Vending Blog Question #3 - Placing Honor Boxes

Question: I just recently added honor boxes to my business, and as I'm trying to get them out I get a lot of customers tell me that we had one before and it was always short, so they don't want one. Is their anyway to persuade them otherwise, or am I better off not to put it there. I have only solicited to employee based firms, I do not want to place them out for the public.

Vending Rules Answer:

I would like to first confirm that your placement ratio will be able 1 in 20 the first couple times you try. Once you've placed a couple boxes you'll not only gain confidence but you'll also have spoken with customers and have a better idea of what "sells" them on the idea of letting in an honor box. Plus once you get a few customers word-of-mouth really begins to help. Unfortunately in the beginning you have a little bit of "the chicken and the egg" dilemma.

Read the rest of this answer at the Vending Rules Website.

Vending Rules Blog - Question #2 - How Much Do Vending Machines Make?

Here is another vending question I got last month:

"Well i have a drink and snack business, and i would like to know what i sould be making per machine, I do (Ok) but i think its under performing and i can't seem to find out any real $ averages in the business i want to expand but i feel that i need to know if its worth it. "

Vending Rules Answer:

OK, I got this email late at night. I'll assume the writer was just a little tired when he wrote it ;-) Anyway, I understand what he is asking so here is my answer.

The reason that you will not find specific numbers is because there are no specific numbers - every location is different. I have locations with 20 people that eat and drink more from my machine than locations with 50+ people.

If you feel a location is under-performing you need to first talk with the location employees and find out what they like. Then look at what does sell and see if the sales reflect what they say. For example, I had a location mention to me that people eat from my machine for breakfast. When I took a second look at sales I could see that coffee cakes and pastries always sold well. So I removed a row of chips and added more pastries - my snack sales doubled! I then added canned juices to my soda machine and began selling out of those selections on a weekly basis.

Occasionally though you will find that NOTHING helps. The people simply do not eat from your machine. If that is the case, move the machine. Find another location and place your machines there instead. Sure it is a pain, but not making money is a bigger pain.

How do Dollar Bill Validators Work & Why Do They Fail Sometimes?

If you have vending machines that use Dollar Bill Validators the most common complaint you will get is, "Whay doesn't the machine take my bill?" Or you may hear, "Sometimes it takes my bill, sometimes it doesn't." Below is a crash course in how dollar bill validators work, and why they fail. I hope this information is helpful.

Dollar bill validators work using one of several techniques. The higher quality validators use multiple techniques to allow for wrinkled bills but still detect counterfeits. It also has to be able to determine if the bill is the correct denomination (meaning did you put in a $1, $5, or $10 bill).

Most bill validators have a sensor similar to the one found on an old tape cassette because US Currency uses magnetic ink on bills.

The second most common method for identifying the bill is using a photocell (similar in function to a tiny camera) and compares it to valid patterns stored in memory. Different patterns from different bills can determine the denomination.

Now that we know this lets look at why the bill "failed" in the first place. The wrinkled or crumpled bill had too many deep creases in it. Most likely the folds occurred at the spot the validator "looks" with the photocell. This makes the bill appear incorrect to the validator.

By folding the bill, or using some other type of "flattening method" you smooth out the wrinkles in the bill to allow it to pass the photo check. Better validators allow a certain number of failure points on the bill, cheaper ones allow only "crisp" bills to pass.

Vending Question #1 - Moving Vending Machines

Here is a vending question I got just the other day:

"WHAT DO YOU DO IF A SITE MOVES YOUR MACHINES' AND DON'T TELL YOU .IT LOOKS LIKE NOTHING HAPPENED TO THEM. THEY WERE MOVED DOWN A LITTLE."

Vending Rules Answer:

While this is not uncommon there are a few issues you should address if this happens to you. Read our answer at our new Vending Blog...

How much do vending machines cost?

Vending is a great business. I started my own full-time vending business several years ago. With that said I just want to warn you that there are LOTS of Biz-Opp salespeople who will promise you that this is the easiest business in the world. Of course they are trying to sell you $25,000 worth of equipment. Never buy from these guys - they are all rip-offs. You can start in this business for LESS THAN $2000 dollars, easily.

The last point I want to make is that this business does take time. If you are looking for this in addition to your current jobs you may not have the time to properly service your route. If you are looking to replace one or all your jobs then start small and build from there.

As far as how much vending machines cost; the answer to this question depends greatly on the type of machines you need and whether they are new or not. I run a route with lots of different types of machines. The best answer I can tell you is what I do; I only buy used machines - you get he best prices. I'll list the prices I pay for used machines.

Bulk Candy Machines - New $350 Used $100
Snack/Soda Combo Machines - New $5000 Used $500
Full Sized Snack or Soda - New $3000 Used $500
Spiral Gumball Machines - New $1500 Used $100

I hope this information helps!

Charity Vending Blog

I want to make one thing clear about the vending business. You WILL NOT become successful unless you learn how to locate machines. I have NEVER heard of a "success story" where someone used a locator. In general the whole locator/national charity deal is a scam designed to sell you lots of expensive machines - and transfer your hard earned money into someone else's bank account.

Using a LOCAL charity is a great idea but it mut be approached and implemented properly. Most charities will not understand the value of the passive income you are providing them so you have to take time to explain it. Most importantly you have to show them how it will benefit them as an organization. You also need to pick a charity that you truly believe in and want to help. If they feel you are merely trying to use their name to build your make your business money they will not be very receptive.

I have actually created a little hand-out for them (with pictures and everything) I then follow-up (in person) and review how the program works. It takes a little while but once they get their first commission check they'll be placing machines all over town for you.

New Subscription and Email Newsletter

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