How to Fix a Vending Route Gone Bad
This article deals with how to revive a vending route which is declining in sales. It will identify problems areas which can quickly be identified and corrected.
Anyone who has been in bulk vending for very long will recognize that vending routes go in cycles of prosperity and difficulty. A route can go from being a top producer to a mediocre route by losing key accounts, losing a contractor working for you, stolen machines increasing in a certain area and several other things.
It is necessary to address these problems quickly to keep your ROI (your return on investment) in good shape. The most common problem I have encountered in running a 2,000 machine bulk vending route is losing accounts. I have found that twenty percent of your accounts give you eighty percent of the income. It is easy to lose good accounts quickly. Keeping a positive attitude is necessary. You can just as easily go out and get new accounts which will put you back in a better position than ever before.
For over two years I had been losing accounts at a much faster pace than I gained new accounts. When went full-time in the business in 2007, I found out I could get 100 machines placed relatively easily in a year. The results from those new accounts breathed life into the business. The new accounts had higher averages overall than the accounts I lost. You can duplicate this same result in your vending business even if you have only a few machines. Understand that you will hit a good account now and then which will be a $100 or $150 account which will really encourage you to focus on sales.
Sales are one of foundations of a successful business. Bulk Vending operators need to remember this and give attention to growing the bottom line through gaining new accounts. New machines placed in the city become income producing assets putting money in your pocket every month.
If you could place ten new machines averaging $15 a month, you have brought in $1,800 a year in gross sales from one months part-time work. You will pocket approximately $1000 of that money to reinvest, pay off debt, go on vacation, etc. Breaking down sales results in yearly terms helps motivate me to knock on doors and build my business. You can do the same and enjoy the fruits of your labor come collection time!
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ABOUT THE AUTHOR
Mark Evants manages a profitable vending company of 2000 machines in the mid west. For more extremely practical vending tips and articles on increasing cash flow and structuring your vending business visit:
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