Start Up Costs

[PGBrew]

My charity stickers will fit on a single ring. A4 size is to unsightly, best to get your own made up to whateveer charity you wish. I use a jetwash to remove stickers followed by liberal quantities of white spirits,only if I have the time though, if not I chuck em.

Pete

[PabloV8Haggis]

Now that the new £1 coin change is behind us and therefore not really a problem for new people coming into the arena. I would offer this advice to any new prospectors, if you are considering coming in to this line of business I would tread carefully. Why?

1. There is no doubt that a sugar tax will arrive later on this year or early next year!
2. Also, there is perhaps a question mark over a plastic tax, it will hit plastic bottles soon, will it hit the small plastic containers we use, this is unknown.

What does that mean!

I really do not know!

But one thing for sure is that the pricing of the products we sell may change again, or the contents will dwindle by who knows?

One thing for sure, carrying out a price change for a significant amount of machines is costly and very time consuming. What does this mean! A whole batch of cheaper machines if any of the above takes place as operators say enough is enough! Scaremongering! Not a chance, just plain reality, as sugar tax on sweets is going to happen! By how much?

Well government thought the projections for the drinks tax was going to generate £500m! Obese tax, my fat ar*^! It is a money generator! So the projections are now £220m, big difference, hence they will hit sweets hard!

The truth of the matter is, if they wanted a proper sugar tax, it should have been on sugar at source, that way at least they would hit everything and not point the finger at individual products. It would have been less painful for us if they would have taken that stance. But hey ho, since when have government been rational, take a look at Boris! Enough said!

[Style]

Fair points Pablo

[PGBrew]

To avoid the 'Sugar Tax' suppliers will reduce the sugar content to below the taxable limit and at the same time possibly reduce prices as well because they are saving on sugar! Haribo are leading the way on this and reduced sugar content by 25%.

Pete

[PabloV8Haggis]

Dear all prospective newbies,

I have very recently purchased a batch of machines form an operator who was really struggling in this business. I paid a very fair price (probably well above market conditions) however, machines practically brand new!
My observations are:

1. Operator was visiting sites far to frequently for type of sites.
2. Operator did not have the skills to site find themselves!
3. Most importantly, looking at the stock left in machines, operator was without a doubt using stock that was not suitable for clientele.

You really must have a good balance that caters for clients needs. We use a 50/50 mix (chocs and sweets) and it works across the board. If we put out 10/90 in favour of just sweets we would be struggling!

Pablo

[JavaGreen]

Still nothing on horizon from suppliers in relation to supplying sugar free options.

Come on suppliers, what are you waiting for?

Cheers

Pablo

[JavaGreen]

One thing that is constantly overlooked is the cost of stock held in machines. For example, if you have 100 x 81 sweet machines you have 8100 pots awaiting sale, divide this by the average of say 38p (covers cost, postage and vat etc) and that then becomes a little over 3k tied up within the business. This quickly becomes 4K as you need the stock to replenish machines.
So always remember the holding stock required to operate this type of business. The more you have the more holding stock you need.

[JavaGreen]

My goodness!

Looks like my post has hit over 50k reads.

Did not know we had so many operators or is it a case of people forgetting what they have read.

Are overseas operators reading this perhaps?

Either way, good luck in what you do, hope the post has something of value.

Kind regards,
Pablo

[JavaGreen]

Received a couple of pm's recently asking various questions.

1. Email.
I tend not to email a site for a lead or other because, people are generally to busy to read an email about something they are not particularly interested in. besides, email can cost an opportunity, to easy to say 'no thanks' do not require one of those. That site opportunity maybe lost forever. Meet face to face, better chance of success. Or use your partner especially if they are better looking/and sounding than you.

2. Charity v Commission
I have the majority of my sites at commission [have some charity], why? If the site is getting money off you there is a greater chance of being on-site for a longer period than if purely charity. Sure some sites prefer charity however, in my case, most prefer to get something out of the deal/equation. Or try 10/10, that way you may stay a little longer. Been doing this for five years now, I have no charity sites left from five years ago [have some from four but we look after those sites in other ways] but many that have been commission. So it is whatever works for you.

[PGBrew]

Face to face is the most effective form of communication in this business. I sometimes get calls to remove my machines. I'll never ask why over the phone. Gives me a chance to think about what I'm going to say and also to find the real reasons for their request and have a far more meaningful discussion when meeting face to face. Saved some good sites this way.

Pete