Post a new topic
    6 Replies Latest reply on Jul 3, 2008 11:07 AM by MeridianT

    Need $30K - $55K to start-up a Vending Business in Tyler, TX

    Gary67 Newbie

      I am starting a Vending Business in Tyler TX and am looking for help obtaining funding for equipment and initial merchandise stock. The Vending Machine company (Planet Antares) provides a step-by-step program for placing the machines, replenishing stock, customer relations, bookkeeping, etc.

       


      I have 18+ years in the Hospitality / Customer Service fields with a background in Accounting and Operations. I have no doubt that I will be able to get this new business fully operating within 2 months of receiving the funding. Expectations are to grow the business from an initial 3 or 5 locations to 15+ within 2 years. Estimated Net Profit is $100 per location per week, based on Gross Profit figures from other distributors using these same new (2008 model) machines.

       


      Any questions or suggestions on financing possibilities, please let me know - GaryWorster@Gmail.com or 903-780-6509. Thank you for your help / interest!

      Gary Worster
        • Re: Need $30K - $55K to start-up a Vending Business in Tyler, TX
          MeridianT Newbie
          My mother began a vending machine business about 10 years ago. From watching her struggles, I suggest you will not need as much initial capital if you focus in on buying 1-2 machines first and planning the monthly expenses and time for each. Placements are very hard to obtain --- much harder than the vending machine companies would suggest. You will have to be very motivated and handle rejection well. Each machine should have it's own mini-business/marketing plan based on the type of business you placed it in, traffic pattern, volume and demographic of customers and profit. What amount of sales will justify your making a trip to replenish the machine? How often does the business owner expect to see you? What is the potential for theft or vandalism? Enviromental factors affecting the inventory in the machine? Do you have a prepared agreement clearly defining expectations and commitments?

          The placements were the hardest part.

          Taking a prepared business plan into a local small community bank eager for your business would be your best bet for capital. Their lending standards will be more generous to a new business than a large bank, especially if they know the businesses you are going to be placing equipment in and can relate on a human level. They can also help you to obtain contacts.
          1 of 1 people found this helpful
            • Re: Need $30K - $55K to start-up a Vending Business in Tyler, TX
              LUCKIEST Guide
              Vending Business

              MeridianT, Welcome to this web site. Tell more about yourself??, where you are??
              • and your business??*

              Thanks, LUCKIEST
                • Re: Need $30K - $55K to start-up a Vending Business in Tyler, TX
                  MeridianT Newbie
                  Hi Luckiest, my husband and I own a commerical low voltage fire alarm, security alarm and CCTV installation company in Central Florida. Basically, our commodity is labor, subcontracted through several national firms. Most of our installs are big box and medium retail national chains. Our annual sales, 98% of which is labor, hovers at a $400k avg consistently. I think at one point we thought we break 1 mil but our industry is dynamic and the rules change each year when you think you've figured it out.

                  We started this company seven years ago, but he's been in the business for 22 years. My background is sales and marketing from the corporate sector-- a former Director of Product Management for a Fortune 500 pharmaceutical in S. Florida. Although self-employment is not the stuff dreams and vacations are made of, it sure can buy some if you work smart and hard enough. Definately trying to make something great here. I found this forum web site -- it's terrific. I'm really looking forward to learning from everyone.
                • Re: Need $30K - $55K to start-up a Vending Business in Tyler, TX
                  Gary67 Newbie
                  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!
                • Re: Need $30K - $55K to start-up a Vending Business in Tyler, TX
                  LUCKIEST Guide
                  Start-up a Vending Business in Tyler, TX, Welcome and good luck

                  I had a very successful Vending Business (Route) in New Jersey).
                  *Does Planet Antares help finance their machines beside*s* *provides a step-by-step program
                  for placing the machines??

                  With vending machines, the KEY word is LOCATION.
                  Is this going to be your full time or part time source of income??
                  Do you have a Marketing Plan??

                  Again good luck, LUCKIEST
                  1 of 1 people found this helpful
                    • Re: Need $30K - $55K to start-up a Vending Business in Tyler, TX
                      Gary67 Newbie

                      Hey Luckiest,

                       

                       

                      Thank you for your message. Any suggestions you have for a new Vending Business Owner would be greatly appreciated!

                      In answer to your questions:

                      1. Planet Antares provides 50% financing on future orders of machines priced $7,000+. The initial order financing is solely the new business's responsibility to obtain.
                      2. This is going to be my part-time source of income, while I am continuing my College studies in Wide-Area Networking Technology.
                      3. Planet Antares provides the Marketing materials and a Marketing Plan. I have a Business Plan formulated in my mind with about 40% written so far. Any suggestions you have for this (or one to use as a template) would be appreciated as well.

                      Also, I provided much more information in my reply post to MeridianT.

                      Thanks, in advance, for any and all help you provide!