Is There Money to Make in Healthy Vending An interview with Larry Towner
Excerpts from the interview: Is There Money to Make In Healthy Vending
“Healthy vending products are hot, they constitute a growing market segment that needs to be capitalized on,but the business opportunities,…Is There Money to Make in Healthy Vending you need to do serious research on any business opportunity before investing in that opportunity.”
Are there ways to offer Healthy vending solutions besides these Business opportunities?
“A business opportunity wants to sell you machines fronted with a healthy promotional sign. They promise to place the machines. They promise fabulous profits.” Is There Money to Make in Healthy Vending?
“I always suggest to my clients that they partner with a reputable equipment supplier, someone that has many years of experience in the vending industry, a company that has a reputation of providing excellent equipment at a fair price and provides outstanding customer service after the sale. My choice was Joe Nichols and his staff at A&M Equipment.”
“In regards to Healthy product promotion, he has many options available, from machines fully with Healthy Vend logos, to individual column selections promoted as healthy selections.”
“The opportunities abound, just be smart. Get help from experienced people. I can consult, Joe Nichols can consult, talk to other business people, network. Be wary of someone promising the world.”
Listen to the interview:
Tom Shivers: Is There Money to Make in Healthy Vending Hi, this is Tom Shivers with the Vending Business Show and Larry Towner is on the call here as well. Thanks for joining us, Larry.
Larry Towner,: How are you, Tom?
Tom Shivers: I’m hanging in there. Today we’re going to talk about healthy vending and I know that’s a very hot topic right now. All kinds of things even up in Congress are talking about it. So is there a business opportunity in vending healthy items?
Larry Towner,: Boy, Tom, you’re not kidding. Healthy vending products are hot right now. They really do constitute a growing market segment that needs to be capitalized on. But the business opportunities, I think you need to do some serious research on any business opportunity before investing into that opportunity.
Tom Shivers: Why do you say that?
Larry Towner,: Well, business is business and there’s several ways to approach business. But one thing all businesses have in common is a desire to make profit. Any business opportunity that offers something of value that you cannot get elsewhere, you now, the offering company wants to make a profit too. So if a guy comes to you and says, “You can make a million dollars in healthy vending,” why wouldn’t he be doing it himself? So I guess the question always is, is what are these opportunities offering? What makes them unique and valuable? If you’re going to spend some money on a business opportunity, what makes it unique? What makes it valuable?
Tom Shivers: Well, are there ways to offer healthy vending solutions besides these business opportunities?
Larry Towner,: Well, there’s always alternatives. The first place to start is with the business plan. Write down your business idea, conceptualize it on paper. Be very specific, run numbers, go in and see how many things you have to sell, do a break-even, things like that. It’s very, very important to write a business plan for any business that you get into. This exercise in writing a business plan can either save you or make you thousands and thousands and thousands of dollars.
Tom Shivers: Get more specific.
Larry Towner,: Well, let’s just say a business opportunity wants to sell you machines fronted with healthy promotional signs and they promise to place the machine, and they promise fabulous profits and what alternatives might be out there? Well, vending companies invest large amounts of money into their equipment. Vending is a very capital intensive business. I suggest to my clients that they partner with a reputable equipment supplier, someone that’s got lots of years of experience in the vending industry, has a great reputation of providing excellent equipment at fair prices and providing outstanding customer service after the sale. I’m going to tell you, if you don’t have customer service after the sale on your vending equipment, you are really going to be left out in trouble because equipment is equipment and I don’t care what business you’re in, if you have equipment, things are going to happen to it, you’re going to need either a repair source or somebody to help you troubleshoot these things. My choice has always been Joe Nichols and his staff at A&M Equipment. Joe started in the vending businesses and actually his family has been in the vending business for 35 years. He intrinsically understands the wants and needs of vending operators because he’s been one.
Larry Towner,: In regards to healthy product promotion, he has a bunch of options to choose from. You can get a machine that’s fully logoed, that has healthy signs on the front and you can customize those signs, you can do whatever you’d like as far as your own branding concept is on healthy vending. Or it can take you right down the column level, meaning if you just want to vend one or two items, he can do a promotional item up inside the machine that says, “These items are healthy” or whatever it is. But my goal always is, is if you can stay flexible with your promotions, it’s almost a better way to do it. You can promote your healthy selections as a part of your total product instead of the whole machine. But that takes you back to your business plan. You want that whole machine to be healthy products or do you want to mix those product selections? Have you even thought about it? A couple of words of caution, a typical snack machine costs around a thousand to 35 hundred dollars used, and 25 hundred to 5 thousand dollars new, depending on options and your customizations.
Larry Towner,: This snack machine should be fully electronic and have the ability to take credit cards and debit cards, as well as coin and paper currency, as it were, to take actual money. These are all things that, again, a reputable equipment supplier will be able to discuss your options and to give you the kind of information that you need as to whether or not this is going to be valuable to you. That’s always been my take. It’s just stay flexible and understand exactly what you’re trying to do.
Tom Shivers: You didn’t address the placement of machines.
Larry Towner,: Well, machine placement, it’s real common for people to promise they’ll place a machine out there for you and one of the things that we always say in that is is that sales basically is a … Or machine placement, if you want to call it that is a sales prop. It’s just a numbers game. If you call in enough people, you’re going to be able to place your equipment. In vending, placement is relatively easy. My numbers ran, and I’m not a stupendous sales person, but if I called on 10 businesses, I would end up placing one machine. And again, that’s a general average. It always seemed to work out this way. I had to make 50 calls before I got that one placement, but then I got 5 in a row. So when I took my long-term statistics, I knew if I knocked on enough doors, I would get the business.
Larry Towner,: But it depends on a bunch of factors and things like that. But that’s the kind of thing that if you think about it as it’s just a sales process, you need to do it. A lot of these business opportunities promise placement, but usually they provide you with locations that you could obtain by yourself with minimal efforts. I wouldn’t be paying a premium for placement of machines if they’re in marginally profitable locations. If there was so much profit to be made in these accounts, why would you be giving them away? That’s what I always say when it comes to the placement issues.
Tom Shivers: What else can you tell us about healthy vending?
Larry Towner,: Well, opportunities abound right now. As you said, we’ve got legislation going on in congress, we’ve got … It’s really a hot button right now. The big thing is just be smart. Get help from experienced people. I can consult, Joe Nichols can consult the vein of equipment. Talk to other people in the business, network. Just be wary of somebody promising you the world and talking about net profits and how you can place these and make tons and tons and tons of money. So that’s just always my words of advice to anybody that’s considering starting a new business is just be smart. Be patient. The opportunity will be there. The healthy vending opportunities are here now and they’ll continue to be here as our society gets more and more health conscious. And so be smart.
Tom Shivers: Well, thanks for sharing, Larry. Tell us about your business and what you do.
Larry Towner,: Well, we do consulting for the vending industry and we do videos and podcasts just like this. We can be reached at email@example.com. That’s S-E-R-V-I-C-E-G-R-O-U-P-I-N-T-E-R-N-A-T-I-O-N-A-L. I don’t know my own spelling. @earthlink.net. Anyway, that’s how you reach us. We would love to consult with you on any of your leads and things like that. We’re extremely reasonably priced and things like that. Or contact Joe at A&M Equipment.
Tom Shivers: You’ve been listening to Is There Money to Make in Healthy Vending at the Vending Business Show, a production of A&M Equipment sales.
Other Vending Business Show blogs How To Start A Vending Machine Business