Vending machines

[wish-ga]

Like wow that is so interesting about finding places for vending machines. I am really going to take note of where has vending machines from now on.

Seems like it is the fast food principle. In that franchisees used to build where there was a McDonalds. If the area could sustain a McD then it could sustain a Pizza Hut/KFC. This is a bit outdated in concept due to the advent of the malls but it is interesting to note that vending machines also work on this principle.

Come to think of it most things do don't they. eg All the car yards in a strip down Pmatta Rd in Sydney.

 

[Sunfish]

It's an old maxim in biz. "best place to operate is beside your opposition." Particularly true in the used-car biz, but not relevent in vending.

T

 

[Peter 14.7]

Just a note to say a very good thread and thanks to Thomo for all the info.

Say hi at SIG Thommo as I would like to know more.

Peter 147

 

[Gordon Gekko]

Hi Guys,

Interesting thread.

Hope i haven't missed this in the thread. Who pays for the electricity to run the machines?

GG

 

[likewow]

Like wow that is so interesting about finding places for vending machines. I am really going to take note of where has vending machines from now on.

Seems like it is the fast food principle. In that franchisees used to build where there was a McDonalds. If the area could sustain a McD then it could sustain a Pizza Hut/KFC. This is a bit outdated in concept due to the advent of the malls but it is interesting to note that vending machines also work on this principle.

Come to think of it most things do don't they. eg All the car yards in a strip down Pmatta Rd in Sydney.

wish-ga

I think you misunderstood my post. I didnt mean next to an existing vending machine, i meant in place of. Get the site owner to replace the existing machine with your own by using promise of better service, bigger range, better prices...etc..

A lot of vending site contracts state that the only machines that can be onsite are your own but my understanding is that vending site contracts are worth less than the paper theyre written on.


Gordon Gecko,

The site pays for the electricity

 

[Aceyducey]

Get the site owner to replace the existing machine with your own by using promise of better service, bigger range, better prices...etc..

hmm - now I know why some vending machines are always being vandalised - it's a turf war

Cheers,

Aceyducey

 

[jjnshell]

vending sites

Hi LikeWow,

I would have to disagree with you on your thoughts of all the good sites being taken. Last week I added 5 new sites to my vending run. All these sites will return a profit of at least $50 per week. The site finding took 2 days.

Easy way to add $250 per week to my pocket.

Regards

jjnshell

 

[likewow]

Hi LikeWow,

I would have to disagree with you on your thoughts of all the good sites being taken. Last week I added 5 new sites to my vending run. All these sites will return a profit of at least $50 per week. The site finding took 2 days.

Easy way to add $250 per week to my pocket.

Regards

jjnshell

hi jjnshell

Of course there will always be new sites but i think that its generally accepted that all the really good sites are gone already at least in Sydney. What are you vending and whats your ROI for $50/wk?

Whats your benchmark or definition of a good site?

 

[jjnshell]

Hi LikeWOW,

The machines in question are mechanical 3 drink vendors holding 120 cans each. Each machine costs $2200. Return $2600 for the year. Although it resolves on my time, I don't have to turn up and work the man.



jjnshell

 

[likewow]

Hi LikeWOW,

The machines in question are mechanical 3 drink vendors holding 120 cans each. Each machine costs $2200. Return $2600 for the year. Although it resolves on my time, I don't have to turn up and work the man.



jjnshell

I know the ones you mean, the small bar fridge type with mechanical coin mech. I was referring to the medium/large snack/drink vendors in my previous posts.

$2600 pa = $50/wk. Thats gross your talkin, so take out approx. half for cost of drinks and then take out costs of travel,insurance..etc...and then take out 48% of whats left for tax and you can see why a lot of people realise vending isnt the passive cash cow its perceived to be. I suppose the only way to make decent money from them is to have a lot of machines and that takes up a lot of time so its like any other business only more boring.

 

[always_learning]

If anyone has been to Japan they can see the Vending Machine industry is huge!!! My company even sells our own custom software development product for the vending machine industry.

They are literally everywhere, drinks, snacks, magazines, "adult" products, even in the middle of the country side you can find a vending machine with Coke, can coffee, green tea and beer. Japan has lower numbers of "ferals" which translates into less vandalism however, vandalized machines are few and far between.

 

[jjnshell]

LikeWOW,

Not so fast there big fella.

Each of those sites will sell at least 100 drinks per week, ie $50 net profit per week.

True, "good sites" for those large machines might be taken. But please don't tell me that there are no sites for small machines. I found a bunch in 2 days.

Insurance costs are minimal, depreciation is good. Mechanical machines rarely have problems. You are going to pay tax however you make your money.

Very low risk. I drop the kids at school, I pick them up from school, I go to sports days, kindy, playgroup. I am usually the only Dad at these events.

Boring, well, I'm not behind a desk all day. I get to go out and talk to lots of people and go surfing at least 3 days a week. (that's weekdays, weekends are for the kids)

If you havn't tried it, please don't bag it. You may just put someone off what I have found to be very worthwhile.

Regards
Jeff

 

[likewow]

jjnshell,

I wasnt bagging it, just consider it a bit boring compared to other businesses ive been involved in.

100 drinks p/w is pretty damn good from the small machines which are suitable for smaller slower sites. Thats 200% gross return, with 100% net return which is way above the norm for the industry, actually double.


Are your figures correct? If they are the rest of the vending industry must be doing something wrong.

 

[jjnshell]

LikeWOW,

yep, figures correct.

My average is around 80 drinks per week per machine in winter and 97 during summer.

During Summer I visit the bulk of my machines twice a week.

I'm not sure these machines are for slower sites. That is all relative. If you put a $8000 machine is a site turning over 100 drinks a week your return is not that crash hot. These machines are specifically designed for this market and fit it very well.

I know of several vendors in my area who all achieve similar returns.

Anything becomes boring after a long enough. Well, almost anything. Don't think I would ever grow tired of piloting the Space Shuttle.

Jeff

 

[likewow]

LikeWOW,

yep, figures correct.

My average is around 80 drinks per week per machine in winter and 97 during summer.

During Summer I visit the bulk of my machines twice a week.

I'm not sure these machines are for slower sites. That is all relative. If you put a $8000 machine is a site turning over 100 drinks a week your return is not that crash hot. These machines are specifically designed for this market and fit it very well.

I know of several vendors in my area who all achieve similar returns.

Anything becomes boring after a long enough. Well, almost anything. Don't think I would ever grow tired of piloting the Space Shuttle.

Jeff

All i can say is........they must drink some soft drink up there!!.....must be the heat. If you can get returns like that from the little machines.....good on ya mate!

 

[Sunfish]

LW, If you ran a busy workplace with all the relevent concerns in doing so: Would you give a rat's bum, much less any time, to talk to me about the vending machine and whether I could offer a "better range/service"?

Trying to "steal" sites is a shortcut to bankruptcy.

Thommo

ps I've been off-line for two days and didn't know there was another page of posts

T

 

[likewow]

LW, If you ran a busy workplace with all the relevent concerns in doing so: Would you give a rat's bum, much less any time, to talk to me about the vending machine and whether I could offer a "better range/service"?

Trying to "steal" sites is a shortcut to bankruptcy.

Thommo

ps I've been off-line for two days and didn't know there was another page of posts

T

Well i can tell you that it is the case in Sydney. As with most things the level of competition is much higher there than just about anywhere else in Australia and vending is no different.

You would probably go bankrupt quicker by settling for the lame leftover sites with ordinary returns.

I wouldnt call it stealing sites, if theres no contract the site owner can choose who they please to go in there.

 

[Sunfish]

Well i can tell you that

many are the Sydneyciders who bring their smart-arsed ideas to the provences who go home with the bum missing out of their tweeds.

Even much bigger fish have been caught. In the '80's the Japs were paying big money for cane farms and waterfront property in Cairns. Most came a gutser.

Two of my regular pubs are owned by Mexicans. The owners of one must be close to suicide while the other simply hate it here. Every market is different!!!!!

T

 

[likewow]

many are the Sydneyciders who bring their smart-arsed ideas to the provences who go home with the bum missing out of their tweeds.

Even much bigger fish have been caught. In the '80's the Japs were paying big money for cane farms and waterfront property in Cairns. Most came a gutser.

Two of my regular pubs are owned by Mexicans. The owners of one must be close to suicide while the other simply hate it here. Every market is different!!!!!

T

huh?? ......oh yeah!!.....ok