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Old 05-11-2010, 08:46 AM
kidcoupon's Avatar
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Question espresso bar

I have a business proposal. That I could make some money $$$$.
Basically I buy this coffee machine and give it to a business and all they pay for are the capsules for it, which I need to supply them with it!
the machines are $700 each one and then you have to buy 30 at a time, The company tries to give you the places to place them?


What do all you think?

TIA
Tami
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Old 05-11-2010, 11:11 AM
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It's risky. I say that because I own my own gourmet beverage business. You have to be able to take and cover losses you may get. I have been approached by a company out of Florida that does this. You buy the coffee makers and you can sell the pods (or capsules). It's too big of an investment (and risk) for me to take. Many of the businesses I furnish coffee to either use big commercial makers or Keurig K cups. It's hard to get a business to switch.

Then there is the risk. What do you do if a company you *give* the machine too doesn't buy the capsules from you and they buy them direct for cheaper? What if the company goes under and takes your machine with them? That's $700 you just lost. You have to be able to cover those kinds of losses. Are you going to have to service these machines? If so, what kind of insurance do you need to carry to do that? If they aren't buying the machines, you probably are going to need to service them I would imagine (they don't always tell you this...you have to ask the right questions).

Unless you already have clients who are in need of this product, I would pass. It would take a lot of capsules sold to recoup the $700 per machine you are loaning them (plus servicing and whatever else is involved). Do you have $21K plus shipping costs to BUY the machines? What if you can't get them placed? What is the return policy (or is there one)?
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Old 05-11-2010, 11:29 AM
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You need to buy 30 machines at a time?
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Old 05-11-2010, 11:51 AM
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Old 05-11-2010, 12:25 PM
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If the company from which you buy the machine has a list of interested businesses, why wouldn't they just supply those businesses with the machines themselves?

Screams scam to me. Is their headquarters in Nigeria?
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Old 05-12-2010, 01:46 PM
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Quote:
Originally Posted by kidcoupon View Post


What do all you think?
I think it's a really bad idea. Way too risky.
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Old 05-12-2010, 11:58 PM
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Red face

I agree also sounds too risky you just never can be 100 percent sure.Peace. Catherine
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Old 05-18-2010, 02:52 AM
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Personally I'd be asking why those businesses didn't just buy one of the commercial Keurig coffee machines that use the K-cups and then buy their K-cups from Amazon.com, some other web-vendor or even Keurig themselves. If the company wanted to buy a machine and use a single-serve coffee system thats the easiest way.
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Old 05-24-2010, 07:43 PM
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So where do you make your profit? Off the capsules you will sell to them?

How much profit do you make of each capsule sold?

How much coffee does each capsule make?

How many capsules would you have to sell to recoup what you put in to buy the coffee machines which will cost you $21,000 initially?

Do they have to agree to only buy capsules from you?

What if you can't find places to put the coffee machines? Someone else had a good point, why would they need you? Why wouldn't they just go directly to the companies and place the coffee makers themselves and cut out the "middle man"?

It does sound like a possible scam.
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