- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Twice The Ice - any profit in these franchises?
Posted on 6/15/14 at 9:11 pm
Posted on 6/15/14 at 9:11 pm
I looked at these pretty hard a while back when they first came on the scene. I thought the projections for break-even were not reasonable. Anybody got current info on how these perform? TIA
5
Posted on 6/15/14 at 9:33 pm to tigerpawl
Location, location, location
Most of the goods ones are already taken.
Most of the goods ones are already taken.
Posted on 6/15/14 at 9:58 pm to Cash
I just don't see the numbers. Those machines are $150,000 and you've still got rent and a hefty electric bill.
Of course I could be way off on these but:
$150,000 @ 4.5% for 10 years = $1554.00
Plus $500/mo for land lease, $700 for water and $1,000 for electric.
That's 2,500 bags of ice a month (83/day)to break-even. I just don't see it.
Of course I could be way off on these but:
$150,000 @ 4.5% for 10 years = $1554.00
Plus $500/mo for land lease, $700 for water and $1,000 for electric.
That's 2,500 bags of ice a month (83/day)to break-even. I just don't see it.
Posted on 6/15/14 at 10:00 pm to Golfer
quote:Yep - that's about what I was seeing. They're cool, but you can't put "cool" on a deposit slip.
I just don't see the numbers. Those machines are $150,000 and you've still got rent and a hefty electric bill.
Of course I could be way off on these but:
$150,000 @ 4.5% for 10 years = $1554.00
Plus $500/mo for land lease, $700 for water and $1,000 for electric.
That's 2,500 bags of ice a month (83/day)to break-even. I just don't see it.
This post was edited on 6/15/14 at 10:09 pm
Posted on 6/15/14 at 10:10 pm to tigerpawl
Yet more keep popping up
Posted on 6/15/14 at 10:19 pm to Mr.Perfect
quote:That's for sure. I wonder what would happen if I took that same $150k and bought 30 x $5k, high-tech vending machines and placed them in strategic, high traffic locations. Locations that are very much off the beaten path/remote but near big projects requiring a lot of warm bodies?
Yet more keep popping up
Actually, that's the opportunity I have in front of me right now.
Posted on 6/15/14 at 10:39 pm to tigerpawl
the dollars have to be working, because I see them showing up and none are disappearing...
seems to me that it would be a maintenance nightmare, though...
seems to me that it would be a maintenance nightmare, though...
Posted on 6/16/14 at 6:49 am to Golfer
quote:
That's 2,500 bags of ice a month (83/day)to break-even. I just don't see it.
Could work near a lake or beach in S. Florida, or someplace else it's warm year round. Even in Louisiana, you're not getting much traffic in Jan-Feb.
Posted on 6/16/14 at 6:58 am to Jim Rockford
Your selling ice, what do you think?
Posted on 6/16/14 at 7:45 am to barry
I just couldn't believe the numbers would work.
Also I had a friend who's uncle had a few at marinas in Florida and he said it was a maintenance nightmare.
Even one of the guys that manufactures them says they are maintenance heavy.
Also I had a friend who's uncle had a few at marinas in Florida and he said it was a maintenance nightmare.
Even one of the guys that manufactures them says they are maintenance heavy.
Posted on 6/16/14 at 7:50 am to Spankum
quote:
seems to me that it would be a maintenance nightmare, though...
I agree. I had an issue one time with the one on the corner of Acadian and Perkins. Went to fill up a few ice chests and selected the 20lb bulk option. Only got about 3-5 lbs. Thought it was a glitch so I paid again, and got about another 3lbs. Decided to pay 1 more time and got 1 or 2lbs. Very frustrating. I called the numbers and the guy answered but sounded like he was young and at a bar. He said I could call him back during a weekday one day and meet up for a refund, but I live in Houston and it obviously wasn't worth it for the $4.50.
Granted, it was a Friday night before an LSU home game so I assume the production just couldnt keep up with demand that night. It was very frustating though. There should be some way to notify the customer that he/she isn't going to get the correct amount.
Posted on 6/16/14 at 7:52 am to kennypowers816
There is one close to me, I've stopped at it three times trying to get a cooler of ice for family functions. - All three times it has been inoperable. I dont eve nmake an attempt to stop at it anymore. I just buy the bags at the gas station down the road.
Posted on 6/16/14 at 7:59 am to tigerpawl
Funny, my brother in law and I were just talking about these after a trip to the beach. I think you could make it work if you put one near a lake or the beach or somewhere, and owned the land. He owns a small piece of land near a lake, so we were trying to figure out the break even point. Certainly won't ever get rich off one, but decent cash flow so long as you stay up on the preventive maintenance.
We had a problem with the one we were using and called the service number and the guy was able to somehow fix it remotely.
We had a problem with the one we were using and called the service number and the guy was able to somehow fix it remotely.
Posted on 6/16/14 at 8:08 am to Mr.Perfect
quote:
Yet more keep popping up
I don't know a single thing about the ice machine industry. However when "more keep popping up" it is usually a good sign to stay away from that that type of business (i.e. Quiznos, yogurt stores, gold buying stores). When everyone enters these businesses it is usually due to a low to moderate start up expense and they usually have limited business knowledge to know if it will work or not. They flood the market and then close up shop after they've lost their cash.
Posted on 6/16/14 at 8:44 am to kennypowers816
quote:
the guy answered but sounded like he was young and at a bar.
Sorry for partying
Posted on 6/16/14 at 8:46 am to tigerpawl
I would never put one up unless I had a business operating in the same lot and an attendant that could address the needs immediately.
A buddy of mine owns a couple of them. He actually does well with them, but the machines need constant attention. Taking money and not giving ice, something breaking, something freezing up that shouldn't, not enough ice given etc. He has a manager on site that takes care of them though.
A buddy of mine owns a couple of them. He actually does well with them, but the machines need constant attention. Taking money and not giving ice, something breaking, something freezing up that shouldn't, not enough ice given etc. He has a manager on site that takes care of them though.
Posted on 6/16/14 at 8:46 am to Golfer
$150K is the most expensive model. Most of the ones I see are the midsize model which I'm guessing is significantly less.
I think you need to deploy a few of these on land which you already own, and be handy enough to fix them when they break.
I think you need to deploy a few of these on land which you already own, and be handy enough to fix them when they break.
Posted on 6/16/14 at 9:04 am to Golfer
quote:
$700 for water
700 dollars for water?
seems like a lot, unless i'm missing something
Posted on 6/16/14 at 9:23 am to LSUAfro
quote:
I would never put one up unless I had a business operating in the same lot and an attendant that could address the needs immediately.
Exactly, say if you own a car wash or gas station and have extra land this may be a good side income add on.
Posted on 6/16/14 at 9:42 am to tigerpawl
All the money to be made is as the franchisor.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News