Advice Needed Please

[simon9]

Hi Guys

I'm new here and I'm just about to start my journey into the vending business. I would really appreciate some help.

How many machines would I need to clear £500 a month to start with. I was made redundant last year and I think I have enough money to buy 10-20 machines ( towers ) I intend to sell sweets and I live in the south if that helps. I’m also thinking of going the franchise route to get me started, is that a good idea?

I know it depends on sites and its a bit like asking how long is a bit of string, but any help would be great.

Thanks in advance.

[Snackmore]

Mate

Welcome aboard, realistically average your sites out at £8 a week, not the figures quoted by the franchise people! You will get some sites selling 100+ a month and others doing 20! from that you take your stock and commision costs leaving you roughly £3.20 a week per machine. You have your machine to pay for as well as your PL Insurance, time and fuel plus allow for damages/repairs wasteage and theft. On 20 towers thats £277 a month £64 a week gross. Sounds low? It probably is a bit but still realistic and worse case scenario I would say but better to be up front rather than filled with from certain sellers of towers and stock. They dont care once you have handed your cash over!

IF YOU ARE GOING TO INVEST STAY AWAY FROM THE FRANCHISE ROUTE, CHEAPER TO BUY MACHINES AND STOCK AND SITE YOURSELF

You would need alot more than 20 towers to make it worthwhile, also once you got some sites try and get other machines in also to increase your take. You then have to allow for sites that close and changes in management or a national deal is quoted, where for doing no wrong you may be asked to remove your towers which is very frustrating

Good luck, hope its not put you off too much

[JustCraig]

Steve is spot on I would say - The real bottom line is a lot lower than the ones advertised on line, but still worth the effort if you get enough machines out.

I would also agree that diversity is the key.

Towers are as much "a foot in the door" as anything else.

I have recently placed a couple of toy machines out and I have a quiz machine in one bar and a couple of SWP's in take aways and the profit on these are much higher per month (although so is the outlay and the commission payout) - plus they are much much harder to site.

Its a process and the key is high numbers of machines in as many venues as possible - sounds obvious I know but there you have it.

I imagine you would need a LOT of towers to make a living just from towers and I am nowhere near there yet - although with a decent range of machines accross a range of venues, I feel that I can build a decent part time business.

[simon9]

Thanks for your feed back guys. No you haven't put me off but I now realise that its going to be harder then I thought, by that I mean the number of machines I would need and of course the sites.

I have no income at the moment and my savings are going down fast. Is theft and vandalism a big problem or is it something that happens on occasions?

What about other vendors, do they try and push you out of sites?

Thanks again for the feed back.

[PGBrew]

To Clear £500 a month you would 40 machines.

Pete

[Mark@YorVend]

Hi Simon,
I started with two machines about a year ago, as a friend of mine let me put them in her bar. I now have over 20 machines, and am now hoping to add five a month. I would recommend starting off with one of the two main vending suppliers (hurley's and tubz vending) as these companies offer site finding for your towers.
I started off with tubz vending, but have now switched to Hurley's as they are slightly cheaper and offer more reliable machines (clenport).
As you said money is tight i would recommend buying re-con machines (which i buy from hurley's and have had no problems with)

Good luck, hope it goes well!!!

[sweetsaremylife]

Before giving any money to tubz vending or Hurleys or buying your own machines I would go and find potential sites first. Take a look inside for suitability. I would even enquire whether they would allow a tower at their venue, perhaps take a picture of one and a sample of a tub from another machine for them to see. This way you will be able to gauge what sort of response you will get. If you go to 30,40 sites and they all say no then it's obviously not a good sign but at least it would have only cost you time, not cash. To save time you can even search online and send an email or phone enquiry.

tubz vending/Hurleys will not tell you if your area is suitable or saturated until after you have given them money and then you will be asked to increase your coverage

[Snackmore]

Thats OK but if a site agrees you need to get the tower in before they change their mind or someone else fills the spot!

[Mark@YorVend]

I agree, if you get a few people saying yes you will need to move pretty quick to get your machine in there before someone else does! Perhaps make sure you have the money to hand, to quickly order some machines incase you get a few takers.

I think the best advice is to just try it and see. You can buy a load of re-con machines from one of the main suppliers (of which Hurley's is much cheaper), get them to do your site finding for you, and just try it for a while.
If it doesn't work out you can always advertise the round on here, if your not tied into a franchise agreement (tubz vending), someone will snap them up!!

[sweetsaremylife]

If you can get the towers on site within a week of agreeing with the site owner you'll be fine. They're unlikely to change their mind or have someone else put one in within that time