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New Location New Hope

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I mentioned to you that I’m going to have another wild week. Which I did. This location was along the way on my other downtown route. I happened to pass by and good tidings was established on first impressions.

When you have a new location there are a lot of involvement in time.

The enemy is the time factor involved.

  • Putting products into the new machine, changing the prices on programming and asking products that you need to put inside the machine.
  • Having to coordinate when the mover will drop the machine and you have to go to new place to fill up the machine which disrupts your programmed schedule.

When I acquire on my own location there is always no problem and until now all locations are very stable.

I noticed that when I actually buy locations from a vendor or a seller, sometimes it may become a ticking time bomb. Managers on the location that I got from a previous vendor sometimes do not understand that I have spent a fortune in obtaining a location.

This is how it works here in Vancouver, BC.

I will give you a clear example. Let’s say Mr Vendor A wanted to sell his location and make an ad at Craigslist. Every day there are lots of gullible small self-employed vending machine operators who wanted to expand and saved up for a location searching at Craigslist.

Most of the time Mr Vendor A will inflate the sales for example, sales is doing $600 per month and actually in reality it is only $400. So the prospective buyer will end up paying more for the location. Because the selling price of a location is sales per month X monthly sales PLUS additional cost of the machine is new or fairly updated.

I actually learned to do vending machine business the hard way.

I got ripped off on numerous occasions. I run it for a couple of years and disgruntled managers who is used to the other previous vendor doesn’t like the way the new vendor runs the business and kicks you out.

This were the early years or sometimes when things get sour with the relationship withe the manager or if for some strange reason the people just does not like you anymore. This was the case on location that was sold to me by the previous vendors.

Maybe I do not have the same resonant wavelength frequency with the location that im serving after the took over?

This is a shallow hallow type of reasoning I would say.

I came from a 3rd Third World country and my savings which I painstakingly secured thru my hard work as an entrepreneur and just ripped out here in my new-found home in Canada.

If I lose a location then I lose a big bunch of money which is:

  • Initial over inflated investment from the previous vendor
  • Locator’s fee
  • Moving Fee
  • Storage Fee

Sometimes It is a vicious cycle. Good earnings for 7 months and then suddenly loosing 2 or 3 locations and the savings will be used for obtaining new locations and money gone! This is the reality in doing business here in Vancouver, BC.

You always have to keep up and always have a healthy relationship with the top honchos.

But it seems that lady luck is on my side for the moment.

Indeed last week was busy for me and I decided to stop expanding and stop looking for new locations for the time being.

It was a huge drain on my capital resources with (3) new locations. Two locations were obtained by me and the other One was from the best locator in town.

Mind you when you are buying locations from a locator it is not cheap. It ranges from $400 to $1200 from a locator here in Vancouver, BC.

Many managers on various locations do not know that there is monetary involved when the vendor is changing hands to another vendor. I hope the location will have smooth sailing for the new owner.

Some vendors go as far as to apply for a second mortgage on property to secure a loan in order to obtain good locations. We vendors pray that nothing harmful befall us on new locations.

Actually it is time for me to join the 0.0 ZERO.ZERO Club for the time being, I have to step down from the Jones es for the time being.

Keep myself low level and when spring and summer kicks in then I will have enough ammunition to store and save.

When I was in Richmond, I just don’t get it why peoples are always falling in line for the longest time in Japanese Themed restaurants whether it is owned by real McCoy Japanese or Fake Japanese people running the show.

I really wanted to try my hands someday when there is no line up.

When I’m in Philippines there are no people lining up in restaurants since there are so many!

When I was still in Vancouver Downtown my trusty dolly’s metal suddenly peeled and all the pop dropped to the street.

Did I mentioned numerous times that when a small uneventful situation happens to me I marvelously get a help real quick and things go again on its course.

The good thing that along the way to Burnaby there was a welding shop that I paid for $40 to have a spot weld and dolly works like new again. This is the guy to go to for emergency weld while you wait.

Another unforeseen event that happened along the way towards Richmond.

My van’s engine light came on while I was driving and I passed by Mr Action Jackson and he diagnosed it for under 5 minutes and engine light reset even thou he is extremely busy and did not charge me a single cent.

Normally I still have no time even on a Saturday. This particular day was special that came along for a long time. I spent time securing all the spare keys I have and organize my duplicate vending keys in case some strange uneventful situation happens, you never know.

 

 

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13 Comments

  1. This is an informative and educative article. You have thoroughly put everything in perspective for anyone reading this post to understand the points. we have to utilize the opportunities in our new locations and I also appreciate the fact that you shared your personal experience with is an eye opener for me 

    Thank you for this live changer sensitization..

    • read all the articles to know what it is like to run a real vending machine business.

  2. I really look forward to hearing from you every week. I like how you document your struggles, I am really inspired by the work you put in. I hope to become an entrepreneur like you some day.

    I really do wish you all the best at your new location. And hopefully, you wouldn’t have to suffer any loss, thanks for writing again, you inspire me!

    • Thanks Louis, business is tough if it is small.  People can always throw their weight around you.  If you like to take risks and some adrenaline rush then business is the way to go.  There are rewards to risks.

      • Sure Francis! I like to take risk as well, because there are greater rewards when we run our own business.
        I’m saving up to set up my own small business too, I also would document my journey, for posterity and to inspire someone else too.
        Have a nice week ahead

        • yes for sure. before i used to have an ink and toner refilling business. i started blogging my experiments on bulk ink system and it became famous that everyone copied me and soon left for another venture

  3. Getting a new location is usually hectic for me and if one is not careful, might end up getting a location that will cost more than what it brings in value. Getting a vending machine too is also hectic for me. I once bought one from Craigslist too that ended up packing after few months.

  4. Hi…

    At first glance on your blog, I couldn’t help but relate to what you were saying. I had several issues with location and lending machine. My main problem is usually with the location manager. We usually have this rift between us when affect the business in a negative way. Since the business wasn’t bringing forth profit the way I anticipated, I had to shut down and concentrate on something else. 

    • so far I’m doing okay.  I did not know that there are other vendors that experience what I’m going thru too!

  5. Hi…

    After my purchase of a lending machine and a location, I realised that the business has a lot of hurdles. My main problem is usually with the location manager. We usually have this rift between us when affect the business in a negative way. Since the business wasn’t bringing forth profit the way I anticipated, I had to shut down and concentrate on something else. 

    I think I need to go back into this business and try my luck again. 

  6. I’m curious about reading your exceptional review. This will undoubtedly help those who are committed to progress. Everyone’s luck does not suit all the way. So we need to select the appropriate location. In that case, your article will play a very effective role. I’ll also share this article with my friends. Thank you sincerely for the valuable reviews with beautiful pictures, information, and video.

    Sincerely,
    Rgpratap.

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