Thursday, December 28, 2006

On Vending Machines, Size does matter

One of the areas that is not explained by Antares & other companies is the ROI timeline. Return On Investment will make or break you. Compact mechanical vending machine combos are designed for smaller locations, but they should also have a "compact" price!

Smaller locations can be a great avenue for a new vending business, but only if the cost of your equipment can be justified by the revenue of vend sales from that location. The Antares machines Brand New run $6,000+ for each combo with changer. Yet, they only have a capacity to handle an account with up to 65 employees (45 comfortably)(white collar at that). So, if you can't go into a location any larger than this, with 1 combo, then you should expect a very long ROI for that $6,000 machine. Sure, you could go into a 100 employee account with 2 combos, but now you have to recoup $12,000 off 1 location.

Did you know that for $6,000 you could also purchase a huge 49 select electrical snack machine and a huge 12 selection drink machine (holding 750 sodas) that would accomodate a location of 100 employees (maybe even 100 blue collar). This machine setup would also not kill you because you wouldn't have to service it every day or two as you would with a mechanical combo.

The point is, small locations can be easy targets, but don't tie your life savings up in them. You can find pre-owned Antares vending machines for approx $1000 - $1500 per set or get similar brand new snack & soda combos with changers for between $1250 - $1650 per set.

This means your ROI will be 400% faster!!
So, you can actually make money rather than just paying a note.

For more common sense in vending, visit www.USEDvending.com & www.4MEGA-Vending.com

No comments: