AngryChris Posted January 5, 2012 Share Posted January 5, 2012 I haven't taken the plunge into the wonderful world of OCS yet but I am seriously considering it... I have the cash flow to invest into it and it seems like a cheap and easy way to generate more profits at my existing locations... but I have questions. Firstly, around what is your standard markup? Where do you get your OCS supplies from? I'm just trying to get some ideas.... I was never really a part of the OCS billing but I did make a few deliveries in the past so my experience is limited. Do you give the filters or stir sticks for free? Do you double your price of coffee? Do you charge a rental fee for the burner? Etc... just a general idea. I have low overhead right now so I can sell my products cheaper but I don't want to upset the market and get myself into a position where my customers enjoy ultra low prices and I can't raise them in the future. You know what I mean. Thanks. Link to comment Share on other sites More sharing options...
Pyrodude Posted January 5, 2012 Share Posted January 5, 2012 Might want to check this thread...,.. http://vendiscuss.net/index.php?/topic/9057-need-help-with-office-coffee/page__p__93825__hl__coffee__fromsearch__1#entry93825 Link to comment Share on other sites More sharing options...
Dennis23 Posted January 6, 2012 Share Posted January 6, 2012 I haven't taken the plunge into the wonderful world of OCS yet but I am seriously considering it... I have the cash flow to invest into it and it seems like a cheap and easy way to generate more profits at my existing locations... but I have questions. Firstly, around what is your standard markup? Where do you get your OCS supplies from? I'm just trying to get some ideas.... I was never really a part of the OCS billing but I did make a few deliveries in the past so my experience is limited. Do you give the filters or stir sticks for free? Do you double your price of coffee? Do you charge a rental fee for the burner? Etc... just a general idea. I have low overhead right now so I can sell my products cheaper but I don't want to upset the market and get myself into a position where my customers enjoy ultra low prices and I can't raise them in the future. You know what I mean. Thanks. Double your money on the coffee. No charge for the filters or the stir sticks. Sell as many condiments as posible (sugar, tea,creamer, and what ever else you can). No charge for the brewer. Vistar is just one supplier that is a nation wide company. Start with the proper pricing and remember this you may be the next super large OCS. Link to comment Share on other sites More sharing options...
AngryChris Posted January 6, 2012 Author Share Posted January 6, 2012 Great info, thanks! Link to comment Share on other sites More sharing options...
RJT Posted January 6, 2012 Share Posted January 6, 2012 Chris, I would venture to guess that price markup will vary from regin to region. I think it will depend on what the "market the will bare". I can tell you that 30 to 35% markup is pretty standard in my region. We have pretty strong competition in this area so that effects what our markup is. Giving certain items is a judgment call and not a standard. Some give filters, stir sticks, cleaner, etc some charge for it. Brewer rental is not typical but not unheard of depening on situation. You could get into a "rental situation" in very slow accounts that order less than two cases a month. Link to comment Share on other sites More sharing options...
AngryChris Posted January 7, 2012 Author Share Posted January 7, 2012 Chris, I would venture to guess that price markup will vary from regin to region. I think it will depend on what the "market the will bare". I can tell you that 30 to 35% markup is pretty standard in my region. We have pretty strong competition in this area so that effects what our markup is. Giving certain items is a judgment call and not a standard. Some give filters, stir sticks, cleaner, etc some charge for it. Brewer rental is not typical but not unheard of depening on situation. You could get into a "rental situation" in very slow accounts that order less than two cases a month. Gotcha. I have a few connections that I am going to ask and see what their rates are.... I have an opportunity for an account but they have a Keurig brewer... one that you put your coffee flavoring into one part of the machine (I can't explain it greatly because I never buy coffee or drink it), you put your 50 cents into the "coin mech" or whatever that thing is lol... and then it drops a cup, and somehow "brews" this coffee flavoring with hot water and dispenses it into the cup... this process takes about as long as a coffee vending machine, maybe a little slower..... are these too complicated for me to get into? This machine suits my customer fine and I do not have a contract with them regarding the coffee... I have never really gone after it because the brewer seems like it might not be what I want to get into vs. a standard Bunn brewer for example... but the company that does this coffee only does coffee so I haven't been concerned over a competitor going after the soda and snacks, which I operate. Link to comment Share on other sites More sharing options...
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