Start Up Costs

[nivending]

Good thread.

So if you spent £22k on a 100 tower setup new from tubz vending, how would you calculate the payback time using your figures but also after a wage is taken.

Thanks

[PabloV8]

Someone else will have to answer this for you as I do not draw a salary from the business however, if you are wanting or need to make it a living from the offset perhaps it is not for you.

I started from scatch and it was not easy, site finding is the make or break of this line of business. Have learnt many things from colleagues on this forum, have made mistakes, but hey oh, I am still in the business.

My model works well, do not have a crystal ball so cannot forecast the future - but I get out and about, meet people, provide a service and that to me ticks all the boxes.

You already have a business as indicated elsewhere so you know that any business should not look at making a profit in the first two years that provides time to repay any start up costs or other.

If you need your relative to be kept busy or have an objective, go for it, he will thank you for it!

[Style]

In answer to the 100 tower start up. I just wouldnt do it. If a site finder had to find 100 sites in 1 area today they are going to end up with some real crap sites. You would probably end up taking 30 of them out within 3 months, then you are paying tubz vending to site them again. I think you have to grow gradually, 100 in a year would be good going. (unless you can buy an existing round)

Also from day one I would also be doing Pringles and toys.

[PabloV8]

Style is spot on with this!

Took me a year to do 120 - of the original start of 25, I have changed over 20.

So heed the advice from Style, you have to work out what is best for you and what works - diversification seems to be the key.

I do not do toys, and have not tried pringles but others have and will advise. Could also consider drinks vending. Must say, plenty of competition in all areas.

Perhaps the best route is purchasing existing rounds.

[part-time-operator]

unless you're a natural salesman and can do your own sitefinding, buying rounds will be the only way to achieve scale quickly. These days there's no way around it, you've just got to spend money to make money in vending.

[Shropvend]

Hi pablov8
Best bit of vending advice I can give you is to get into the toy machines next to your towers, especially in pubs where there a lot of kids. My toy sales triple the sweet sales!!

Re Lee

[PGBrew]

As far as earnings are concerned, 100 - 150 machines can be managed part time for good additional income.. You will either need additional capital or be able to re-invest profits and need about 300 machines for a full time business. Base your income on 30-40 sales per month, GP 35p per £1 sale, expand the figures for yourself.

[PabloV8]

Additionally,

When i purchased towers on-line the vast majority of tower stands were not fit for purpose, that is the trouble online - you are virtually purchasing blind.

Have just about replaced every old stand with new stands, so buyer beware - insist on photographs of the stands as they tend to be c**p, could have saved myself several hundred pounds. Steep learning curve I guess.

Anyone want 'FREE' stands and willing to collect? I am North of the border. The stands are the criss-cross type, should be scrapped in my opinion! And probably will do very soon if no takers.

[Ferry Vending]

Hi Pablo

North of the border . Where about are you ? We are in Edinburgh .

Steve

[PabloV8]

Hi Steve,

I am based in Ayrshire.

Pablo