Start Up Costs

[PGBrew]

Walk into a pub, phone the number on the machine or leave a note selotaped to the back plate.

[Style]

200 Bouleys, great opportunity!!! How many machines do you have now Pete, how far do you travel ?

[PGBrew]

Andy,

It was, but for me, also a leap into the dark!!! I also did a deal with ATN and bought 70 3L Wonders 50/20p and sited them next them. They are actually 'Laiv Luxors'. So now, many sites now have the complete package £1, 50p & 20p. Majority outside convienience stores etc. To fund this, I sold all my home counties (Herts & Bucks) Towers and shifted my business to London. I meet with Laiv once a year and order spares. Got a few pinballs, tattoos & rides also. At one time had a 'flock' of over 500. Lost a few sites over the last two years, had Dave do some sitefinding for me, but hasn't kept up with the losses. Now have 60 towers, 10 Pringles,12 Laiv Luxors, 6 3l Wonders, 2 Tattoos & 3 rides to put out. Spent the winter refurbishing them, ready to get them all out in a massive campaign this spring. I need to get off my **** and get going with business developement, taking the cash is the easy bit, was working 7 days at one time. My son helps me a bit now. He's interested in the production side of the business does all the capsulating etc. In the end I took my own advice, growth by aquisition & diversify. I think you are at the growth stage at the moment with the Snack A Can purchase?

[Style]

Yep, Im in the growth stage. It does seem to be two steps forward one step back in this business though. If you stop expanding you will shrink pretty rapidly. 2013 I went from 150 to 200, 2014 wanted to get to 250 but pretty much stood still till I got I hold of the Snack a can sites. I think by the time I have consolidated everything I have it will leave me at around 300 so still work to do.

All good fun though!!!!

[PabloV8]

The reason for the post was to try and provide an inkling as to what to expect and perhaps with other experienced operators guidance.

For example, I started with a tubz vending package which I must say provided everything I required as a start up - so thanks to tubz vending.

I then purchased some second-hand towers of another supplier, was not impressed with how it was sent and felt the stands where not fit for purpose, but since I purchased on ebay, hey oh that's the way it goes.

It has took me a fraction over a year to just about replace every second-hand tower with a new stand. Presentation is king, the new stands do the towers justice. So if you do purchase second-hand I would advise you get to see what you are buying before you part with your cash. As far as I am concerned, if I could put the clock back I would only purchase new as I do today. Nothing better than a brand new machine and stand, easier to prepare for new customers as no removal of stickers 'that can be a real pain task', no scratched machines and no unsightly stands.

And guaranteed to work.

Just my opinion, but having done this for 14 months I have built up over 150 machines now and growing. As has been suggested by others, you really do need a sizeable round of 100+ to make a success of this business. Your stock will also be cheaper as you can get better discount and free delivery when ordering large amounts.

Happy munching.

[PabloV8]

Forgot to mention, as previous op suggested, you cannot afford to stand still when expanding for example after 14 months, I have only 2 out of the original 25 sites I sited last March, so it is always a business that is moving. Guess we call this progress.

[part-time-operator]

wow Pablo that's a really bad customer retention rate? How much of your takings are you spending on sitefinding? must be costing you a fortune.

[PabloV8]

My customer retention is very good, I just decided to have a cull and get rid of bad performing sites - in the main, losing the sites has really been my decision as no point in keeping sites that are really under-performing. Considering I have well over 100 sites, have only lost about 6 through customer choice. I do not see the point in keeping sites for the fun of it, would rather have a site that works for me and the customer.

Of the initial 25 at the time I was putting towers anywhere rather than thinking will it be a good site, sometimes enthusiasm gets the better of you. As it stands, to answer your question, I would be expecting to change 3 sites every month which is considerably less than 5% of business as it will allow for new customers, lost customers and in some cases lost towers.

[part-time-operator]

in that case I totally agree. make more money with the same equipment by moving it around until you hit a good site, then keep the customer for as long as possible!

[Style]

Ive learnt that you cant tell a good site till youve been in there a couple of months. Ive got/had pubs and social clubs that I thought would be great but ended up only doing £5-£10 pm. On the othere side of the coin, I collected from an MOT garage today with 3/4 staff, it does £50pm every month.

It can also be about stock, Ive got a care home that does £30 pm every month. But only if there are 30 pots of strawberry pencils in it. One member of staff, 1 pot per day and it makes it a good site.