FINDING LOCATIONS

Many people contact us and ask how to find suitable vending locations. There are three main ways:

1. Using a person who finds vending locations known as a "locator". Fees for a locator normally run $300 to $1,000. You must be careful to check out the location for factors shown below under qualifying a location. Sometimes you may overpay for what you get.
2. Buying an existing location. Sometimes people will sell a location (the existing vending equipment and the right to be in that place). Unfortunately, most sellers lie about how good the sales are. (Hint: usually figure that sales are 1/2 or 1/3 of what they tell you). It's best to base your purchase price on say a 25% down payment, and the rest as you monitor the sales in the first few months. Check with experienced vending people on the value of the equipment. Be sure to get the manufacturer's name, the model and serial numbers when you verify equipment value. Avoid new or used mechanical equipment (operated like a gumball unit -you load coin in slots and turn 360 degrees to get item-no change given). The main concern here is: DO NOT OVER PAY - DO NOT TRUST SELLER.
3. Finding locations yourself.
   • Due to the value of your time and the cost of gas, work out from your home in concentric circles. Build a business within a reasonable distance...from home or regular travel.
   • Locate a 'business directory' of all the businesses in your area...especially nearby industrial parks. Note: Stores and plazas are usually not listed in these directories. Ask your local library for help with this, or the Economic Development Dept. of your town or city. All of this may be online. Some of it may cost something to obtain.

Phone the companies you select and ask for the office manager or foreman (if a manu- facturing operation). If you cannot get through, try to ask some questions to the receptionist (receptionists are often trained to block solicitation calls to managers).

First question: Do you have vending machines?

If answer: NO, ask why?

If answer: YES, ask if they are happy with the following items:

• Overall service (refunds paid, machines filled and fixed promptly, etc.)
• Selection of items in the machine(s)
• Price - Do prices seem fair, or above market averages?
• Equipment. Too old? Breaking down regularly? Not enough choice or capacity? Is it 'mechanical' (that is, does it need certain coins - no change)?

If these questions present answers with opportunity, ask to meet with them.

WARNING: It may take say 25 to 100 calls to find a location. Possibly 1 out of 10 people may be rude to you. Be persistent. This is what locators do.

Qualifying a location

You must qualify a location, and occasionally even when you follow the guidelines, you may have to move your equipment to reach acceptable sales.

Cold Drink Machine: Minimum 25-40 employees working in a company all day (not out on the road). Exceptions: a parts counter where customers come and go all day, or perhaps a transport depot where drivers wait for trucks to be loaded and unloaded.

Snack machine: Minimum 60-80 employees working there ALL DAY.

CAUTION:

1. If a coffee truck visits the location more than twice a day, do not place units there.
2. If there is nearby competition: Example: a Dollar Store with cheap prices.
3. An abundance of female employees who may be on diets (=low vending sales).
4. Government offices can sometimes have low sales for unknown reasons.
5. Companies with a large number of new immigrant employees often experience low vending sales. These employees are great people but they are saving money carefully and bring their own drinks, snacks and lunches to work. They are great savers!

SPECIAL CAUTION: Be very wary of high pressure, 'slick' companies selling new equipment and locations. Often the equipment is mechanical, hugely overpriced, and the whole sales effort is a 'con game'. Frequently the locations end up having very poor sales. Contact the Canadian Automatic Merchandising Assoc. (CAMA) at (888) 849-2262 in Mississauga, Ontario, for the names of reputable equipment dealers.

General guidelines for good vending service

1. Keep machines clean and add change (often 25 cents) in the change tubes.
2. Refill the machines regularly- usually daily, weekly or bi-weekly...as required.
3. Pay refunds if people lose their money. (or you will lose that customer!)
4. Respond within a day if a machine breaks down. Apologize.
5. Display your name and phone number clearly on the machine
6. Listen patiently if people make suggestions for new items.
7. Maintain a good relationship with your contact person: a box of chocolates, etc. and a thank you card at Christmas is a good idea.

Commissions: Most clients will not request commissions, but if they do, use the following as a guideline:

Cold Drinks: Usually 10 cents on a dollar sales price.

Snacks: 5% of the net snack sales (total sales minus sales taxes)

Do NOT pay too much, and always base commissions on sales, NOT a flat monthly fee.