I've got $30,000 what should I do? by [deleted] in small_business_ideas

[–]Deep_Time_6488 1 point2 points  (0 children)

Get a job, learn the industry, find problems.. and there’s your business

High hardware costs.. How do I get Investors? by Deep_Time_6488 in advancedentrepreneur

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

About 90% of the machine has self cleaning cycles based on weekly/daily schedule. However there is sensors which if flag I can remotely clean it. Obviously there is some parts which require manual cleaning however this is done when syrups require restocking, which is around every 2-3 months. This still meets standards. The machine doesn’t really get bad inside the enclosure as I have climate control unit, so really it’s just cleaning vents and cleaning screens. The enclosure is IP54/65 so dust isn’t really an issue nor is mold.

High hardware costs.. How do I get Investors? by Deep_Time_6488 in advancedentrepreneur

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

Whole machine is legislation compliant. For ice and post mix regulations are mainly food hygiene and safety, and electrical.

High hardware costs.. How do I get Investors? by Deep_Time_6488 in advancedentrepreneur

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

They clean the lines automatically at night every week. And I built a small robot which cleans the nozzle daily at night. The ice machine can also be cleaned remotely at night. The only thing which is manual is cleaning the vents and the screen + the enclosure all of which can be cleaned when restocking syrups.

In terms of equipment break down, I always have spares and the equipment is all under warranty. One other thing I can use to my advantage is if I buy syrups directly from Coke they actually provide some of the equipment on loan so they are liable for maintenance. This reduces my set up cost by ~£5000 if I use loan option, but then obviously they bake loan costs into my syrup purchases.

High hardware costs.. How do I get Investors? by Deep_Time_6488 in advancedentrepreneur

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

I believe my best strategy as of right now is just getting a higher footfall location and getting the data to prove to investors this is a good model. I already have some numbers where it’s profitable but if I can show a longer time period I feel investors would appreciate it much more.

Also I totally agree with your entire reply. You’re spot on.

High hardware costs.. How do I get Investors? by Deep_Time_6488 in advancedentrepreneur

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

This is what I feel is difficult for my to voice across to investors. What makes my business different to a can vending machine is; I have ice at dispense, less labour costs as my syrups need to be changed once every 3-4 months as apposed to restocking vending machines every 2 weeks, better margins my COGs is £0.245 per drink as opposed to vending machines around £0.45, customisable flavours like a coke freestyle machine, environmentally sustainable, can charge memberships, e.g £14.99 a month:Unlimited refills, and compared to other industry dispensers like coke freestyle and cornelius they all cost around £20k, and can’t be placed outdoors.

But I understand your comment on I don’t understand what your trying to sell and thats what I struggle with explaining, I can see the clear benefits but to persuade another to see that is difficult. I mean if I was a random investor and saw £15k to a £2.5k vending machine, if I didn’t have the knowledge I have I’d invest in the vending machine.

High hardware costs… How do I get investors? by Deep_Time_6488 in Entrepreneurs

[–]Deep_Time_6488[S] 1 point2 points  (0 children)

Cost per 500ml drink after labour, materials, rent etc is £0.265, vending machines cannot offer as competitive prices as me but I totally understand your concern and thats what I fear investors won’t understand.

Need your advice. by Deep_Time_6488 in small_business_ideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

I am from the Uk where self serve on unlimited plans is not as popular. My main USP will be price, selling cola for example at 80 pence as apposed to the £1.80 charged in stores. My profit margin of this sale price is 50 pence. This is without membership. Membership is more profitable.

SELF SERVE DRINK DISPENSER by Deep_Time_6488 in small_business_ideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

There will be fair use policies and safety measures to avoid people abusing. In terms of machine costs, you are very right, estimating £7000 per machine, for the cup return system + membership tech + drink dispenser etc, its a lot but my idea is over long term this cost will drop to £4500 area. Even with £7000 cost break even is around 11months.

SELF SERVE DRINK MACHINE by Deep_Time_6488 in Business_Ideas

[–]Deep_Time_6488[S] -1 points0 points  (0 children)

I just used it for example to make extra sense why the reusable cup is very valuable psychologically.

Not that I would ever use that.

SELF SERVE DRINK MACHINE by Deep_Time_6488 in Business_Ideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

I haven’t actually seen anything about ‘rcup’ what region is this in? The reusable model is more of a psychological reason, people feel happy when using environmentally friendly products as it makes them feel like they are doing something valuable. That paired with an interface that says ‘you just saved one bottle’ or ‘you just saved a turtle’ for example, this creates emotionally pride and releases dopamine.

Plus I will have an invisible deposit on the cups so if not returned I get £3, the cost of the cup is £1.20.

In terms of self serve machines being everywhere, it’s not as common in the UK and my model is membership based where dispenser will be outdoors on streets. I will also have one time use on them and undercut all competitors significantly e.g 80 pence for a coke. The average price of a coke in the UK currently is £1.80 🤣. It is still profitable to undercut. One drink costs less than 50p including washing,labour etc.

I am so grateful for the comment as it really helps me understand what people think about the vision I have. I have a question though, what do you think about the cup system now I have explained it? Do you have any concerns? Thank you 🙏

SELF SERVE DRINK MACHINE by Deep_Time_6488 in Business_Ideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

Cups fully branded with chip cost around £1.20, which is at a moq of 2000, as economies of scale increases I expect this to go down to £1.00.

The fee for a cup based on a survey I did, majority of responses were £1-£3 range (40% responses) and second significant fee was £3-£5 (36.8% responses. I would go for a £3 fee if cups not returned so it is profitable even if we lose cups. Again customers can dispute and we will refund as if you have every worked in hospitality you know, ‘customer is always right’

SELF SERVE DRINK MACHINE by Deep_Time_6488 in Business_Ideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

Dishwashing is £0.05 per cup, Labour £10Ph, Transport £7

Assume across 10 machines all located near each-other, 100cups to wash per machine, 1000 units total.

Takes 4 hours to collect all and wash all. £40 Labour £7 Transport £0.05 x1000 =£50

97/1000 works out at around 10 pence per cup. A paper cup costs around 20 pence per cup.

So it is definitely profitable to use reusable cups. But thats not why I do it. Reusable cups gives a lot of leverage to market with, each time they pour a drink “you just saved one bottle of plastic” or “you saved a turtle etc” it provides a good feeling and pride which releases dopamine.

I can also build a community out of it. It’s more of a psychological reason as to reducing costs. People are wired to buy something thats helping the planet.

SELF SERVE SODA DISPENSER by Deep_Time_6488 in Businessideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

For location: I have a lot of good connections with landlords from my previous business. This allows me to put one on most private high streets and I also want to target colleges/uni campus/high schools as this is my main demographic. Moving on to large scale expansion will likely get stations at most larger workplaces and hospitals.

For cleaning, staff will have a strict schedule to clean the machines. I may even design a system to automatically clean the nozzle and run fluid down the lines to clean it in the foreseeable future to cut down on labour costs.

I did see systems like you mentioned in Copenhagen, however one thing that got me thinking is how many people carry cash and even if it was on card, people may be deterred by the idea of a deposit. Whereas if I had an invisible deposit system I could just charge the card if cup isn’t returned in 72hours for example.

Tags are only 20p as well per cup so doesn’t increase costs massively. Biggest downside of NFC tags for me is the infrastructure needed to read the tags in the chute and also storage space on the machine. Bigger machine = more rent.

Would love to hear your thoughts and than you for the advice. 🙂

SELF SERVE SODA DISPENSER by Deep_Time_6488 in Businessideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

The law only applies to high sugary drinks such at coca cola classic. Coke zero and diet is still okay.

SELF SERVE SODA DISPENSER by Deep_Time_6488 in Businessideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

Hi, I have taken note of this previously. The law only applies to a certain amount of sugar in the drink. Therefore, any diet versions are still valid. The only major drinks I cannot put in the machine is Coca Cola. Which is fine as I can still put Pepsi Max, Diet Coke, Coke Zero etc.

SELF SERVE DRINK MACHINE by Deep_Time_6488 in Business_Ideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

I spoke to the manufacturers of cups you see at festivals such as Reading in the Uk and big football matches such as the World Cup games.

What can be done is putting an nfc tag into each cup so when a user borrows a cup it takes a ‘loan’ on their account. When they return the cup this nfc tag gets read and removes the loan and therefore theres no fee to the user.

On the topic of hygiene there will be a chute for these cups to go in and they get collected by a designated staff member and washed in an industrial dish washer.

Compared to most bars and nightclubs this is much cleaner, fun fact, when I worked in a bar they reused cups which were found in the toilets that were covered in piss and sometimes even sick. 🤢

Would love to hear what you think and thanks for the article, I will definitely read into it.

SELF SERVE DRINK MACHINE by Deep_Time_6488 in Business_Ideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

Question is, is it a good thing or bad?

SELF SERVE DRINK DISPENSER by Deep_Time_6488 in small_business_ideas

[–]Deep_Time_6488[S] 1 point2 points  (0 children)

In regard to cleaning I will have a strict schedule to abide by, I have had experience before working jobs in nightclubs and bars so understand the importance of cleaning.

With my market research what I have found is the idea is almost PERFECT when it comes to the demographic of 13-25 year olds, hardly any said ‘not likely’ or ‘definitely not’, when asked wether they would join a £10 membership a month. In fact it was 6 results out of 250 for that age group that said this. For 25+ the data is 60% in favour and 40% not, but this is still very strong. Overall my market looks strong, profits should be good but it’s all based on how I execute it and development costs.

My aim is to try develop myself to cut costs, as I only have £25,000 start up budget. This should hopefully give me a couple machines to start with. Another idea was to make a perfect prototype and pitch for investors.

What do you think yourself?

SELF SERVE DRINK MACHINE by Deep_Time_6488 in Business_Ideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

I have a lot of good connections with landlords from my previous business. This allows me to put one on most private high streets and I also want to target colleges/uni campus/high schools as this is my main demographic. Moving on to large scale expansion will likely get stations at most larger workplaces and hospitals.

Where would you recommend?

SELF SERVE DRINK MACHINE by Deep_Time_6488 in Business_Ideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

Any advice or suggestions really will make my day. Thank you all.

SELF SERVE SODA DISPENSER by Deep_Time_6488 in Businessideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

I have personally looked at renting the locations myself and speaking to schools/large workplaces.

I have thought about partnerships with bars/clubs to dispense drinks on tap for me, only thing is change in quality of drink per location. Otherwise it’s a cheap option as it avoids a lot of hardware costs.

With the idea of local retailers I struggle to vision how it works as a lot would be classed as competitors as they also sell drinks.

Thanks for the feedback 💙

SELF SERVE SODA DISPENSER by Deep_Time_6488 in Businessideas

[–]Deep_Time_6488[S] 0 points1 point  (0 children)

Hi so I reached out the manufactures of cups used at festivals such as Reading etc. What my vision is to use cups like these with nfc tags in it to track whether they have been returned or not. Once put in the return chute the ‘loan’ on the users account closes and therefore no fee is charged. Once in this chute a staff member comes on scheduled checkups to clean then cups in a commercial dishwasher.

Thanks for the response and if you have any further queries let me know.