Getting Bulk Candy Vending Machines from 1-800 Vending

Getting Bulk Candy Vending Machines from 1-800 Vending

I am going to answer a question from one of our readers named Stormy.

Hi, Stormy!
To answer you question about getting bulk candy vending machines from 1-800 Vending.

I actually called and spoke to a salesman so that I could at least present the facts to you about their vending program.
I have never bought machines from them so I did not want to give my opinion to you until I at least spoke with someone there at the company.

To start out I feel their company and our conversation was very professional.

In a nutshell, they have a really great machine with interchangeable containers which I will highlight in a little more detail later in this article.

This machine is more expensive than your normal vending machine but I do see some real benefits and I guess you do get what you pay for. They also have a lifetime warranty on the entire machine and parts. Here are some key benefits below.

100% LIFETIME WARRANTY ON ALL VENDING MACHINES
Every part of every vending machine you purchase from 1.800.VENDING - including the stand - is covered for LIFE

LIFETIME VANDALISM & THEFT PROTECTION GUARANTEE
In the unlikely event of vandalism or theft, 1.800.VENDING will replace, with a 50% deductible, any vending machine or machine part purchased from us. Police report of vandalism/theft required

LIFETIME PRICING GUARANTEE
1.800.VENDING will permanently honor the prices listed in your Prospectus at the time of your initial purchase. Although we will experience price increases from time to time, you will be locked in for life at the lower investment price

LIFETIME COACHING GUARANTEE
Our experienced in-house coaching staff at 1.800.VENDING stands ready to assist you in every aspect of launching and maintaining your new vending business. For questions, concerns, instructions or ideas - just ask!

The saleman was very upfront in regard to their pricing on the bulk candy vending machines they sell. I would want you to get more specific yourself by actually speaking to someone if interested but here is the basics of their proposal.

There are 2 basic plans that we spoke about on the phone and of course I am sure these are subject to changes as they can adjust pricing based on economic and market conditions so this is the prices at the time I am writing this article subject to change. I am just letting you know to get a basic estimate and idea of what your investment would be.

Plan #1 If you just want the machines and will be locating them yourself the quote was $3470 for a minimum order of 10.
You cannot just order 1 or 2 machines at a time with 1-800 Vending. I was told either 10 or 20 machines at a time.

Plan #2 If you buy the 20 machines from them at $7790 these will come located by locators they will provide. There are different guarantees on the locations, depending on the plan and amount of time they will relocate a machine for you if it is in a bad location.

OK, the only issue I have with this in my opinion is this. If you are new to the business I always recommend buying 1 to 2 machines to start out. First this can be a big investment for some and it helps get your feet wet so you know you really like this business. Some fall in love with it from the beginning and actually go on to bigger machines and a full blown Vending business while others will drop out and sell the machines they bought and say it is not for them. But at least they have not invested thousands of dollars up front. That is my simple advice.

If you take both plans, plan #1 at $3470 for 10 machines. This comes out to $347 per machine. I don't know about you but that is an expensive machine for me. I can get double heads for around $130 with free shipping. Now of course they are not as nice as the 1-800 vending machines either. They are harder to service and not as easy to switch candy out of for testing purposes. But for $347 it will also take 2 1/2 times what it will take me to recover my investment. Many say it is not the machine but the location that matters. I think it is both but lets look at plan #2.

Plan #2 is $7790 for 20 machines, but these are located for you and ready to go. You just buy the candy and service them. According to my calculations this comes out to be about $390 per machine located. So this makes sense because their regular machines for 10 are around $350 + lets say $40 per machine for the locator and some type of location guarantee which may be more expensive depending on the type.

My only issue is again, you are locked into buying many machines at one time and for the amount they are charging you could set up your own locator and come out about the same.

Now lets talk about their actual machine and the roughly $347 price tag that comes along with it. I would say for a triple head machine if we are comparing apples to apples will run you around $119 with free shipping on EBAY. See XYZ Vending.
Now the machines are basic with a Quarter Tray etc. but do not have the interchangeable candy containers like 1-800 Vending. You are just talking about a regular old triple machine but at about a 3rd of the cost on Ebay and you can buy 1 at a time. Ok, you got the picture. Now Lets go into the features of the 1-800 Vending machines which are really really nice to be honest! Here are some quotes from their site which you really should at least check out.

#1) Interchangeable Canister System saves vendors a ton of time in servicing their route. They also love the fact that it's a lot more professional to swap out canisters rather than handling numerous bags of candy in front of customers or employees in each location. But these are side benefits. What they really rave about is how our Interchangeable Canister System makes them more money.

#2) You have to guess at what two or three candies will sell the best and you pour those candies into your machine. Then you go back every month or two and dump in more candy accepting whatever money may have come through during that time. There is no way for you to customize or optimize your route. We sympathize with our angry competitors who hate us for our Interchangeable Canister System - but we just can't stomach the thought of all the headaches & lost revenue you'll incur with their machines.

Without trying different candies, you will never know what will sell best in any particular location. Peanut M&M's may outsell Plain M&M's 2 to 1 in one location. Yet right next door, Plain M&M's will outsell Peanut M&M's. Having unsold candies sitting in a machine month after month means not only slow cash flow, but lost revenue as the candy goes stale and has to be thrown away.

#3) Interchangeable Canister System allows you to take the guesswork out of candy selection. You no longer have to settle for your best guess. Step 1: Start off with three popular candies. Collect money from your machine 2-3 weeks later and jot down how much each candy selection generated for you (we give you the tracking forms). Step 2: Pop those three canisters off and pop on canisters with three new candies. Having your Service Tote in your vehicle with extra canisters makes this a breeze (your Service Tote - with extra canisters - stays in your car with a protective lid on top).

Collect the money again after 2-3 more weeks and jot down how much you made from this second batch of candy. Step 3: Exchange candies again popping on canisters with three new candies. Give those candies 2-3 weeks and collect the money again. Jot down how much you made. You now have income information on nine candies. Simply pick the three that made you the most money and now you have the optimal combination for that location.

Do this in each location during your first 60 days and you will be amazed at the results. You will know - without any doubt - which candy choices are going to put the most money in your pocket the very quickest. You have taken control of your business and taken the guesswork out of it.

To tell you the truth, this is a great system and I am very interested. Now look at some of the disavantages they point out on their website with regular machines. I am going to highlight a few below.

"All Metal/Steel" Machines
(100% Painted Inside & Out)
INSIDE Paint Corrodes & Contaminates Product
Incredible Ability To Attract Heat - Melts Candy
Slide-In Candy Dividers = "Product Bleed"
Weighs In At 100 lbs. - Extremely Heavy
OUTSIDE Paint Scratches, Chips & Rusts

All-Plastic Machines
Made Cheap & Therefore Don't Last
Plastic Coin Mechanisms = Frequent Breakdowns
Plastic Lids, Doors, Etc. Easy To Snap Off
Do Not Vend 1" Gumballs Or Toys - Huge Market
Rejected In High-End Locations

4-8-12 Selection Machines
Only Suitable For Certain Locations - Very Limited
Spinning Machines Keep Product "Out of Site"
Top Heavy Due To Enormous Amounts Of Product
Plastic Coin Mechanisms = Frequent Breakdowns
Short 2-Year Warranty

Individual Head Machines
(Usually 2-Heads)
Some Are Easy To Break Into - Individual Heads Can Be Twisted Open
The Most Difficult Vending Machine To Service
360º Globes Expose Product To The Sun
Don't Have Spill Trays - Required By Many Locations
Do NOT have "interchangeable canisters" - only GLOBES that were never designed to be switched out
Only Two Choices = Lost Income/Paying Too Much For Too Little

10 Clues To Spotting A Reseller
They Offer All Kinds Of Vending Machines - They Are Generalists, Not Specialists
They Sell Cheaply Made, Outdated "All Metal/Steel" Triple-Head Machines That Are Problematic
They Lure You In With "Cheap" Prices - But Want You To Believe The Machines Are Well-Made
They Sell Inferior Machines That Only Carry A 1-Year Warranty By the Manufacturer
They Sell Small Packages Attempting To Stay "Under the Radar" With the FTC
They Don't Provide You With A Written Disclosure Required By FTC Law
They Don't Provide You A Balance Sheet of the Company Required By FTC Law
They Aren't Legally Registered As a Business Opportunity In Your State
They Usually Don't Offer Any Location Assistance
They Often Have "866", "877" or "888" Toll-Free Numbers

The "Modular" Myth
"Modular" = Sales Gimmick Used By One Company Really Selling You 2-Head Machines
Vending Machine Racks Are Found In Less Than 1% Of All Locations - Who Almost Always Own Their Own Machines (e.g. Grocery Stores)
Complicated Assembly/Disassembly
Servicing Nightmare
Contain All The Problems Of Individual Head Machines

I am attaching a link to the page with the features of the 1-800 Vending Machine Features

It really is a great design in my opinion and if you are established with say 10-20 machines that you are already servicing and have some experience in the business, I think this could be a great way to invest in a great machine with a lifetime warranty etc. to grow your route even bigger. For someone just starting out it could be good, but again think they should start with 1 or 2 machines and understand the mechanics a little better before making such a large investment.

Stormy, this is a long article with much information but wanted to try to give you an informed factual look at the pros and cons before calling 1-800 Vending. I would recommend them as I really like the warranties behind their product and their designs. Just be careful and make sure you start slow to make sure you understand the business first and that this is something you want to do long term. Some people like to start and stay with a small route as some extra passive income with virtually a small amount of time invested in servicing their routes and others want to grow big and do it full time. Some will decide it is not for them. It is really your choice, but starting slow is the way to go to understand the business first and then set your goals depending on what personal choice you make and how it will fit into your lifestyle.

Good Luck to all!
Candyman
http://www.bulkvending.blogspot.com