Last Updated on
This is long been the dilemma for every vendor, how to get more locations since the more locations you have the more income revenue at the end of the month to pay bills. According to my experience is you can always begin with your existing accounts. Some of your locations may have satellite offices in a nearby city for example, Vancouver office and another office in Richmond which houses the warehouse and delivery logistics.
Where to Find a New Location?
Maybe if you have a location in the office inside an airport, they might be able to recommend their contacts if there are some spots that needed a pop or just a snack machine. There are many ways in getting a new location if you know your account well and if you are aware if they are another office or a business partner affiliate, you can always ask for recommendations from the procurement manager or the office employees.
Vendors are always on budget since they have to set aside some earnings for emergency repairs and move on their machines, so most of them do not aggressively find their own locations. But my suggestion is to look around within your contacts and existing accounts first and ask some questions and when you get some leads then you can prepare a proposal and make an offer, but sometimes this is a risk since you do not know if the new account will be performing well.
Personally, I would like to take the shorter route and would not like to have guesswork since I don’t like to put a vending machine on a new location and visit weekly to observe the sales and adjust visits after a period of time. My method is to buy existing route or locations in that way I already know how much income I can take home on a monthly basis and without taking the risk of a new location without a history. But the problem also if the seller is not honest and gives you a bloated sales figure based on the sale of the vending location. In the vending industry here which I have dealt with other vendors, some of them would say that you can make a 20% more sales from the real sales so that you can sell your vending location at a higher price because this is the common practice here in Vancouver, BC.
Since you already know what im implying then it would be wise for you as a buyer to try to make a counter offer on the selling price of a seller. Right now most experienced vendors when expanding and buying more locations know how to haggle and make a reasonable counter offer so that they get the most value of their money.
There are some cases that if there are several bidders on the vending route or vending location offered then it would be wise just to stay on the sidelines since if you were not able to buy at your expected price then there will be more opportunities down the road, there are always vendors who are selling locations and since it is a simple business and doesn’t require high technology or millions of dollars or even hundred of thousands of dollars to run, there are always vending locations changing hands all the time.
It would be wise to be sure when parting with your hard-earned money!