Price Slashed Vending Machines Business In Profitable Location For Sale

Business description

At a Glance

• All cash business
• Will suit first timer looking for a start
• Suitable for add on for existing operator
• Will suit retiree
• Part time
• Expansion possibilities
• Home based
• Established and successful locations
• Quality machines
Business Description Summary:

The business was started by the current owner in September 2008. Vending machines were purchased from RP Vending, who was selected because they provided better quality machines and provided the vending machine purchaser with guaranteed sites. The original cost of the machines was $126,000 and an additional $15,400 was invested in a 2007 Mitsubishi Express fully air conditioned (front and rear) delivery van (current odometer reading 57,000km. Nine vending machines were purchased, and two other machines (drinks only) of equal quality were purchased from another source. These machines were purchased to supplement the original machines on two sites where demand for drinks exceeded a convenient working capacity for the original machines, which dispense chocolates, chips and drinks.

Operations:

Vending machines are located in eight separate sites (some have multiple machines) in Dandenong, Dandenong South, Braeside and Glen Iris.

Most sites are visited twice per week for restocking, but more often during peak periods of summer. At this time visits are normally split between the sites on a Monday, Wednesday, Friday and Tuesday, Thursday roster. The owner reports to reception or a designated official of the company and is given free access to the vending machine to determine the quantities required to replenish the machine, which is then conveyed from the van by trolley and placed in the vending machine. The machine is tested before departure.

All machines accept all Australian coins as well as $5 and $10 notes and provide correct change to the purchaser.

The owner prefers to remove the cash only every second week on average, and is placed into identifiable bags, taken to the bank where the coin counter counts the money and provides a receipt for each separate banking, to enable the business to track the effectiveness of each site.

Some spare parts are held and will be passed on the purchaser, and are included in the purchase price.

The business operates “accounts” with a wholesaler in Dandenong and Campbell’s Cash and Carry. There are price advantages in this arrangement, as well as the ability to exchange out of date products in some cases. The current owner monitors the prices of the products at local supermarkets and takes advantage of any specials, which are frequently below wholesale prices.

The business operates on a mark up in excess of 100%, providing an average of approximately 105%, e.g.

• Chips purchased for an average of 90c sold for $1.90
• Coca Cola purchased for an average of 65c on special, sold for $1.30
• Schweppes purchased for an average of 50c, sold for $1.30
• V drinks purchased for average of $1.25, sold for $2.50
• Chocalates purchased for an average of $1.00 sold for $2.00

The vendor is able to effect day to day repairs for coin jams, etc., and when more complicated service is required (very infrequent), service technicians offer a 24 hour service.

Market / Customer:

The vendor has never attempted to expand the business, but has had opportunities, and a younger and more vigorous owner would be able to locate new sites. The business receives some referrals to install machines, but up to now has not taken advantage of these opportunities.

Property information

Location:

Various

Premises details:

Premises not required

Business Operation

Expansion potential:

See report

Trading hours:

Part Time

Employees:

Nil

Years established:

2008

Other information

Support & training:

Will be provided

Inventory / Stock value:

$5,000

Home based:

This business can be run from home.

Relocatable:

This business can be relocated.