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Vending Business Information, Issue #017 -- Where To Place A Snack Box
May 21, 2011
How To Determine Your Snack Box Business Territory
When starting out in the snack box business determine the territory you will be covering. It is good to think of a large territory but once that has been taken care of break it down into smaller areas.
The first area to cover will be the area closest to your warehouse. By covering the area closest to your warehouse you are keeping your vehicle expenses down and eliminating drive time to and from.
With fuel and labor being two of a routes major expenses it only makes good sense to start close to home. It is a good idea to have a city in mind that you will end up in.
Living in Iowa I would hit every small community along the way to a major city, picking up as many accounts along the way as possible. Many of the smallest of towns will produce 3 to 10 accounts.
A good snack box route driver will be able to run 60 to 70 accounts per day. For those of you that live in denser populated areas your drivers may be able to run as many as 100 snack boxes per day.
My goal was to place 1 snack box per every 200 people in a community. That is not always an easy task but is attainable in many cases.
Where To Place Your Snack BoxesI never wanted to pre judge accounts as over the years I found that places you might not think would produce enough sales to be profitable where in fact good accounts.
Many full line-vending companies will invest between $90.00 and $120.00 per employee at their locations. If you have $40.00 in a snack box and place it in an account that only has one employee you have a better cost per employee ratio than the full line vendor.
By not pre judging accounts you will find that one business per every 200 to 300 people in a community is attainable.
Should I Use A locator?Using a locator is something I never did. I do believe there are times a locator can be used effectively. I myself would never pay more than $20.00 per box to have it placed for me.
If you are not a good salesperson I suggest hiring a route driver that can sell. A business owner of a smaller operation has to wear many hats so to speak.
If hiring and training is your strength then that is what you will do. If sales are a strong point for you it may be advisable to hire a bookkeeper. I think the thing to keep in mind when you start a business is to hire people to do the jobs you are weak at.
Everybody has his or her strengths and weaknesses by knowing yours you can hire accordingly. With determination many have been able to take a weakness and turn it into their strength.
I plan on talking about the presentation next week I hope you will join me.
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