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Schools? any good?


NFL305

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I have run machines before but not for myself--looking to start out --I have a chance to get into a large school system with the request of healthy snacks--Are schools a good place to start, and what about the summer months?

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I have run machines before but not for myself--looking to start out --I have a chance to get into a large school system with the request of healthy snacks--Are schools a good place to start, and what about the summer months?

Schools used to be a pretty good place to do business. That was before the bottlers took the drinks with multi year big $$ contracts. Then the Dept of Ag got involved with restrictions on usage and product selections. In Texas it is known as the squaremeals program.

The healthy snack business IMO got a major boost by the media focus on obesity and nutrition in schools. Through much trial and error I have gotten some traction with healthy snacks but for the most part I think it is better suited as part of a comprehensive vending program and not as a exclusive proposition.

I would not recommend starting in the business with healthy snacks being your business model unless you have someone to help and provide some guidance. There are a number of "biz-op" type healthy vending programs out there but are generally VERY expensive to get into and there is not a long enough track record out there to determine if this business model will survive long term.

I firmly believe that "healthy vending" is here to stay. The only question that remains to be answered is what kind of market share will this concept eventually capture.

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Thanks Mission, I wouldnt want to be exclusivly healthy. From what Ive seen junk food still rules!

Ive already spoken to several "biz-op" companies out there and was just blown away by their machine prices. I know I can get machines a lot cheaper on my own, my only reservation is if I shoud buy a refurbished machine or two.

As far as the schools -- I was thinking it would be nice reference when trying to expand the buisness, and I could have a few machines in one or two centralized locations cutting down my travel and time on refills.

Just a thought.

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Thanks Mission, I wouldnt want to be exclusivly healthy. From what Ive seen junk food still rules!

Ive already spoken to several "biz-op" companies out there and was just blown away by their machine prices. I know I can get machines a lot cheaper on my own, my only reservation is if I shoud buy a refurbished machine or two.

As far as the schools -- I was thinking it would be nice reference when trying to expand the buisness, and I could have a few machines in one or two centralized locations cutting down my travel and time on refills.

Just a thought.

Incorporating a healthy product selection in your business is a good idea, the drawback back is that the natural and organic product have a higher cost and as a result higher sale price in the machine, typically a 50-100% premium. There is some research and trials out there that have shown that people are willing to buy higher priced items but you need to make it easy for them with at least $5 bill acceptance and debit/credit processing. I am finding that with the natural and organic products I am carrying in my lineup that I get a profit of .60-1.00 per vend after after COGS and sales taxes are taken out. There are not many items in the traditional vending products that will give you that kind of profit on a unit basis. The drawback it that the volume is not as great so when you take that into account the traditional products will still make you more $$ due to the higher # of units sold.

I just can't get my head around paying 11K for a machine that I can buy used for 1K and a few hundred more to create the custom graphics. I don't believe that the intellectual property and the location procurement is worth the 9-10K markup. If it was worth that much, the large operators like Canteen and other regional operations would be jumping on this concept. So far I have not seen it happening.

A good reference can come from anywhere, IMO a school district won't pull much, if any, additional weight.

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