The revised Americans with Disabilities Act (ADA) impacts vendors whose equipment does not meet the “upside down rule”. The “upside down rule” mostly asks if the building where your machine is located was to be turned upside down, would your vending machine remain fixed or would your machine fall?
If your instrumentality falls, then you’re exempt from the new ADA rules. However, ADA law will apply to you if you employ the building’s plumbing or wiring. This clause doesn’t apply to power cords or electricity received from your location. As long as your vending machine isn’t latched or secured to the building and your machine isn’t arduous wired into the electrical or plumed into the building then new ADA rules don’t apply to you.
If, however, your vending machine is fastened, here’s the scope of things that area unit regulated: deposit, coin machine, product and alter machine. All elements should meet the new standards. Vending machine product should be delivered at a minimum height of 15″ to any or all users. All buttons or switches should be nearby varying.
Stand-alone machines area unit thought-about to be like furnishings as long as they’re not fastened to the wall or floor and doesn’t use the building’s wiring or plumbing.
The Department of Justice regulates and enforces the enzyme. If you bolt your machine to the building, and don’t go with rules, the price is often great! If you’ve got multiple machines at one location and either item is fastened, one in every of those machines should be enzyme compliant.
Even though this isn’t a demand, its smart apply to implement, if your machine isn’t fastened. Take a glance at the diagram utilized in this text. There should be a minimum of 30” of area before of the machine and 48” of area once parallel to the vending machine
We often hear scenarios where an aspiring or new entrepreneur may want to begin a vending business but only have his/her 401k assets to use as an initial investment. We are not going to kid you; there are risks when using your retirement funds for anything other than retirement. The largest concern being that if the business fails, you risk not only losing the business assets but your retirement savings, as well. Other risks involve tax penalties assess by the Internal Revenue Service if you do not complete the process the right way. The gain, however, is if you follow the right procedure and invest strategically, you will have your own business that requires comparatively minimal time investment with consistent returns. The 3 different methods of using 401k assets to fund a business are to: distribute of the money, take a loan against it or roll it over into a business owner is retirement savings account.
Distribute Assets from 401k
Call your 401k plan administrator & request a distribution package.
Fillout the paper work; decide on partial or complete withdrawal.
Sign & submit the form. Distributions are added to yearly gross income. Distributions before age 59 1/2 have an automatic 20% percent federal withholding & are assessed a 10% percent IRS penalty on top of income taxes.
Use the funds to purchase the business.
Take a Loan
The IRS allows you to borrow 50% percent of your 401k up to $50,000 for any reason without paying taxes. The loan must be repaid with interest within 5 years or upon employment termination.
Locate out if your 401k allows you to take loans against it. Apply for the loan forms if your plan allows the loans.
Fill out the loan for the lowest amount amount you need. You are allowed to take more than one loan out at a time, so it is wise to reduce interest incurred on loans until you need the money. Submit your form.
Use the funds to purchase the business.
Open Business owner Retirement Savings Account
This options, by far, the most common option. You must process your paperwork properly. We do not recommend DIY options on this particular method. The tax ramifications for errors can be extensive.
Find a CPA that administers Business owner Retirement Savings Account (RSA) which allows you to rollover your Individual Retirement Accounts (IRAs). This is an expert IRA that allows the IRA to buy stock in a personal company. The CPA will not only setup the account, but must become the plan administrator.
Open a rollover IRA with the CPA designated as the Business Owners Retirement Savings Account.
Call your 401k plan administrator and request direct rollover paperwork. Fill out the direct rollover paperwork so the 401k assets go directly to the rollover IRA. The federal government will take 20% present.
Open a corporation in the state you reside in through the secretary of state. File articles of incorporation & pay any registration fee.
Instruct the CPA rollover administrator to purchase stock in the new corporation. Use the assets in the general operating account to purchase the new business.
As you can see, there are options when deciding whether to use your 401k & several ways to do it. If you have made the decision to proceed, we will recommend that you talk with your Financial Advisor. After all, we are not experts on this topic! However, we would love to talk with you more about purchase your vending machines with the Discount Vending Store once you are ready to purchase your vending machines.
So you think you want to be your own boss and you feel that a vending business is the right way to go.
With simply a couple of machines, owning a vending route can solely need needs half time effort. Naturally, route homeowners schedule to service all of their machines on constant day every week. This set up eases the time commitment betting on the proximity of your machine locations and also the variety of machines in hand.
We know that not each owner will begin a route with over 10 vending machines. During this case, you want to have a business arrange if it’s your intention to expand incrementally. Once determinant vending machines for sale costs think about what percentage machines you would like to get the revenue that you’d prefer to build. If you’re a bulk candy merchandiser, generating $10 per month per machine, you’ll would like many machines to get the financial gain you’d prefer to build monthly. On a positive note although, you merely got to stock some varieties of candy, and repair these machines each different month. If you own full sized combos, snacks or soda machines, you ought to be able to collect a median of roughly $200 per machine per week. When you obtain your product expense, you’d be left with or so five hundredth as profit ($100). Of course, there square measure several variables which can sway your profit margins and that we definitely don’t warranty you may be profitable. If your machines produces lots but these numbers, we’d advocate you discover new vending locations as this is often usually the amount one consider determinant your success within the vending business.
We have mentioned that there are several types of machines that you can own and each has its own appeal. Bulk candy vending machines sell one type of candy per machine. Combo vending machines sell both snacks and sodas. Soda machines can typically stock 12 oz cans, 16 oz cans, 16 oz & 20 oz bottles. Healthy vending machines stock items for health conscious consumers. The thing that we have found to be most profitable in this industry is to go with an overarching healthy theme while stocking a few tried and true favorites that might be considered junk food.
No matter what stage of ownership you are in, you can always benefit from evaluating how to best boost your profits. When evaluating a potential purchase, think about the warranty offered and if technical support is offered for your buy. Another factor to consider is if your price includes tax & shipping. At The Vending pro Service, we sell 75% of our machines to new startup companies so we understand the need for additional tech support, warranties, and we offer all the essential information about starting up your business!
Our target, here at the Vending pro service, is to utilize our blog to answer as many of your vending questions as possible. Here are a few questions that are often asked by Newbie’s to Vending.
What is the startup cost in starting a vending machine business?
Of course, you are going to have to buy a vending machine! We offer new vending machines and refurbished vending machines. Price is always a consideration when buying a vending machine for sale. Refurbished machines range from $2000 – $3600 with a three-month warranty and lifetime technical support. New machines range from $3000 – $5000 including a year warranty and lifetime technical support. You’ll need to find a location. Some people opt for Locators which cost $400 – $500. You’ll also need product for the vending machine. Product costs $200 – $300 per machine.
How Do I Find a Vending Location?
There are two locators that we refer to: Quality Vending Locations and Kick Start Locations. Of course, there are other good locators but these are 2 locators that we are familiar with that are reputable. For more information on locators, see our blog should I Hire a Vending Locator? Owners can also elect to find great locations on their own.
Where do I buy product from for my new vending business?
We recommend that you buy product locally! There are no shipping costs have almost anything that you might need to stock your machine.
Is there a market for Vending?
Sure there is! Your success in vending depends on you, your service and your products. Healthy Vending is IN! Healthy Vending can kick out traditional vending machines in most businesses. Healthy Vending Machines can all use credit card readers – which increase sales. The Healthy, Hunger-Free Kids Act requires healthy options in schools. Healthy vending also appeals in gyms, hospitals and business locations like call-centers.
What will my return on investment (ROI) in a vending machine business look like?
If you buy from us and have a good location, you should see a ROI in 6-12 months assuming you are grossing $500 – $1000 per month. Your profit would be half of the gross income!
It was just announced that there will be a new 12 sided coin from UK
and will be in new circulation and this have not changed for 30 years. It been made because there were a lot of counterfeit coins in circulation and hopefully this will curb the copycats.
It will be a gradual change about 6 months to 1 year before the new coin will be replacing the old coin according the news. The 12 sided coin has many new elements and it will be very hard to copy.
The problem that will bear the grunt will be the small business self-employed vendors
from, 2 to 100 vending machines. As i was discussing that hopefully that there will be more of the debit credit card readers because if all the machines are hooked up to Debit Credit Readers imagine there will be virtually no more thieves on trying to steal the money inside the vending machine.
The disadvantage to this is the other percentage of the population who is relying on paychecks from the government, they do not have good credit standing and most of them don’t have a credit card or debit card and just bring the government checks to banks to en cash it on a monthly basis.
There are about 462,700 vending machines in UK
and the problem is that the coin mechanism manufacturer will have to re design the coin chute and the sensor in able to detect the new 12 sided coin and also the old coins which are in circulation. This is will a complete re design of the coin mechanism since i never heard of any coin which is not ROUND used in the vending machines.
Its good that this is not happening here in Canada or United States or else it will a domino effect when the coin structure is changed. I remember that there are new Loonie and Toonies that was upgraded not long ago by the royal mint of Canada and at that time i have around 30 machines which was about 2 years ago, during that time i was not earning so much and the take home is minimal.
I have to buy an upgraded coin mechanism and have to swap it out every month when the coin mechanism is upgraded, most of the coin mech which i had been made by coinco and i have to have them shipped to Calgary since coinco service center was there and the lead time it will take would be a waiting period of 3 months i recall since there were just thousands of coin mech’s in Vancouver and all over the lower mainland that are being processed and que in line for reprogramming.
Every time there is a change in the government’s currency physical structure and new notes, it is always a loosing proposition to vending machine operators, but this is a part of running this business.
The cost of re programming
the coin mech 2 years ago was around $55 and it involves the time to remove the coin mech and you need a new coin mech for swapping out old coin mechs for re programming. You would have at least 2 to 4 new coin mechs and do a lot of swapping out and shipping out for about 3 months on all of your machines and sometimes you get a DOA ( Defective On Arrival ) which make it a nightmare for you since everything is scheduled.
The cost, expense and maintenance of running a vending business is never ending. Recently there is also the upgrade of the USA Tech G8 to G9 since they are changing wireless carriers in Canada and this also involves some costs for swapping out with the upgraded G9.
The G9 will have more features and instead of only accepting credit cards currently on G8, the G9’s will be accepting debit cards and credit cards by December 2017, of course this will result into higher sales with more options.
In order to succeed in the vending machine business, you must be kept abreast on the changing landscape and technology.
Sometimes the price increase is beyond our control,
every year or every other year because of inflation the basic commodities of the prices increase. This is very hard for people to accept the price increase, you will get a ton of complaints and calls from your regular buyers on your machines and some locations that are very price sensitive will even have the procurement manager calling you in no time.
This happened to me several times when i increase the prices of the chocolate bars from $1.25 to $1.50 this year,
the people on the location will be complaining and as vendors we would like the relationship to be mutual, in service and convenience for the customer. As vendors we all wish that the customer would understand that we are just a small potato and is also under the mercy of the big suppliers. I just received a notice that the pop beverage prices will have another price increase by the Year of 2018, this is very problematic for me because according to my experience whenever i make a slight increase in prices the sales drop significantly for about a 1 month to 2 months and thereby your profit take home will be reduced.
But most of the locations that i did a price increase would normally give me a go signal
since most of the prices are untouched for more than 1 year and as small business self-employed owners i bear the grunt of the dismal loss of take home income for about 1 year before i make price adjustments since most of the other vendors would also hesitate to increase prices lest the procurement manager might get upset and will try to look for another vendor who can offer cheap products and good service, but im certain that the other vendor would not last long in maintaining low prices since everyone’s cost of goods is the same.
There are no known parallel Grey market here in Vancouver, BC on alternate supplier offering the same products,
unlike when i was still in Asia, there will be about 2 to 3 suppliers offering the same products to the small business owner or shop keeper.
I honestly think that the system in Canada and United States ruling in product distribution is great since there is only 1 wholesaler for the lets say Frito Lays variety chips unlike in Asia where i have been doing business for the longest time, i have brick and mortar stores and orders my products from authorized distributors and at times from parallel Grey market suppliers offering lower prices than the authorized distributors.
I remember that i used to order 300 to 400 hard drives per week from United States
during the time when Seagate was the most popular hard drive in the market and it is way cheaper than ordering it from the manufacturer based in Singapore. I also used to order memory chips from Hong Kong and Taiwan instead of getting it from the manufacturer in Japan on NEC Memory chips. In Asia it is quite an advantage in sourcing different suppliers offering the same products and the law in the Philippines doesn’t penalize you form buying in Grey markets as long as you pay the import duties like everyone else.
But there is a loop hole too in the Philippine Customs border security
, there are a lot of very well-established companies that offer grease money to customs in the Philippines to smuggle the goods and just pay 50% off compared to paying it in full duties and taxes.
I have also observed here in FedEx, UPS and Amazon import deliveries that you have to pay a hefty import duties and taxes here in Vancouver, BC when you are importing goods from US or any other countries. But if you import it from Canada Post you virtually don’t pay any taxes and the shipping fee from Canada post is virtually non-existent. It would be wise for small business owners to go thru Canada Post as the medium of importation access when buying from overseas. I heard that Canada Post subsidized some shipping and delivery costs.
Some small business owners drive as far as US to get deals and avoid the local prices which are fixed. But of course most the products would still be better to be obtained locally to avoid waste of time and gasoline.
Most vendors would increase the prices at a gradual pace e.g. $1.25 to $1.35 and wait for a few months then increase to $1.50 and another year to make it to $1.75, but this must be made very gradual and you have to show the customers that you are providing excellent service in order to justify the increase. But sure to discuss with other local vendors on their recent pricing before making adjustments.
In places like community centers or public places like hotels, the people are not sensitive and you can easily adjust to any pricing that you deem reasonable and beneficial for both location and you as the vendor.
Every vendor wanted to sale as much as possible and in order to gain more sales with the existing locations, one comes to mind that how can we increase the sales with existing locations without expanding to buy more machines and invest in locations ?
Most vendors need to know what is trending right now
, i was searching in google and typed the keywords payment trends and stumlbed upon a comprehensive report on :
Canadian Payment Methods and Trends: 2016
Payments Canada Discussion Paper No. 7 – November 2016
this is a real and requires no guesswork and done for you as a vendor in reearching what accesories which is needed to install on your existing machines provided that it is MDB complaint ( meaning that you can install the latest products on your machine sort of a compatible usb plug that can run a lot of compatible accessories ).
I actually installed a USA Credit Debit reader
on one of my locations and normally prior to the install i was visiting the location 2x in a month and after having the conveniene of using your credit debit cards the sales jumped by more then 30% to 40% and i have to go there every week. I don’t know if this will work with other locations. The cost of the USA Debit Credit reader is around $350 and this translate into a good investment and would recoup in a matter of 1 year.
On my observations, i also have locations which just have the USA Tech debit credit reader and there was no bill validator, what i did was i installed bill acceptors to see if the sales would increase on locations with USA Credit debit readers, to my surprise , the results was very minimal, the increase in sales is around 10% which is minimal if you are justifing at the expense of spending $350 for a bill validator. This would take around more than 2 years just to recoup the investment of the bill validator.
So what are the comparisons in upgrading a USA Tech Debit Credit Reader Vs a Bill Validator ?
The benefits is just upgrading into a USA Tech Debit Credit Reader would outweigh the bill validator since the trend is towards cashless, the servers of the reader is constantly upgraded and by december 2017 it will be accepting contactless whereas the bill acceptor needs to be re flashed on the eeprom in case there is a new bill and would cost around $20 for upgrading and requires you to go to the location and connect the programmer to the bill validator and wait for 2 to 5 minutes.
The vote would be just to acquire USA Tech Debit Credit readers as an upgrade option if you wanted to boost more sales and gives you the convenience to check your sales remotely and make a pre alerts to you via emails on its daily report.
With due respect on copyright issues,
i will be taking snapshots and referring the report on 2016
Canadian Payment Methods and Trends: 2016
Payments Canada Discussion Paper No. 7 – November 2016
Pictures, graphs and tables tells you a thousand words by itself, so here is for you to see and digest the information as follows below :
Healthy snacks are in, and are here to stay whether you like them or not. With this new reality, healthy vending machines are on the rise also because consumers are looking for better options. Vending companies such as Human Healthy Vending, Naturals 2 Go, Healthy You, Fresh Healthy Vending and Healthier 4 You are making great strides in the vending world. The key to being successful in healthy vending is all about the location. Yes the machine is important, but what will really make or break it for you is the location. Now you may think you need to fork out the Buko Bucks by joining a franchise in order to find good locations. Think again! Think outside of the typical locations and consider the following for your healthy vending machines which you can find yourself:
Hospitals or Urgent Care Centers:
Whether you are on staff or visiting a loved one, chances are you will be there for an extended period of time. When at a hospital you are typically sitting for long and odd hours and the last thing you want to do is to fill your body with sugar and fats. Having a healthy option to provide you nutrients that give you energy is comforting to those who are visiting and waiting.
Upscale shopping centers:
Most cities have a neighborhood or two that have an upscale shopping center with people running in and out of them all day. Instead of waiting in line at an overpriced café, moms are on the go and need to get their little ones a healthy snack fast. Shopping centers like these cater to the busy professional or parent with separate sitting areas, hallways and benches that a healthy vending machine will flourish in.
Colleges and Universities:
There are three things that every student knows when starting college: they are on a budget, they are late for class and they want to avoid the freshman 15. This is the perfect customer for a healthy vending machine! Campuses across America are following the healthy trend realizing healthy options help their students perform better. They are getting rid of the sugar and bringing in the nutrients. Consider large campuses in your city or small trade schools like mechanic, nursing and cosmetology.
Gyms and studios:
This is an obvious option and the most realistic place for a healthy vending machine. You can reach out to the large gyms but don’t forget about the local studios that hold yoga, pilates, kickboxing, karate classes. The fastest growing workout is crossfit and boxes are opening up every day whether in small town or a large city.
Once you figure out where to display your healthy vending machine, it’s time to reach out and get set up. Here are a few tips to help you in the marketing department:
Do your homework! Find out who, what, where, when and how. Answer questions like ‘who is your competition?’, ‘what kind of people visit this location?’ and ‘who do I need to talk too? Typically you want to speak to the owner of the business or someone in the human resources department. If you don’t know, simply ask. People are willing to help those who are friendly and seeking answers.
Create marketing material:
Be sure to provide your prospective account with a colorful brochure with healthy vending machine information on it. This material can be dropped off with the owner or front desk if you can’t get into the head honcho. You should also have the material in a pdf format for emailing purposes. Here are a few things to include on the material:
Simple and colorful visuals
Stats on health benefits
Services and products you provide
Set up a meeting, phone call or email: This is the hardest part of the whole process but if you did your homework and be persistent, you will make it. Once you find the right person to speak with about adding a healthy vending machine to their business, start with a phone call. From there you will be able to figure out if they are interested in a face-to-face meeting. Because the way technology is these days, don’t be surprised if someone like the head of nutrition at a Hospital requests an email first. This is when your marketing material you created will come in handy.
You may be tempted to think that just because they already have vending machines that you won’t be able to get in the door. Think again. You are offering a different product that is unique and better. You healthy snacks and drinks will benefit their employees and customer so much better than the traditional junk food machines. Sell this idea and they will replace their old traditional vending machine with your new, flashy healthy vending machine.
I will be the 1st to tell you that vending is NOT a get-rich-quick business. Yes, you can make a lot of money selling gumballs, candy bars, chips and sodas, but it takes a lot of hard work, dedication, and smart thinking to be successful. What I am going to talk about today is probably the most important thing you need to know about vending. As the business world says, the 3 keys to success in business are: Location, Location, and Location!
So what are the best locations for your vending machine? Obviously they will be locations with high traffic volumes – people traffic that is. Whether they’re customers or employees, they need to be frequently passing by the vending machine in order for it to sell. When you first install the machine, you will typically experience the novelty effect where you see the peak performance for the machine within the first couple of months and then it will taper off. So if the machine is not performing well in the first couple of months, your chances of success with that location are not good.
Everyone knows that your large grocery stores, hospital waiting rooms, the high school, etc. make great vending locations, but let’s face it- those locations are already taken. Typically you will need to offer a commission of 10-20% of the gross in order to place your machines in the larger chain stores. The most difficult part is finding the right person to talk to in the large corporation, and then if you actually get to talk to that right person, you must prove that your business has the expertise to service all their stores in their region. More often than not, there are regulations in the chain stores that will only allow certain types of vending or none at all. I am not saying that it’s impossible, but it will take a lot of patience, time, money, resources, and nagging to obtain the large corporate accounts. What most vending professionals prefer to do, especially when first starting out, is to tackle the local “mom & pop” stores. Being able to talk to the owner is key to getting into that location.
Your larger full-size snack and soda machines will require larger businesses, or offices like schools, call-centers, office buildings, manufacturing plants, etc. Unless it’s a new building, the establishment will most likely already have a vending machine there but it may not be offering the food or drinks that they need or maybe the service, selection, prices, or commissions are not meeting their expectations, and you may be able to persuade the owner to switch to your services.
Your smaller bulk candy machines will typically be located in smaller businesses. And once again, the local businesses will take the least amount of effort to get into. My best performing locations for bulk candy machines have been in car lots, car repair shops, salons, hardware stores, thrift stores, dollar stores, restaurants and bars. Ironically, some of my worst locations were also in many of these same categories. The key is finding locations where plenty of people are constantly flowing through or waiting on a service.
It’s also critical to get the best location within the right location. Too often the owner wants all the vending machines stuck in the back corner. You need to sell them on the fact that your machine is an asset to their customers and employees- not an eyesore. Get your vending machine located at the front door, or front counter if possible for maximum success. Finally, don’t be afraid to place your machine right next to your competition and then offer better, cleaner product than them. To succeed in the vending industry you have to be smart, persuasive, creative, and competitive too.
One of the most common questions I get asked as a vending distributor is how to find good quality locations. This is the topic I would like to discuss this week. There are basically two ways to obtain vending locations: you can find them yourself, or you can hire a vending locator to do the work for you. I have done it both ways and can tell you that both ways can be right or wrong for you depending on how you approach the task.
If you are going to locate yourself, there are a few questions you should ask yourself, such as:
Do you have a lot of time?
Are you a good salesperson?
Do you have a lot of friends in your community that would be willing to host your vending machine?
If you answered “no” to two or more of these questions, then locating yourself may not be the right solution for you. Finding good locations takes a good sales pitch, good people skills, self-motivation, and time. Another great tool that many vending guys recommend is having a local charity in which you sponsor. I will discuss this in a future blog posts. For now, I will say that most of my prized locations are ones that I found on my own. I have found locations by making cold phone calls as well as just walking into the business and talking to the manager in person. Both ways can be effective. If you are a regular customer of that business and they know that, then your chances of getting in will increase 10-fold. Don’t be afraid to ask as you are leaving your favorite restaurant while you’re on a date, or when you’re checking out at the dollar store. Sometimes these impromptu opportunities are the best and take no effort at all. Lastly, you need to hit up your friends. Whether they are the business owner or an employee, they will have the ability to get you into their business and they can keep an eye on your machine for you too.
If you don’t have any friends, don’t like making the cold calls yourself, or if you just don’t have the time for it, then you should consider hiring a vending locator. I have tried this mechanism and there are only two vending locators I would recommend. One thing to consider when hiring a locator is money. Typically locators will charge between $40-100 for each bulk candy location depending on the type of Bulk candy machine. They will typically charge $300-500 for your full size snack, soda, or Combo Vending Machines provide some sort of a guarantee and replacement policy. However be sure to read the fine print very carefully, as there are many locators out there that don’t care about what type of location they get you as long as it has an open sign on it. You need the right of refusal and you also need to be able to test out the locations and be able to trade for better ones if they aren’t working for you within a two month trial. Lastly, you shouldn’t ever pay the full amount until after you get your locations. Good vending locators will need 50% up front typically which is reasonable as long as you screen them well.
Finding good vending locations is not rocket science, but it is one of the most overlooked aspects of vending. You have to take into consideration your time involvement or make a budget for it- especially if you are in the bulk candy machines since the lifespan of these locations is much smaller than the full size machines. Vending machines in your garage don’t make money. Vending machines in crappy locations also don’t make money, they only make stale candy. However, vending machines found in high traffic businesses with plenty of traffic do make money and you need to get your machines there, and I am here to help you do just that.