“Tools and Equipment”

In order to do your vending business, you will need tools and equipment. First start with reliable transportation, your personal vehicle will work in the beginning. As your business grows you may need a cargo or step van.

Some kind of dolly or cart will be needed in order to transport product from your vehicle into the machines at the location.

Start a tool bag. I like the light weight canvas bags with the open top and a carry handle . These can be purchased at most home improvement stores. In your tool bag have some of following items… pliers, calculator, pen, pencil, receipt pad, small flash light, volt meter, small pocket note book, screw drivers, small ratchet socket set, glass cleaner, electrical tape, sheets of paper towels, (conserve space - fold a few sheets – no need for the whole roll) electrical ties, Allen wrench set, a roll of invisible tape both regular and two sided.

Know what kind of equipment is required for the location you are proposing to set and service. Do a site survey. Measure all access areas, doors, loading dock, steps, stairs and platforms. Make sure the proposed equipment will fit in the space provided. Check to make sure there are electrical outlets and they are adequate power requirements. Will you be installing new or refurbished vending machines? I suggest you use refurbished equipment when ever possible. Holding set up cost as low as possible will make your new business profitable sooner. Other questions that will need answers are as follows… Will these machines be going to a new customer and updating what they had in the past? Are the machines outfitted with the latest (eye vend) technology, such as guaranteed delivery? Do they except five dollar bills and dollar coins?

You can purchase machines from manufactures and equipment distributors. Sometimes other vending company will have equipment at their warehouse and are willing to sell it. Be sure to SHOP! SHOP! SHOP! for the best price and value. Talk to other vending companies and ask what kind of equipment they like best and why?

Start gaining an understanding of how to move and set safely the equipment you will purchase for your locations. Vending machines can weigh from 150 pounds to 1200 pounds. Learn about moving equipment from distributors and other vending companies. Be careful and be safe.

Up coming topics “Financing and Leasing of Equipment”

"Setting up and using a plan-a-gram"

We used a piece of 30"x40"- 16 gage metal, hung it on the wall. The product packages suspended with a magnetic chip from an office supply store. This represented the products in a full size snack machine.

Setting up and using a plan-a-gram can be a useful tool for making menu changes and communicating these changes to your route personnel.

Chips, Cookies, Candy, Pastry-----

Take each item in the snack, candy product line and placing it into a standard plan-a-gram. This plan-a-gram could be published in a graphic form and used as a reference. Standardize as many machines as possible. Recognize that there may be some variations of this standard because of some special consideration for a location. Narrow the product line as close as possible to your standard. Products that are not part of this standard should be special ordered. Standardizing your product line will help control cost and maximize profitability.

Pricing----------

Tract the unit price for any special order item and make sure the selling price reflects necessary mark up? The items displayed on the Plan-a-gram could be tagged with the proper pricing. Price an item at a minimum of (3x) cost. Example (.19 cents cost) should sell for .60 to .65 cents.

“Fewer Surprises”

Being the boss does not mean that you are free from rules and guide lines. We find there are rules of engagement in love, war, politics and life in general. Consider some of the rules that will come into play in your vending business. These rules and guide lines should apply for yourself as well as all route personnel. As time at a location lengthens, these rules and guide lines take on an even more important role.

1).Be friendly and pleasant to everyone you meet at the location. Don’t pull others down even if you think you are having a bad day. Remember you are the company representative and ambassador at that moment in time. Be positive.

2).Take note of the condition of the equipment placed at the location. Is it clean, free of dust and fingerprints? Are all the bulbs on? In general is it in good working condition?

3).With each service visit, take time to (clean as you go).

4).Listen for the satisfaction level of the customers at that location? Take note of it, if it is positive or negative?

5).Catalog any customer comments. Write them on your location recording sheet. Some attention may be needed if the same thing keeps coming up time an again?

6).Keep the product and menu selection fresh at all times. If a product is nearing its’ expiration date remove it before it goes out of date.

The bottom line is to pay attention to detail at each location. You will have fewer surprises as you adhere to these rules.

What will set your business apart from everyone else? It can be summed up in one word. SERVICE

The other day someone asked me, what I liked most and least about managing a business? After a brief pause, I summed it up to being able to deliver on what the company has promised to the customer. All of the things that help in the delivery of the service promised are good. Things, like everyone involved with the company doing their job in an outstanding manner. That’s what I liked best. Things that stopped normal activities in delivering of the promised service, I hated. Employees showing up for work late. Perhaps individuals not taking pride in our general over all appearance. Not paying attention to details that had a negative impact for our customer’s convenience. Many other things could be stated. You get the general idea of what kinds of activities make the difference in a smooth or wrought delivery of service. Unfulfilled promises on service can put you out of business. Fulfilled promises will keep your business healthy and moving forward. Service is often the distinction between just OK and an outstanding company. An outstanding company does the extras, not just to sell a product, but to establish outstanding service for the customer. It will take more than just saying the word service. Believe you have an outstanding company. Continuously strive to deliver superior service for your customer’s convenience. This combination will keep you and your business happy and healthy. Never expand your business beyond your ability to maintain superior service. It is far better to pass up an opportunity and not let your service commitments fall short. Growing to fast in an uncontrolled manner can be a disaster. Control every aspect of your vending business. Keep superior service as the foundation for all your business activities.

"How to finance your new business"

Here is where all the thought and effort of your business planning really pays off. In your business plan you should have made some projections of where you would like your business to be and how you will get it there? Raising capital for your start-up and financing ongoing operations is an important wide ranging topic. It is the topic that you should master and monitor continually. Nothing will matter more as you market and operate your new business than having your finances in order at all times! This was the area of our business that was always the biggest challenge we faced ongoing? You should be gathering, measuring and monitoring data from the business weekly. Compare the data to your model. Act sooner not later, when you spot a trend going in the wrong direction. Find out what is happening and take actions to correct the problem. Using percentages of gross sales to track various segments of the overall operations is a way to monitor business activity. Look at overall sales as being 100%. Assign each area of your budget a percentage of tolerances of that 100%. Express these to each individual route. One route can be defined as a route driver and truck responsible for 225k to 375k in sales. Labor should be 10% of the route or less. Overall base cost for vehicle expenses might be at 4%. Cost for a warehouse might be 6%. Profit should be 20% to 35%. That leaves about 55% for all other expenses. Some of these will vary deepening on how well you shop for products and hold overall cost for supplies as low as possible. You also have to fit in the payment cost of equipment for a route amortized over a 3 to 5 year period. ( payments come from profits at that location)

How does the ‘little guy”, the one who has never raised capital before, go about it? You start by educating yourself as to what is available to you. Raising money is a function of the degree of sophistication and experience of the person evolved. You can have others who understand raising capital help, or you can try raising it through your own resources. You will find that a well defined set of rules come into play. If there is any one piece of advise most appropriate for you in need of raising money, it is that you should make a careful assessment of the proposed value of the business, determine how much capital is necessary, in what amounts and over what period of time? With any approach you will need a business plan! Once you have chosen a course of action, follow it without turning or abandoning it. Deviate from it only when the first choice is unfeasible. TENACITY IS KEY. If your ideas have merit, you can usually find away to work out the details.

Let me introduce my good friend...

(Harry Walden)

Harry is a successful businessman with a Shaklee Distributorship.
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THE FOLLOWING QUOTE HAS APPEARED IN HUNDREDS OF PUBLICATIONS FROM 1900 - 2008. Real food for thought!

"Far better it is to dare mighty things, to win glorious triumphs, even though checkered by failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows not victory nor defeat." -Theodore Roosevelt, April 10, 1899

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What Type of machines do you want to service?

Beverage

• Soda
• Water
• Juices
• Coffee

Snack

• Crackers
• Chips
• Candy
• Pastries

Foods

• Fruit
• Milk
• Sandwiches
• Ice Cream

Bulk

• Baseball Cards
• Candy
• Capsules
• Super Balls
• Gum balls
• Toys
• Stickers

Personal Products

• Cameras
• Playing Card
• Medicine
• Travel Aids
• Condoms
• Small Radios
• First Aid
• Other Sundries

Photo Booths

Amusement Games

• Arcade Games
• Plush Cranes
• Candy Cranes
• Rotaries
• Golf
• Music Jukebox
• Kids Rides
• Pool Tables
• Skill Games
• Video Games

To find out more about each of the before mentioned types of vending do some internet searches using the key words listed above. You also can click on our sponsored links located on this Blog.

“NOW to Get Started”

Plan what you want to do and work your plan!

Know this that starting your own business will not result in the standard work week that started during the 1930’s. Most entrepreneurs work an average sixty hours a week. And still report to be happier than the average employee working 5/8 of that time. How can this be? People are happier in their work when they have control over what they do. Being happy also means healthier, and there is no better time than now to start a change in your life. Put yourself in control of your work and destiny.

Write a business plan. Your business plan becomes your road map to how your business will take shape. Make a business plan where you want your business to be in 1-5-10 years and how you plan on getting there. Questions you want to ask and answer in detailed form are the following… What type of vending? (Snacks, Soda, Bulk, Arcade Games, Sundries, Ice Cream, Coffee, Factory Inventory Control of Disposable Items)? What type of equipment will the business need? (Machines, Pallet Jack, Truck, Moving Equipment)? Will your business need a commercial address for receiving deliveries. Some suppliers will not deliver to residential address. How will you advertise the business? (Yellow Pages, Post Cards, Direct Marketing)? Will you have employees or family members only? What structure will the business be organized under? (Sole Proprietorship, General Partnership, LLC, Limited Partnership, S Corporation, Corporation)? These are not meant to be all the questions you will need to answer in your planning. There may be other questions that you will come up with as you put together your plans. The development of a business plan serves the following purposes: Allows the business person to think through all aspects of the business venture; Lays the groundwork for an operational plan to track your progress; Provides the basis for potential lenders and investors to review the business plan for financing the new venture. Do an on line search for business plans, check with your local library and your local book stores for more information on how to write a business plan. Also consider the book store at Ken's World Market.

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