9 replies to this topic

[tedk]

I just got a call from a friend of mine who has spoken, on my behalf, to the principal of the school she works at. He wants me to call about a snack and a pop machine for the staff lounge.

I have never had any interest in trying to place machines in areas that the students have access to, but if it comes up I'd like to have some idea of what machines for the students might generate. Is there a lot of vandalism? Vandalism has been the main reason I haven't tried to get into schools so far.

Any input you can provide would be gratly appreciated.

Ted

[kevin]

I just got a call from a friend of mine who has spoken, on my behalf, to the principal of the school she works at. He wants me to call about a snack and a pop machine for the staff lounge.

I have never had any interest in trying to place machines in areas that the students have access to, but if it comes up I'd like to have some idea of what machines for the students might generate. Is there a lot of vandalism? Vandalism has been the main reason I haven't tried to get into schools so far.

Any input you can provide would be gratly appreciated.

Ted

That depends on your states regulations. We use to have 9 snack machines in one school and we averaged about $1000/day but now there are regulations that make it to where we cant have machines in the halls at all and everything has to be healthy. Now we have one snack machine in taht same school and only fill it every other week. At least it was a very good account for a few years. As for soda those are usually tied into contracts with coke or pepsi. Here coke payed 20+ million for a 10 year contract with the schools. Later they changed the rules like they did on us and now coke is suing for some of that money back since they cant have the machines in there anymore, or if they do they can only sell water and it can only be on from 2:30-4:30. Also holidays make it very hard to get good sells unless its a highly accesible machine.

[BVI]

That depends on your states regulations. We use to have 9 snack machines in one school and we averaged about $1000/day but now there are regulations that make it to where we cant have machines in the halls at all and everything has to be healthy. Now we have one snack machine in taht same school and only fill it every other week. At least it was a very good account for a few years. As for soda those are usually tied into contracts with coke or pepsi. Here coke payed 20+ million for a 10 year contract with the schools. Later they changed the rules like they did on us and now coke is suing for some of that money back since they cant have the machines in there anymore, or if they do they can only sell water and it can only be on from 2:30-4:30. Also holidays make it very hard to get good sells unless its a highly accesible machine.

Like Ted, I have shunned the idea of approaching any school. Not only for the reasons Kevin mentioned, but also because usually with public institutions, there is a bidding process which tends to drive down prices, and consequently, profit for the vendor, and we all know what's happening to profit in these days of rising wholesale prices. If you get a school and it does really well, it's going to be a lot of work, and I'll be (expletive) if I'm going to work that hard for next to nothing. It might not be like that everywhere, but around here just about everything has to be bidded out.

[kevin]

Like Ted, I have shunned the idea of approaching any school. Not only for the reasons Kevin mentioned, but also because usually with public institutions, there is a bidding process which tends to drive down prices, and consequently, profit for the vendor, and we all know what's happening to profit in these days of rising wholesale prices. If you get a school and it does really well, it's going to be a lot of work, and I'll be (expletive) if I'm going to work that hard for next to nothing. It might not be like that everywhere, but around here just about everything has to be bidded out.

No the prices are very high usually $1.25 for a bottle the problem is we cant afford the commision. We pay $6+ for a case of can cokes and the bottlers are getting them at an end cost of under $4.50 or less depending on how they are setup.

[BVI]

No the prices are very high usually $1.25 for a bottle the problem is we cant afford the commision. We pay $6+ for a case of can cokes and the bottlers are getting them at an end cost of under $4.50 or less depending on how they are setup.

Well, it's really the same thing. $1.25 is fast becoming the new price standard for CSD bottles, not just a premium. But that's just bottles. What about cans and every other beverage sold, plus your snacks. You can only raise prices so much to cover commissions, the rest is going to come out of your profit, and that means you make less money. It's the same as if your prices were bid too low just to secure the account without the commissions. The underlying point I tried to make was that local or state government accounts (including private schools) generally want terms that make it less profitable overall compared to a location in the private business sector.

Profit is something I really concentrate on. Getting good, even great sales numbers means nothing to me if I can't get close to doubling my money on product overall - that, and not having too much of a debt-load (machine cost) to charge against the account.

Case in point... I informed a paper manufacturer (150 employee, mostly blue-collar) that I met with a few weeks ago that I'm no longer interested in pursuing their account. The reasons were that they wanted primarily CSD bottles (which is reason enough right there) - which I just will not do - all priced at $1.00. They are located on the opposite side of town and would require service every day, thus adding a substantial fuel cost to me that I'm currently not saddled with. They were complaining about the cost of cold food items, but my prices are comparable to what they are paying now, and I'm unwilling to lower my prices. Plus, they want the vendor to bring in a monthly basket of new food items for them to try out, thus adding more to my cost, and, I just don't have time for that sort of thing. There are more reasons. But they all add up to high sales - accompanied by higher sales tax - with less profit to off-set due to price restrictions, added cost to service the account, and machine debt.

[kevin]

Well, it's really the same thing. $1.25 is fast becoming the new price standard for CSD bottles, not just a premium. But that's just bottles. What about cans and every other beverage sold, plus your snacks. You can only raise prices so much to cover commissions, the rest is going to come out of your profit, and that means you make less money. It's the same as if your prices were bid too low just to secure the account without the commissions. The underlying point I tried to make was that local or state government accounts (including private schools) generally want terms that make it less profitable overall compared to a location in the private business sector.

Profit is something I really concentrate on. Getting good, even great sales numbers means nothing to me if I can't get close to doubling my money on product overall - that, and not having too much of a debt-load (machine cost) to charge against the account.

Case in point... I informed a paper manufacturer (150 employee, mostly blue-collar) that I met with a few weeks ago that I'm no longer interested in pursuing their account. The reasons were that they wanted primarily CSD bottles (which is reason enough right there) - which I just will not do - all priced at $1.00. They are located on the opposite side of town and would require service every day, thus adding a substantial fuel cost to me that I'm currently not saddled with. They were complaining about the cost of cold food items, but my prices are comparable to what they are paying now, and I'm unwilling to lower my prices. Plus, they want the vendor to bring in a monthly basket of new food items for them to try out, thus adding more to my cost, and, I just don't have time for that sort of thing. There are more reasons. But they all add up to high sales - accompanied by higher sales tax - with less profit to off-set due to price restrictions, added cost to service the account, and machine debt.

I dont know what other side of town is for you but I would of jumped all over that account. Though in my case we have at least 10 accounts located on each side of town and on the oppisite side of town we have about 30 to make up for fuel costs. The price is good on bottles if you use a few 3rd parties and your own machine. If it needed daily servicing then that would be the only problem. Is that a large side of town? Can you afford alot more machines? If so you may look at trying to move into that area and trying to get big enough to hire on in the long run. I think once you get to that stage you will find how easy it is to sell and maintain your machines. Also I wouldnt look at this being very quick either since you would be lucky if you gained an account a month if you are moving and filling everything yourself, with the added time of selling.

[BVI]

I dont know what other side of town is for you but I would of jumped all over that account. Though in my case we have at least 10 accounts located on each side of town and on the oppisite side of town we have about 30 to make up for fuel costs. The price is good on bottles if you use a few 3rd parties and your own machine. If it needed daily servicing then that would be the only problem. Is that a large side of town? Can you afford alot more machines? If so you may look at trying to move into that area and trying to get big enough to hire on in the long run. I think once you get to that stage you will find how easy it is to sell and maintain your machines. Also I wouldnt look at this being very quick either since you would be lucky if you gained an account a month if you are moving and filling everything yourself, with the added time of selling.

Well, you're getting the idea there. I have 30 machines so far (I know I'm a small fry to a lot of vendors on here) made up of 10 accounts. All are blue-collar, except for two which are sort of 50/50. The thing is, they are all within a 5 mile radius from my residence and also from my storage unit (which is also where I park my truck). On my longest day, I don't drive more than 20 miles from start to finish. Everything is very close together. I am about to add two more really great locations - which are also in this same area, virtually next door to the ones I already have. I don't sit in traffic - ever - because I'm always off the main roads. This is part of my strategy, to get good accounts, but get them all close together so as to limit my windshield time as I build my strong base of accounts. Sometimes even I can't believe how close together everything is.

Going to the other side of town right now, for me, would be a killer. I can hardly picture it at all, unless it would be for an anchor account that would let me come in and do my thing my way so I can make some decent money (all my accounts pretty much give me free-reign and don't expect me jump through hoops). But, that's not what this account would be like, and as much as I hate to say it, that's not what I'm looking for. If I wanted more of that, I would have stayed in the corporate rat race. Traffic is bad around here and the less time I spend on the road, the better. I don't want to develop business on that side of town until I'm able to bring my son into this (he just turned 21) because then I can spend the time necessary to snag more than just one account over there and make the trip worthwhile.

You're right about how tough it is doing everything by yourself, which I am. Sure, I can afford to keep growing for quite a while. But managing the move-ins and set-ups is tough when you're trying to run your route at the same time. One account per month is about right, but I need to grow faster than that.

[The Vending Guys]

Well, you're getting the idea there. I have 30 machines so far (I know I'm a small fry to a lot of vendors on here) made up of 10 accounts. All are blue-collar, except for two which are sort of 50/50. The thing is, they are all within a 5 mile radius from my residence and also from my storage unit (which is also where I park my truck). On my longest day, I don't drive more than 20 miles from start to finish. Everything is very close together. I am about to add two more really great locations - which are also in this same area, virtually next door to the ones I already have. I don't sit in traffic - ever - because I'm always off the main roads. This is part of my strategy, to get good accounts, but get them all close together so as to limit my windshield time as I build my strong base of accounts. Sometimes even I can't believe how close together everything is.

Going to the other side of town right now, for me, would be a killer. I can hardly picture it at all, unless it would be for an anchor account that would let me come in and do my thing my way so I can make some decent money (all my accounts pretty much give me free-reign and don't expect me jump through hoops). But, that's not what this account would be like, and as much as I hate to say it, that's not what I'm looking for. If I wanted more of that, I would have stayed in the corporate rat race. Traffic is bad around here and the less time I spend on the road, the better. I don't want to develop business on that side of town until I'm able to bring my son into this (he just turned 21) because then I can spend the time necessary to snag more than just one account over there and make the trip worthwhile.

You're right about how tough it is doing everything by yourself, which I am. Sure, I can afford to keep growing for quite a while. But managing the move-ins and set-ups is tough when you're trying to run your route at the same time. One account per month is about right, but I need to grow faster than that.

Wow! That is awesome! How are you going about getting these new accounts so close together?

[BVI]

Wow! That is awesome! How are you going about getting these new accounts so close together?

My subdivision is just outside of town and borders an industrial area that extends to the north and south from the west side. I have worked this area for almost two years developing relationships with the decision makers in charge of vending, waiting for the company they're with to screw up. Plus, I keep everyone in a database. I keep track of how many employees they have, who they're with, and how happy they are. I schedule my follow-ups in this system and make notes under each account. I've been in corporate sales for close to 20 years and have transferred that experience to vending. I'd love to spend all my time selling if I could. Patience, perseverence, keeping track of details and marketing myself, keeping my company in front of the accounts I want to get. I don't mean that to sound boastful in any way because it has been very difficult. I went from being big enough that I had to choose between my corporate job and my vending company... to doing this full time and still unable to pay myself... to being able to pay myself a very meager salary and needing to add 2 more decent accounts to finally get my personal finances out of the red, which is where I'm at now.

[msuvendor]

My subdivision is just outside of town and borders an industrial area that extends to the north and south from the west side. I have worked this area for almost two years developing relationships with the decision makers in charge of vending, waiting for the company they're with to screw up. Plus, I keep everyone in a database. I keep track of how many employees they have, who they're with, and how happy they are. I schedule my follow-ups in this system and make notes under each account. I've been in corporate sales for close to 20 years and have transferred that experience to vending. I'd love to spend all my time selling if I could. Patience, perseverence, keeping track of details and marketing myself, keeping my company in front of the accounts I want to get. I don't mean that to sound boastful in any way because it has been very difficult. I went from being big enough that I had to choose between my corporate job and my vending company... to doing this full time and still unable to pay myself... to being able to pay myself a very meager salary and needing to add 2 more decent accounts to finally get my personal finances out of the red, which is where I'm at now.

This is a very familiar situation to me, left a corporate finance sales job to operating a full service route. I have been very persistent with a spreadsheet to database all potential clients and keep lists of current or future prospects.

My question is how to really GET AT the decision makers, it seems that I have the ability to leave messages to the purchasing departments and even set up meetings.. Its the follow up with them after the meeting or messages that gets lost in translation..

thanks....