This article deals with major negative experiences and situations related to bulk vending. Preparation for the these negative experiences will lesson the severity and depth of these problems related to the business and will in some cases alleviate them altogether.
As with any business, bulk vending can be challenging and problematic at times. As operators know, there is much more to the business than pouring gumballs in and draining quarters out! This is not a get-rich-quick type of business.
On the positive side, effectively dealing with problems that arise will lead to increased profitability in the midst of your competition. The richest people in business are typically problem-solvers. Here are the "Dirty Dozen" problems you will deal with in vending:
1 - People problems. Yes, gumballs carry the "people problem" disease. If you have a history of people problems and broken relationships littering life's landscape, there is a great chance this will carry over into your vending business as well.
2 - Account attrition (losing accounts). This is perhaps the most discouraging. Vendors can spend months building a route only to lose a few key accounts and end up right back where you started.
3 - Stolen machines. This is perhaps the greatest surprise to new vendors. And yes, sometimes other vendors are the actual thieves! Understand stolen machines are part of doing business. Thefts in my company of about 2,000 machines run 1-3% a year.
4 - Product spoilage. Throwing away product at a loss is disappointing but can save the account for future cash flow. Continued spoilage is a signal to change product.
5 - Dirty Machines. Dirty machines give you (and other vendors) a bad reputation. It is worth the time investment to keep your business running with excellence whether you have ten or ten thousand machines.
6 - Route Management. Poor route servicing leads to wasted time and gas. In this business environment, you must maximize both time and resources to preserve your profit margins. Never run a route where you are constantly backtracking over the same area. You are probably paying $1 for every 3-5 miles you drive!
7 - Poor product choices. Some vendors are selling very high priced product and leave little or no profit left at the end of the day. Expensive product (like M&M Peanut candy) only works if you can get the volume of sales high enough to justify the candy (or toy) as a choice.
8 - Poor administration of the overall business. It is very easy to forget about counting money, making bank deposits, dealing with taxes, ordering product, maintaining and paying for a vehicle, developing a business plan and the other challenges of administrating a vending business. Being effective in administration is a major problem bulk vendors face as expansion grows.
9 - Supplier woes. It is incredibly frustrating to try to order online and find out that China can't ship your favorite all-time best selling toy for another two months. Or, that Sam's can't see to keep Reese's Pieces or Skittles on their store shelves even though they are showing 43 bags on computer! If you haven't been frustrated in this area, you will!
10 - Not enough time. This is really not the case, but it often feels there is not enough time to ever get your route in the shape you would like.
11 - Hatred of the business. The truth is that some people should never be in bulk vending. They are not made to do anything but work for someone else at a 9-5 job. Many people have gotten into the business only to loathe it. My advice: Get out! Get your route in shape and sell it as quickly as possible.
12 - The selling aspect of vending. This perhaps finishes off more vendors than any other item in the "Dirty Dozen." If you grow big enough, you will soon learn you cannot pay a locator for every new account. To do so adds years onto the time to recoup your original investment of new machines. You will have to learn to locate machines yourself or get out of vending. Many simply choose to get out at this point rather than developing themselves in the sales arena Quitting is not a bad thing if you have evaluated your strengths and decided your effort would be better place in another business. You must decide yourself.
If you can look at the "Dirty Dozen" and decide you can effectively deal with the problems, you're a good candidate to run a vending business. If not, you would be better off in another business. One word of caution: there is no such thing as a trouble-free business, job, or life. You must deal with problems you confront. Problem-solving is the quickest way to wealth and success in life. And yes, you can do it too!
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