Dennis23 Posted October 5, 2012 Share Posted October 5, 2012 A week and a day ago I turned in my resignation as the Iowa area manager for one of the larger vending companies in America. Three years before that I sold my full line vending company to my employer. 14 years of listening to customers complain and threaten to throw me out if I didn't do what they wanted was enough. Before going into the full line vending business I was a snack box operator for 10 years. I'm back in the snack box business and enjoying setting up new accounts. My goal at this time is to have 4 routes with 60 accounts on each route. I will run a route one day then the next day I will count the money and fill the boxes for the next days route. This will have me coming back to each account every 8 working days which allows them to eat enough product to make it worth my while. I'm charging $1.25 per item which makes me the highest price snack box operator in Eastern Iowa. I started two of the routes this week with 10 boxes placed on each. Next week I will start 2 more routes with 10 boxes on each route. Friday I will start bringing the first boxes back with money in them. When I hit 240 accounts in a few weeks then it will be time to decide if I want to keep growing or not. Some people think I'm crazy leaving my job with the vending company. I've always told my wife at my funeral I want the song played I Did It My way by Frank Sinatra. Link to comment Share on other sites More sharing options...
sherlock Posted October 5, 2012 Share Posted October 5, 2012 Fantastic! Good for you Dennis. I wish you all the success in the world because we need more people like you; Entrepreneurs who turn their dreams into goals then goals into action. Those people that think you are crazy for leaving your job are "workers". And there's nothing wrong with "workers". I think they are great! But they could never understand the mindset of an entrepreneur. Best of luck to you. Link to comment Share on other sites More sharing options...
mission vending Posted October 5, 2012 Share Posted October 5, 2012 A week and a day ago I turned in my resignation as the Iowa area manager for one of the larger vending companies in America. Three years before that I sold my full line vending company to my employer. 14 years of listening to customers complain and threaten to throw me out if I didn't do what they wanted was enough. Before going into the full line vending business I was a snack box operator for 10 years. I'm back in the snack box business and enjoying setting up new accounts. My goal at this time is to have 4 routes with 60 accounts on each route. I will run a route one day then the next day I will count the money and fill the boxes for the next days route. This will have me coming back to each account every 8 working days which allows them to eat enough product to make it worth my while. I'm charging $1.25 per item which makes me the highest price snack box operator in Eastern Iowa. I started two of the routes this week with 10 boxes placed on each. Next week I will start 2 more routes with 10 boxes on each route. Friday I will start bringing the first boxes back with money in them. When I hit 240 accounts in a few weeks then it will be time to decide if I want to keep growing or not. Some people think I'm crazy leaving my job with the vending company. I've always told my wife at my funeral I want the song played I Did It My way by Frank Sinatra. Congrats on making the leap. Best wishes on your endeavor. Please keep us updated. Link to comment Share on other sites More sharing options...
newheart53 Posted October 5, 2012 Share Posted October 5, 2012 Way to go, Iwas wondering how the change over was going, since Our conversation. Did your vacation go well? Good luck with the progression of this new adventure. Link to comment Share on other sites More sharing options...
dogcow Posted October 5, 2012 Share Posted October 5, 2012 Good luck dennis, sounds like you have a sound plan Link to comment Share on other sites More sharing options...
JCS Vending Posted October 5, 2012 Share Posted October 5, 2012 Best of luck to you, thanks for sharing your inspiring story Link to comment Share on other sites More sharing options...
Rick Posted October 5, 2012 Share Posted October 5, 2012 I'm so very happy for you Dennis. This is what you were born to do. No offense...I'm just glad you don't live anywhere near me. Link to comment Share on other sites More sharing options...
bill123 Posted October 6, 2012 Share Posted October 6, 2012 A week and a day ago I turned in my resignation as the Iowa area manager for one of the larger vending companies in America. Three years before that I sold my full line vending company to my employer. 14 years of listening to customers complain and threaten to throw me out if I didn't do what they wanted was enough. Before going into the full line vending business I was a snack box operator for 10 years. I'm back in the snack box business and enjoying setting up new accounts. My goal at this time is to have 4 routes with 60 accounts on each route. I will run a route one day then the next day I will count the money and fill the boxes for the next days route. This will have me coming back to each account every 8 working days which allows them to eat enough product to make it worth my while. I'm charging $1.25 per item which makes me the highest price snack box operator in Eastern Iowa. I started two of the routes this week with 10 boxes placed on each. Next week I will start 2 more routes with 10 boxes on each route. Friday I will start bringing the first boxes back with money in them. When I hit 240 accounts in a few weeks then it will be time to decide if I want to keep growing or not. Some people think I'm crazy leaving my job with the vending company. I've always told my wife at my funeral I want the song played I Did It My way by Frank Sinatra. What are you doing to get 20 new customers a week? I have only 3 days experience and 6 locations so that comes to about 10 a week. I am really interested. Could you maybe give what you did each day and any sales scripts you use? What businesses do you target if you target specific types? What do you put in the box and why? I am very interested if you try to keep CoGS low or favor more value product in hopes that higher sales volume will offset the lower margins? Do you think what is in the box matters with retaining accounts? Link to comment Share on other sites More sharing options...
bill123 Posted October 6, 2012 Share Posted October 6, 2012 You seem to really be great at this. After I get out 20 boxes I will definately do the next 20 at $1.25. If you say $1.25 I think I should at least test it. Link to comment Share on other sites More sharing options...
dogcow Posted October 6, 2012 Share Posted October 6, 2012 What are you doing to get 20 new customers a week? I have only 3 days experience and 6 locations so that comes to about 10 a week. I am really interested. Could you maybe give what you did each day and any sales scripts you use? What businesses do you target if you target specific types? What do you put in the box and why? I am very interested if you try to keep CoGS low or favor more value product in hopes that higher sales volume will offset the lower margins? Do you think what is in the box matters with retaining accounts? He's locating in person Link to comment Share on other sites More sharing options...
newheart53 Posted October 6, 2012 Share Posted October 6, 2012 So your going to listen too Dennis. Well thats good because he does know what he's talking about, But if you raise your price to $1.25 wher are you going to find .75 items to stock it with so you only make 100%? When we talk about stores doing way more than 100% were talking small business. We all know that Sam's Wally, target, costco and other high volume stores don't do 100% because they survive on VOLUME not markup. None of us on here can be considered in that cat. We have too survive on markup to be able to make any kind of living out of this business. Link to comment Share on other sites More sharing options...
dogcow Posted October 6, 2012 Share Posted October 6, 2012 A week and a day ago I turned in my resignation as the Iowa area manager for one of the larger vending companies in America. Three years before that I sold my full line vending company to my employer. 14 years of listening to customers complain and threaten to throw me out if I didn't do what they wanted was enough. Before going into the full line vending business I was a snack box operator for 10 years. I'm back in the snack box business and enjoying setting up new accounts. My goal at this time is to have 4 routes with 60 accounts on each route. I will run a route one day then the next day I will count the money and fill the boxes for the next days route. This will have me coming back to each account every 8 working days which allows them to eat enough product to make it worth my while. I'm charging $1.25 per item which makes me the highest price snack box operator in Eastern Iowa. I started two of the routes this week with 10 boxes placed on each. Next week I will start 2 more routes with 10 boxes on each route. Friday I will start bringing the first boxes back with money in them. When I hit 240 accounts in a few weeks then it will be time to decide if I want to keep growing or not. Some people think I'm crazy leaving my job with the vending company. I've always told my wife at my funeral I want the song played I Did It My way by Frank Sinatra. hey dennis how did u decide on 1.25 thats sort of an odd amount do u think u will get shortchanged a lot? Link to comment Share on other sites More sharing options...
GW13 Posted October 6, 2012 Share Posted October 6, 2012 There is a good size company in Connecticut that has been at 1.25 for over a year.... Link to comment Share on other sites More sharing options...
Dennis23 Posted October 6, 2012 Author Share Posted October 6, 2012 What are you doing to get 20 new customers a week? I have only 3 days experience and 6 locations so that comes to about 10 a week. I am really interested. Could you maybe give what you did each day and any sales scripts you use? What businesses do you target if you target specific types? What do you put in the box and why? I am very interested if you try to keep CoGS low or favor more value product in hopes that higher sales volume will offset the lower margins? Do you think what is in the box matters with retaining accounts? Hello GW13, I hope the information I give you helps. I'm not saying my way is the only way because I like to feel I'm still learning. It took me between 4 to 6 hours to place 10 boxes each day I went out. The only requirement I have for a new account is if their door is open I'm going to solicite the business. I have a video of my presentation that may help you, here is a link http://www.vending-business-information.com/honor-box.html scroll down the page till you see my picture holding a snack box. I carry 74 items in my snack boxes and here is a link to the items you may want in your boxes http://www.vending-business-information.com/snack-boxes.html just scroll down the page and it will give a list of items. I'm going to carry more candy bars in my boxes and with a price of $1.25 I can. I did have a possible new account tell me that the snack box operator they have is only chargeing them $1.00 I didn't get their business. While another account not 1 city block away from them said our snack box operator only charges $1.00 but you have a lot more chocolate I got their business. I'm also selling the 3oz bag of peanuts, Famous Amos, and Knotts berry cookies and my competitor is selling the smaller bags. When I was in the vending business I was the highest priced vendor in the area and had businesses asking me to service their account because I took pride in taking care of my accounts. I believe what is in the box does matter. Give the people what they want and provide them with good service and charge what you need to make a fair profit. I'm always open for new suggestions there are a lot of savy business people on this forum. I hope this information helps. Link to comment Share on other sites More sharing options...
Dennis23 Posted October 6, 2012 Author Share Posted October 6, 2012 hey dennis how did u decide on 1.25 thats sort of an odd amount do u think u will get shortchanged a lot? Hello DogCow, I have a friend on Twitter that has over 2000 accounts and has been in the business for years. He told me he went to $1.25 and lost over 300 accounts when he did. He also told me it was the best thing he ever did. His thought is he can stand more shortage now and doesn't have to say anything to the account about it. I wish I could say it was all my idea, but to be honest I'm still learning. Link to comment Share on other sites More sharing options...
dogcow Posted October 6, 2012 Share Posted October 6, 2012 Hello DogCow, I have a friend on Twitter that has over 2000 accounts and has been in the business for years. He told me he went to $1.25 and lost over 300 accounts when he did. He also told me it was the best thing he ever did. His thought is he can stand more shortage now and doesn't have to say anything to the account about it. I wish I could say it was all my idea, but to be honest I'm still learning. interesting let me know. i think the thing with the odd amounts, even tho its an even quarter, people have a $1 and $5 but they dont have change so they just put in a buck and shortchange you i am skeptical of prices that arent even dollar amounts but i closed my honor box route out this year i look forward to hearing ur results Link to comment Share on other sites More sharing options...
bill123 Posted October 6, 2012 Share Posted October 6, 2012 Hello GW13, I hope the information I give you helps. I'm not saying my way is the only way because I like to feel I'm still learning. It took me between 4 to 6 hours to place 10 boxes each day I went out. The only requirement I have for a new account is if their door is open I'm going to solicite the business. I have a video of my presentation that may help you, here is a link http://www.vending-b.../honor-box.html scroll down the page till you see my picture holding a snack box. I carry 74 items in my snack boxes and here is a link to the items you may want in your boxes http://www.vending-b...nack-boxes.html just scroll down the page and it will give a list of items. I'm going to carry more candy bars in my boxes and with a price of $1.25 I can. I did have a possible new account tell me that the snack box operator they have is only chargeing them $1.00 I didn't get their business. While another account not 1 city block away from them said our snack box operator only charges $1.00 but you have a lot more chocolate I got their business. I'm also selling the 3oz bag of peanuts, Famous Amos, and Knotts berry cookies and my competitor is selling the smaller bags. When I was in the vending business I was the highest priced vendor in the area and had businesses asking me to service their account because I took pride in taking care of my accounts. I believe what is in the box does matter. Give the people what they want and provide them with good service and charge what you need to make a fair profit. I'm always open for new suggestions there are a lot of savy business people on this forum. I hope this information helps. I was told my mix was way off. Here is my catagories if you can please give me your comments I would really appreciate it. I see your mix, but is mine so far off that it will doom me if I don't change it. I researched industry studies like the RAB snack report, SNAXPO, State of the Industry Vending Report, the Food Industry's "Food Industry Review. I was basically told I was a fool, but I used real studies so I figured that if it is off it won't be bad enough that I can't reasonably fix it with minor adjustments. Chocolat Candy 30% Non-chocolat Candy 10% Gum 2% Regular cookies & poptarts 12% Baked goods 8% (because of shelf life) Nutrition snacks 3% Crackers 5% Meat Snacks 1% Nuts 2% Popcorn 5% Pretzels 4% Chips 17% (because of space) P.S. I carry almost every item you do except I don't have Chocolate Peanut Butter Wafers, Brownies, Swiss Creams, I have Red Vines instead of Twizzlers only because Sams didn't have them. Oh that gives me another question: Is there any place better than Sam's (or Costco)to buy from? Link to comment Share on other sites More sharing options...
Lake Cities Vending Posted October 6, 2012 Share Posted October 6, 2012 Keep us posted. Link to comment Share on other sites More sharing options...
GW13 Posted October 6, 2012 Share Posted October 6, 2012 bill123......trust me, youre overthinking it.....spend that time hiring a good part-time salesman and speaking to accounts about shortages.....all these other details are taking your eye off the ball Link to comment Share on other sites More sharing options...
Dennis23 Posted October 9, 2012 Author Share Posted October 9, 2012 I went out Monday and placed 10 more boxes. Started after my workout out at the gym. 6:30 is a bit to early but I had my first box placed minutes before 8:00 am. Went about an hour without a sale after placing the first box then hit 3 in a row. I had some nice visits with some of the new accounts and with some that didn't take a box. I was done placing the 10 boxes shortly before noon. I'm enjoying my work once again. I have 30 accounts now. Today I will be in the warehouse filling boxes and getting ready for Wednesday and Friday which are the 2 sales days left in this week. Thanks to all of you that have had encourging words. If your new at this business block off a section of town and work every door it pays dividend when you do. Don't worry about going an hour or even 2 without a sale as things always even out in the end. Watch what works as your selling and use the things that work over and over again. Dennis Link to comment Share on other sites More sharing options...
loach33 Posted October 10, 2012 Share Posted October 10, 2012 Dennis, I bought boxes from you and I have some out. Question for you about locating. With your 30 accounts - how many miles do you think you have between them all? I'm guessing all 30 are within a 5 mile drive total. Is that right? So, is it best to just place them everywhere as long as they are close to each other and then weed out the locations that don't work....rather than just guessing on good locations, locating there and then driving all over town to service them? Link to comment Share on other sites More sharing options...
treadmill Posted October 10, 2012 Share Posted October 10, 2012 That's how I would approach it. Link to comment Share on other sites More sharing options...
Dennis23 Posted October 11, 2012 Author Share Posted October 11, 2012 Dennis, I bought boxes from you and I have some out. Question for you about locating. With your 30 accounts - how many miles do you think you have between them all? I'm guessing all 30 are within a 5 mile drive total. Is that right? So, is it best to just place them everywhere as long as they are close to each other and then weed out the locations that don't work....rather than just guessing on good locations, locating there and then driving all over town to service them? HelloI started 4 routes and I placed 10 accounts on each new route. The first route was started in Burlington Iowa the 2nd Ft Madison the 3rd Keokuk and the forth in Muscatine Iowa. If you look these towns up on a map they all set on the Mississippi river. Each one of these towns I'm planning on having 1 route in them. I section a town off and work each open business. If my plan works I will have 60 accounts in each one of these towns. If your wondering why 10 accounts on 4 different routes its because it is cheaper to build your routes evenly rather than one at a time (less boxes setting in the warehouse waiting my next trip out). Link to comment Share on other sites More sharing options...
Dennis23 Posted October 11, 2012 Author Share Posted October 11, 2012 Wednesday was the start of my 4th and final route for the time being. It started out like a dream I had 2 new accounts before 8:00am and by 10:30 I had 9 new accounts. Only 1 more to go and it took me till 11:30 to place the last box. I had a nice visit with the last account I placed and I didn't get headed for home til 12:10pm. I now have 40 accounts and will go back to the first boxes I placed Friday the 12th. These first 10 boxes I placed will have been out for 8 working days. This is enough time to have a good return on them. Thursday (today) was the last paycheck from my previous employer and Friday is the first day money starts coming in from my new routes. I started planning in Febuary for this day. I think it was Hannable on the TV show (help me with the name of the show) that said its nice when a plan comes together. Dennis Link to comment Share on other sites More sharing options...
dogcow Posted October 11, 2012 Share Posted October 11, 2012 Link to comment Share on other sites More sharing options...
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