10 replies to this topic

[HooseFoose]

Vending Chat Members,

Today was a sad day, I lost an account. To add insult to injury, I lost it to Coke (that smarts...). So now, with a renewed vengence, I am aggressively working to get new accounts. I see that Coke, Pepsi, DP and Canteen are all over the place. Please share the successful ideas that you have used to get the "good" (read "big") accounts away from the national conglomerates and keep them.

Here are some specific questions:
1.) How do you reach the "decision makers" of the large locations?
2.) Do you know how to get past the "I am in a contract" excuse that they give you.

How can we be more effective?

---------

As an aside, the account I lost had 7-10 other locations in my metroplex and Coke got all of them. I had been working on that one for awhile. I know you lose some and you win some, but I am ready for a bit more winning!

All your ideas and experiences are greatly appreciated,

Sincerely,

~HooseFoose~

[Agee Vending]

Vending Chat Members,

Today was a sad day, I lost an account. To add insult to injury, I lost it to Coke (that smarts...). So now, with a renewed vengence, I am aggressively working to get new accounts. I see that Coke, Pepsi, DP and Canteen are all over the place. Please share the successful ideas that you have used to get the "good" (read "big") accounts away from the national conglomerates and keep them.

Here are some specific questions:
1.) How do you reach the "decision makers" of the large locations?
2.) Do you know how to get past the "I am in a contract" excuse that they give you.

How can we be more effective?

---------

As an aside, the account I lost had 7-10 other locations in my metroplex and Coke got all of them. I had been working on that one for awhile. I know you lose some and you win some, but I am ready for a bit more winning!

All your ideas and experiences are greatly appreciated,

Sincerely,

~HooseFoose~

Did you get any feedback on how you lost the account? Was it price, service, selection?

I am of the belief that there is business enough for everyone... Finding large accounts is hard... lots of phone calls and it could take you a year.

If you get the "I'm in a contract" line, you either 1) not talking to the right person, or 2) wasting your time. Full people don't buy more food. If you get that brush off... ask them what they like about their service and ask them if you can call back next month. Be patient, on day they'll say... my vendor sucks and boom you'll have an opportunity.

[HooseFoose]

Agee,

Yes, I got some feedback on it. They said it had nothing to do with my service or price. I only had one store in a chain of 7 in the metroplex. The only reason I lost the account is because coke talked to the right person and put the whole chain under contract. The location I had was in a very bad area (unsafe), and I had been considering giving it up just because of that; but to get kicked out by Coke just isn't right. I guess that's business though. I did not have a contract with them. Which is something I will do next time.

What do you know about contracts? What are some standard items that need to be in a vending contract?

Sincerely,

~HooseFoose~

[Agee Vending]

Agee,

Yes, I got some feedback on it. They said it had nothing to do with my service or price. I only had one store in a chain of 7 in the metroplex. The only reason I lost the account is because coke talked to the right person and put the whole chain under contract. The location I had was in a very bad area (unsafe), and I had been considering giving it up just because of that; but to get kicked out by Coke just isn't right. I guess that's business though. I did not have a contract with them. Which is something I will do next time.

What do you know about contracts? What are some standard items that need to be in a vending contract?

Sincerely,

~HooseFoose~

Contracts are tough. Typically for a contract to be enforcable you have to have some sort of consideration for it, just dropping your machine on the location and saying it will be here for 3 years, sign here, wont do. The coke and pepsi guys here pay some sort of commission and an energy reimbursment. I took out a the pepsi guy, who had a contract, by being local, and paying them more $. I have a 3 year contract that they can end with 60 days notice and I pay a 12% commission to them, its about $120 a month and a $1 a day energy reimbursment. I also worked out the commission to be due 30 following the end of the month, so my commission for 10/31 is due 11/30, which gives me about 60 days of float on the money interest free. I know you're saying... wow that 15%, my margins are 60% on this account, i'm getting .75 on a can of soda and after the commission is only .11 and I'm still over my target 50% on cans. What i'm trying to do know is lower my sales tax basis by calling the .11 cents a location fee and making a disclaimer about it on the machine, that would mean I'd only pay sales tax on the .64 and not the .75, that could save me almost .01 a can.

[tonyd]

Hi, i am new to vending but not new to marketing. In my area (south florida) there is no lack of vending machines anywhere so the only angle i use is the service and support angle. It seems that service is an issue, i always hear the "we call and they dont show up", we always lose money in the machine, the food is expired, etc etc. I sell them on the fact that i am a small company, local to the area, and always available. MY prices are competative, i try new things and listen to your requests. In Marketing its all about them, not you. you have to satisfy a problem and the poor service issue seems prevalent. I have closed 3 new locations in 2 outings. Maybe begineers luck but i do know how to market and listen and solve their problem. Good luck

Tony

[tonyd]

One other thing, the phone is useless. I drive around with marketing literature in my target area and when i see a place with lots of cars i walk in and introduce myself. They are always nice whether interested or not and the personal touch is way more effective than a phone call.

[Jusred]

Some good tips thanks for the info.

[VendingGuyNYC]

Agee,

Yes, I got some feedback on it. They said it had nothing to do with my service or price. I only had one store in a chain of 7 in the metroplex. The only reason I lost the account is because coke talked to the right person and put the whole chain under contract.
Sincerely,

~HooseFoose~

I've seen this many many times. Money talks. When big contracts or large locations come into play, it's usually an exchange of green hands if you know what I mean.
I've paid heavily for good locations myself. What's a few thousand for a location(s) that will yield that amount many times over throughout the course of a year. Or a hefty donation/contribution? Unfortunately, this is the nature of the business.

Richie

[BVI]

Contracts are tough. Typically for a contract to be enforcable you have to have some sort of consideration for it, just dropping your machine on the location and saying it will be here for 3 years, sign here, wont do. The coke and pepsi guys here pay some sort of commission and an energy reimbursment. I took out a the pepsi guy, who had a contract, by being local, and paying them more $. I have a 3 year contract that they can end with 60 days notice and I pay a 12% commission to them, its about $120 a month and a $1 a day energy reimbursment. I also worked out the commission to be due 30 following the end of the month, so my commission for 10/31 is due 11/30, which gives me about 60 days of float on the money interest free. I know you're saying... wow that 15%, my margins are 60% on this account, i'm getting .75 on a can of soda and after the commission is only .11 and I'm still over my target 50% on cans. What i'm trying to do know is lower my sales tax basis by calling the .11 cents a location fee and making a disclaimer about it on the machine, that would mean I'd only pay sales tax on the .64 and not the .75, that could save me almost .01 a can.

I don't do contracts of any kind, period. They are a complete waste of time. If your accounts wants you out of there, all they have to do is boycott your machines and you will gladly pull them. Conversely, if the account does not produce good GP against a reasonable COG and is not all that profitable, you certainly don't want to lock yourself into that account.

My experience is that when you go in and do a great job and keep the bar raised, you will have that account forever barring closures, etc... I would not waste a single minute of my time on a contract no matter how large the account is. Just because it is big does not mean it will be profitable. And that - profit - is what makes any account worthwhile.

[snack dude]

I don't do contracts of any kind, period. They are a complete waste of time. If your accounts wants you out of there, all they have to do is boycott your machines and you will gladly pull them. Conversely, if the account does not produce good GP against a reasonable COG and is not all that profitable, you certainly don't want to lock yourself into that account.

My experience is that when you go in and do a great job and keep the bar raised, you will have that account forever barring closures, etc... I would not waste a single minute of my time on a contract no matter how large the account is. Just because it is big does not mean it will be profitable. And that - profit - is what makes any account worthwhile.

AMEN Brother, I agree contracts are a complete waste of paper. I tell any potenial customer that I am just like any of their other suppliers. When I am not servicing them correctly tell me. They can fire me at any time. In seven years and sixty accounts later Ive been fired twice. Just service the hell out of them and fix whatever is broken yesterday.

[ronnie]

Hi agee,

when you say " What i'm trying to do know is lower my sales tax basis by calling the .11 cents a location fee and making a disclaimer about it on the machine, that would mean I'd only pay sales tax on the .64 and not the .75, that could save me almost .01 a can. "

You pay for tax on the 0.64 right? Isn't it supposed to be, the price of a soda (for example 0.25), should it be 0.64 - 0.25 = 0.39 --> be the taxable part? Im very sorry for my ignorance.

Thank you.


to tonyd,

Very nice inputs as well, Thanks. keep us posted on your machines.


regards,
ROnnie.