried that I would probably get denied. Is that so? How can I go about getting set up with some free machines? RUN!!!!!!!!!!!!!RUN!!!!!!RUN to the nearest exit This is a major BIZOP scam and the goal of this guy is to separate you from your money. He probably has a 1-888 number and you will majorly overpay for whatever you get. If you really want to get into this buisness talk to some local folks and deal with local folks not a promise from a voice on the phone. There, I feel better now! Call the local coke or pepsi bottler and talk to them. Bottlers have territoies and they all differ on how they handle third party machines Link to comment Share on other sites More sharing options...
dloiselle Posted April 14, 2011 Share Posted April 14, 2011 I got in about 10 weeks ago in all honesty. I can tell you I have learned really fast. I got going with Pepsi. I am running the vending though my existing business. I filled out a credit app with Pepsi, the rep told me there was a 15 case minimum delivery. I told him where i needed the machine, he scheduled the delivery of the machines. It was just that simple. Here is the catch, 20 oz is bottler proprietary. You have to pay what they an insane amount until you reach minimums and then the price drops from there. The I have been doing it 15 years is a bunch of crap. you will still have to sign a agreement with the bottler and go through their credit process. That is what is going to make the difference of weither you get the machines or not. This guy is offering a biz op. If it is anything like what I saw, he is going to charge you supposedly a years gross. #1 if the route isn't established, how can he know what to charge you - YOU WILL SIGNIFICANTLY OVER PAY, #2 you will have a minimum to purchase through the bottler to maintain the machines "for free." It cost me $23.00 per case for the 20 oz bottles - Pepsi no longer has can machines. Coke is only about $1.00 a case cheaper until I hit a 125 case minimum. If you have an established business, and established good credit you should not have to much trouble. Just make sure you have locations lined up. 15 cases is alot of product. I have done 30 so far, and will without question be placing an order next week. I am in NY, and it is just starting to warm up here, and my locations are also in mostly seasonal businesses. Up until I got the ok on another location yesterday, I was refusing to place an order, Now i am robbing Peter to pay Paul so to speak, trying to get enough out of all the machines I have out to stock the one I am locating tomorrow, and still leave enough in the machines to keep them operating until my delivery comes next week. Bottles due have a expiration date, I believe 13 weeks. I have one spot that is so slow - RJT told me this would be the case when we discussed it - I have been taking product out of it and putting it in the other machines. I already bought it, and again, it is dated. Got taken this evening on a machine that was a can set up. So if the client still wants placement tomorrow that will have to be bottles as well as I have a bottle machine in stock, but not another can, mostly diet and I keep 0 diet in stock as it expires significantly faster - so I was told by the Pepsi rep. I think your best bet, craigslist you should be able to find machines, usually around the $500,00 mark. If you do just $150.00 a month, you are looking at an average of 10 months I would guess before you have full ROI on th e machine, that is figuring 20 oz at wht I pay Pepsi, and charging $1.50 per bottle, also not considering time and gas costs to service. If you can find a can machine, your ROI is significantly quicker as you have a much better margin. I pay approximately 33-37 cents a piece at Sams club, and am getting 75 cents out of one machine and $1.00 out of the others. In this area, no reason a can can not be at $1.00 from what I have seen, but the location I am currently at $0.75, Coke previously had, and didn't service correctly. I had to meet the price. Down the road I will consider raising the price, but right now, I am happy to have the increase in sales and with a 2:1 ratio of soda $ to snacks (I believe that is what I read), that account is now worth $75 per week. Also hoping the statement is true of gaining the extra money from the soda as well, so I may end up $100.00 per week, I hope any how. A few of the vets will chime in, and their advice will be much better than mine, I treasure it when I ask and they pop in. There advice is much more accurate, and experienced. What ever you decide to do, I wish you the absolute best of luck!! Link to comment Share on other sites More sharing options...
mission vending Posted April 14, 2011 Share Posted April 14, 2011 I got in about 10 weeks ago in all honesty. I can tell you I have learned really fast. I got going with Pepsi. I am running the vending though my existing business. I filled out a credit app with Pepsi, the rep told me there was a 15 case minimum delivery. I told him where i needed the machine, he scheduled the delivery of the machines. It was just that simple. Here is the catch, 20 oz is bottler proprietary. You have to pay what they an insane amount until you reach minimums and then the price drops from there. The I have been doing it 15 years is a bunch of crap. you will still have to sign a agreement with the bottler and go through their credit process. That is what is going to make the difference of weither you get the machines or not. This guy is offering a biz op. If it is anything like what I saw, he is going to charge you supposedly a years gross. #1 if the route isn't established, how can he know what to charge you - YOU WILL SIGNIFICANTLY OVER PAY, #2 you will have a minimum to purchase through the bottler to maintain the machines "for free." It cost me $23.00 per case for the 20 oz bottles - Pepsi no longer has can machines. Coke is only about $1.00 a case cheaper until I hit a 125 case minimum. If you have an established business, and established good credit you should not have to much trouble. Just make sure you have locations lined up. 15 cases is alot of product. I have done 30 so far, and will without question be placing an order next week. I am in NY, and it is just starting to warm up here, and my locations are also in mostly seasonal businesses. Up until I got the ok on another location yesterday, I was refusing to place an order, Now i am robbing Peter to pay Paul so to speak, trying to get enough out of all the machines I have out to stock the one I am locating tomorrow, and still leave enough in the machines to keep them operating until my delivery comes next week. Bottles due have a expiration date, I believe 13 weeks. I have one spot that is so slow - RJT told me this would be the case when we discussed it - I have been taking product out of it and putting it in the other machines. I already bought it, and again, it is dated. Got taken this evening on a machine that was a can set up. So if the client still wants placement tomorrow that will have to be bottles as well as I have a bottle machine in stock, but not another can, mostly diet and I keep 0 diet in stock as it expires significantly faster - so I was told by the Pepsi rep. I think your best bet, craigslist you should be able to find machines, usually around the $500,00 mark. If you do just $150.00 a month, you are looking at an average of 10 months I would guess before you have full ROI on th e machine, that is figuring 20 oz at wht I pay Pepsi, and charging $1.50 per bottle, also not considering time and gas costs to service. If you can find a can machine, your ROI is significantly quicker as you have a much better margin. I pay approximately 33-37 cents a piece at Sams club, and am getting 75 cents out of one machine and $1.00 out of the others. In this area, no reason a can can not be at $1.00 from what I have seen, but the location I am currently at $0.75, Coke previously had, and didn't service correctly. I had to meet the price. Down the road I will consider raising the price, but right now, I am happy to have the increase in sales and with a 2:1 ratio of soda $ to snacks (I believe that is what I read), that account is now worth $75 per week. Also hoping the statement is true of gaining the extra money from the soda as well, so I may end up $100.00 per week, I hope any how. A few of the vets will chime in, and their advice will be much better than mine, I treasure it when I ask and they pop in. There advice is much more accurate, and experienced. What ever you decide to do, I wish you the absolute best of luck!! That's a very good answer. In general the bottlers over the last few years seem to have become more and more reluctant to provide third party equipment to "new" vendors. Call the local bottler and ask to talk to their third party sales rep and see what they say. The worst thing that can happen is that they say "no". To get the volume requirements met you likely will need some combination of owned and leased equipment. Getting locations is not that hard, print up some business cards, hit the streets and be willing to take more "no's" than "yes's" without getting discouraged. WHATEVER YOU DO.... DON'T GIVE THAT BOZO YOUR $$. If you are dead set on losing some money you can send me half of what he is asking and I will go to Vegas and bet it all on black for you. The odds of getting something back are far better. Link to comment Share on other sites More sharing options...
chad Posted April 14, 2011 Author Share Posted April 14, 2011 Thanks guys. Yeah I thought the guy was nuts. Free machines but yet he wants to charge over 1000 per machine/location. So I'm assuming the ads on craigslist that are selling combos and locations should be avoided too? I called a few and most are around $2300 + 300 for a location. Link to comment Share on other sites More sharing options...
dloiselle Posted April 15, 2011 Share Posted April 15, 2011 Yup, you got it. The machines they are selling are not rated very well on here at all, and since I own a few, stay away from antares unless you are going to put them in a location where someone will #`1 keep an eye on them for you, and #2 you don;t have to change the price. They take a long time to change the price as you have to take the mech apart and either put parts in or take them out, and for me, way to long. The locations mine are in (they came with the so called business I bought) are secure and I can pick and choose what I put in. They don;t earn alot of money, but they hold their own for what they are. I would never buy them though. I believe mission has a few combo's he could give you an idea of what to look for if you were interested in going that route. Link to comment Share on other sites More sharing options...
mission vending Posted April 15, 2011 Share Posted April 15, 2011 I believe mission has a few combo's he could give you an idea of what to look for if you were interested in going that route. I believe the best thing for you to do is to decide how you want to get started in vending. Primarily do you want to go with full line (soda and snack) or just start with a few soda only locations? Once you get that decision handled we can better help you with equipment decisions. Link to comment Share on other sites More sharing options...
NinnJinn Posted April 15, 2011 Share Posted April 15, 2011 Don't let the credit app scare you, from my understanding, all the credit app is for, is whether you get "billed" for your drinks, or if you pay the driver for your drinks when He/she delivers them to you. When I got started, I didn't want any part of this "pay later" stuff and told them that I would pay on delivery. Then All I provided was my State and Federal Tax ID numbers and I was in business with Coke. Still trying to get pepsi to give me machines but they are not being very cooperative until I order over 1,000 cases from them. Link to comment Share on other sites More sharing options...
chad Posted April 15, 2011 Author Share Posted April 15, 2011 I just want to get started with 2 machines or so. Soda only or combo is fine. I did bulk vending a couple years ago. It was ok but I really think Full line is more what I want Link to comment Share on other sites More sharing options...
dloiselle Posted April 15, 2011 Share Posted April 15, 2011 Thing t remember with full line vs. bulk is routine stocking, rotation and STALES. If I were to stat over again, with one machine, I would do soda. You will not believe how much easier it seems to me to land a location for a soda machine. I believe also that it is approximately a 2:1 ratio on money spent, in soda's favor. I have some machines that I am still trying to figure out what to put in them. They are getting better, but none the less still not doing what I think they should. I have 2 R32 and 2 145's, the second 145 will be placed today. I wish I had more of the R32's, just like them. The 145's what I understand have been a reliable machine, but I can not seem to get the turnover out of them. I also do not go looking for the 100 person accounts either. This is not my primary income, just supplemental for the winter up here, I am in the heavy construction industry. The combo machines for what I am doing is most likely the best avenue. HOWEVER, the full size snacks are nice as well. I would like to upgrade my combo to electronic combo, and actually have a spare or two. Reason being a few, you automatically gain the money on soda, and chances are with the snack sitting right there, you will get the rest of that money also. With my combo machines, I see a much higher percentage of quaters in the drink section over the snacks. Link to comment Share on other sites More sharing options...
EddieMac Posted April 15, 2011 Share Posted April 15, 2011 Yup, you got it. The machines they are selling are not rated very well on here at all, and since I own a few, stay away from antares unless you are going to put them in a location where someone will #`1 keep an eye on them for you, and #2 you don;t have to change the price. They take a long time to change the price as you have to take the mech apart and either put parts in or take them out, and for me, way to long. The locations mine are in (they came with the so called business I bought) are secure and I can pick and choose what I put in. They don;t earn alot of money, but they hold their own for what they are. I would never buy them though. These mechanical machines are a royal pain!!! I had two that came with a route I bought ... I got rid of them. I also won a location because the former vendor had mechanical machines and they were too much trouble to "use". They loved my "electronic" machines. Link to comment Share on other sites More sharing options...
dloiselle Posted April 15, 2011 Share Posted April 15, 2011 Don't let the credit app scare you, from my understanding, all the credit app is for, is whether you get "billed" for your drinks, or if you pay the driver for your drinks when He/she delivers them to you. When I got started, I didn't want any part of this "pay later" stuff and told them that I would pay on delivery. Then All I provided was my State and Federal Tax ID numbers and I was in business with Coke. Still trying to get pepsi to give me machines but they are not being very cooperative until I order over 1,000 cases from them. WOW!!!!!!!!!! I didn't get hit with any of that. 1000 cases that is pathetic. I got the app the day I met with the rep, he helped me put an order together, scheduled the delivery of the machines and the first delivery of product. 2 weeks later I got a call that the app was approved. The first delivery I pad the driver like you do/did. Just paid the last one on line. I got to tell you, I think I would raise some sort of holy hell with this one. Tell them you got your own machines with Pepsi graphics and are just going to put coke products in unless there is an arrangement made. That is what did it for me with Coke. Coke's app is a pita. I jsut got it today, no mental desire to deal with it right now. These mechanical machines are a royal pain!!! I had two that came with a route I bought ... I got rid of them. I also won a location because the former vendor had mechanical machines and they were too much trouble to "use". They loved my "electronic" machines. I can easily believe that. I would dump them, but where they are, they do about $30 every two weeks and I don;t believe that changing the machines would do anything. So I leave them there, a little $ is better than nothing. I would not buy new machines for two of the locations, I would consider upgrading one of them as it is in a bank. They seem happy with it, so on the other hand, I leave it. Link to comment Share on other sites More sharing options...
chad Posted April 22, 2011 Author Share Posted April 22, 2011 Called my local coke bottler this week and talked to the 3rd party sales rep. He was very nice and filled me in on the details. He said I need a tax ID, a commercial place to get the product delivered and that's it. If they approve a location then I get the machine. Small list of rules to follow. Link to comment Share on other sites More sharing options...
NinnJinn Posted April 22, 2011 Share Posted April 22, 2011 You gotta love the "commercial place for delivery!" there is a senior citizen center down the street from my home maybe 500-600feet. coke and pepsi both sit in the street for at least 20mins while stocking their machines. I have a 75ft long pull off in front of my home that is on my property, and Both bottlers refuse to let me use my home address for delivery because its a residential area. but when I tell them about the senior center being 500ft away, they say "oh well that is a special exception." Link to comment Share on other sites More sharing options...
chad Posted April 22, 2011 Author Share Posted April 22, 2011 Yeah where I live would be easy for them to deliver. I have a long driveway they could pull right in to. I guess I'll have to use a storage unit Link to comment Share on other sites More sharing options...
mission vending Posted April 22, 2011 Share Posted April 22, 2011 The commercial place for delivery is SOP. Many cities have ordinances prohibiting these kind of regular business deliveries to residential areas. Link to comment Share on other sites More sharing options...
spdydre Posted April 22, 2011 Share Posted April 22, 2011 I got a po box at a postal printing place for $5 a month and cut a deal with the owner to have my cases delivered there from Coke for .10 a case and no limit on the amount of cases. I will go this route until I am large enough to have my own storage when it is time to warrant one for business purposes. I drop of the check and when Coke comes he just gives it to them and they deliver the cases to the back warehouse storage area. All I do is come with my truck load them up and go. Link to comment Share on other sites More sharing options...
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