Hey Meridian,
Thanks for the advice and concern in your reply.
I have checked out Planet Antares (
http://www.planetantares.com/home.html ) in past years, but my credit was too poor to obtain any financing at the time. The company has been around for 21 years and has a strong desire for their clients to succeed so they will purchase more Vending Machines from Antares. The support plan they provide includes placement assistance in the form of pre-qualified target mailings (intriguing 4-color brochures) to businesses in the zip-codes I request. Upon our request, Antares support personnel will "interview" the interested businesses for us helping to ensure the location will be profitable and safe. This helps relieve the "rejection" factor as well. Vendors I have spoken with stated they received locations for their machines from these mailings in 2 to 3 weeks, usually more requests from locations than they had machines to place. The target locations are secured, offices and businesses with 50 - 75 employees. Antares strongly suggests AGAINST putting the machines where they may be damaged (i.e. do NOT put them in locations which are non-secure, outside, college dorms, schools - except Teacher / Faculty Lounges, etc.).
The machines are a new design that first went into locations in January 2008. The new design combines a Snack, Drink, and Entree machine into one 3 1/2 foot wide unit. The unit will hold approximately 350 items, depending on the configuration / size of the selections. Based on my conversations with other vendors using this machine in white-collar offices of the target size, the median weekly gross income is $203.00, with a range of $164.50 to $268.00. With an average profit percentage of 50%, there should be no problem making a nice income from this business. I plan to service the machines at least weekly, adjusting to more frequently if sales warrant. I believe Planet Antares has location agreement forms available for our use; if not, I will have one prepared before putting my machines into locations.
The $33,847.00 price includes 3 of these combination machines, shipping, taxes, marketing plan, targeted direct mailings for locations, and support, etc. Initial merchandise and change will run approximately $300 per machine, with business set-up costs (DBA, license, etc.) at about $500. I can currently provide $9,000 towards the costs and still be able to make the payments on any loans without any income from the business.
$54,645.00 is the price for 5 machines, including shipping, taxes, etc. as noted above. Again, I can put $9,000 towards this, business set-up, and merchandise costs. Loan payments on this amount would be tight, if for some reason the business failed to produce income.
Planet Antares will provide 50% financing on future machine orders over $7,000, but not the initial order. Future machines are offered at reduced prices, based on the initial package purchased. Therefore, starting with the 5 machine package would allow for faster building of the business. There is an additional bonus discount on future machines for paying the full amount by July 18, 2008.
I am open to loans, lines of credit, grants, venture capitalists, silent partners, etc. Anyone that has ideas for funding this venture, please let me know!
