coinvestor Posted March 17, 2012 Share Posted March 17, 2012 I said in my last post about Pro Vending that I would bring RJT back. RJT came up about 2 weeks ago and we spent the day knocking on doors together. While I'm learning how to "cold call" I am quickly realizing that I will never be the best person for this job Don't get me wrong, I love meeting new customers, talking vending, and giving proposals. I am fairly competent at these parts of selling I just don't think that my personality lends itself to the cold call ever feeling natural. It used to really bother me to say stuff like that. As a small business owner I always think I am the best one for every job within the business. We had another surprisingly productive day. We spent about 5 hours selling made 16 stops and left 12 goodie bags. By the end of the day we had 4 hotels waiting for proposals. One of these hotels is a high volume account that we went and saw last time we were out selling. This time we got the nod to do a proposal. We also got a "I'm busy, but call and make an appointment" at a manufacturing company that I had been eyeing for a couple of years. On Friday I made my 3rd trip to this account and presented my proposal. I think my chances are good that I can close this account. I also found out on Friday that the business has 2 locations in the area, so I may be heading to that one this week to get a proposal done for them too. Like I said in my last post I have known RJT for awhile now, but started paying for his services about 8 months ago. Its funny because when RJT would suggest something in casual conversation I would take it into consideration as a suggestion. When you pay for the same advise I feel an obligation to follow through and act on the suggestion. Its kind of the same mentality that makes you over eating at the buffet, I paid for "all you can eat" so I better eat all I can. My business looks a lot different than it did 8 months ago and I feel like we are really in a good position to grow and have what I need to properly handle the growth. RJT has played a big part in this and has helped take my business to the next level. Here are some things that have changed for me: 1. In November we revamped our cold food program, adjusted some of our pricing and expanded our offerings. We added a local supplier of fresh food to our program. Sunburst Foods is local to me, but is available through Vendors Supply in frozen form. 2. We have added 5 new DELIVERING suppliers. Before this we bought everything from Sams and Vistar. We now get direct deliveries from Sunburst foods, Coke, Pepsi, Cheerwine, and Vendors Supply. This is a huge change from loading down the stepvan with 3 sams trips a week before. 3. We got setup with Coke and Pepsi to do "Full Service". This was quite an ordeal, not so much the setup, but negotiating an commission rate that matched what they were paying my competitors. 4. Evaluated existing stops, pulled or sold off some slower stops and went back and added "full Service" bottler machines to the busy ones. 5. Rolled out a "healthier" vending option program to help identify the healthier items we already carry. This looks like what is helping me in the account that I proposed yesterday. For 6 years I refused to do any business with the bottlers and my feelings were reaffirmed every time I called and they would take a week to call me back if at all, just to tell me they would sell me cases of cans for $10. In the end I am comfortable with doing business with them. I look at them as a necessary evil if I intend on significant growth. It took a lot of persuasion to get me to this point. I am not suggesting that any of the above is right for other operators out there. This is what made the most sense for us where we are now. At no other point could I say I have 7 suppliers, I meet all there minimums and have no issues with dates (unless they try to slip one by me). I'm glad that I did not get tied up with the bottlers until now, because putting in one machine with coke pepsi and independent drinks has been critical to my growth and the ability to do so will remain important going forward. I am happy with where my company is and I think that 1 year from now it will look a lot different from where it is today. I just wanted to say thanks again RJT! I will update as I work through the leads generated from the selling we did. I think I will hop in the shower to see if I can get this brown crap off my nose Link to comment Share on other sites More sharing options...
Shauna Posted March 17, 2012 Share Posted March 17, 2012 That is amazing. Congrats on the business growth. Keep it up and let us know what happens to those locations that you approached. Link to comment Share on other sites More sharing options...
Vendors Tech Posted March 18, 2012 Share Posted March 18, 2012 Go RJT! Link to comment Share on other sites More sharing options...
Shauna Posted March 18, 2012 Share Posted March 18, 2012 Out of curiosity, what do you put in your goody bags? Link to comment Share on other sites More sharing options...
mission vending Posted March 18, 2012 Share Posted March 18, 2012 3. We got setup with Coke and Pepsi to do "Full Service". This was quite an ordeal, not so much the setup, but negotiating an commission rate that matched what they were paying my competitors. I'm curious, what is the rationale to allowing a bottler to do full service at your bigger accounts? For 6 years I refused to do any business with the bottlers and my feelings were reaffirmed every time I called and they would take a week to call me back if at all, just to tell me they would sell me cases of cans for $10. In the end I am comfortable with doing business with them. I look at them as a necessary evil if I intend on significant growth. It took a lot of persuasion to get me to this point. Agree with you there, I don't necessarily like the bottlers but they are a "necessary evil" as you put it. I think I will hop in the shower to see if I can get this brown crap off my nose That stuff tends to leave a permanent stain.. Congrats... to both of you... sounds like you guys had a very productive week. Link to comment Share on other sites More sharing options...
coinvestor Posted March 18, 2012 Author Share Posted March 18, 2012 Out of curiosity, what do you put in your goody bags? Four different items. Usually the weird stuff that people may not have seen. Link to comment Share on other sites More sharing options...
coinvestor Posted March 18, 2012 Author Share Posted March 18, 2012 Mission, I never liked the idea of letting the bottlers put out machines for me. RJT had been suggesting it to me for a long time, it just took a long time to convince me it was a good idea. I finally went forward with it for several reasons. 1. In my area the bottlers still put out machines with $1 20oz sodas. Up until now I have walked away from these accounts as I am unwilling to do $1 bottles regardless of volume (I need at least 1.25 for me to do them). I can now go after this business. 2. I am running out of room in my truck and have limited room for bottles. While I should probably get a bigger truck, full service helps with this in the short term. 3. Time- I am getting to a point where I am running out of time to add new stops. If I want to keep growing beyond what one person can do, at some point I would have to hire a route driver. Instead of having the headaches that go along with this I can let coke and Pepsi worry about it and still grow my business. 4. Profit - I spent the first 4-5 years in vending setting up accounts with only cans with the exception of water and Gatorade. If I go back and stick in a Coke or Pepsi bottle machine (even at $1) I will make about the same amount of $$ per vend, but don't buy a machine, product, or even spend time filling it. Link to comment Share on other sites More sharing options...
mission vending Posted March 18, 2012 Share Posted March 18, 2012 Mission, I never liked the idea of letting the bottlers put out machines for me. RJT had been suggesting it to me for a long time, it just took a long time to convince me it was a good idea. I finally went forward with it for several reasons. 1. In my area the bottlers still put out machines with $1 20oz sodas. Up until now I have walked away from these accounts as I am unwilling to do $1 bottles regardless of volume (I need at least 1.25 for me to do them). I can now go after this business. 2. I am running out of room in my truck and have limited room for bottles. While I should probably get a bigger truck, full service helps with this in the short term. 3. Time- I am getting to a point where I am running out of time to add new stops. If I want to keep growing beyond what one person can do, at some point I would have to hire a route driver. Instead of having the headaches that go along with this I can let coke and Pepsi worry about it and still grow my business. 4. Profit - I spent the first 4-5 years in vending setting up accounts with only cans with the exception of water and Gatorade. If I go back and stick in a Coke or Pepsi bottle machine (even at $1) I will make about the same amount of $$ per vend, but don't buy a machine, product, or even spend time filling it. Good answer. I'm in a similar situation, kind of a glass ceiling for about a year now and trying to decide what direction I'm going to go with my business. For me though there are outside influences that are part of the considerations. I can either buckle down and grow into a multiroute operation or I can let things more or less run on autopilot and possibly get more involved in local things including a run for public office. Link to comment Share on other sites More sharing options...
Dennis23 Posted March 18, 2012 Share Posted March 18, 2012 I'm old school and still don't want the cola companies in my accounts. Link to comment Share on other sites More sharing options...
RJT Posted March 19, 2012 Share Posted March 19, 2012 I'm old school and still don't want the cola companies in my accounts. If you can afford to double the cost of equipment and labor to each account then it can be good to keep them out (I guess). I have been using full service for a long time (and know many who do including the worlds largest vending company and see more good than bad out of using full service. Companies like JT's can grow their company without adding an extra employee by utilizing full service. Let the bottlers pay the salary, insurances, taxes, worry about vactions, sick days, etc, etc. and you benifit like you added an employee without all the headaches. It can cut both labor and capital layout in half in some/most cases. It also helps with cash flow greatly... BTW, what is the reason you dont want them in your accounts? Link to comment Share on other sites More sharing options...
Big Mike Posted March 19, 2012 Share Posted March 19, 2012 Can some clarify "Full Service" for me? They put in the machine, fill with product and service it too? Do they pay a commission? We lease(for free) bottler machines and buy the product from them. Is this not a option other places? Mike Link to comment Share on other sites More sharing options...
RJT Posted March 19, 2012 Share Posted March 19, 2012 Can some clarify "Full Service" for me? They put in the machine, fill with product and service it too? Do they pay a commission? We lease(for free) bottler machines and buy the product from them. Is this not a option other places? Mike Yes that is "full service" they install the machine, fill it, fix it if broke, etc and pay you a commission. Commission can very from region, company and negotiations. Your method is called "third party" and yes can be used in this and many areas. Some bottlers are getting away from third party and some are pushing for it. There seems to be no rhyme or reason why they do what they do at times. Link to comment Share on other sites More sharing options...
Vendors Tech Posted March 19, 2012 Share Posted March 19, 2012 I have always walked away from accounts that ask commission. Some accounts I understand could be worth it; I have never run across one that was worth it to me. I currently own every one of my machines free and clear, have no relationship with the bottlers, and pay no commission, rent, etc anywhere. All my accounts are open ended, and I have never lost an account. I have left accounts on my own accord. Link to comment Share on other sites More sharing options...
Shauna Posted March 19, 2012 Share Posted March 19, 2012 I have always walked away from accounts that ask commission. Some accounts I understand could be worth it; I have never run across one that was worth it to me. I currently own every one of my machines free and clear, have no relationship with the bottlers, and pay no commission, rent, etc anywhere. All my accounts are open ended, and I have never lost an account. I have left accounts on my own accord. I don't bring up a commission during a talk with a new potential location, but if they ask, I always let them know about the increase in price to cover the commission. I don't mind paying a commission for a good location. I'm curious, H4UV, what type of accounts do you currently have? If someone you currently have a machine in asked to start receiving a commission, would you do it, or would you pull the account? Is it worth losing an account for 10% commission on a monthly or quarterly basis? Link to comment Share on other sites More sharing options...
Dennis23 Posted March 19, 2012 Share Posted March 19, 2012 Yes that is "full service" they install the machine, fill it, fix it if broke, etc and pay you a commission. Commission can very from region, company and negotiations. Your method is called "third party" and yes can be used in this and many areas. Some bottlers are getting away from third party and some are pushing for it. There seems to be no rhyme or reason why they do what they do at times. If you can afford to double the cost of equipment and labor to each account then it can be good to keep them out (I guess). I have been using full service for a long time (and know many who do including the worlds largest vending company and see more good than bad out of using full service. Companies like JT's can grow their company without adding an extra employee by utilizing full service. Let the bottlers pay the salary, insurances, taxes, worry about vactions, sick days, etc, etc. and you benifit like you added an employee without all the headaches. It can cut both labor and capital layout in half in some/most cases. It also helps with cash flow greatly... BTW, what is the reason you dont want them in your accounts? Since the days when I was a one man show (the best days) till now I have always more than doubled my money on a bottle of soda. I used two to four columns of thier machine for the bottlers competitor. They take care of everything except filling. And then on top of that they are not in my account making friends.Just my reasons may not be for everyone. Link to comment Share on other sites More sharing options...
RJT Posted March 19, 2012 Share Posted March 19, 2012 Since the days when I was a one man show (the best days) till now I have always more than doubled my money on a bottle of soda. I used two to four columns of thier machine for the bottlers competitor. They take care of everything except filling. And then on top of that they are not in my account making friends. Just my reasons may not be for everyone. Those days of "doubling you money" on a bottle of soda are long gone, atleast in my area. They are very strict about their third party machines meaning no foreign products, and no transshipped (sp) drinks. So every row (except maybe one) you have to use their product bought direct from them. Also if you ran the numbers you were probably not "doubling" your money. My time is worth something to me (and worth more than a Pepsi,Coke driver makes) so I prefer to let someone else fill the machines and I get paid. Also the time to order, unload, load in a truck, stales, damages, etc make it nearly impossible to "double your money". I have NEVER had a problem with a bottling company making "friends" with any of my accounts that I allow them in for full service. They are smarter than that to try and take accounts from an existing vendor that has allowed them in an account to do business. If they did they would be facing many lawsuits from many vendors. Risk a huge lawsuit over picking up a few extra accounts? Even if they did try and make nice they dont do snacks, food, etc so I dont think they would have much a chance of getting accounts that wanted both and I (and most all legit vendors) am surley not doing snack,food only in accounts. Hey, I dont claim my way is the only way or even the right way for all vending operators but JT seems to be happy with the results along with many others including myself in my own company. It aint medicine you dont have to take it...... BTW, if your best days were when it was "one man show" why not go back to the "one man show" Link to comment Share on other sites More sharing options...
Vendors Tech Posted March 19, 2012 Share Posted March 19, 2012 I don't bring up a commission during a talk with a new potential location, but if they ask, I always let them know about the increase in price to cover the commission. I don't mind paying a commission for a good location. I'm curious, H4UV, what type of accounts do you currently have? If someone you currently have a machine in asked to start receiving a commission, would you do it, or would you pull the account? Is it worth losing an account for 10% commission on a monthly or quarterly basis? I currently have only about 7 accounts. I sold off most everthing last year, because I was getting into the refurbishing business and doing repair work. I started building up after the new year. I am so busy, that I am just keeping the account levels where they are right now, then I'll start growing when I have more time. Since I don't have to have the income from a route to survive, I can be picky which accounts I take on. I have no "bad" accounts right now. Every one of them are in the $100-$200 a week range. I am going to grow slowly and just get top accounts. It takes a while sometimes, but its worth it. I have run a route for three years now, and never had a place ask for commission once I was already in. I don't even consider it a possibility. All my accounts know that I don't pay it, I made that clear before I moved my machines in. They get excellent service from my company. They don't have a reason to ask for commission. I have a personal relationship with the general managers and Human Resouce directors at each location as well. I talk to them every time I'm there. You also have to keep in mind that I'm in a 60,000 people populated area. There aren't "HUGE" accounts out here, we're kind of America's small town. I know every vendor in the area. There are only 3 other vendors in 65 miles of me. They have 100-250 machines each, and we have a relationship. I do all their repair work and supply them with parts, machines, etc. We don't go after eachother's accounts, and we don't replace eachother. We all do a good job, and our accounts don't have complaints. VERY few accounts in town ask commission. The only one I know of is the hospital, one of the largest in Colorado. Its worth it though. There are about 10 machines there that do $150 a week easy. Its a weird setup to most, I know.... But it is what it is, and it works. Never hurts having friendly competetion! Link to comment Share on other sites More sharing options...
coinvestor Posted March 19, 2012 Author Share Posted March 19, 2012 You also have to keep in mind that I'm in a 60,000 people populated area. There aren't "HUGE" accounts out here, we're kind of America's small town. I know every vendor in the area. There are only 3 other vendors in 65 miles of me. They have 100-250 machines each, and we have a relationship. I do all their repair work and supply them with parts, machines, etc. We don't go after eachother's accounts, and we don't replace eachother. So where do you get accounts from? Link to comment Share on other sites More sharing options...
Shauna Posted March 19, 2012 Share Posted March 19, 2012 Yes that is "full service" they install the machine, fill it, fix it if broke, etc and pay you a commission. Commission can very from region, company and negotiations. Your method is called "third party" and yes can be used in this and many areas. Some bottlers are getting away from third party and some are pushing for it. There seems to be no rhyme or reason why they do what they do at times. The problem I see with full service from a bottler is that they are not as motivated to provide excellent customer service. If my name is tied to that location, I want to make sure the customers are taken care of. I have received at least 2 accounts because Coca Cola didn't service the machine on a timely basis. What's funny it that I put a Coke machine in those locations and just took over servicing it. But one location was completely adamant about getting their Coke machine out because Coca Cola would come and service the machine about once a month, and the popular selections would be sold out within 1 to 1 1/2 weeks after each service. And when they heard that the machine was making a commission for someone else who didn't ever come and check on the machine or keep it stocked, they were furious (and no, I was not the one that told them). Link to comment Share on other sites More sharing options...
mission vending Posted March 20, 2012 Share Posted March 20, 2012 The problem I see with full service from a bottler is that they are not as motivated to provide excellent customer service. If my name is tied to that location, I want to make sure the customers are taken care of. I have received at least 2 accounts because Coca Cola didn't service the machine on a timely basis. What's funny it that I put a Coke machine in those locations and just took over servicing it. But one location was completely adamant about getting their Coke machine out because Coca Cola would come and service the machine about once a month, and the popular selections would be sold out within 1 to 1 1/2 weeks after each service. And when they heard that the machine was making a commission for someone else who didn't ever come and check on the machine or keep it stocked, they were furious (and no, I was not the one that told them). Amen sister, not worried about them stealing the account, I would be more worried about them losing it for me due to piss poor performance. Link to comment Share on other sites More sharing options...
mission vending Posted March 20, 2012 Share Posted March 20, 2012 The only one I know of is the hospital, one of the largest in Colorado. Its worth it though. There are about 10 machines there that do $150 a week easy. I'm hoping you mean 150/week per machine and not 150/week for 10 machines, right? Link to comment Share on other sites More sharing options...
Vendors Tech Posted March 20, 2012 Share Posted March 20, 2012 Yes, per machine, per week. Link to comment Share on other sites More sharing options...
Vendors Tech Posted March 20, 2012 Share Posted March 20, 2012 So where do you get accounts from? I go out and get them myself. I have never hired a locator or bought accounts yet. I am after a 200+ route one of the guys owns locally which he mentioned he might sell in a year or so. If that comes up, I'll probably take it if he will finance it. Link to comment Share on other sites More sharing options...
coinvestor Posted March 21, 2012 Author Share Posted March 21, 2012 I go out and get them myself. I have never hired a locator or bought accounts yet. I am after a 200+ route one of the guys owns locally which he mentioned he might sell in a year or so. If that comes up, I'll probably take it if he will finance it. I was asking who you take them from if you don't get them from your competition. I guess its a tough thing to do to have your competition also be your customers. Link to comment Share on other sites More sharing options...
Vendors Tech Posted March 21, 2012 Share Posted March 21, 2012 I was asking who you take them from if you don't get them from your competition. I guess its a tough thing to do to have your competition also be your customers. I mainly get new accounts from new businesses that move in, or the few around that don't have vending machines already. There have actually been a surprising number of new warehouses go up in my area in the past couple months. I think that's tapering off though. It is hard having customers be competition, but I've sold accounts to my competitors, and I'll probably buy out at least one of my cometitors within a couple years. He has 200+ machines so the transition will take a while. Link to comment Share on other sites More sharing options...
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