mission vending Posted October 12, 2012 Share Posted October 12, 2012 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 Sounds like you are off to a great start, thanks for taking the time to keep us updated on your progress. Link to comment Share on other sites More sharing options...
Dennis23 Posted October 13, 2012 Author Share Posted October 13, 2012 I took off Friday with 20 boxes, 10 to service the 10 existing customers and 10 for new accounts. I had 2 new accounts early. As I was running the existing accounts one told me they had changed their mind and wanted me to take my box out. They had 2 boxes from a competitor and they only charge $1.00 per item. Now to stay even with my goals I needed to place 11 boxes. As my day progessed I had 2 of my existing accounts that where closed. I have not counted the money yet but it looks as though 2 of the 8 boxes I brought back didn't do much. The other 6 look normal to heavy use. I do think I'm getting some resistance to the $1.25 price but still think it will pan out to be a good move. I placed 11 new accounts but still had 2 full boxes because of missing 2 accounts and it was about 1:30pm. I decided to use the 2 boxes and went looking for more new accounts. At about 2:30 I had picked up a couple more accounts and now I have 52 accounts on my 4 routes. I'm having a good time walking into so many businesses. Every morning at the YMCA gym there is a gentleman that comes in shortly after my wife and I get there. Until Friday I had no idea who he was. I walked into the Sterzings Potato Chips factory office and there he was. He and a freind bought the company a couple years ago. He come over and listened to my presentation and said no he wasn't interested. We talked for a while and I passed a message on that a piano performer in Jamaica had asked me to give a freind of his that had married into the Sterzing family over 30 years ago. It is truly a small world with many enjoyable people in it. Every day that goes by reconfirms that leaving my former employer was the right move for me. Link to comment Share on other sites More sharing options...
dogcow Posted October 14, 2012 Share Posted October 14, 2012 can you tell some specific reasoning on the 1.25 price point? is it cogs, theft, cost to service all of the above? would you be willing to tell the specifics of those for your route? Link to comment Share on other sites More sharing options...
Dennis23 Posted October 17, 2012 Author Share Posted October 17, 2012 can you tell some specific reasoning on the 1.25 price point? is it cogs, theft, cost to service all of the above? would you be willing to tell the specifics of those for your route? Hello DogcowIt is a little bit of everything you mentioned above. One of the things about vending in general that has always bothered me is that we are our own worst enemy when it comes to pricing. When you go into a convience store we don't think a thing about paying $1.19 plus tax for a candy bar or a $1.74 for a bottle of pop. But in many cases vendors are selling that same candy bar for .85 cents and the bottle of pop for $1.25 and paying the account a commission. We bring the product to them handle each unit individually and sell it cheaper. When I look at it this way it doesn't make sense to me. I'm not getting into a few accounts because of the price and sales are slower than they should be because of the price but I'm averaging more than a $1.00 per item after shortage is taken out. As people become use to the $1.25 and I get the right blend of products in my boxes people will pay what I'm asking and not think a thing about it. I truly believe that my competition will go to $1.25 in time also but that is their choice. There is an old saying price sells the account and service keeps the account. When I was in the full line vending business I was the highest priced vender in my area and I never lost an account. I believe the reason for this is that I out worked my competition in giving good service. Link to comment Share on other sites More sharing options...
Dennis23 Posted October 17, 2012 Author Share Posted October 17, 2012 I went out Tuesday with 20 boxes. I run the 10 accounts I placed 8 working days prior and picked up 10 new accounts. I was done shortly before noon and headed home. I know I'm getting resistance to the $1.25 price on my snacks but I'm sure with time that resistance will go away. I'm averaging about 19% shortage and that puts me at over $1.00 per item sold. Boxes are averaging a little over $10.00 per box and that is why I say I'm getting some resistance to the $1.25 price (they should be averaging more). I'm now setting at 62 accounts and heading slowly toward that 240 goal I have set for myself. Link to comment Share on other sites More sharing options...
dogcow Posted October 17, 2012 Share Posted October 17, 2012 Hello Dogcow It is a little bit of everything you mentioned above. One of the things about vending in general that has always bothered me is that we are our own worst enemy when it comes to pricing. When you go into a convience store we don't think a thing about paying $1.19 plus tax for a candy bar or a $1.74 for a bottle of pop. But in many cases vendors are selling that same candy bar for .85 cents and the bottle of pop for $1.25 and paying the account a commission. We bring the product to them handle each unit individually and sell it cheaper. When I look at it this way it doesn't make sense to me. I'm not getting into a few accounts because of the price and sales are slower than they should be because of the price but I'm averaging more than a $1.00 per item after shortage is taken out. As people become use to the $1.25 and I get the right blend of products in my boxes people will pay what I'm asking and not think a thing about it. I truly believe that my competition will go to $1.25 in time also but that is their choice. There is an old saying price sells the account and service keeps the account. When I was in the full line vending business I was the highest priced vender in my area and I never lost an account. I believe the reason for this is that I out worked my competition in giving good service. now i dont disagree with what ur saying but my thinking is $1.25 is an odd amount, i price everything at $1 because its a round number , people carry $1, $5, $20 bills but they may not have change, so i feel odd amounts decrease sales or increase chance of getting short changed. i will be interested to know how it works out. i think full line vending is a lot different because you dont depend on the person having exact change. i think everyone in vending would agree regarding why do vendors cut eachothers throats on pricing and commission but i think it always comes down to the fact there is always someone willing to deal. pricing was never an issue for me in honor boxes becaue there is no competition so to speak in my area. Link to comment Share on other sites More sharing options...
QualitySelectionsJ Posted October 22, 2012 Share Posted October 22, 2012 I think $1.25 works with todays inflation. Even if they short you, at least you should get $1. Dennis I'm interested in starting with a few large boxes if that's possible. I wish to start asap if you can make that happen. I appreciate everyone's valuable feedback. Thanks. Link to comment Share on other sites More sharing options...
Dennis23 Posted October 23, 2012 Author Share Posted October 23, 2012 Things have been going as planned up to this point. Last Thursday I went out with 20 boxes run the ten accounts I had and then placed 10 new accounts. Sales on an 8 work day cycle are running a little over $13.00 per box and right at 20% shortage. I went to Muscatine Monday with 20 boxes and run the 10 established boxes and then placed 10 new accounts. My wife had taken the day off it was her birthday and I had hoped to get back early. As you might guess it was the longest day I have had since starting the route. I got done with the route and had placed the 10 new boxes about 2:30. One of the stops I run yesterday did a decent amount of sales but the coin box was gone. This happens in this business I relate it to a board going bad in a machine. You don't want the coin box to come up missing nor do you want to buy a new board for a vending machine. I will begin running 20 boxes tomorrow and my plan is to place 10 new accounts making my first 30 account route. By placing 10 new accounts each day I have been able to place a 50 case order every two weeks with Vistar out of Chicago. I think at the beginning of this start up my wife may have wondered if I still had what it takes to start a new business at my age. I hope and trust that I have convinced her I still have what it takes. I have 82 boxes placed now and the goal of 240 is getting closer. As Hanable on the A Team would have said it's nice when a plan comes together. Link to comment Share on other sites More sharing options...
treadmill Posted October 23, 2012 Share Posted October 23, 2012 Good going Dennis you're 1/3 of the way to your goal. Great job. Keep up posted. Link to comment Share on other sites More sharing options...
QualitySelectionsJ Posted October 23, 2012 Share Posted October 23, 2012 Hi Dennis, do your accounts ask for a commission, and if so what would you offer? Should I offer any incentive to get a Yes answer? Thanks. Link to comment Share on other sites More sharing options...
sherlock Posted October 23, 2012 Share Posted October 23, 2012 Great job so far Dennis. I am enjoying this running thread and status updates. Keep it up! And thank you. Link to comment Share on other sites More sharing options...
treadmill Posted October 23, 2012 Share Posted October 23, 2012 Hi Dennis, do your accounts ask for a commission, and if so what would you offer? Should I offer any incentive to get a Yes answer? Thanks. I think he is not offering any commission due to the small amount of sales (really wouldn't pay very much to the business ie $13 gross let's say 25% commission $3 and change not really worth it in my book). Link to comment Share on other sites More sharing options...
dogcow Posted October 25, 2012 Share Posted October 25, 2012 Hi Dennis, do your accounts ask for a commission, and if so what would you offer? Should I offer any incentive to get a Yes answer? Thanks. NO! Link to comment Share on other sites More sharing options...
QualitySelectionsJ Posted October 25, 2012 Share Posted October 25, 2012 Thanks dogcow. Down here my machine locations ask for commissions, but I will be donating to a local charity. That may help avoid commissions. Link to comment Share on other sites More sharing options...
Dennis23 Posted October 28, 2012 Author Share Posted October 28, 2012 Hi Dennis, do your accounts ask for a commission, and if so what would you offer? Should I offer any incentive to get a Yes answer? Thanks. I never offer a commission and I rarely have an account ask for one. I tell those that ask that there is always some shortage and that is why I can't pay a commission. Link to comment Share on other sites More sharing options...
Dennis23 Posted October 28, 2012 Author Share Posted October 28, 2012 Hello, Its Sunday afternoon and it's time to update for those that are interested. I've been out 2 times since the last update. I started a fifth route to put more time in between deliveries. The reason for the fifth route is sales are not where I want them to be. Still getting resistance to the $1.25 price tag but I know it is the right thing to do with the price of gas and all other expences. I'm sure with time they will stop resisting the price. Every time I have raised prices there has always been a temporary dip in sales. I will start replacing a few accounts in a few weeks if sales don't increase but I don't want to do it to quickly. In the last two days out on the route I picked up 28 new accounts and now have 110 total accounts. Starting the fifth route I now plan on 300 accounts for this route. Ottumwa is the location of the new route and is wide open that is a welcome thing. Link to comment Share on other sites More sharing options...
treadmill Posted October 29, 2012 Share Posted October 29, 2012 Thanks for the update. Looking forward to future updates. Link to comment Share on other sites More sharing options...
Dennis23 Posted November 2, 2012 Author Share Posted November 2, 2012 It is Friday afternoon and the money has been counted from the boxes I run yesterday. The sales have been picking up on the last 2 routes I ran. Product sold was 18.50 per box and money in the box was 14.50 giving me 21% shortage. The shortage will come down as from this point on I'm going to be carding the worst offenders. I think some of the resistance to the $1.25 price is breaking down, I was sure that it would with time. I added 20 new acounts the last 2 days I was on routes. My total number of accounts is 131. Next week when I start running the routes that have 30 accounts on them I may start placing 5 new accounts per day instead of the 10 or more I have been placing up till now. As the routes fill out and the accounts have been on the route for a month or two I think that sales per box are going to increase to around $23.00 to $25.00 and the money in the box will climb to $17.00 to $19.00 per cycle. I've had a few accounts dump there snack box operator and take my box even though it is $1.25 versus theirs at $1.00. I had even more take my card as their present operator is not able to offer much chocalate because of being at $1.00. My thought is give people what they want and charge them accordingly. You may miss some accounts when your selling but in the long run it is going to pay. Link to comment Share on other sites More sharing options...
Rick Posted November 3, 2012 Share Posted November 3, 2012 You are a machine Dennis. I'm always more inspired to get out there locating when I read your posts. Link to comment Share on other sites More sharing options...
treadmill Posted November 10, 2012 Share Posted November 10, 2012 Dennis how about a status update. Link to comment Share on other sites More sharing options...
Dennis23 Posted November 11, 2012 Author Share Posted November 11, 2012 My business is definately taking a turn for the better as time goes on. The new route is up to 28 accounts now, another route has 37 and the other 3 routes have 30 so I now have 155 accounts. I thought I had 156? I may have to count the routes when I'm getting ready to fill boxes. This past week I was out on a route 3 times. I picked up 25 new accounts. Two of the routes I picked up 10 new accounts and the 3rd route I picked up 5 new accounts. Going forward with the routes filling out I'm going to drop down to 5 new accounts until each route hits 60. I don't know if any of you can associate with what I'm about to say but here goes. I have worked with some great salesmen in my life but I'm not in that catagory. One morning this past week my wife and I where drinking our morning cup of coffee when I told her that at that time in the morning I'm always worried that I won't be able to make the sales goals I have set for myself. She looked at me kinda funny and said that surprised her. I told her it was true and that doubting my sales ability has always been there for me. I deal with my doubts by making myself get out of the vehicle with a box in hand and head into that first door each day. Once inside the presentation starts to flow from my mouth, the fear seems to end and I begin to enjoy the people I'm meeting for the first time. I have a policy to thank the ones that don't buy for listening to my presentation. If someone will listen to me I feel they have done everything that I could expect from them. I hate the thought of being a failure and putting this on VENDiscuss has put me in the hot seat. There may come a day when I won't make my sales goal. I just want all of you to know the day after that, I will get up and do it all over again. Dennis Link to comment Share on other sites More sharing options...
newheart53 Posted November 11, 2012 Share Posted November 11, 2012 I've been in sales for years, I have those same doubts every morning that I went out the door, but thats what makes a salesperson stand out in the field. The drive and determination to make that first call [i justified it as the warm up for the day]. Rejection is just another part of being a good salesperson,you have to accept it. When a person allows his fears to prevent him or her from walking through that first door every morning, thats when your a failure at that particular day. I'm not saying there won't be some days you just can't muster up the strenght to open that first door. On those days you need to do some down time to consider what it is that lead to that action and overcome it. There is always tomorrow, but if it happens on aregular basis then its time to consider another path in life. My personal opion, The way you have built your route in this short of period YOU ARE THE MAN. So from me to you don't worry about those feelings, accept them and keep on going. I think your wife probably knows you better than you know yourself Another thing, there is not one salesperson alive that has meant his or her goal every time. Thats why they call them goals, [anumber set by an individual to try and attane in acertain amount of time]. Hope this helps, have a great week. Link to comment Share on other sites More sharing options...
mission vending Posted November 12, 2012 Share Posted November 12, 2012 My business is definately taking a turn for the better as time goes on. The new route is up to 28 accounts now, another route has 37 and the other 3 routes have 30 so I now have 155 accounts. I thought I had 156? I may have to count the routes when I'm getting ready to fill boxes. This past week I was out on a route 3 times. I picked up 25 new accounts. Two of the routes I picked up 10 new accounts and the 3rd route I picked up 5 new accounts. Going forward with the routes filling out I'm going to drop down to 5 new accounts until each route hits 60. I don't know if any of you can associate with what I'm about to say but here goes. I have worked with some great salesmen in my life but I'm not in that catagory. One morning this past week my wife and I where drinking our morning cup of coffee when I told her that at that time in the morning I'm always worried that I won't be able to make the sales goals I have set for myself. She looked at me kinda funny and said that surprised her. I told her it was true and that doubting my sales ability has always been there for me. I deal with my doubts by making myself get out of the vehicle with a box in hand and head into that first door each day. Once inside the presentation starts to flow from my mouth, the fear seems to end and I begin to enjoy the people I'm meeting for the first time. I have a policy to thank the ones that don't buy for listening to my presentation. If someone will listen to me I feel they have done everything that I could expect from them. I hate the thought of being a failure and putting this on VENDiscuss has put me in the hot seat. There may come a day when I won't make my sales goal. I just want all of you to know the day after that, I will get up and do it all over again. Dennis Dennis you are a inspiration. Link to comment Share on other sites More sharing options...
Dennis23 Posted November 16, 2012 Author Share Posted November 16, 2012 I was out on routes Tuesday and Thursday this week. I now have 166 accounts and I'm adding 5 new accounts each day out. Tuesday I took off with 5 boxes for growth and along the way lost 4 accounts. Had to pick up 9 new accounts to be where I wanted to be at the end of the day. The first snack box route I built years ago grew at a pace of 2 new accounts per week in the beginning then 2 per day later on. Growing at the pace I'm growing this time makes it seem like more are dropping off but I think it is just more noticeable because of the quicker growth. Sales are running just shy of $20.00 per box at this time. The one area I have let down in is carding those that have to high of shortage. I'm starting to rectify that problem now before it gets out of control. With Vistar's 50 case minimum order there has been no profits in the books at this point but in the next 1 to 2 weeks I'm anticipating my first profit. The profit is about a week late at this point in time from what I had anticipted in the beginning. I'm a much happier person today than when I was in the corporate world and have no regrets about leaving my previous employer, they are a great company I'm just not a good employee. I will be ordering more boxes soon as I just opened the last case. Thanks to all of you that have sent words of encouragement it means a lot to me. Dennis Link to comment Share on other sites More sharing options...
mapleleaf15 Posted November 20, 2012 Share Posted November 20, 2012 Hi Dennis, This thread is very inspirational. I work a full time night job, run a part-time eBay business and just started vending last month. My goal is to grow vending over the next year to be able to leave my job. Like you, I am not made to be an employee. I have 36 triple head bulk located and have 25 honor boxes going out next month. I am taking ebay and vending profits and rolling it back to vending business. I did get some of my accounts based on promising better service than previous vendors. Though some of my locations could be serviced every 2 months I choose to go every month for better service and to get $ working to build business faster.I.e. I could collect $50 after two months or get the $25 at month one and buy 5 or 6 honor boxes to place immediately. I like using a locator but I make myself find some locations so I am able to. This week I will place 10 mint boxes. Thanks for all your sharing and inspiring.... Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.