My DHL guy came again today and I prospected him about my business. He actually inquired about my business first and I moved into him stopping at a lot of businesses when he drops off packages. I then offered him $30 for each machine he placed. He was excited about that prospect and said he will stop by after he finds me my first location. I may have to start shipping more stuff! If this works we may all have a new way of finding locations.
This lady my mom knows owns 7 auto/tire shops in town. Anyway, it's hard to get a hold of her so I decided I would send her a package.
I went to Wal-Mart, picked up photo quality printer paper, a binder, a bag of M&M Peanuts, regular M&M's, and a small bag of Roasted Peanuts.
At home I printed out high resolution pictures of the machines I have to offer. I also wrote her a letter and attached my charity information. I then put some gumballs in a zip lock bag and hooked it onto the binder. I also hooked the M&M Peanuts/M&M's/Peanuts to the binder. I made it very presentable. Then I took some wrapping paper, wrapped it up, put a bow on it, and dropped it off in the mail. Let's hope it works. She may get it tomorrow!
Oh, Kyle, I also sent you two bags of Runts via Priority Mail. Total is $20 even for the two bags and shipping. That's not too bad considering. Two bags of runts vend out $80 of candy. You can just send the check to my return address.
Not much else happened today. Check out the forum it's growing!
Oh yes, there was one other thing. Wal-Mart carries this fake surveillance camera for $8. It even has a motion detector in it so when someone walks by it starts blinking. I may bring back my machine to the laundry room and bolt this camera up, haha. What do you guys think?
Rob
Tuesday, August 7, 2007
Monday, August 6, 2007
the vending equation
A reader on my blog Jason Burkert wrote this on the forum. It really sums up vending.
RISK
Low risk. Startup costs are low, and if you want to get out, you can always sell your machines.
The biggest risk is to your ego when you are placing machines. But look at it as an opportunity to learn to sell and to handle rejection. You also get the chance to know other business owners!
RETURN ON INVESTMENT (ROI)
Why would anyone do this?
Gum balls can purchased in bulk for $0.02 each. They are sold for $0.25 each.
Other candy, can be purchased in bulk for less than $0.10 per vend. They are also sold for $0.25 per vend.
Do the math.
OPPORTUNITY
When you go searching for locations, you're looking for an opportunity.
A location with lots of quarters (laundromat, arcade), or lots of waiting (restaurant, auto repair), or lots of kids (restaurant), or a captive audience (office lunch rooms) is an opportunity.
An empty lobby at a privately-owned store/shop/restaurant is a terrific opportunity.
Even if there is a machine there already, if the location is unhappy with their current vendor, or has plenty of space for your machine too, that's an opportunity. Call the phone numbers on other people's machines and ask to buy the machine or route to expand quickly!
NEGOTIATION
In general private businesses are easier to locate with. There are multiple ways to persuade a decision-maker to allow you to place a machine:
Large corporations may have policies against vending machines, so negotiation can be out of the question.
But it may be up to the discretion of the manager. It doesn't hurt to ask.
VALUE
When purchasing existing routes, solving other people's problems makes you money. Experience will give you an eye for things that are wrong with the existing business. I've read accounts where a route buyer was appalled at the state of a seller's "business" because of problems such as these:
Fixing these problems can make you money.
OPTIMIZATION
Like any other business, as you become more experienced, you'll find ways to make various improvements and optimizations.
RISK
Low risk. Startup costs are low, and if you want to get out, you can always sell your machines.
The biggest risk is to your ego when you are placing machines. But look at it as an opportunity to learn to sell and to handle rejection. You also get the chance to know other business owners!
RETURN ON INVESTMENT (ROI)
Why would anyone do this?
Gum balls can purchased in bulk for $0.02 each. They are sold for $0.25 each.
Other candy, can be purchased in bulk for less than $0.10 per vend. They are also sold for $0.25 per vend.
Do the math.
OPPORTUNITY
When you go searching for locations, you're looking for an opportunity.
A location with lots of quarters (laundromat, arcade), or lots of waiting (restaurant, auto repair), or lots of kids (restaurant), or a captive audience (office lunch rooms) is an opportunity.
An empty lobby at a privately-owned store/shop/restaurant is a terrific opportunity.
Even if there is a machine there already, if the location is unhappy with their current vendor, or has plenty of space for your machine too, that's an opportunity. Call the phone numbers on other people's machines and ask to buy the machine or route to expand quickly!
NEGOTIATION
In general private businesses are easier to locate with. There are multiple ways to persuade a decision-maker to allow you to place a machine:
- you're offering a free service to their employees and customers, it costs the location nothing but unused floor space
- a commission paid to the location (10% - 30%)
- a charitable donation to a local charity, police, or fire department (10% - 30%)
- a one time gift certificate to a local restaurant ($20 - $40)
Large corporations may have policies against vending machines, so negotiation can be out of the question.
But it may be up to the discretion of the manager. It doesn't hurt to ask.
VALUE
When purchasing existing routes, solving other people's problems makes you money. Experience will give you an eye for things that are wrong with the existing business. I've read accounts where a route buyer was appalled at the state of a seller's "business" because of problems such as these:
- Located machines are empty
- Located machines are dirty and unattractive
- The vend size is too large / too small
- Several machines are not located, not making money, collecting dust in a storage locker
- Locations have low profit and don't have enough foot traffic
- The business owner has no records, and doesn't know the locations of his machines, or when they were last serviced
- Candy selection is inappropriate for the location
Fixing these problems can make you money.
OPTIMIZATION
Like any other business, as you become more experienced, you'll find ways to make various improvements and optimizations.
- Look for better deals on candy. Buy in bulk. Break it down to cost per ounce for easier comparison and greater accuracy. Include shipping costs.
- Adjust the size of bulk vends to an appropriate size.
- A one-time gift certificate is cheaper than a commission, or monthly charitable donation.
- Relocate low-profit machines to higher-profit locations.
- Map out your locations and service them in an efficient manner. If some locations are faster/slower service them on a different interval.
- Have everything you need with you to service your machines. Be in and out quickly.
- Buy already placed machines and existing routes.
cracking globes today
To start the day I went out and attempted to locate machines. I say attempted because I had no such success today. I went to about 10 places and got 10 No's. I was even trying to give out gift cards! I don't know what was up today. I didn't have my Wheaties this morning, maybe that's it.
Well, I have a double head machine that I took from a location and I finally got the quarters out of one of the compartments. There is a picture of it some where on the blog. Anyway, today I was out there drilling for an hour trying to open the thing up and I finally cracked the globe with a hammer. $11 in quarters. Not as much as I expected but hey, they were free! But, now I'm missing a globe. Maybe I'll turn it into a single head machine.
After I cleaned up that mess I went ahead and began building machines. I got 5 build today! That's not bad considering the heat.
As you can see there is this great location deal on the top of the blog now. It is for blog/forum readers and I don't know how long it will last. I've been trying to get my locator to give you guys a deal and today I finally nailed it down with him. I think it's incredible, $30 per location is what it comes out to. I know Caserri is going to try it, he won't be able to pass that price up! Guth, give up and just try it. You spent $500 at Wal-Mart on binders, you can spend $90 on locations. You also get a 45 day warranty with the locations if you don't like them for any reason.
Good luck, God Speed, and get out there and Locate!
Rob
Well, I have a double head machine that I took from a location and I finally got the quarters out of one of the compartments. There is a picture of it some where on the blog. Anyway, today I was out there drilling for an hour trying to open the thing up and I finally cracked the globe with a hammer. $11 in quarters. Not as much as I expected but hey, they were free! But, now I'm missing a globe. Maybe I'll turn it into a single head machine.
After I cleaned up that mess I went ahead and began building machines. I got 5 build today! That's not bad considering the heat.
As you can see there is this great location deal on the top of the blog now. It is for blog/forum readers and I don't know how long it will last. I've been trying to get my locator to give you guys a deal and today I finally nailed it down with him. I think it's incredible, $30 per location is what it comes out to. I know Caserri is going to try it, he won't be able to pass that price up! Guth, give up and just try it. You spent $500 at Wal-Mart on binders, you can spend $90 on locations. You also get a 45 day warranty with the locations if you don't like them for any reason.
Good luck, God Speed, and get out there and Locate!
Rob
Saturday, August 4, 2007
I need your help
I need you guys to help spread the word about the blog and to sign up for the forum. The more readers we have and people that comment the better this site and the forum will become.
Right now we have 21 people signed up on the forum and around 100 readers per day on the blog. Let's double those numbers. On Monday I will have a special location deal for my blog/forum readers. I am also working hard on the main http://www.kickstartvending.com site. I have very high expectations for it.
I want to say something now about the vending industry:
Candy is very important. You need to switch out your candy and try new things when old products are not selling. I know this may be one of the last things on your priority list but it needs to be one of the first. Candy is the bait and we are all fishermen in this industry. Sometimes you need a barbed hook to catch a customer and sometimes you need to let your bait bleed a little bit. Chum the water, try new things, we are evolving.
My new site will be dedicated to getting people started in bulk vending. This is a very profitable industry. I really want people to get in it and try it. Even if it's only 5 machines, try it out. See what it's like to make money while you are at home. We are in a time where job security is not guaranteed. The housing/mortgage market is in a serious crisis. Luckily our main Auto companies GM/Ford are in the black now. It was not that way a year ago.
I can only work so hard, it's your job to take hold of your own life!
Rob
UPDATE: Check out this Baxson guy on the Kick-Start Forums! He just started and he is moving quick! He calls locations while in the car going from place to place locating, wow.
Right now we have 21 people signed up on the forum and around 100 readers per day on the blog. Let's double those numbers. On Monday I will have a special location deal for my blog/forum readers. I am also working hard on the main http://www.kickstartvending.com site. I have very high expectations for it.
I want to say something now about the vending industry:
Candy is very important. You need to switch out your candy and try new things when old products are not selling. I know this may be one of the last things on your priority list but it needs to be one of the first. Candy is the bait and we are all fishermen in this industry. Sometimes you need a barbed hook to catch a customer and sometimes you need to let your bait bleed a little bit. Chum the water, try new things, we are evolving.
My new site will be dedicated to getting people started in bulk vending. This is a very profitable industry. I really want people to get in it and try it. Even if it's only 5 machines, try it out. See what it's like to make money while you are at home. We are in a time where job security is not guaranteed. The housing/mortgage market is in a serious crisis. Luckily our main Auto companies GM/Ford are in the black now. It was not that way a year ago.
I can only work so hard, it's your job to take hold of your own life!
Rob
UPDATE: Check out this Baxson guy on the Kick-Start Forums! He just started and he is moving quick! He calls locations while in the car going from place to place locating, wow.
Friday, August 3, 2007
comedy of errors 43/56
Well, I FINALLY placed my machine at Albertsons. It is in the break room and I wanted to put in M&M Peanuts and Mike & Ikes, but of course I forgot to put a second candy wheel in. So I ended up taping a business card over the springs and folded the edges down to cover the hole, I think. Who knows. They may get free M&M Peanuts and they may get none.
I also managed to rip a bag of Mike & Ikes open today and in turn they spewed all over the counter. What a mess. I did spray them with Pam though. Just a light mist. There must be an easier way to do this. Maybe I'll just melt some butter, dump it into a bag with the Mike & Ikes, and shake.
What else happened today. Umm, I placed two machines. One at an auto place that my locator gave me and then one at the Albertsons. I tried some other places to no avail. One pizza place had a 1800vend machine in there. You know this guy doesn't know what he is doing just by the candy in the machine. I don't even know what kind of candy it was but it just looked nasty.
Rob
I also managed to rip a bag of Mike & Ikes open today and in turn they spewed all over the counter. What a mess. I did spray them with Pam though. Just a light mist. There must be an easier way to do this. Maybe I'll just melt some butter, dump it into a bag with the Mike & Ikes, and shake.
What else happened today. Umm, I placed two machines. One at an auto place that my locator gave me and then one at the Albertsons. I tried some other places to no avail. One pizza place had a 1800vend machine in there. You know this guy doesn't know what he is doing just by the candy in the machine. I don't even know what kind of candy it was but it just looked nasty.
Rob
Thursday, August 2, 2007
Building Machines, Again
This is a tedious task, building that is. I have unloaded all the machines and carried them to my patio. That is a task in itself. I just got done building 2 machines and I'm ready to take a nap, haha.
My locator has a location for me but I may not go until tomorrow. I'm working hard on the new site! I think it will do well. I'm excited. Kick-Start Vending baby!
Rob
My locator has a location for me but I may not go until tomorrow. I'm working hard on the new site! I think it will do well. I'm excited. Kick-Start Vending baby!
Rob
Wednesday, August 1, 2007
Miami! 41/56
I went to Miami and picked up some machines today. I traded in my 3 triples for doubles and got 10 more machines. So I came back with 13 machines in all.
I have been working hard on the new www.kickstartvending.com site!! It's not up yet but it will be and I'm getting you KILLER PRICES! I promise, you will not be disappointed. I wouldn't go to all this trouble to offer a trash deal.
What else happened today. Not too much. My loactor called tonight with another location. I'll probably be building tomorrow. I still have to unpack the car that is full of machines. Damn, you have no idea how much those things weigh! A ton.
Check out the forum and sign up if you haven't done so! Why? I'm getting special deals for Forum members when it comes to locating. Yes, that's right. I'm working for you all! Maybe I can get some machine deals too. It's hard to keep up with all this stuff, I tell you.
I don't think there is anything else to say! DOUBLE-HEAD MACHINES ROCK!
The location I got today is a replacement from my locator. So yes, he does replace machines. I didn't have a problem getting him to do that, which was a relief. I was really anxious to get to the replacement part of the locating business to see if he honored his warranty. He has so far. I'll continue to monitor his progress for you guys!
Rob
I have been working hard on the new www.kickstartvending.com site!! It's not up yet but it will be and I'm getting you KILLER PRICES! I promise, you will not be disappointed. I wouldn't go to all this trouble to offer a trash deal.
What else happened today. Not too much. My loactor called tonight with another location. I'll probably be building tomorrow. I still have to unpack the car that is full of machines. Damn, you have no idea how much those things weigh! A ton.
Check out the forum and sign up if you haven't done so! Why? I'm getting special deals for Forum members when it comes to locating. Yes, that's right. I'm working for you all! Maybe I can get some machine deals too. It's hard to keep up with all this stuff, I tell you.
I don't think there is anything else to say! DOUBLE-HEAD MACHINES ROCK!
The location I got today is a replacement from my locator. So yes, he does replace machines. I didn't have a problem getting him to do that, which was a relief. I was really anxious to get to the replacement part of the locating business to see if he honored his warranty. He has so far. I'll continue to monitor his progress for you guys!
Rob
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