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Vending Business Information, Issue #010 -- Great Honor Snack Box
April 02, 2011
Great Honor Snack Box
The Snack Box
I want to introduce you to our snack boxes. Marcie and I are so excited about these boxes we spent over 10 years in the business and designed them as if we would be using them ourselves.
Months of designing went into this Honor Snack Box from Vending Business Information. This box has a sturdy design that makes it desirable by the Snack Box operator that is serious about his/her business. We have designed it to hold approximately 100 items, of course this depends on what you carry in your boxes.
We choose a wood grain pattern so that the box wouldn't show smudges or finger prints as easily. The dimensions of our box are 18 inches wide by 16 inches deep by 7 3/4 inches tall. They are boxed 25 to a case which does include the dividers and coin boxes. On top of all the thought and engineering that went into this box we are pricing them at wholesale prices.
The Honor Snack Box Business
The snack box business is relatively an untouched business in many parts of the United States. Many full line vendors started out in snack boxes and then gravitated to full line vending as I did myself. Many more never leave the business and for good reason.
As my banker told me, "Dennis you have found the perfect business. You have very little overhead, its an all cash business, your return on a snack box comes in as little as 2 weeks. It just doesn't get much better than that in the business world."
This is not a get rich quick business. I like to call it a poor mans business becuase of the small amount of money it takes to get started. You will be able to find all the product you need to fill your boxes at a Sams Club or simular store. The main problem I hear from people is "how do you sell the business owner on the idea of letting you place your box?".
The Sales Presentation
When entering the prospective new account you will ask who you need to talk with about placing a snack box at their business. Once you are talking with the decision maker it is time to go into your presentation.
This is the presentation I have used for many years; please feel free to use it or any part of it in your own presentation.
“Hello my name is insert name. The reason I stopped here today is that I have a route that comes through here every two weeks. What I’m looking for is a few additional places to place one of my snack boxes. The way it works (open and show them the snack box) is it’s on the honor system. When you’re hungry take what ever snack you want and drop the money in the coin box. (Slow your voice down and emphasize this next part) I know what most business people ask me about now is: what happens should the snack box ever come up short? That would be my problem, not yours. I guess what I’d like to do today is to place the box and see how it goes.”
Now, it’s the business owner’s turn to say, “Yes, let’s set it here.”
You are looking to buy 25 snack boxes, but in my opinion, what you are really looking for is an opportunity to start a business that has the potential of taking you and your family out of the 9 to 5 rat race.
You are looking at a business that is still relatively untouched in many parts of the country. It is an all cash business that most people can build without borrowing from the bank huge sums of money just to get started. This is not a get rich quick business so if that is what you are looking for please look elsewhere.
I have given you my presentation; it is simple. The presentation gets right to the point and you will have a yes or a no in as little time as it takes you to give the presentation. If you use the presentation I used I know your closure rate will be good and you are on your way to a better life.
If you are wondering "will people buy my product?" I would pose this question to you. What do you think is the likely hood of Americans stopping their impulse buying of a bag of patato chips and a soda, or a candy bar and a cup of coffee, or cheese and peanut butter crackers and an iced tea? Yes, America may be thinking of eating healthier but for the most part they are not.
I would like to cover one more thing that is probably going through your mind at this point. What happens if they don't pay? Well, by the time you fill your snack box you will have an investment of close to $40.00 or $50.00 in the product and the box.
At a price of .85 cents per item you should be close to doubling your money. If you have 100 items in your box and in an 8 working day rotation of the box the customer eats 75% of the product in your box you will bring back 75 x .85 = $63.75. Now if 17% of the product did not get paid for $63.75 x .83% = $52.91 is what you would actually return with. To fill the box back to the 100 mark will cost you approximatly $32.00. Now if you take what money that came back in the box ($52.91) subtract how much it will cost to refill the box ($32.00) you have a profit of $20.91 out of this box.
If you are making $20.91 per box and say it takes you even 30 minutes to fill and deliver a box that is still $41.82 per hour. Of course, each account is different and I can not guarantee what each account will do, but, 17% shortage is an attainable goal for you to expect. It will mean a few customers that you pick up will not stay on your route because of shortage. You really shouldn't lose too many if you keep your expectation for a route to average 17%. Your labor to deliver the box and refill the box is about 10 to 15 minutes with a good tight route.
I always used a Post It card if an account was getting a little too high on the shortage and it went somthing like this. We love to serve you but you were _______ short on our last delivery. Sometimes I filled in the shortage space sometimes I didn't.
In life we make mistakes and one of mine was selling my honor snack box business and going into the full line vending business. With the snack boxes you shoot for 17% shortage and you have a little over $40.00 tied up in the box. To pick up a full line vending account you have a cold food machine ($7,500.00), a snack machine ($3,000.00), a soda machine ($2,800.00), a coffee machine ($4,000.00), and a bill changer ($2,000.00) and that would be the basics for a smaller vending site. My calculations say you would have $19,300.00 invested in this account and it is not uncommon for them to ask for over 20% commission on your sales.
You will need about 4 of these size vending accounts to make a living. That means you need $77,200.00 to make a living from the vending business. Don't forget that factory that works 24/7 is going to call you a 1:00 a.m. telling you the snack machine is not taking bills, and if you don't go fix it, your competitor will tell them their maintenance man will come at that hour.
With this type of an investment in the snack box business you would have over 1700 boxes placed and let's say they brought back $20.00 profit per box. Well, you run the numbers.
This is a business that both men and women have been successful at. Is it time for you to take a chance on selling some of Americas farorite snack foods?
You are only $149.95 plus shipping away from a successful business.
Is now the time to click the buy it now and start that honor snack box business in your part of America? We are offering a 15% discount to first time buyers. There is a glitch in our shipping software. When a customer buys a second item the shipping is calculated at about half the going rate. We are working to correct the problem but it is to your advantage to buy now.
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