New to vending - seeking advice and guidance.

[Eustace]

Hello,

I'm new to vending, and just starting out. First, I want to congratulate you all on this website and Forum - you're doing great work.

Having carried out my own research, read this website, and spoken to a couple of franchisors, so far I've come to the following (tentative) conclusions:-

1. It's best to go independent, though a franchise might help in the beginning as long as you understand their business model and can make a swift exit down the line.

2. Source high value product (lowest cost, longest-lasting).

3. Have the site-owner sign an exclusivity agreement, when and where possible.

4. Try to place 2-3 machines at each site, with a mixture of sweets, savouries and other items (e.g. toys).

5. Actively manage your sites and make improvements, and where necessarily, move to a different site. Use a spreadsheet to monitor performance.

6. Control costs and minimise the time investment by keeping sites as close together as possible.

7. Try to focus on sites that will not insist on a commission payment.

8. Focus on geographic areas that lack market penetration by competitors and use e-mail, leaflet drops, cold visits and social media to raise awareness.

9. Maintain a friendly image and don't burn your bridges with site-owners. Always leave a business card and follow-up, even if the site-owner isn't interested there and then.

10. Take advice from others already in the business and forge business relationships with suppliers and competitors.

I'm new to all this, so please add anything that you think is relevant. The above are the Ten Rules I intend to adopt in this business, but I'm sure it will change as I receive advice and input from members of this forum.

What I'd like to do initially is make use of an independent site-finder. I'm based in West Yorkshire. Is there anyone in my area who might be able to assist, please?

I'm looking to work cautiously at first, maybe put in place one site at a time and build things up slowly to begin with.

Thanks in advance to anyone who can help. I hope to reciprocate and help others as I embark on this journey.

[Coin Operated Group]

What a great post, pretty much bang on there. Regarding no commisions I would be surprised if you could get any other than maybe in offices unless you are on about big vending machines.

Have a word with Happy Dave & Gavin for your site finding

[Eustace]

Thanks Matt. I'm also hoping for some critical comment as well. It's easy for me to post ivory tower (pun intended) thoughts, but I really have no idea about the practicalities of this business.

I'm currently in correspondence with one of the franchise companies, and I'll probably be meeting with them as well, so I'll let you know how I get on with that. Names will not be revealed to protect the innocent (or is that, guilty?).

[Snackmore]

Welcome aboard, be careful about starting too small, I find you need at least 5 towers to be able to buy enough stock at a competative price, cashflow as always is a problem but I would never suggest borrowing money to get started. Why not try sitefinding yourself? Not only will it save money but you get a true feeling for the site and decide if you want to place one of your valuable assets there. When you only have a few machines its important to get the right sites

Good luck

[Coin Operated Group]

Just for interests sake when you meet with your supplier,you could ask the question what you should do if you get given a site that has a competitors tower in pointing out that it doesnt seem good business to practice to emark on a turf war when entering a new business.

[Eustace]

Good advice, thanks.

I'll need to look at starting with somewhere between 5 and 10 towers, then.

Would you also recommend a minimum number of locations?

[Coin Operated Group]

Good advice, thanks.

I'll need to look at starting with somewhere between 5 and 10 towers, then.

Would you also recommend a minimum number of locations?

Yes, as little as many. Keep them as close as possible and as saturated as possible.

[Eustace]

Just for interests sake when you meet with your supplier,you could ask the question what you should do if you get given a site that has a competitors tower in pointing out that it doesnt seem good business to practice to emark on a turf war when entering a new business.

I'll ask, thanks for that.

[Rossi fan]

Hi Eustace,

You are doing the right things from the outset. I wish you luck with an exclusive agreement at any site. For that I think you will need to be a supplier of many different machines.

I think you need to think carefully about what you do and who you use for your site finding. If you sign a contract, read it carefully and find out if there is a get out clause, but I doubt it. Do your research and ensure that whoever does your site finding is aware of what types of site you want and the ones you will not accept.

10 towers is a good starting point. Buy 9 products at first and then buy according to sales. My best sellers are Skittles; Minstrels, Chocolate Eggs; Strawberry Pencils; Fizzy Mix; Jelly Mix Assorted Pencils and Bonbons.

Oh by the way- welcome on to the forum,

Paul

[Eustace]

Thanks Paul.

The point made about commissions is interesting.

One business model I have thought of is 'piggy-backing' on a franchisor's set-up. I would start with a franchisor's tower, using their leverage to go in at a lower commission rate. I would then develop the business relationship with the site-owner, and over say 2-3 months, install two or three more machines at nil commission. This would be pitched as an 'added-value' service for the site-owner and his employees/customers, with my company putting in place the necessary insurance and service/maintenance contracts, thus saving the site-owner significant expense while adding amenity to his business.

It sounds almost perfect, but I wonder if this would work in practice?