VendingArticles.Net

For a new vending location, the first option new vendors consider is using a professional vending LOCATOR. A "vending locator" is simply a person you hire to place your vending machines in local businesses. I'll say up front that this is almost always NOT your best solution and here's why:

1. It is very difficult (not impossible) to find a trustworthy locator. I have read of many "horror" stories of vendors losing their money.

2. Even with honest locators, the problem is that the new vending location may not be worth keeping. Sometimes as many as 50% of your new vending locations are hardly worth keeping.

3. If the new vending locations are low-producing, it takes much longer to pay off your vending machine investment and get to real profitability. In other words, vending profits are directly affected by your vending location gross sales.

4.There is usually a large cash outlay for professional vending locator services IN ADDITION to the cash you pay upfront for the cost of the machines. This is a "double-whammy" to vending startups. It is especially bad if your multi-thousand investment in locator services ends up netting you unfavorable vending locations.

What is the solution? I have two main solutions for you.

1. Take the money you would invest in machines and vending locators and buy out a company. By going this route, you can buy machines on location already making money (most with product already there too). You would be surprised at the number of small companies for sell with anywhere from 10 -200 machines. Many people simply get tired of running their routes or find out it's not as much money as the sales person promised when they bought their machines. I picked up 26 machine on a route where I was already operating my company for a mere $1000. The owner was asking $2000 and when I met with him I found out his wife had cancer and he was over 60 years old wanting to retire to take care of her. Without asking, he said if I would just take the machines I could have them for $1000. They paid for themselves in about 6 months and have been making profit now every since. If you're willing to WAIT, you can find good deals like this too.

2. The second option is to get vending locations yourself. Please read on! This is where you will make your real money. This is the challenge I had to overcome to become more profitable. And no, I was not a salesman. There were some real obstacles mentally I had to overcome. I did it though, and you can too. We'll talk about how you can help yourself in other articles later. The point is that with the atrition rate will have with accounts (10-15% usually) you have a great advantage toward profitability if you can get your own vending locations. You save even more if you can do it while running your route. Motivate yourself! It's part of growing as a business owner. Grow the person, grow the business! To you, this should mean growing yourself to get as many vending locations as possible.

Mark Evants
(C) Christmark Enterprises, LLC.



Back to Bulk Vending Articles Master List