NEW VENDING PRODUCT HELP REQUIRED

[Dan74uk]

for all concerned lol and this might help narrow it down ....it is a new amusement/vending type machine(yes lee my background did come into it)its a confectionery vend for 2 pound .it wont compete directly with towers but maybe a additional machine to supply with them.its the larger end of the market and prob only suitable for your best locations .lol it may help u win longer contracts and it may get u in some biger sites too(if u get in first )

i like this u guys are building it up easier than i cud do thru a mag ha i hope it does not dissapoint .i dont think it will

thanks for alll your input re roi .we are new to this we will admit so any constructive feedback will be appreciated(he uses we for the next week or so)

thanks

dan

[dorsetvending]

Im not sure whether you have actually gained any feedback yet that would help you. Very tricky to feedback without having established operators trialling it for you.

My guess would be that you are hoping to profit from:

1. Initial machine sales
2. On going unique product sales

Both covered by patent to protect your interests.

As we are unsure of product, cost of machine (crucial), or product people cannot help you.
Having said that if you need field testers you could do far worse than use the expertise here.

If they are requiring a similar outlay to the Stackers...then the model will struggle to work. The average operator has much of their capital tied up.....imho.

However I truly hope you have an interesting concept that can work alongside the tower industry and has easy entry level pricing so operators can access this opportunity.

[Dan74uk]

thank you
no money made on initial sales but small profit made on consumable.machine sold at a loss to make the concept viable which is why other companies havent done it .its all about volume
we do have brewery sites already lined up a few have seen th product and also i have divulged to a few vending independants .they have given me great feedback.for them the price 4500-5500 approx is too high for all but their premium sites but they do agree it will open up sites to longer contracts and with bigger chains .like i said it wont be for everyone .glad the few people in this fraternity who are aware of it like it even if a bit rich for most of their their locations loll

[dorsetvending]

The machine is only as good as the operator really, so unsure the machine will be the deciding factor on opening up longer term contracts, but I could be wrong, especially since you have experience with the Stacker. I say the machine is only as good as the operator as we all manage our businesses differently and some fail to manage. Any new machine needs an operator who will look after the site and nurture the long-term relationship with the site.

Machines by themselves do not neccessarily lead to longer contracts. For example an operator can have 10 top sites in a chain and provides poor service in 2 of them (operator takes his eye off the ball or just becomes lazy). The local managers kick up a stink with the area manager...the area manager has never really liked the machines and finds an opportunity to get rid of the operator from all 10 sites. Sounds extreme but it happens.

If the machine has real unique appeal, then accessing the premium sites can be slighlty easier. It is getting beyond the many gatekeepers in the premium chains that's tricky.

In terms of cost you might want to consider Hire Purchase over 1,2,3 years so long as the interest payments aren't too high. It may push the machines out much quicker and reach the volumes you are looking for.

Just my 2 pennies worth, might be drivel but hope not.

Good luck with your venture.

[Dan74uk]

Great post much appreciated

With regards to hire purchase we already have approval by alder more finance to offer finance on the deal.obviousley subject to status but a low monthly payment may make this far more accessible
It's unusual for a bank to give such quick approval

Thanks again very kind of you

[FlintVending]

The machine is only as good as the operator really, so unsure the machine will be the deciding factor on opening up longer term contracts, but I could be wrong, especially since you have experience with the Stacker. I say the machine is only as good as the operator as we all manage our businesses differently and some fail to manage. Any new machine needs an operator who will look after the site and nurture the long-term relationship with the site.

Machines by themselves do not neccessarily lead to longer contracts. For example an operator can have 10 top sites in a chain and provides poor service in 2 of them (operator takes his eye off the ball or just becomes lazy). The local managers kick up a stink with the area manager...the area manager has never really liked the machines and finds an opportunity to get rid of the operator from all 10 sites. Sounds extreme but it happens.

If the machine has real unique appeal, then accessing the premium sites can be slighlty easier. It is getting beyond the many gatekeepers in the premium chains that's tricky.

In terms of cost you might want to consider Hire Purchase over 1,2,3 years so long as the interest payments aren't too high. It may push the machines out much quicker and reach the volumes you are looking for.

Just my 2 pennies worth, might be drivel but hope not.

Good luck with your venture.

yes, a good post by dorset vending which is very realistic about the potential.
I would like to add a word of caution here about a poss flaw in Your Business plan.
You say you are selling the machine at a loss at 4500 - 5500! phew, that is one expensive machine!!
So no money in it for you on the machine then!
So you say you will make a small profit on the product

So how you going to make sure that ppl who have bought your machine which you have LOST money on buy stock from you?
If you are more expensive than Hancocks the machine operator will get his sweets from hancocks, surely?
This senario would be disaterous for you unless im missing something here?
?
I love the idea but struggle to see how you can do anything other than lose shed loads of money with it??
Nigel

[Dan74uk]

Haha Nigel

The machine has a in built security license for this very reason .the machine won't work without our license key.

I'd be quite happy to sell ATP 7k if that's what the operator wants then he can buy from wherever but selling at cheaper price means we only make money if the machine does

Il let the market decide whether they want to pay more for the machine.

The price of the stock will be similar to the major wholesale suppliers plus. A little bit on top to cover our profit and the sale of a machine at a loss

Again another reason why large companies won't do this

My business model has always been sell the machine cheap make some on the consumables rather than not make anything t all because machine is so expensive .it cud be wrong but I think we offer what others don't our profit only when u make profit

I've faith in the product I Wudnt do it otherwise

[Dan74uk]

God I love sue Ellen what a women

[FlintVending]

Haha Nigel

The machine has a in built security license for this very reason .the machine won't work without our license key.

Showing me ignorance here Dan but never heard of license key, how would it physically distinquish stock from you as opposed to stock from wholesalers
surely your stock is the same??

[Dan74uk]

It wudnt u cud still buy the stock from cash and crry but u wud still have to pay for the license key so why not just buy the licene key nd get your sweets included rather than paying twice

.the profit per vend is the key it's whether people relies we re subsidising the cost of the machine for them by making sure they buy the stock from us .the profit margin shud be ll tht matters if the customers understands the benefit he is getting

Thanks
Dan