17 replies to this topic

[gvending]

Hello,

I am new to vending just starting in March and I have been buying product from Wholesalers like Costco and have noticed that their selection is fairly limited. I understand that Vistar is a distribution company that deals with vendors and they have a much better selection. How much in sales does a company typicaly have to do per month before Vistar will deal with them? Any input appreciated.

Thanks

[coinvestor]

Hello,

I am new to vending just starting in March and I have been buying product from Wholesalers like Costco and have noticed that their selection is fairly limited. I understand that Vistar is a distribution company that deals with vendors and they have a much better selection. How much in sales does a company typicaly have to do per month before Vistar will deal with them? Any input appreciated.

Thanks

As far as I know they don't have a minimum if you pickup. They do have a minimum if you want delivery. The minimum is set by your sales rep, but is usually 50 case or $750 each order.

Vistar is more expensive than Sam's. The product Vistar sells come in different case quantities, like Frito Lay chips at Sams come 50 to a box, Frito Lay chips at Vistar come 104 to a box. That's alot of chips with one date on them.

I would wait until you had to make the switch because people stop buying the stuff you buy at Sams, or you need the delivery (like when the truck is full each time and your making 3 trips there a week).

JD

[HooseFoose]

Gvending,

It sounds like you and I are in the same boat. I started about only about a month before you did. I had checked around to see about ordereing from suppliers but I have been unable to find anyone that could beat Sam's prices or their return policy. When I get prodcut that doesn't sell or is near the expiration date, I take it back. They have never had an issue with my returns even when I don't have the original box or the receipt, then they just give me store credit.

I am feeling the growing pains of expansion, as we are just getting ramped up to get some bigger locations. My plan at the moment is to continue to use Sam's for the reasons above, but I think if I get much bigger, then I will just start faxing in my order and it put on pallets.

Coinvestor,

Thanks for your input on the subject. Does Vistar have a website or contact#? Is there a supplier that you would recommend over them?

Thank you.

Sincerely,

~HooseFoose~

[scottgtt]

There are some advantages to using Vistar. First, candy bars are generally 1-2 cents more expensive than Sams, but they will process the rebates for you with the manufacturers and you can eliminate the difference. Also, they have a lot more products that can help you maximize your profits. For example, they will package jerky in different size bags etc..., yet the weight is not much different, by repackaging, you can sell a product for .75 that you would normally sell for .60, yet the wholesale price is not much different. I use Vistar and Jones out of St. Louis. The best thing you can do is get the products at Sams or Costco that Vistar or any other distributor charge more for, then talk to your sales rep and find the products that Vistar can help you with to mazimize your margins.

[coinvestor]

There are some advantages to using Vistar. First, candy bars are generally 1-2 cents more expensive than Sams, but they will process the rebates for you with the manufacturers and you can eliminate the difference. Also, they have a lot more products that can help you maximize your profits. For example, they will package jerky in different size bags etc..., yet the weight is not much different, by repackaging, you can sell a product for .75 that you would normally sell for .60, yet the wholesale price is not much different. I use Vistar and Jones out of St. Louis. The best thing you can do is get the products at Sams or Costco that Vistar or any other distributor charge more for, then talk to your sales rep and find the products that Vistar can help you with to mazimize your margins.

I agree with scott. Some of the advantages of Vistar are priceless. I think that having a sales rep is great and they are able to help work to adjust you selections and margins which is something that you wouldn't get from a wholesaler. I know that Vistar will set your prices on estimated volume, so your size is critical. My candy is 2-4 cents more per through Vistar, and so far my rebates have only been pennies per case. For me Vistar is more expensive even after rebates. I am glad to buy from Vistar. I think that they have helped put me in a good position to grow, but I don't think that I could have bought from them earlier then I did.

One thing that Vistar allowed me to due that would have benefited me when I was smaller, is to buy frozen pastry and keep it frozen until the day that I need it. Because of this I have eliminated wasted pastry. Pastry cost ~.07 more through Vistar for me, but is worth it to me for this reason.

Hoose, here is there website:

http://www.vistarvsa.com/

As far as another supplier, I don't know. Vistar is the only distributor that I have used.

JD

[gvending]

I agree with scott. Some of the advantages of Vistar are priceless. I think that having a sales rep is great and they are able to help work to adjust you selections and margins which is something that you wouldn't get from a wholesaler. I know that Vistar will set your prices on estimated volume, so your size is critical. My candy is 2-4 cents more per through Vistar, and so far my rebates have only been pennies per case. For me Vistar is more expensive even after rebates. I am glad to buy from Vistar. I think that they have helped put me in a good position to grow, but I don't think that I could have bought from them earlier then I did.

One thing that Vistar allowed me to due that would have benefited me when I was smaller, is to buy frozen pastry and keep it frozen until the day that I need it. Because of this I have eliminated wasted pastry. Pastry cost ~.07 more through Vistar for me, but is worth it to me for this reason.

Hoose, here is there website:

http://www.vistarvsa.com/

As far as another supplier, I don't know. Vistar is the only distributor that I have used.

JD

Thanks that's great advice everyone. I am glad I found this site. Frozen Pastry as you explained would be a great advatage for me, unfortnately I end up throwing a lot of it away due to past expiration. Sams Club sounds better than Costco but it is an hour away. I am not sure if Costco would take stuff back. Also, I've notice certain items in those Frito Lay 50 pack boxes sell out faster than others at diferent locations. I have grown so always find a way to use product that moves slower but would like to buy just the items that really sell. It seems to me that what may cost less at Costco I would make up with Vistar on sheer volume due to selling items customers really wanted. Id be glad to spend 7 cents more per pastry if it meant I wouldn't have to throw 25 % of it away.

[Exceptional Vending]

Thanks that's great advice everyone. I am glad I found this site. Frozen Pastry as you explained would be a great advatage for me, unfortnately I end up throwing a lot of it away due to past expiration. Sams Club sounds better than Costco but it is an hour away. I am not sure if Costco would take stuff back. Also, I've notice certain items in those Frito Lay 50 pack boxes sell out faster than others at diferent locations. I have grown so always find a way to use product that moves slower but would like to buy just the items that really sell. It seems to me that what may cost less at Costco I would make up with Vistar on sheer volume due to selling items customers really wanted. Id be glad to spend 7 cents more per pastry if it meant I wouldn't have to throw 25 % of it away.

We have gone back to Sam's on everything we can get except Combos. Vistar is good, but everything is more expensive at Vistar than Sams, except Combos. Combos are way more expensive at Sam's than Vistar. We have to go to Sam's anyway to get the candy because it is way cheaper at Sam's than Vistar. Then there are items that we can't get at Sam's that we have to buy from Vistar. We've gone back to getting our canned drinks from Sam's and Wal*Mart because Vistar just won't keep the price lower. We are having a huge problem with short dates on both Pepsi and Coke bottled products. I'm trying something at one location: We've put 16.9 oz Coke product bottles, and lowered the price a little, and the 24oz Pepsi product bottles, and raised the price a little to see how they do. Vistar has raised the bottled prices and still gives us short dates on the bottles. the 24oz Pepsi bottles from Sam's are cheaper than the 20oz bottles from Vistar. Sam's doesn't sell any 20oz bottles of anything. I think that is by design from Coke and Pepsi. We'll see how it works out.

[bcron]

HooseFoose says: "When I get prodcut that doesn't sell or is near the expiration date, I take it back. They have never had an issue with my returns even when I don't have the original box or the receipt, then they just give me store credit. "


bcron says: What!! Sam's will take back product that is near expiration? Are we talking all products (chips, pastries, ...?) I know I can be naive sometimes, but I never would have guessed that they would have taken back product just because it was nearing expiration. I always figured I just had to eat it (usually literally) I usually don't have too much of a problem with product going out of date, but it does happen.

[MOE]

Gvending,

It sounds like you and I are in the same boat. I started about only about a month before you did. I had checked around to see about ordereing from suppliers but I have been unable to find anyone that could beat Sam's prices or their return policy. When I get prodcut that doesn't sell or is near the expiration date, I take it back. They have never had an issue with my returns even when I don't have the original box or the receipt, then they just give me store credit.

I am feeling the growing pains of expansion, as we are just getting ramped up to get some bigger locations. My plan at the moment is to continue to use Sam's for the reasons above, but I think if I get much bigger, then I will just start faxing in my order and it put on pallets.

Coinvestor,

Thanks for your input on the subject. Does Vistar have a website or contact#? Is there a supplier that you would recommend over them?

Thank you.

Sincerely,

~HooseFoose~

wow thanks for the info on sams return policy expiring products is one of my major concerns.

[BVI]

I have decided to go back to Sam's as well. The price differences are just too large to not go back. I like the vast selection Vistar offers, but I don't like having to buy $600 worth of stuff if I don't need $600 worth of stuff. Plus, I don't need to be giving up so much GP (gross profit) just to buy from them. When I buy some things at Sam's, then try to buy other things from Vistar, it just makes it more difficult to buy their minimums.

[scottgtt]

I went to a Vistar trade show a few weeks ago. I think everyone is thinking right on these issues. Sams is cheaper on a lot of stuff. However, there are a few items you should be aware of. Vistar has a much larger selection of cold food are good margins. They have also come out with "private label" candy bars that are 39 cents versus the 49 Sams will be at soon when the new costs from Hersheys and Mars are fully in place. Vistar will help you find items that can give you very nice margins that Sams just doesnt carry. For example, you can get multiple flavors of Bugles instead of just the old plain ones Sams offers. They cost around 22 cents and can be sold for up to 75 cents pretty easily. People perceive them as a better product than just a plain bag of chips and will pay more. So, keep using Sams, but use Vistar sparingly (based on you volume) and you might get a nice exansion of your product offerings and margins!

[BVI]

I should explain some other reasons for leaving Vistar and going back to Sam's.

First, I am ALWAYS getting chips in with open seams. I'm not talking about an occasional bag here and there. It happens repeatedly with each delivery. At times, simultaneously among as many as 4 different brands. Frequently, as much as 50% or more of the bags are not sale-able of an affected brand. I just went through 3 boxes of a bad batch of Lay's Original in where there were little pinholes in most of the bags -- ants got inside some of the bags and I had some customers discover this, unfortunately. The worst offenders I have found so far: Andy Capp, Lays Original, Austin Zoo Animal Crackers, Snyder's Buffalo Wing Potato Chips (big holes punched through the bags).

I depend on once-a-week deliveries -- so if my entire delivery of one or more products is bad, it really puts me in a bind since I have to wait a week for an exchange to take place. Not good.

Second, Vistar is not cheap. When I get bad product from them that I don't get credit for, it makes them outrageously expensive.

Third, I have gotten bad pastry from them frequently. Some of it has been stale upon receipt (Freshley's Texas Cinnamon Rolls were the most disgusting pastries I have ever seen or tasted), and my Dolly Madison Zingers have occasionally molded between the cakes after just 2 to 3 weeks in some cases. Again, this creates more waste and makes their already high prices nothing short of outrageous.

Yes, Vistar does have a great selection, but that is all they have. My experience with Vistar is that they apparently charge a premium for second-rate or irregular product from the same suppliers that Sam's Club gets their product from, except when you buy it from Sam's Club, you can depend on getting great product with very little or no irregulars. Plus, they are much less expensive.

Good-bye Vistar.

[coinvestor]

I should explain some other reasons for leaving Vistar and going back to Sam's.

First, I am ALWAYS getting chips in with open seams. I'm not talking about an occasional bag here and there. It happens repeatedly with each delivery. At times, simultaneously among as many as 4 different brands. Frequently, as much as 50% or more of the bags are not sale-able of an affected brand. I just went through 3 boxes of a bad batch of Lay's Original in where there were little pinholes in most of the bags -- ants got inside some of the bags and I had some customers discover this, unfortunately. The worst offenders I have found so far: Andy Capp, Lays Original, Austin Zoo Animal Crackers, Snyder's Buffalo Wing Potato Chips (big holes punched through the bags).

I depend on once-a-week deliveries -- so if my entire delivery of one or more products is bad, it really puts me in a bind since I have to wait a week for an exchange to take place. Not good.

Second, Vistar is not cheap. When I get bad product from them that I don't get credit for, it makes them outrageously expensive.

Third, I have gotten bad pastry from them frequently. Some of it has been stale upon receipt (Freshley's Texas Cinnamon Rolls were the most disgusting pastries I have ever seen or tasted), and my Dolly Madison Zingers have occasionally molded between the cakes after just 2 to 3 weeks in some cases. Again, this creates more waste and makes their already high prices nothing short of outrageous.

Yes, Vistar does have a great selection, but that is all they have. My experience with Vistar is that they apparently charge a premium for second-rate or irregular product from the same suppliers that Sam's Club gets their product from, except when you buy it from Sam's Club, you can depend on getting great product with very little or no irregulars. Plus, they are much less expensive.

Good-bye Vistar.

Since BVI mentioned this a couple of weeks ago I started running some COGS numbers which I have not done since gradually switching mostly to Vistar over the last 7 months. My COGS for the 1st quarter of 08 was 47% which is consistent with last year. In the second and third quarters of 08 my COGS was 56.5%.......... Ouch!

Since these numbers come from comparing my gross sales to my total for product cost these numbers can get skewed when you fill new machines or begin hold more inventory. So I had to figure it a different way. I compared item cost with actual order QTY's, this does not include the $15 delivery charge (per delivery). I have calculated that Vistar is costing me $500 profit per month vs buying at Sams. This $500 is equal to $1000 a month in sales with a 50% COGS, so instead of adding a new account I am considering going back to Sams for most of my product too.

I have not had quite the product quality problems that BVI is seeing, most of my problems are order quality. I get stuff that I didn't order and stuff that I did order are not there. My last two orders had cases of Yoohoo that were busted. This makes the storage unit smell great after a couple of days The can drinks that I have been ordering from them have an incredible amount of dirt and dust in the top where you put your mouth. I have gotten dirty drinks before from sams, but I would just blow them off with compressed air. The drinks from Vistar are dirty, then they transport them on a refrigerated truck, when they pull them out of the truck the cans form condensation and it glues all that crap in. I have been throwing out drinks because of this.

Vistar is no different than our vending services. The products are the same, so all they really have to sell is service. I am willing to pay higher prices for better service, but I am intolerant of poor service at this pricing level just as my customers would be.

JD

PS The cases of coffee I buy at Vistar have gone up $2.70 (19%) in the last month and a case of coffee at Sams has not changed, so it can't be a commodity fluctuation.

[gbdpro]

I use vistar just for what I can not find at sams like bold chex mix and and a few other chips and cold foods. I live in michigan and vistar is about an hour and a half drive, so I pick all my stuff up. the only problem with sams, at least in my area is they will carry a great selling item for me for about six months and then drop it, so then I need to find something to replace it with. I've used vistar for a year now and have had only one box of chips that was short, there were seven unopen empty bags at the bottom of the box. other than that vistar has worked out for me, and yes they're prices are high, that's why I only buy a few thing from them. There is another supplier called Chicago vending service based in Chicago,IL been wanting to check into it but have not made work of it yet.

[Exceptional Vending]

We have gone back to Sam's on everything we can get except Combos. Vistar is good, but everything is more expensive at Vistar than Sams, except Combos. Combos are way more expensive at Sam's than Vistar. We have to go to Sam's anyway to get the candy because it is way cheaper at Sam's than Vistar. Then there are items that we can't get at Sam's that we have to buy from Vistar. We've gone back to getting our canned drinks from Sam's and Wal*Mart because Vistar just won't keep the price lower. We are having a huge problem with short dates on both Pepsi and Coke bottled products. I'm trying something at one location: We've put 16.9 oz Coke product bottles, and lowered the price a little, and the 24oz Pepsi product bottles, and raised the price a little to see how they do. Vistar has raised the bottled prices and still gives us short dates on the bottles. the 24oz Pepsi bottles from Sam's are cheaper than the 20oz bottles from Vistar. Sam's doesn't sell any 20oz bottles of anything. I think that is by design from Coke and Pepsi. We'll see how it works out.

Update on the drinks:
As it turns out the drink situation is working just fine. Instead of buying 20 oz bottled Coke and Pepsi products from Vistar at 79¢ or 80¢ each, we are buying 16.9 oz Coke and 24 oz Pepsi bottles from Wal*Mart at 50¢ and 52¢ each. It's working great! The Coke drinkers don't mind the smaller bottle with a smaller price than 20 oz, and the Pepsi drinks like having more to drink, even at a little higher price than the 20 oz bottles.
It's really working great!

[BVI]

Update on the drinks:
As it turns out the drink situation is working just fine. Instead of buying 20 oz bottled Coke and Pepsi products from Vistar at 79¢ or 80¢ each, we are buying 16.9 oz Coke and 24 oz Pepsi bottles from Wal*Mart at 50¢ and 52¢ each. It's working great! The Coke drinkers don't mind the smaller bottle with a smaller price than 20 oz, and the Pepsi drinks like having more to drink, even at a little higher price than the 20 oz bottles.
It's really working great!

This will work out great until you start buying too much at one or more stores, or until you start trying to exercise your tax-exempt status at the checkout. The problem is, once they find out you are reselling, they will refuse to sell you any more drinks at any "volume" at all, and they will insist you go to Sam's or some other wholesaler. They will tell you it is against their agreements with Coke and Pepsi to sell to you in this manner.

I got away with this for a short time about 2 years ago, but eventually they caught on. Just as well anyway, because once you get to a certain volume, you won't have time to go from place to place buying soda.

[Sagevending]

This will work out great until you start buying too much at one or more stores, or until you start trying to exercise your tax-exempt status at the checkout. The problem is, once they find out you are reselling, they will refuse to sell you any more drinks at any "volume" at all, and they will insist you go to Sam's or some other wholesaler. They will tell you it is against their agreements with Coke and Pepsi to sell to you in this manner.

I got away with this for a short time about 2 years ago, but eventually they caught on. Just as well anyway, because once you get to a certain volume, you won't have time to go from place to place buying soda.

I am going to try the same thing with coke 16.9 oz. and pepsi 24 Oz. I am not worried about being denied a sale. Due to the fact that sams sells the 16.9 ounce Coke and 24 ounce pepsi, so you can buy as much as you like. What machines are vending the 24 ounce pepsi's . Do you need a glass front ?

[BVI]

I am going to try the same thing with coke 16.9 oz. and pepsi 24 Oz. I am not worried about being denied a sale. Due to the fact that sams sells the 16.9 ounce Coke and 24 ounce pepsi, so you can buy as much as you like. What machines are vending the 24 ounce pepsi's . Do you need a glass front ?

The reason I was buying the 24 oz. bottles from WalMart is because my local Sam's Club does not offer them, though other larger Sam's Clubs do. If your's does, then fine - you shouldn't have anything to worry about.

I put the 24 oz. bottles in my BC10 soda machines. Those are made by Wittern Group (probably Fawn Manufacturing which is part of the Wittern Group). Sometimes they are called CB500s, depending on who you go through to get them.