13 replies to this topic

[mrsar66]

Through reading a lot of stuff on vending, I sometimes came upon a site that said that Coke and Pepsi might give you free vending machines and in return you sell there products. Can someone let me know if this is real or rumor.

[Gabe .Z.]

Yes and no. In order to get them, you usually need to be a well established and reputable company, then they'll consider you.

[mrsar66]

Do you think they have the same type of program in Canada?

[Gabe .Z.]

Couldn't tell you, but I don't see why they wouldn't.

[HooseFoose]

Gabe Z,

Yes. I have talked to both Dr.Pepper and Coke and they both said they would give me free machines (more like a permanent loan, but they could come and get if the need arose). The problem is that you have to buy product from them in order for them to do it. Their product is significantly higher than Sam's club, so I said no thanks. I am keeping them in mind for future things, if I ever got in a pinch and needed a soda machine, but I am not doing it now. Coke was even more of a hassle than Dr.Pepper. They wanted me to buy a minimum of 10 cases of coke products a week. I wish I was in that kind of position, but I am not yet.

Hope this helps!

Sincerely,

~HooseFoose~

[Gabe .Z.]

Thanks for the info Hoose. And you are not a very large company, correct? Do you have prices they gave you? I'm just wondering how much more they charge.

Thanks.

[scottgtt]

I have somewhere in the neigborhood of 80 Coke and Pepsi third party machines. I also have another 20 or so of my own. There are pros and cons to both. Third party programs vary by location but generally you will pay about the same for cans as you would at Sams, but you will also have to meet minimums that can be quite high (20-40 cases per month depending on location). Both Coke and Pepsi will supply you with parts for repair, but most parts are refurbished and can be of questionable quality at times. If you want Coke or Pepsi to work on the machines they will, but usually you will have to pay them. If you get a location that doesn't do the minimums, you can have Coke or Pepsi service them and they will give you a percentage of the gross. This is not a bad way to make side income, but you will lose control of the location and your reputation will be affected by the service Coke and Pepsi provide which often times is poor. Your best bet is to use a combination of your own machines with some third party machines too. One nice thing about being a third party with Coke and Pepsi is that once your established they will give you nice rebates, specials on new products and will give you really nice machines for good locations.

[Gabe .Z.]

Great info, thank you scottgtt.

[BVI]

I have somewhere in the neigborhood of 80 Coke and Pepsi third party machines. I also have another 20 or so of my own. There are pros and cons to both. Third party programs vary by location but generally you will pay about the same for cans as you would at Sams, but you will also have to meet minimums that can be quite high (20-40 cases per month depending on location). Both Coke and Pepsi will supply you with parts for repair, but most parts are refurbished and can be of questionable quality at times. If you want Coke or Pepsi to work on the machines they will, but usually you will have to pay them. If you get a location that doesn't do the minimums, you can have Coke or Pepsi service them and they will give you a percentage of the gross. This is not a bad way to make side income, but you will lose control of the location and your reputation will be affected by the service Coke and Pepsi provide which often times is poor. Your best bet is to use a combination of your own machines with some third party machines too. One nice thing about being a third party with Coke and Pepsi is that once your established they will give you nice rebates, specials on new products and will give you really nice machines for good locations.

I suppose it depends on your local bottlers in terms of what minimums are and whether or not you pay for labor on repairs. In my area, Coke requires 10 cases per month per machine, and Pepsi requires 12. Neither charge for repairs, although Pepsi is less tolerant of tasks that any full-time vendor should be able to take care of (like unjamming a bottle or can).

[Qmancandy]

I suppose it depends on your local bottlers in terms of what minimums are and whether or not you pay for labor on repairs. In my area, Coke requires 10 cases per month per machine, and Pepsi requires 12. Neither charge for repairs, although Pepsi is less tolerant of tasks that any full-time vendor should be able to take care of (like unjamming a bottle or can).

I'm still researching the soda side of vending so there is a lot I don't know. Is 10 cases a lot to have to purchase? How many come in a case? And in order to sell 10 cases does it have to be a super successful location? I imagine you would just take some of the cans to your own machines.

[scottgtt]

I'm still researching the soda side of vending so there is a lot I don't know. Is 10 cases a lot to have to purchase? How many come in a case? And in order to sell 10 cases does it have to be a super successful location? I imagine you would just take some of the cans to your own machines.

The required minimum is usually not strictly enforced. This is more of a deterrent to keep people from asking from machines unless they are serious and have good locations. Coke and Pepsi get most of these machines refurbished for a cost of $1500-$2500. If you sell 10 cases per month you will cover their costs plus some profit (according to my rep). More than that is pure profit for them. I would say that 15 cases give or take is usually average. What Coke and Pepsi want is volume and if possible, exclusivity. Most of the large full line vendors are allowed to vend a couple of the competitors products but you have to be careful with this and not abuse it too much. I would not personally get into third party vending unless you have machines doing at least 12-15 cases as that will give you some leverage with Coke and Pepsi. I would also use cans if possible as people will drink a little more which helps you get to your numbers and your costs are also lower while having higher margins. the only problem though is that bigger accounts will often want bottles so this will have to be decided on a case by cases basis.
good luck.

[BVI]

What Coke and Pepsi want is volume and if possible, exclusivity. Most of the large full line vendors are allowed to vend a couple of the competitors products but you have to be careful with this and not abuse it too much.

By exclusivity, I assume you mean exclusivity as far as only Coke products in a Coke machine and Pepsi products in a Pepsi machine. This is very true. I know around here - especially with Pepsi - if you're caught with a competitor's product in a Pepsi machine, they will pull the machine. Coke is a little more lenient, I think.

[coinvestor]

By exclusivity, I assume you mean exclusivity as far as only Coke products in a Coke machine and Pepsi products in a Pepsi machine. This is very true. I know around here - especially with Pepsi - if you're caught with a competitor's product in a Pepsi machine, they will pull the machine. Coke is a little more lenient, I think.

The coke bottler here won't do third party machines anymore. At least this is what the guy told me, but he was rude. He said that they would rather do the servicing and pay me a 35%-38% commission on an account. I like the percentage, but I don't like the lack of control of selection or service so I have yet to use it. I called on an acount that I was taking over that had there equipment in it, I asked them for a commision and they said that they were not paying one now so they couldn't start. I told them to come get there machines out!

They told me that they would sell to me at $8.50 case for cans!!!!

Needless to say I am out to kick coke out of as many locations as I can. They chose not to help me, so I will replace there equipment as often as I can.

I will add that the coke bottler in the neighboring city was quite helpful, but I can't buy from them due to territorry restrictions.

JD

[BVI]

The coke bottler here won't do third party machines anymore. At least this is what the guy told me, but he was rude. He said that they would rather do the servicing and pay me a 35%-38% commission on an account. I like the percentage, but I don't like the lack of control of selection or service so I have yet to use it. I called on an acount that I was taking over that had there equipment in it, I asked them for a commision and they said that they were not paying one now so they couldn't start. I told them to come get there machines out!

They told me that they would sell to me at $8.50 case for cans!!!!

Needless to say I am out to kick coke out of as many locations as I can. They chose not to help me, so I will replace there equipment as often as I can.

I will add that the coke bottler in the neighboring city was quite helpful, but I can't buy from them due to territorry restrictions.

JD

Sounds like the guy you talked to was a real a__-hole. If you're on at least a somewhat-friendly basis with one of your competitors, you might try asking him what he thinks about working with (whatever you Coke contact's name is) and see what he says. He might divulge a lot of information without you having to ask for specifics. Maybe you can see if you're just getting the run around for whatever reason, because what they're telling you might not even be the real deal at all.

OR, better yet, you could call back and ask for the manager of the person you've been talking to at Coke and ask him what the real deal is.

I have to say, Coke here is absolutely wonderful to work with. Pepsi is also good, but Coke bends over backwards to help full line vendors.