how do you see vending in the future?

[sadler2886]

hi guys just wanted to get some opinions on how you see the future for tower,toy, pringles vending. ive got 4 years left to pay everything up that i owe on loans etc and was just wondering if this will still be a financially viable business by then? im expanding all the time and want to know if its gonna be worth all my hard work come 4 yrs time when ive paid for everything? im hoping to have 5-600 mcs out by that time.

regards
rich

[Vendition Ltd]

Rich,

No one knows the answer to your post mate, if we did then we would all be throwing every last penny at growing our business if we were guaranteed a return for more than 4 years!

How much you make in business when you retire does have an element of luck in it, I hope this business is one of those which can go on forever but I think the tower vending industry will need something knew in the next few years to freshen it up a little. Perhaps modifying the machine/new machine but I am keeping my eyeopen on the next thng which comes along.

I am still expanding my tower business, I can't see it changing too much in the next 4 years

Cheers

Ross

[part-time-operator]

some of the guys put forward good thoughts in response to my post about the pubs. as long as Jamie Oliver and the health and safety brigade are kept under control i'm sure there'll always be a demand for snacks and cheap toys...

[Rossi fan]

I think prices are the key to tower vending continuing over the long term. Suppliers know all to well that if they increase prices, they could lose operators and end up making less money. I therefore think they will remain low. Over the longer term, I think the towers need to capable of selling larger pots for £2, or adjustable coin mechs like some of the toy machines have. If customers think they are getting better value, they will buy a bigger pot.

I wouldnt bank on things staying as they are for decades, so please dont build your retirement hopes on towers. In addition, if Europe goes pop, then sweet prices could go up, or down, depending on many factors.

Just my views,
Paul

[sadler2886]

surely vending can be around for decades? look how long bulks have been around. surely its just a case of adjusting prices as customers should understand that in a few years time nothing everything is gonna be more expensive.

[Rossi fan]

Yes, I think vending will always be a business, but I am not sure about the longevity of sweet towers. If prices rose now, then we would all be out of business. When I began tower vending in 2009, sales from October to January steadily rose and christmas sales were balistic. Last year was bad, but I found this year, sales vere lower, because ppl are managing their money better and are paying off their debts. If you put prices up in this climate, you may as well kiss goodby to your income I think. Perhaps in 3 or 4 years, but as said before another option would be to offer greater value by using larger pots and charge £2. I am out now. Ride out the storm and you will be in a much better place when the tide turns.

Thanks,

Paul

[PGBrew]

The key to a profitable future is keeping costs low & diversify into other areas. This way you spread your risk, if one line of product goes down, you still have others. Don't over expose yourself to sweets & pringles, where margins are ok but management time is high. If you are still working, plough back profits into new machines. If you pay off loans you get a pay rise! In 2010 I paid 2.5K in interest payments, £600.00 in 2011 this year it will be less than£300. Although sales have decreased in the last 2 years, my costs are lower, so I'm still earning more money. For me toys are a big pluss for me. They are a bit more stable, less sales per month though but only require refills every 2/3 months. They are more expensive to buy, but if you buy right are more profitable.

Pete