Loading summary
Transcript195 lines
- [00:08]
A
What do you do when life throws you into a new chapter at 55, single, starting over and needing a way to support yourself? Well, if you're Kathy Kidd, you build something from the ground up. Something most people might overlook. Vending machines. But this isn't just about the vending business. This is a story about building a business based on the lifestyle she wanted to live. And she, she didn't just grow the business, she 10x it. And you're about to hear how. Welcome back to locally owned. Today's guest is Kathy Kidd, a single mom who turned a few vending machines into a six figure business, all while working from home and teaming up with her adult son. Kathy started her journey after over 20 years as a homemaker and grew healthy choice to go a thriving vendor vending business that is unique from other vending businesses. And in just a few years, she's turned six vending machines into over 50 and created a successful family venture. You're going to love hearing her incredible story and the lessons that she's learned along the way. Kathy, welcome to the show.
- [01:22]
B
Thank you. Good to be here.
- [01:23]
A
Yeah, thanks. I've been looking forward to this. You know, you've done something that so few businesses are able to do and you've done it with a business that's maybe not known for being one of the sexier businesses to be in. But you started a vending machine business with six machines and in less than 10 years, you have over 50 out there right now.
- [01:48]
B
That's right, yes.
- [01:49]
A
So you have just about 10x your business in seven or eight years. That's incredible. Most people are just happy to double and you've done something that a lot of people might never do in their business. Most entrepreneurs I talk to, they'll attribute their success to maybe some skill that they've had a lot of hard work and some luck. And so I want to find out what it took for you to to just about 10x your business over the next or over the last 7 or 8 years.
- [02:25]
B
I would say all 3 of those things for sure. You know, it's funny you said not the sexiest. I wanted to start with that because when I looked at vending, I passed on it because I thought it was so nerdy. Definitely not sexy. But anyway, in that process, I came back to it. We've worked hard, we've had some luck a little bit. I think the best luck I had is my son joining me because having somebody that you trust that can come in and take over and take it and run with it. Is fabulous. So I can grow it and build it. He's coming, got the day to day going. So we've just been a really good team.
- [03:05]
A
Yeah. Yeah. I have noticed that with a lot of small local businesses, when you've got a team, you know either. Yeah. A mother, son, mother, daughter, husband, wife, two brothers, they can multiply their success a lot quicker because you've got two people with skin in the game and it really makes a big difference and you can lean on each other's strengths.
- [03:33]
B
I would agree with that.
- [03:34]
A
Well, after 20 years as a homemaker and you're an air force vet, right?
- [03:41]
B
Yes, that's right.
- [03:43]
A
What made you decide to start a business?
- [03:47]
B
Well, so after a long term marriage, I was divorced and so that changed to for me being taken care of my whole life to oh gosh, I need, I have to now take care of myself. So I got an accounting degree. I was working in accounting actually. Love the accounting. I still play in that for sure for myself and others. But I was stuck at a desk. And so I remember like it was yesterday sitting at my desk and looking out the window and seeing birds and trees and just a beautiful day, you know, and I could be out running or walking and. And I'm sitting here in this desk. So the goal was always to get away from the desk. The goal was to still be secure, still provide for myself, but not be at a desk.
- [04:34]
A
Yeah.
- [04:35]
B
And I achieved that.
- [04:36]
A
Yeah. So I guess you didn't realize you, you were going to be at a desk when you chose accounting.
- [04:42]
B
Good point. Where did you think you were gonna do that? Well, I had never been at a desk, so I didn't know a desk was like prison.
- [04:52]
A
Yeah. Yeah, I can feel that. I think some people are just more made to move and yeah, it's difficult to sit behind a desk.
- [05:02]
B
Yeah, I agree.
- [05:03]
A
So was that the thing that turned, that brought the sexy back to vending machines is that, oh, I can move around when I do this?
- [05:13]
B
Yeah, I think, well in this case these vending what we do is a little more upscale. So a vending operator. In my mind I picture the old man bent over with this long chain of keys and you know, his tiny hanging out back of his pants. So that's what vending was to me. But this is different. I mean it's, it's, it's, it is nice, flashy, upscale machines. We try to do custom and healthy and, and just really whatever that location wants we can do. So in some ways it's a little bit more motherly because I feel like I'm taking care. That instinct to take care of others and what they want, what they need, you know, I think that's kind of made it fun from the beginning.
- [05:56]
A
Yeah. Yeah. Well, yeah, because you can. You're definitely not going to be stuck at a desk. And so when you, when you researched it, what, you know, was there a moment where you, where you thought, you know what? I think I really want to do this because. Yes, because the machines aren't cheap. So to buy six. And that's a commitment. Like you're making a pretty big commitment at that point.
- [06:19]
B
Yeah, it was a big commitment. Yes. So. So when I looked at vending, I passed on it and I talked to a couple of the guys that help you. What are they called that help you look at different options. Consultants, I guess. I looked, I've worked with two of those. And we looked at everything. We looked at billing. I almost did met medical billing, but again that would have been. Even though I would have been at home, I would have been still at a desk. And so I passed on that. And then I looked at this traveling gym that goes to daycare and that interested me the most. That's the one I almost did. So you would just pull up to the daycare, they would expect you Tuesday at 2:30 and all the little kids, you'd have cones and, you know, activities and they'd come out and play and go in. And I just thought that'd be a hoot and fun and easy and outdoors. But. But to do that, I would have to count on people showing up at some point. I would have a college kid or a high school kid that, you know, some 17 or 19. And I didn't want that. I didn't want to have to count on anybody else. I wanted just me, do it by myself, figure it out and then take it to the next step if I want to. So with vending, I didn't have to have. I didn't have to have somebody show up or call and say, hey, I've got a flat tire, I can't come.
- [07:41]
A
Right.
- [07:41]
B
You know, so I knew I didn't. I wouldn't have those problems. So that's really what made me go back to vending, was just the independence of it. And also you didn't have to be somewhere at 2:30. You could take care of that machine whenever you wanted to, as long as it got done, as long as you, you know, kept those folks happy.
- [08:00]
A
Right, Right. Yeah. You've got a range of time to get that thing you Know, filled up with snicker bars and yeah, granola.
- [08:08]
B
It could be in the morning or at night or you know, anytime you want to. So most of the time, yeah, sometimes I have to. We have to start some of them in office hours, but I'm using my hands. But that's okay too because you're still. Are you gonna do it in the morning or are you gonna do it, you know, in the after?
- [08:25]
A
Lets pause here because this can be easy to miss. When Kathy looked out the window from her desk and saw the life that she wasn't living, she didn't want just a career change. She wanted a business that fit the kind of life she actually wanted to lead. Too often we chase businesses that seem impressive or lucrative. And Kathy made her choice differently. She asked, is this going to give me the freedom I want? Is this going to let me move? Is it going to let me be independent? And what's powerful is that vending wasn't even her first choice. It didn't sound sexy, it didn't come with prestige. But it matched her lifestyle, her personality and her long term goals. If you're building a business, here's a question that might be worth asking. Does your business serve the life you want or are you sacrificing your life to serve the business? Yeah, well, and it gives you a chance to connect with your clients and all that. So.
- [09:28]
B
Yeah, we like that too.
- [09:29]
A
Yeah. Yeah. Well, so if it was something from the beginning that one of the things that was attractive about it was that you could do it yourself, it sounds like you didn't have plans to grow.
- [09:42]
B
I didn't know. I didn't. Well, I always had in the back of my mind that maybe it would and maybe Grant, he was in it. He's my oldest of three. He was working in Atlanta. And I had in the back of my mind that if he ever wanted to come back to Birmingham, maybe he'd want to take this over. But I didn't really expect that. But the first year I grew to 8. The next year I had 12. And by the time I had gone to 12, I was working part time. So now I'm working Monday, Wednesday, Friday in accounting. Tuesdays and Thursdays I'm taking care of my machines. And that was a real sweet spot. That was nice. But then I got a call from my daughter's dance studio. Hey, we'd like to have a vending machine, you know, And I'm like, okay, you figured this out. Now you know what you're doing. So my stop now. So Then I was like, you know, hey, Grant, if you want to come join me, we'll go big with this. And he did.
- [10:35]
A
Oh, wow. Wow. So you saw that you could go big.
- [10:39]
B
Yeah. That was the turning point was, like, the more you buy, the more money you can make and, you know, why would we not keep going?
- [10:48]
A
Right, right.
- [10:50]
B
And I get to hang out with my kid.
- [10:51]
A
Yeah.
- [10:54]
B
Who I like.
- [10:57]
A
Yeah. I mean, to build something with your son, you know, is pretty. Pretty special, you know.
- [11:04]
B
Yeah.
- [11:05]
A
So. And what was his reaction? Was he chomping at the bit or was he.
- [11:10]
B
I wouldn't say chomping at the bit. He was curious, you know, and he was open to it. So he. He just moved to Birmingham and really helped me for a while. And then it just kind of started evolving, kind of started taking off.
- [11:24]
A
Yeah. So what was probably some of the. One of the biggest challenges that you had in getting things going, because you're still working as an accountant and there's sometimes there's some doubts, like, am I really going to be able to do this? You know? And so what was probably the biggest obstacle for you to overcome?
- [11:43]
B
Well, I actually don't work as an accountant. I mean, I do some things for friends and for.
- [11:49]
A
No, I mean, at the time. Right. Oh, at the time when you're just getting started.
- [11:53]
B
Yeah. I would say my biggest obstacle, because I was 55 and I'm a female and I was single, was just learning how to operate a vending machine. Like, that's a lot for an old lady to be in there, you know, And I would call tech support and they'd walk me through this and walk me through that. Like, my son, when he started it, he picked it up much quicker than me, so I was a little scared of the vending machine, you know, the mechanics of the vending machine. So I was.
- [12:22]
A
You knew how to use one, right?
- [12:23]
B
Yeah, well, barely. I really have not been. Not really big on vending machines, mostly because they're usually full of junk. So that's why we try to put some treats in ours that you won't feel bad about eating. But so I would say the. The physical machine itself, I had to learn how to operate that and then also the software, you know, I had to get in there and learn the software and how to put products in and pricing and all that, and that was a little bit of a learning curve for me.
- [12:52]
A
Yeah. Because you're pretty bougie. So you don't eat from vending machines. Yeah, well, no, that can be a challenge, you know, because the technology on almost everything nowadays is just, you know, it requires some learning, you know. You know, back when I was growing up and we're probably very close to the same age, a vending machine had no technology. It had a button you pulled and that was it. You got what came out.
- [13:24]
B
So, yeah, it's fancier now for sure.
- [13:28]
A
Yeah. Well, did you see, you know, any of your prior experience helping you at that point? You know, being your accounting experience, your being a mom, a homemaker, you know, Air Force?
- [13:46]
B
I would say all those things kind of led to this, honestly. I mean, like I said, having the vending machine, I feel a little mom ish. I feel like I'm feeding people. I like that.
- [13:58]
A
You always have snacks.
- [13:58]
B
Yeah, I always have snacks in the garage. Well, now we've moved out to a warehouse, but at the time that was a nice treat to always have. I'll never forget the first time after we moved when we got to about 35 machines in our fourth year. That's when we moved out of the garage into a rented space. And I remember used to at night I'd go to bed and if I had the munchies, I'd go out to the garage and usually get golden flake plain potato chips. And I remember that adjustment. Gosh, I can't just go get it. Have to do without. I forgot the question how I used my other experiences. I think the accounting has been the most fun part of it because it's really. Vending is nickels and dimes. It's just a lot of nickels and dimes. It's not any big ticket items or big sales or nothing really big happens. You're just putting these things in the machine that keep getting purchased and you put more in and it just adds up nicely.
- [15:03]
A
Yeah.
- [15:03]
B
So I would say the accounting part of it's been really fun for me.
- [15:07]
A
Yeah. So you had your schooling in accounting and so in your mind the business had to make sense accounting wise.
- [15:16]
B
Yeah, yeah. And you, you know, I like spending time on the reporting and looking at margins and what profits, you know, different products. That's fun to me. And kind of tweaking that. Also sort of understanding the tax benefits of having your own business. You know, we look at our businesses like, well, how much does that make? Or I look at my machines, each one sort of what do they profit? But there's other positives, Right. Just the home office and the pass through entity and all those sort of things that I think are fun.
- [15:50]
A
Yeah.
- [15:51]
B
Perks.
- [15:53]
A
Yeah, yeah. It's overwhelming and Intimidating to try to understand the books, you know, and so you just go by a general feel. I think we're making money, you know, and when you start learning it and you start learning how nickels and dimes can add up to make, you know, a nice profit, that's when it does become fun to just see what happens. If you can tweak the numbers just a little bit, you know, it can, you know, little hinges turn big doors, you know.
- [16:21]
B
Yeah. And this works. So, hey, why don't we try this?
- [16:23]
A
Yeah, yeah.
- [16:24]
B
Build on that.
- [16:25]
A
Yeah. Yeah. It's good information. And the numbers tell a story that, you know, that a lot of times other things don't, you know, okay, this is huge. Kathy didn't let her weakness with technology or machinery stop her. In fact, she faced it, learned what she had to do, and then made a strategic move by bringing in her son, Grant, who thrived in the very areas that she didn't. And just like that, the business got stronger because both of them were aligned with what they were naturally good at. Kathy got to focus on the numbers, the growth, the financials, the things that she shines in. And Grant kept the machines humming. In a business, especially a small one, trying to do everything yourself can burn you out or limit your growth. But when each person focuses on their strengths, the business doesn't just work, it flows. So here's a thought. Are you building a business that fits your gifts, or are you stuck wrestling with things that somebody else would love to handle? Hey, everyone. I just want to take a minute to share something personal. When I was building my business, there were times when I felt completely out of my depth. I was struggling with employee issues, sales issues. I had ideas, but I couldn't seem to get them implemented. I felt like my company vision was always just out of my reach, and I didn't know what to do. But I was fortunate. There were other business owners, people a little further down the road than I was that stepped in and helped me. They saw potential in me that I couldn't see in myself yet. And out of compassion and probably a little bit of remembering their own early days, they offered their time, their wisdom, their experience, and their perspective. And those conversations had such a huge impact on me. And now I want to pay that forward. If you own a business and you're feeling the same things I was, I want to help you. And heck, if you don't own a business, but you just feel like you can't seem to get your life to go in the direction you want it to. I absolutely want to help you, too, and I think I can. Here's what I want to do. Look in the show notes, and there's a private link to my calendar. Click on it. It's called the Listening Coach. And when you get there, you're going to see it's listed as a $297 fee. But I want you to ignore that. Just book it and write locally owned fan in the notes, and I'll waive the fee. Why am I going to do that? Because I'm not trying to sell anything. I'm just trying to help. I'm just trying to pay back and pay forward what was given to me. If you're stuck spinning your wheels, overwhelmed, trying to figure out what to do, I'd really love to listen and draw on my 28 years of business experience and see if I can help. That's all. All right, let's get back to the show. So now I was reading you. You kind of have a little different approach to. To the vending business. It seems like most companies that put vending machines out there, they sort of standardize it so that it's just the same items all the time and in everything. And your approach is very different. You. You actually went the opposite. You customize everything for people. So lead me through that thinking process. What made you realize, hey, this is a better approach?
- [20:14]
B
So I think in that process that we talked about in the beginning, when I passed on vending, in my mind, vending machines were sort of nasty. And by that I mean, you know, like when my kids were little, if we were out and one of them needed a snack, and I'd see a machine, and I would generally say, just hold on, Wait. Will be home in a little bit. And I would just kind of keep them away from the vending machine. What's in there? Sugar and more sugar. And so I think that was my initial attraction was, what if you didn't have to say, wait till you get home? What if we could say, well, yeah, let's get you something out of there and, you know, or for yourself, you know, if you needed something to hold you over. So it started with that, the idea that. And that's why I named my company Healthy Choice to Go, because I thought it was going to be healthy vending. I was going to just take changes. The way Birmingham ate, snacked, well, that didn't happen. So I learned you have to have the traditional items. If you want to get in a location, there's people there that want those items. So to get in there, you need to serve what they want. So we do that now. So we do the traditional, we do the healthy. And what we specialize in is what you mentioned is customization. So when I go into a location, I listen to what they say. I look around, I see, is it students, is it men, is it at women, you know, who's going to be eating out of this machine? And then I come up with my best guess of what some things they're probably going to enjoy. And then over those first few weeks, I start tweaking it to that location. So I'm going to customize it just for them. If, if there's somebody that wants something that we don't usually carry, I don't mind getting it. But what, what usually happens is we start seeing things they don't want. We take them out, we put things in that they're running out of. So we, that keeps, that makes us more money and it keeps them happy. It's a win. Win.
- [22:13]
A
Yeah, yeah. When you brought your son on, how did that transition work? So he's, you know, because you're doing this and you're doing it part time, but you're the only one doing it, you know everything about it. So how did that work, getting him transitioned into it and you know, where you're both being able to support yourselves and make this work.
- [22:39]
B
So the first year, I really, I would say the first year that Grant joined me, he really worked for no compensation. Like, I think, you know, I helped him just cover his expenses, but he didn't, wasn't paid and I didn't pay myself till the third year. So it was the third year that I quit my job and I put Grant and I both on payroll. So for that year before that happened, Grant was just out taking care of the machines every day, keeping the products in, keeping everybody happy and running. And I was out just locating, looking for more locations. So that was a year of just let's grow it and get it to where maybe next year we can live off of it. And that's what happened.
- [23:25]
A
Oh, wow.
- [23:25]
B
So we transitioned to that.
- [23:27]
A
So you were taking the profit from the business and just putting it right
- [23:31]
B
back into the business? Yes, I didn't take anything out for the first few years, which is why I hung onto that job. Had gone to part time and hung onto it for a couple years so I could live off that, you know, and then get the business stable and add some machines. And I mean, I wasn't debt free, but I was adding and growing and
- [23:51]
A
getting healthy yeah, And I would imagine that's a pretty easy sell to tell someone, hey, work for a year and you won't get paid.
- [23:59]
B
He's a sweet boy. He trusted. No, I think there was a part of him that got a little excited about it at some point.
- [24:07]
A
Yeah, yeah, yeah. So now what is his main role? What are the skills that he brings to the business and that you feel like, man, I don't, you know, like that's a super helpful thing to have.
- [24:21]
B
I couldn't make it without him anymore. I mean, I can't do what he can do. He can go out and, and service them. He understands the technology so well. Now we've got three or four different models. He knows the difference and what this one needs and that one needs. He's way over my head now.
- [24:35]
A
Yeah.
- [24:36]
B
But the main thing Grant does is he keeps everything running. He goes in the warehouse every day. He's got part time guys that show up. One of, one of those guys will show up every day. You know, he keeps the inventory in, he keeps the machine stocked, keeps them all serviced. He really keeps everything running.
- [24:56]
A
Yeah. And so who, who deals with the, does he deal with the customers or do you deal mainly with customers or both?
- [25:05]
B
I mean, our number and we have a nice little sticker on all of our machines. It's got our numbers and email and stuff. So they'll reach out to me or Grant if they need us. But you know, a lot of times we don't see if everything's going well. We don't see anybody. We zip in and zip out and we don't, we don't really see anybody. But so on those, we. I, I usually try to get by every so often and just say, hey, and how are things going? I like doing that. I do what I call well, that's my, well, visit like nothing's wrong, but I just want to go by and say, hey. Yeah, yeah.
- [25:40]
A
And if something's wrong, you'll find out.
- [25:41]
B
Yeah, they'll let me know if something, something's wrong.
- [25:43]
A
Yeah, well, it's better to go there when. Rather than them calling you with something wrong.
- [25:50]
B
Yeah. Well, business are fun. Take some cookies or something. They're fun.
- [25:54]
A
Oh, yeah. Yeah.
- [25:55]
B
Sugar. Take them some sugar.
- [25:58]
A
Take some snacks. Yeah. Well, so you don't grow from six machines to 50 machines or over 50 machines and you know, just doing it willy nilly. You have to, you have to create a plan and you have to create systems and be organized. So tell me what that was like. Like how did you start developing A system for getting this work done and making sure, you know, it got done and got done right and all that.
- [26:31]
B
Actually, Grant really helped a lot with that too. I mean, even before he joined me, he kind of helped me a little bit with that. But we. I just bought some really nice industrial shel shelving from Costco, put it in the garage, got these crates that we love that collapse. Nice. We've got this cart that's got good wheels. I mean, just each one of those sort of pieces, you just chose your favorite and kind of pieced it all together. The system itself, the reporting will show you what machines need to be stocked. So each morning he can pull a report that says, and we have 58 machines now in 42 locations and two micro markets. So he can go in and the system has all that in there, and he can pull a report and it will show him what his lowest, you know, which machines need to be stocked that day. So he just says, okay, these are the 10 or 12 we're going to do. You check them off on the system. And then he has an app on his phone. So now he can go from his office out into the warehouse, and on that app, he can pull up each of those machines one at a time, and there's a list of what products he has to pack for that day, what needs to go to that machine. So he just grabs a crate and we start packing. He's got labels for the crates. He'll put the name of the machine on there, and they load them up in the van, and then his driver will head out and stock them.
- [27:55]
A
Oh, yeah, that's a good system.
- [27:57]
B
Yeah, we have a good system.
- [27:59]
A
Yeah. And that's where the technology learning curve, where it's difficult to learn it at first, but it sounds like it really, really saves time.
- [28:07]
B
Yeah, it's everything. The idea that it shows you exactly what you need. Take.
- [28:11]
A
Yeah.
- [28:11]
B
For that machine, you know, back in the old vending days, back bubba, that I was talking about earlier, you know, he had to pack his van that morning and drive around town and go look and see what that machine needed. Well, we're just taking exactly what the machines needs.
- [28:27]
A
Right, right. And what percentage of. I would imagine almost all vending machines, because almost every transaction is swiped. And so that's got to be nice because that's less for you to have to deal with if the money's. All these transactions are all accounted for.
- [28:48]
B
So for us, we're 60% card, 40% cash. But to your point, I have a lot of locations that are like 90, 95% card places. Especially, like, young men. I don't know. I have a lot of places that are all card, but I've got car washes, and so the guys have lots of tip money. They're putting their tip money. And then we're in schools, and so we've got some younger kids, and we're in a dance studio. So we have some locations that I think kids are spending their cash, which is why we're only 60, 40. But a lot of locations are mostly card.
- [29:25]
A
Okay. Yeah, Yeah. I remember my dad had a laundromat and I had to count change as a kid.
- [29:33]
B
Did you really?
- [29:33]
A
Yeah. That was not a fun job, trying to stick all these dimes in a little.
- [29:39]
B
Oh, I think it's a hoot. Are you kidding? Playing with money. I remember in the beginning sitting on my sofa and rolling. We don't do that now. We've outgrown that a little bit. But I remember rolling coins when I first started this.
- [29:53]
A
Yeah, well, it was nice to play with the money if you could keep it.
- [29:57]
B
But, yeah, you didn't get to. You had to do the work.
- [29:59]
A
When I had a paper out, it was a lot more fun to count my money.
- [30:02]
B
But, yeah.
- [30:03]
A
So you mentioned a micro Mart for anybody that doesn't know what that is. What is that?
- [30:09]
B
So that is more of a sort of open market. You grab your item yourself off the shelf, and then you walk over and scan it and pay for it yourself and walk away.
- [30:21]
A
Okay. Yeah. So that takes an element of trust. And is there a camera set up?
- [30:25]
B
Yeah, there is, and we have a little bit of. Of theft. We kind of figure that in, but we watch it.
- [30:32]
A
Yeah. Okay. Yeah. It's got to be a little bit of a uncomfortable moment when you have to confront somebody about something. Have you had to do that?
- [30:42]
B
Yeah, yeah. The office. We were in an office building last year that actually was a corporate office, and they wanted this market because it was corporate. And we have their other campus that is vending. But eventually the corporate guys move back to their main campus, so that problem solved itself. But we had a little trouble with that, and I did finally have to go say, hey, can y' all put a camera out here? And they did, and it helped.
- [31:09]
A
Yeah.
- [31:10]
B
So it's just one or two that's gonna spoil it for everybody.
- [31:13]
A
Yeah.
- [31:14]
B
You know, one or two that thinks I could just pick that up and walk away and not spend $2 today.
- [31:23]
A
Yeah. Yeah. Well, yeah. I mean, I would imagine just a camera alone, even if it's not hooked up to anything would make a big difference, probably.
- [31:33]
B
And I was gonna do that, and then they were like, well, legally, I don't know. Let us just put a real camera. So they did.
- [31:38]
A
Yeah. Okay. Now, I'm sure you've gone in and somebody has not been happy with the vending service that they've gotten. Not you, of course, but their current vending service, and.
- [31:56]
B
Oh, okay.
- [31:57]
A
And so, you know, so if they're unhappy, they've probably got some very specific questions that they want to make sure that you can do, or they're looking for specific answers, you know, and for you to be the right person. But tell me what that conversation looks like when someone's. When you walk in and someone already has somebody, but they're not happy and you win them over. What does that look like or sound like?
- [32:24]
B
So that's really what I'm doing. I'm going in and I'm saying, are you guys happy with your current vending? That's the question. And if they're happy, you know, I'm glad they're happy. That's wonderful. But oftentimes they're not happy. And oftentimes the reason they're not happy is because they'll say they won't return their calls. It's usually one specific company. And when I hear that they have that company, I feel like I've got a pretty good shot. But they'll say they won't return our calls. They're not. We've asked them so and so to. We've asked them repeatedly to put so and so in there, and they haven't. Or, you know, the machine they're not stocking. Not enough healthy snacks, not enough dishes, junk. Yeah. They want. They want more variety. A lot of times I sell them on variety, so it's just. But really, I think the main thing is they're just frustrated that they don't service it properly. I think service is the biggest thing.
- [33:21]
A
Yeah. And so that conversation. How do you convince them that you can. That that's not going to happen with you?
- [33:28]
B
They. That's the easy part. I mean, when. When they start talking about their troubles, I was like, you're kidding. You know, look at us. We've got these fancy machines, and it's mom and son. We're small business. We're going to take care of you. We want to make money, so we're going to keep it stocked.
- [33:44]
A
Yeah.
- [33:45]
B
And they buy it hook, line, and sinker.
- [33:50]
A
What you're hearing right now is the secret sauce of a Business that's not just growing, but flourishing. Kathy didn't just buy vending machines and hope for the best. She systematized every piece of the back end from the shelving in the garage to the app based inventory tracking. And that's how she made the business smoother for herself. But then she does the opposite for her locations. Instead of treating every location the same, she customizes each machine to the people that are using it. She tunes in to what they want and then brings it. That is so smart and it's no wonder her company is thriving. So think about that for your own business. Where can you customize your business is to better serve your clients. Now I know you mentioned earlier that, you know, one of the draws for you was that, oh, this is healthy stuff. Did you start out putting just healthy stuff and then realized this isn't going to work or.
- [34:46]
B
No, no. I knew when I went to training. So I bought my business startup opportunity package. I'm not sure the correct terminology from naturals to go. And when I went to the tr, I saw how the machines were stocked, I looked at the products. I think I kind of figured it out there. Now there are some of the vendors that started in that same place I started that focus on healthy vending. I will say I know of a woman who just recently sold her business in Boston and she focuses on healthy. So I think some people do it. And even I have locations that are healthier. And I've got, for example, I have a large school downtown that requires me to. The machines that are open during the day have to meet their criteria for calories and salt and fat. So we do that. But then the machines that are open in the morning and the evenings are all the traditional stuff. I can tell you which one sells the best. But we can, where needed or where they request it, we will do that. And we've had locations where they were healthier young men there that wanted, you know, way more protein type bar things than they wanted candy bars. So we'll do it. I mean, if they'll eat it, we're all about it. We're all about finding them new versions of that or whatever they want.
- [36:15]
A
Yeah, yeah. Have you seen a trend? You know, because I know just from owning a business I pay attention to marketing and so sometimes, you know, you'll like. I've noticed over the last few years some, a lot of products on the label will say gluten free and I'm thinking that's a bottle of water. Water never had gluten, but it's like, they know that's a trigger word.
- [36:38]
B
You know, like, I am buying that it's gluten free. Yeah, that's interesting.
- [36:42]
A
Or, you know, or Something will say 6 grams of protein and it's. Yeah, but it's got 34 grams of carbs. You know, it's not that big, you know, but they're trying to highlight what they know people, you know, will trigger. Oh, that's healthy for you. So have you seen like a trend towards, like, you gotta make sure the label says these things for people to buy it.
- [37:05]
B
I do think people, I mean, Grant and I pay attention to those we like. Oh, look, it's got. So let's try that. We buy it. I think we want a fair amount of those kinds of things in the machine for whoever that might excite or make them feel better about their snack.
- [37:23]
A
Yeah.
- [37:24]
B
You know, but honestly, you know, we sell more traditional items than we do healthy. But I don't care. I mean, I mean, I care, but I want us to stay where whoever that person is that might have a little bit more discernment about what they put in their body, I want something in my machine for that person. Even if they don't walk up very often, often there's going to be something in there for that person.
- [37:47]
A
Yeah, I think you're right. I think there's a trend where more people are thinking more health conscious.
- [37:55]
B
You know, they want to be healthy, they want to eat healthier.
- [37:59]
A
Yeah. And so if there's a, an option to a Snickers bar, you know, that's healthier, you know, a lot of people will consider, you know, I think so. Yeah.
- [38:09]
B
Yeah, I think so. Have.
- [38:11]
A
I think I know the answer to this because you were talking about it earlier. But you know, your, your approach is very much more relationship oriented. You're, you know, making sure that you're customizing it, that you're, you know, you talking to them about how your local business and you're going to take care of them. What are. Do you have things built into your systems to make sure that those relationships are staying really strong? You know, that if, like you mentioned earlier, well, visit, you know that instead of waiting in case there is some sort of issue, you know, you're dropping in and taking care of them. And then if something comes up, you know, you're there and you can take care of it. So. But is there other things that you built into the system to say this is why people choose us, because we're building this relationship with them?
- [39:03]
B
I think so. From Time to time, we do run reports on the machine that show us what products are selling, what products are, you know, we know how to optimize the machine. The system helps us with that. So I think that's the best thing I can do for that location. And again, they, A lot of them don't want to see me. Like, they just want us to slip in the back, keep the machine, keep their people happy and slip back out. So I think the best thing I can do for them is just keep that machine clean, stocked, you know, well lit, fun changing it, you know, I think that's the best thing I can do for them. But I have a large variety of different types of locations. So some do want to chitchat a little bit and, you know, give me direction and tell me what they like or don't, you know. So I just try to be what that location needs us to be.
- [39:57]
A
Yeah. Okay. Well, you're in a. Which I didn't really realize this until I started looking into it. It's a predominantly male dominated business, isn't it?
- [40:09]
B
Oh, I would say so, yeah.
- [40:11]
A
Yeah. So I wonder why that is. Guys are more into snacks, I guess.
- [40:16]
B
Well, they have vending machines. They have the muscles.
- [40:19]
A
Yeah, yeah. But you're in it and you're doing really well. What are some of the challenges that you had maybe at first or maybe still have? Being a woman in a predominantly male dominated industry, I feel like so many
- [40:37]
B
things in my life I've done that were predominantly. I can't say the word, but that.
- [40:42]
A
Yeah, I know. I almost felt a little drunk when I said it came out like I'm drinking. How did that come out, predominantly?
- [40:50]
B
Well, then I won't even try again. I don't know. I think that way, like, I just kind of think, like you mentioned, I was in the military. I don't really see a difference in men and women as far as what we can or can't do. So I don't really, I don't really see that. But. But physically I am a petite older woman and that, you know, I think that's where men have a great advantage in vending because they can help their. They can get their buddy, go grab a machine and move it here. It's like moving a refrigerator, you know, where we hire that out.
- [41:21]
A
Yeah.
- [41:22]
B
So I would say that's really the only disadvantage I have as far as being a female is my size and my strength. But I think the advantage to being a female is that I'm not a male. Going in, talking to them about snacks and beverages. I think they like the idea that mama's gonna take care of them. Yeah, I hate to keep saying mama. Cause I don't want these locations looking at me like that. But there's a little bit of, you know, women do keep the kitchen stocked and the pantry stocked. Yeah, you know, that's kind of our normal. So I just try to use it to my advantage.
- [41:57]
A
Yeah, no, that's great. That's great. Yeah. Like I said, I don't see it. I never would have thought of it as predominantly, you know, males that are doing it. But. But when you say that, it makes sense because the machines are extremely heavy and, you know, and getting them in and out of places is.
- [42:15]
B
Yeah. And there's mechanical issues that, you know, typically men, you know more. Know more about.
- [42:21]
A
Yeah, but I could see what you're saying, though, because, yeah, women tend to do a much better job taking care of people and making sure, you know, that they're well fed or that they've got what they need.
- [42:32]
B
Yeah, that's what I was trying to say.
- [42:39]
A
Kathy didn't just walk into an industry where women are the exception. She actually flipped the script. While most vending operations lean on muscle and mechanics, Kathy leaned on what she brings to the table. Care, insight, and an ability to make people feel seen. And she did that one customized machine at a time, using her instincts as a woman and. And as a mama to stock what real people actually want. She turned the vending business sort of into a relationship business. And in doing so, she made her gender not a barrier, but an actual advantage. And that's not just business strategy. That's emotional intelligence meeting market demand. And it's no wonder that she stands out. So you started this as kind of a side gig, and now it's become your full time thing and you're doing it with your son. One of the things that a lot of people struggle with is a work life balance for most business owners. How do you do that? How do you keep your personal life, work life, both of them, robust, Honestly,
- [43:54]
B
because Grant's doing such a good job with the business and running it so well, I have to just really. I'm nearing. I'm 62, so I'm nearing retirement. Right. So I have to try to keep my head in the game. You know, I want to go out and work and play in the yard and, you know, go here, go there, thrifting with my girlfriend, whatever I want to do. So I have to kind of keep myself engaged. Like, no, Kathy, you're not Retired yet. Hang in there. But what keeps me motivated at this point is I know how to grow this business. That's my gift. That's my contribution to it, is growing it. And so what keeps me motivated is I'm going to give this. This is Grant's. This will be Grant's business, you know, obviously, so as I retire out, it'll be his. And so why would I not want to make it as healthy and as strong and as big or whatever he wants it to be? Now that I know what I'm doing, why would I not just keep doing that for, you know, a few more years and then hand it over? So I think that's what motivates me now.
- [45:02]
A
Yeah.
- [45:02]
B
Is making it even better for him.
- [45:04]
A
Yeah, yeah, that makes sense. And you're very young, 62. I wouldn't have guessed that. So thank you. Yeah. I mean, looks and energy wise, you know.
- [45:14]
B
Yeah, yeah, I'm not quite done yet.
- [45:18]
A
Yeah, well, actually, the older I get, the younger 62 is.
- [45:23]
B
Do you remember when 62 used to be old?
- [45:24]
A
Oh, yeah, yeah. One foot in the grave. Yeah. But yeah, no, it's a lot younger now that I'm very. Not far behind you.
- [45:35]
B
Okay.
- [45:35]
A
So, yeah, I'll be 60 this year, so.
- [45:39]
B
60.
- [45:39]
A
Yeah, yeah, I know. That's.
- [45:43]
B
It's okay.
- [45:44]
A
It is what it is.
- [45:45]
B
It's okay. It is what it is. It's okay.
- [45:46]
A
Yeah. Well, that's great though. You've got a succession plan, you know, and who better to have it and you know, your own son, you know, who's really, you know, 100% in it with you at this point. So.
- [46:02]
B
Yeah, he's earned it and he wants it and he does a good job with it. So it's his.
- [46:08]
A
I would imagine he's probably as nervous as you getting out of it as you would be of losing him.
- [46:15]
B
Ah, good point. I'll have to ask him that.
- [46:18]
A
Yeah. Because you're a big part of.
- [46:20]
B
Of it. Yeah, maybe I am. Maybe I'm important. I don't know. Yeah, I hope that by the time. Because I do the accounting, of course, for it as well as locating. So I hope by the time I want to, I could see myself still doing the accounting for as long as, you know, I can do that, which there's not a lot, there's not too deep. So I think I could do that for a while yet. But I do think about that. I think. Okay, if you do retire, you need to make sure you've got some money in the budget to hire someone Part time to maybe do the accounting or maybe help him with locating or. So I do think about sort of my replacement sometimes.
- [47:03]
A
Yeah, yeah, you'll be tough to replace.
- [47:08]
B
Well, maybe he won't need. Maybe I just keep going until I can't go anymore.
- [47:13]
A
Yeah, no, I'm sure it would be nice to have somebody to at least do the locating, you know, and all that, you know?
- [47:20]
B
Yeah, at some point that'd be nice.
- [47:22]
A
But maybe you could just do the well visits.
- [47:24]
B
I just do the well.
- [47:26]
A
Fun stop. Yeah, yeah. Now, is there. Do you have any plans to grow or anything, you know, in place where you're gonna hit hundreds?
- [47:40]
B
That's what Grant would like to see. A hundred.
- [47:43]
A
Yeah.
- [47:43]
B
So I'm okay. He would like to see two vans. We have one van running every day out on routes and he'd like to get to two vans. So I don't know. I mean, I will just take it where we can take it. Yeah, we. We just got a library last week. The new Irondale Library on Grants Mill. We just picked that up. We're really excited about that. It's beautiful. Beautiful facility. I just got a distributing company in Calera that. That was the one that we were almost placing today. So. Yeah, we, we. And I'm taught. I've got several in the works, so I don't know. I know we're going to grow this year and I. I don't know why we wouldn't next year, so. Yeah, yeah, yeah, we'll just keep going, see where it goes.
- [48:28]
A
Fantastic.
- [48:29]
B
Yeah.
- [48:30]
A
Now, looking back over how much you've grown, if somebody's just starting out, and it doesn't have to be in this business, it could be any business if they're just starting out. You've obviously learned some lessons. What would you tell them? What would you say is the most important thing you've learned?
- [48:48]
B
The most important thing I've learned is that when you're starting your own business, what it looks like in the beginning doesn't really matter. I remember being so scared and stressed and, oh, gosh, are these machines in a good location? Am I going to make any money? Did I make a good decision? And that first year was just a learning curve. It's just learning the business. It's learning how to operate a vending machine. It's learning the software, it's learning what products people want. Machines. Whatever your business is, you're just learning that first year. And so I would just. Cut yourself some slack, breathe a little bit and just know that for the first year, you May not make a lot of money, or you may or. But just, you know, thrive and just stay in the idea that you're learning everything you can right now. And then maybe in that second and third year, you're ready to ramp. You're more capable of making better decisions and ramping it up and making something of it. I think. I thought. Thought the first year was going to be like the forecast, but it's not. The first year is just the first year.
- [49:55]
A
Yeah. Yeah. You got a lot to learn.
- [49:57]
B
Yeah. Learn it. Get yourself grounded and kind of figure it out and then go from there.
- [50:03]
A
Yeah.
- [50:04]
B
Not grounded, but grounded.
- [50:10]
A
Yeah. I'm shocked you would say that. All right. Well, it has been fantastic having you. You've got a tremendous business, and your story's just amazing that you were able to grow as much as you did. And, yeah, when you hit 100, I want to get you back here and tell us all how you did it. Yeah. Sometime next year.
- [50:39]
B
Yeah, next year. Next spring, we'll do that. Well, thank you for having me. I appreciate it.
- [50:44]
A
Yeah. Yeah. Thanks for being here.
- [50:46]
B
Okay. Thank you.
- [50:47]
A
All right. Kathy's story is proof that success doesn't have to follow the rules and you don't have to squeeze into a model that doesn't fit. So here's the question. Are you running your business in a way that energizes you, that's built around the way you want to live? Are you building systems that serve your life, or is your business running your life? Maybe you can take a page from Kathy's playbook and customize your business to reflect who you are and make your customers feel like they matter just as much as the numbers do. Thanks for listening to another episode of Locally Owned. I hope you really enjoyed this episode. And if there's anybody out there that you know, that you think, boy, they would really enjoy this, I hope you pass it along. Let me know your thoughts in the comments. Until next time. Your goals are my goals. Thanks for listening to another episode of Locally Owned. I hope you found this helpful, interesting, and inspirational. And please be sure to hit that follow button so you won't miss an episode. And I'd love it if you let me know what you think of the show by leaving a review. And hey, before you go, I do want to say this again, because I mean it. If you're a small business owner and you're really struggling to grow, to work less hours to achieve your goals, whatever it is, I would love to put my 28 years of business experience to work helping you. And heck if you're not a small business owner, but you feel like you really need help just getting traction in your life, well, this is absolutely for you too. Look in the show notes and click on the link that says listening coach. I offer a one on one coaching session that I'm offering to you right now. Now, you're gonna see it listed at 297, but I want you to ignore that as a fan of the show, locally owned, just book the time, put in the notes that you're a fan of the show, and the fee is waived. You're thinking, well, why are you doing that? Well, because I'm not trying to sell anything. When I was in business and I was struggling somehow and I think God did it, the right people were sent to me to say the right thing at the right time. And it was so helpful. And so the kind of conversation that they had with me, I'd like to have with you. So if something is saying to you right now, well, what have I got to lose? Well then consider yourself nudged by the universe. I might just be able to help you see the potential that you have that you just can't see right now. And that would be a huge win for both of us. Thanks for listening to the show. I look forward to hearing from you.