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Vending 101: Facts and Information
"But
all I know about vending is how to put money into a machine!"
So, you want to be in the vending business...
It
certainly can be rewarding, but always remember: "There is no way to
get rich quick."
The staff at Arizona Vending Equipment has over 60 years of vending
experience. Our knowledge, which we gained through trial and error, is
freely given to folks like you. Our mission is to assist vending
operators in achieving their goals. Remember there are always inherent
risks in any business venture. We are here to help make this successful
for you.
We've developed some
basic information for you to use when deciding if, or when, vending may
be appropriate for you. We hope that you purchase every vending machine
that you ever need from us, but if you don't we sincerely hope that our
advice is helpful as you make your decisions.
Some basics to keep in mind...
- Decide what
services you will offer. Will you be a 'soda beverage only' vending
supplier, or will you also offer candies, chips and other items.
- Find locations by
networking contacts that you already have. Friends, family,
neighbors, other members of church or civic groups that you belong to.
Don't
forget the people you do business with, such as insurance salespeople;
they have a lot of contacts.
- Net profit,
revenue minus the cost of product, should be at least 50%. Your net
profit will directly be tied to the selling prices you agree to with a
potential location.
- Always have a
location before you buy equipment.
- Always buy
machines from a local, reputable equipment dealer. Stay away from
'1-800-make-a-fortune' vending ads.
- Place your
machines in high traffic, and secure areas. Pay attention to the
details, like narrow doors, stairs, etc. The ideal spot will be air
conditioned and out of direct sunlight.
Servicing your machine...
- Offer the
location a variety of menu options. Let the customer choose from a list
of products that you provide. This shows your customer that you value
their input and suggestions.
- Offer brand name,
quality products, at a fair price for the market segment you are
servicing.
Phoenix Market Average Sell Prices
Can Soda - $.65 to $.65
Chips -
$.50 (small) to $.75 (large)
Candy - $.65 to $.85
Prices vary depending on what type of location you're considering.
Shop your competition!
- Major players
like Coke and Pepsi are not flexible about changing service
frequencies. Some independents do a horrible job of stocking machines
on a timely basis. Service your machines before they are empty. This is
what separates you from the "other guy". You should be at each location
at least once per week.
- Post your
business name and phone number on each machine. Give the customer a way
to contact you in the event of a break down or other service needed.
OK, I can do this. What do I need to get started?
Like the
man said, "location, location, location". Before you go out and secure
the first one, we recommend that you have a working knowledge of types
and capacities of machines. Also research product supply sources. From
that research you can develop a list of products that you'll offer.
You'll also know where to go to purchase Coke, Pepsi, or other flavors.
We
suggest that you check the warehouse stores such as Costco, Sam's, and
Vista/Vendsource. They are an excellent place for all of your vending
supply
needs. Don't forget to watch grocery store ads as well as K-Mart &
Target.
The staff at Arizona
Vending Equipment are available to assist you when you have a new
prospect. Call us if you're not exactly sure which machine will be the
best for a specific location. Let's face it - money is hard to come by,
and it doesn't make sense to either over or under equip an account.
Arizona Vending Equipment can supply you with the proper machine,
either new or quality refurbished. You spend money by the thousands for
machines, and it comes back to you in quarters, nickels, and dimes. We
will help you spend your money wisely.
Remember...
You provide
service to people, not buildings. Just because it's a big building
doesn't mean it's a good vending account.
Take advantage of
great financing options through our factory sponsored USI Financing.
With approved credit we are able to offer no down, and 90 days same as
cash. The tax, freight, and machine can all be rolled into the note!
You can often place a machine on location and let it earn money for 3
months before making any payment.
We also work with
several local lenders that offer other financing options, and we are
able to make Visa, MasterCard, or Discover credit card transactions for
your convenience. Cash is always cheerfully accepted, as well as checks.
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