10 replies to this topic

[clvending]

I had a customer ask me if I do coffee machines. I told them that I do not at this time but would look to see if I could find something that meets their needs. I am looking for any suggestions especially from operators who do coffee services. What kind of machines do you use and how many people do you need to make it worth while? Any other info will be greatly appreciated.

Lee

[BVI]

I had a customer ask me if I do coffee machines. I told them that I do not at this time but would look to see if I could find something that meets their needs. I am looking for any suggestions especially from operators who do coffee services. What kind of machines do you use and how many people do you need to make it worth while? Any other info will be greatly appreciated.

Lee

I wouldn't mess with it, personally. I looked into it several months back and almost ordered one but decided it wasn't worth it at the last minute. First off, the machines are horribly expensive if you buy new. Second, they are high maintenance (cleaning especially) if you don't want to drive away customers. Besides, a lot of people have access to free coffee in the office, and we all know it's hard to compete with "free".

What I've done is team up with a really great office coffee company and we work leads together. I do the vending, they do the coffee. If you team with the right company, they can make so much more of a positive impact during the selling process than a machine can. Standard Coffee is who I team with. In fact, we just closed a huge account (huge for me anyway) just two days ago that neither of us would have gotten without the other.

[coinvestor]

I wouldn't mess with it, personally. I looked into it several months back and almost ordered one but decided it wasn't worth it at the last minute. First off, the machines are horribly expensive if you buy new. Second, they are high maintenance (cleaning especially) if you don't want to drive away customers. Besides, a lot of people have access to free coffee in the office, and we all know it's hard to compete with "free".

What I've done is team up with a really great office coffee company and we work leads together. I do the vending, they do the coffee. If you team with the right company, they can make so much more of a positive impact during the selling process than a machine can. Standard Coffee is who I team with. In fact, we just closed a huge account (huge for me anyway) just two days ago that neither of us would have gotten without the other.

I have three Gourmet Butlers on location (did have seven). I will secound BVI's answer. Don't mess with it unless you have to. I put coffee vending up there with a cold food machine, it should only be used to secure a large account that you couldn't get otherwise. It could make some money but generally not worth the hassel. The exception would be if the company is willing to be invoiced for the coffee and provide it free to their employees or customers. Reasons why I don't like coffee:

1. The coffee vending machines mix electronics, mechanics, and water all in one machine. I can't think of any situation where this is a good mixture. If a drink machine or snack machine were to flip out the worst case situation is an angry cutomer that lost money or a busted drink. If a coffee machine flipped out you could end up with 500 gallons of Hot chocolate on the floor and unlimited liability. Not to mention that a standard business liability policy usually doesn't cover what's known as "tap" liability for a water line. If you like sleeping stay away from a machine that could flood a building

2. Product resposibility - Coffee vending is the only time you are actually responsible for product taste. With the drink and snack vending all you have to worry about is dates and storage of your product, the rest is the resposiblity of the manufacturer. With coffee people will want it weaker, stronger, it tastes funny, or its not full enough.

I would lean towards providing OCS for the location before providing a coffee vending machine. The amount of room on the truck is the same and you don't have to worry about a machine.

Just my thoughts!

Jeremiah

[kevin]

I had 4 brios for coffee vending. They were something that I had to have for speial accounts with national contracts. I only have 1 on location at these accounts now and I just supply industrial coffee makers(pourover) and 2 boxes of coffee a month for free. On my OCS side we sell about 30-45 boxes a day of just coffee. We offer everything from filterpack, tea, equal, splenda, sugar, cream, liquids, creamers, cups, ect.. I have one person dedicated to just office coffee and it does great for us. We figured the truck makes us about $300 a day after product, gas, and drivers expence on average. The problem is taht the machines are a little expensive, $300 or more if you dont have a good distributor with discounts. Right now I have anywhere from 200-300 machines on locations. We have added alot since I last counted, so I couldnt tell you an exact figure. The way we judge an account is we have minimums. The company has to buy one box of coffee a month to keep the machine. Most accounts buy one everytime you come, or more. We go every two weeks to all accounts, so I average 2 boxes a month at smaller accounts and as much as 6-8 at larger ones. Packaged with Vending and paper sales we offer everything except water supply which is something I am looking into.

[coinvestor]

I had 4 brios for coffee vending. They were something that I had to have for speial accounts with national contracts. I only have 1 on location at these accounts now and I just supply industrial coffee makers(pourover) and 2 boxes of coffee a month for free. On my OCS side we sell about 30-45 boxes a day of just coffee. We offer everything from filterpack, tea, equal, splenda, sugar, cream, liquids, creamers, cups, ect.. I have one person dedicated to just office coffee and it does great for us. We figured the truck makes us about $300 a day after product, gas, and drivers expence on average. The problem is taht the machines are a little expensive, $300 or more if you dont have a good distributor with discounts. Right now I have anywhere from 200-300 machines on locations. We have added alot since I last counted, so I couldnt tell you an exact figure. The way we judge an account is we have minimums. The company has to buy one box of coffee a month to keep the machine. Most accounts buy one everytime you come, or more. We go every two weeks to all accounts, so I average 2 boxes a month at smaller accounts and as much as 6-8 at larger ones. Packaged with Vending and paper sales we offer everything except water supply which is something I am looking into.

How much do you charge for your coffee? I have always heard double cost. What if they don't buy the minimum? Do you charge a fee for the machine if they don't meet the minimum?

Thanks

Jeremiah

[kevin]

How much do you charge for your coffee? I have always heard double cost. What if they don't buy the minimum? Do you charge a fee for the machine if they don't meet the minimum?

Thanks

Jeremiah

I charge a minimum of $21 and up to $28. I usually just pick the coffee machine up if they arnt buying enough. One box a month just means they are making coffee e everyday. If they are not doing that then they dont need the machine anyway. I believe in giving a service and selling a product, Im not going to charge for the service.

[coinvestor]

I charge a minimum of $21 and up to $28. I usually just pick the coffee machine up if they arnt buying enough. One box a month just means they are making coffee e everyday. If they are not doing that then they dont need the machine anyway. I believe in giving a service and selling a product, Im not going to charge for the service.

What about cream and sugar what size and how much do you charge? What brands of coffee?

I currently provide coffee to one account. They use their own brewer and wanted bulk cannisters of folgers so thats what I do. I basically just deliver from sam's for $3-4 an item. I want to expand on this in more of an OCS type service.

Jeremiah

[kevin]

What about cream and sugar what size and how much do you charge? What brands of coffee?

I currently provide coffee to one account. They use their own brewer and wanted bulk cannisters of folgers so thats what I do. I basically just deliver from sam's for $3-4 an item. I want to expand on this in more of an OCS type service.

Jeremiah

I sell maxwelhouse and folgers(portion and filter pack). The creamer is 1.50 as well as sugar. The coffee I sell is made for office coffee and is a bit stronger and has no fillers. The stuff you buy at sams in a canaster is low grade and that is why people use a company like us is because we sell better coffee. Be warned, people will try and use your equipment and buy "crap" coffee. In this case they think that you are making a fortune off them even if your not selling the coffee to them. I could never figure this out. Accounts like this usually complain alot about even the bit of dirt on their machines and want it swaped instead of clean. If you start having problems like this pull the location, because it will cost you alot more then you will ever make.

[coinvestor]

I sell maxwelhouse and folgers(portion and filter pack). The creamer is 1.50 as well as sugar. The coffee I sell is made for office coffee and is a bit stronger and has no fillers. The stuff you buy at sams in a canaster is low grade and that is why people use a company like us is because we sell better coffee. Be warned, people will try and use your equipment and buy "crap" coffee. In this case they think that you are making a fortune off them even if your not selling the coffee to them. I could never figure this out. Accounts like this usually complain alot about even the bit of dirt on their machines and want it swaped instead of clean. If you start having problems like this pull the location, because it will cost you alot more then you will ever make.

Sorry for prying. Feel free to tell me to go away

What kinf of size and count do you sell for $21? When I look on sams club they sell a 42 ct .9 oz case of portion packs for $20.

Also, how much do you mark up your cups?

Jeremiah

[kevin]

Sorry for prying. Feel free to tell me to go away

What kinf of size and count do you sell for $21? When I look on sams club they sell a 42 ct .9 oz case of portion packs for $20.

Also, how much do you mark up your cups?

Jeremiah

Thats what I sell. I also sell filterpack which is packaged in a filter. Filters and stirs are free for a box of coffee. Also I get better prcies then sams, but the sams here is alot cheaper because the economy here is cheaper do to the lifestyles. For instance a 4 bedroom house here, not during the boom, cost about 80 grand. During the boom they are like 300 grand though . Right now I am in the boom, but it will bottom out soon because of alot of differnt reasons. Usually Sams dosnt have enough time to raise prices before the boom ends.

Also taht reminds me about something that happened today, an account that usually dosnt buy cups asked for them on the off route week and needed them bad. I took them to them out of the way, 20 miles at least, and they accepted. 2 weeks later, today, they told me sams was cheaper and made me take the cups back. By the way sams is only $2 cheaper and they sent a guy that they are paying by the hour to go get them. It made me mad but it was also comical that they actually spent more by not using me.

[jblvending]

I wouldn't mess with it, personally. I looked into it several months back and almost ordered one but decided it wasn't worth it at the last minute. First off, the machines are horribly expensive if you buy new. Second, they are high maintenance (cleaning especially) if you don't want to drive away customers. Besides, a lot of people have access to free coffee in the office, and we all know it's hard to compete with "free".

What I've done is team up with a really great office coffee company and we work leads together. I do the vending, they do the coffee. If you team with the right company, they can make so much more of a positive impact during the selling process than a machine can. Standard Coffee is who I team with. In fact, we just closed a huge account (huge for me anyway) just two days ago that neither of us would have gotten without the other.

BVI this is thinking outside the box, and this kind of thinking is going to help you grow.