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Vending Business Information, Issue #009 -- Ten Reasons To Go Into The Vending Business
March 26, 2011

Honor Snack Box Business Top Five Questions

1) Where do I buy the product to fill the honor snack boxes?

When you are starting out if you live near a Sam’s Club, that is an excellent place to start. Their pricing is very competitive and for many of you they are close by.

If you live in an area of the country as I do where the nearest Sam’s club is 65 miles away you may want to ask the local convenience store where they get their product.

There are vending supply companies across the nation such as Vistar that will deliver to the snack box customer. Vistar has many warehouse locations around the country.

The one drawback to Vistar is they have a minimum case order of 50 cases last time I checked.

2) How many boxes do I need to place to make a good living?

You should be looking at building 7 to 8 routes with 60 to 80 boxes per route. This makes it so you will be coming back about every week and a half. Most snack box operators have found that is a good length of time to allow in between deliveries.

Your sales with this much time in between deliveries will allow you to make a good profit.

3) What licenses do I need?

You will need to register your company name in the county you live in. It is a good idea to register it with the state you live in also. If you have intentions of becoming a very large company it is advisable to register it with the US government.

You will need a sales tax permit and you should read up on what products your state requires you to pay sales tax on. Not all items you sell will you be required to pay sales tax on. Just make sure you abide by your local state requirements.

You will also need to contact the health inspectors in your local area. They will come by and inspect your warehouse. You will need to have doors that close tightly, running water, a restroom and a clean facility. I started in my homes’ attached garage.

4) How much do I charge?

In the Midwest where I live the going price would be .85 cents. I was visiting with a couple of people from the east coast and with what they told me I would think one dollar per snack would be a fair price.

The best way to find out in your part of the country is to get out and see what others are charging. A fair price is what ever the market will stand.

5) How do I place the boxes?

The best way I know of is to carry a box right in with you. As you are giving your presentation hold it in front of you so that the prospective customer could reach out and take a bag of chips if they wanted to.

I call this the show and tell approach and I don’t know of any other method that will even come close to matching the closure rate.

About half way through your presentation slow the speed of your speech and tell the prospective customer “Should it ever come up short that would be my problem not yours” you may even want to point at yourself while you are saying this. Then proceed with the rest of your presentation.

You may ask, “Why would you bring up a negative in a presentation?” The reason is: that is the number one objection to letting you place your box. By slowing your speech and emphasizing this one short sentence you have just taken away their objection. Trust me, it works.

I have printed my presentation and it is yours to use if you like.

Your friend in business

Dennis Slack

1-319-931-9165

Vending Business Information

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