JoeT Posted October 10, 2011 Share Posted October 10, 2011 Hi All: I've been going back and forth with myself over this issue so I wanted to get your input. I came across this vending location the other day that had two drink machines and two snack machines. The snacks are all but empty and I asked around and apparently they've been empty for awhile. So the question is - do I call the competition and ask if they want to sell that location? Or is that a slap in the face??? I was going to use the empty machine angle,on which I thought they were not interested in serving that location anymore. Joe Link to comment Share on other sites More sharing options...
dogcow Posted October 10, 2011 Share Posted October 10, 2011 Hi All: I've been going back and forth with myself over this issue so I wanted to get your input. I came across this vending location the other day that had two drink machines and two snack machines. The snacks are all but empty and I asked around and apparently they've been empty for awhile. So the question is - do I call the competition and ask if they want to sell that location? Or is that a slap in the face??? I was going to use the empty machine angle,on which I thought they were not interested in serving that location anymore. Joe why would you want to pay your competitor for them to move their equipment. You go to the decision maker at the location and ask them if they are satisfied with the service. Most likely they are not. Mention you saw the empty machines. If they agree to use your services, the existing company will have to move their equipment out. Fair warning theres a number of reasons the machines could be empty perhaps the company is experiencing a cash flow problem, who knows but its also possible the location sucks and is not making them enough money to justify servicing it. What kind of location is it? But in short, do not offer to buy the spot that is a waste of money IMO Link to comment Share on other sites More sharing options...
JoeT Posted October 10, 2011 Author Share Posted October 10, 2011 Thanks Dogcow, a part of me thinks that I maybe getting ahead of myself. This location IMO looks like a gold mine. Its a drug and rehab facility. I'm sure if I had the equipment I could get in there, a close friend of mine knows the owner, but I just don't have the capital to jump right in. I was thinking that I would offer the current vendor a buyout on his equipment there and make him monthly payments with the machines as collateral (a la Small Change concept) Besides this spot, I'm looking to start honor boxes to start smaller. Link to comment Share on other sites More sharing options...
dogcow Posted October 10, 2011 Share Posted October 10, 2011 Thanks Dogcow, a part of me thinks that I maybe getting ahead of myself. This location IMO looks like a gold mine. Its a drug and rehab facility. I'm sure if I had the equipment I could get in there, a close friend of mine knows the owner, but I just don't have the capital to jump right in. I was thinking that I would offer the current vendor a buyout on his equipment there and make him monthly payments with the machines as collateral (a la Small Change concept) Besides this spot, I'm looking to start honor boxes to start smaller. with all due respect that "small change" book is full of bad advice. They are right on about honor boxes but thats pretty much it. Owner financing is as rare as a hen's tooth. Nobody will do it except at terms which are very unfavorable to you. It's probably the last thing I'd consider trying. Here's what I'd do in your position. First try to secure a meeting with the decision maker which is easy since you know them. See if they the are interested in changing vending services. See if you can ascertain what kind of revenue the location is generating. For example if the location gets commissions ask if you can take a look at the last 6 months or so. Try to figure out of it makes sense for you to justify the cost of the equipment and possible financing. If it doesn't walk away. If it sort-of does, or you aren't sure see if you can manage their expectations. Such as asking if they would be OK with better service but only one snack machine, with the agreement that if certain sales goals are met you would be happy to add additional equipment (on terms that make sense, for YOU). Then if it does make sense, contact your bottlers see if you can get some of their equipment to use. Thats 2 machines down for free , if you can. The next stop I'd make is friends and family I figure you need somewhere between 800-1400 for two snack machines depending on the location and what kind of work you are willing to do yourself to fix them up (see RJTs fantastic post in the refurb section , for example). If you can try to borrow the cash from friends and family at a good rate or better no interest and score a craigs list or ebay deal. If you cant start calling your local equipment dealers see if any can offer you a good deal on financing or even leasing equipment. Many dealers here offer equipment on lease and all offer financing either through them or a 3rd party even on used stuff. You may end up spending more that way but it will likely be terms more favorable than with the vending co. as a last resort talk to them about owner financing but unless the co is in major trouble, or the account blows that is probably a waste of breath. Link to comment Share on other sites More sharing options...
caserri Posted October 10, 2011 Share Posted October 10, 2011 Great post dogcow. +1 rep for you. Link to comment Share on other sites More sharing options...
ANDERSONVENDING Posted October 10, 2011 Share Posted October 10, 2011 I bought machines from the location.They had machines that had been there empty over a year. They sold the machines to me and I have been servicing them ever since.Might be worth a try to talk to the location,you never know what will happen. John Link to comment Share on other sites More sharing options...
dogcow Posted October 10, 2011 Share Posted October 10, 2011 I bought machines from the location.They had machines that had been there empty over a year. They sold the machines to me and I have been servicing them ever since.Might be worth a try to talk to the location,you never know what will happen. John you bought them from the location, not the vendor? i have done this with one of my stops, where i got a dixie 276 but it had been there 3yrs and nobody could get in touch with the vendor. I Think it is a little questionable who owns the equipment in those cases so i was nervous about doing it but after repeated attempts to find the owner in good faith i did the deal. Link to comment Share on other sites More sharing options...
JoeT Posted October 10, 2011 Author Share Posted October 10, 2011 As always thanks for the great advice guys! I will keep you in the loop. I'm stll undecided but at least now I have solid advice to work with. Link to comment Share on other sites More sharing options...
JoeT Posted October 10, 2011 Author Share Posted October 10, 2011 As a quick followup, I've been searching for the pepsi third party contact info, but haven't had any luck?? Am I missing something? Link to comment Share on other sites More sharing options...
ANDERSONVENDING Posted October 10, 2011 Share Posted October 10, 2011 you bought them from the location, not the vendor? i have done this with one of my stops, where i got a dixie 276 but it had been there 3yrs and nobody could get in touch with the vendor. I Think it is a little questionable who owns the equipment in those cases so i was nervous about doing it but after repeated attempts to find the owner in good faith i did the deal. I bought 3 machines from the location for 500 bucks and they took payments for the machines.Its been over 2 years since I got them without a problem. John Link to comment Share on other sites More sharing options...
dogcow Posted October 10, 2011 Share Posted October 10, 2011 As a quick followup, I've been searching for the pepsi third party contact info, but haven't had any luck?? Am I missing something? contact your local pepsi bottler , try to get in touch with a sales rep it can be a hassle to get the right person but start there Link to comment Share on other sites More sharing options...
caserri Posted October 10, 2011 Share Posted October 10, 2011 As a quick followup, I've been searching for the pepsi third party contact info, but haven't had any luck??Am I missing something? You can also submit a request at http://www.iwanttoservepepsi.com. Then click "sign up". That's where I went to get 3rd party info. Sent using Tapatalk from a phone that's smarter than me. Link to comment Share on other sites More sharing options...
JoeT Posted October 11, 2011 Author Share Posted October 11, 2011 Awesome thanks guys! Link to comment Share on other sites More sharing options...
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