BobTHJ Posted November 30, 2012 Share Posted November 30, 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. I recently switched my ~130 honor box accounts from $0.75 to $1.00 and lost about 10 accounts in the process. My theft jumped from ~20% to ~33% and sales from most boxes dropped a bit. At three months out from the change I am bringing in roughly the same amount of gross revenue, I've had a jump in net revenue by about 5%, and I'm spending far less time servicing accounts and loading boxes. Well worth the change in my opinion even though I lost two of my best accounts in the process. I also rarely have to leave a shortage note now as I have much bigger margins and make better profits despite the higher theft rates. Link to comment Share on other sites More sharing options...
Dennis23 Posted December 9, 2012 Author Share Posted December 9, 2012 It's been a while since I lasted updated everyone. I'm still growing at 5 new accounts per day. I'm now setting at 203 accounts and still growing. I have met so many interesting people along the way and I'm really enjoying myself. I think this Tuesday I'm going to start the 6th route and figuring 60 stops per route that will give me 360 accounts when I get them completed. There are 2 reasons for the 6th route. One is I think it will generate more sales per account by having more time in between running them. The 2nd reason is when I went to 5 routes it put me back to each account on the same day of the week. That was fine until Thanksgiving come along and I took some time off. Now I have accounts that are closed on the new day that I'm stopping and I'm unable to service them. By adding a route it will put me on a 12 business day cycle which will have me coming back on a different day each time I run a route. I will miss an account that is closed on Monday once every 6th time I run a route. This way when a holiday comes around it won't have me missing an account that is closed say every Monday. My shortage at this time is running a little over 30% which at $1.25 per item does not concern me to much but I'm carding the worst offenders and it is definately helping. If you are new to this business or are thinking about going into it please make sure that you have some sort of way to control shortage or you are only kidding yourself. Going back into business and starting from scratch at my age (60 in January) makes me feel good about myself. I would say to any of you thinking about starting a business to understand it is a lot of work but the rewards are many. Link to comment Share on other sites More sharing options...
mission vending Posted December 10, 2012 Share Posted December 10, 2012 You da man Dennis, that's great news. Link to comment Share on other sites More sharing options...
bulkjake Posted December 10, 2012 Share Posted December 10, 2012 Great Dennis! What is your average gross profit per box now? Link to comment Share on other sites More sharing options...
reel Posted December 10, 2012 Share Posted December 10, 2012 A very inspiring read Dennis, your a great saleman thats for sure!. Link to comment Share on other sites More sharing options...
treadmill Posted January 9, 2013 Share Posted January 9, 2013 Hey Dennis how about an update. Haven't heard from you in a while. Link to comment Share on other sites More sharing options...
loach33 Posted January 10, 2013 Share Posted January 10, 2013 Dennis or others feel free to chime in - What would or do you say to someone at the business that gets real worried about the theft? Here's the scenario that I have. A small shop is short 15-20%. The manager there always wants to know exactly how short they are and he makes up for it out of his own pocket. For me, it's real nice. He's always told don't worry about it, it's my problem, etc. but he insists and cites the charity. He gets on his guys about it and it does bother him. It's been there about 5 months. So, this last time he says the owners don't want it anymore citing the theft. Well, we convince him to keep it there again this week saying it's our problem, etc. What do you say to someone like this? He's a good guy but I know this is something he doesn't want to have to worry about. Do you lie and say it was right on this week, thanks. The problem with that, I see is that the theft rate will gradually grow and you'll never be able to say it's short. My thought to say to him is that if we pull it then the charity is getting nothing, rather than missing a few bucks here each service. Link to comment Share on other sites More sharing options...
newheart53 Posted January 10, 2013 Share Posted January 10, 2013 IMO I'd tell him that the shortage is abot an industry average and at this stage of the game is acceptable, but if it gets worse then will come the time too make a command decission to remove it. One question though, Dose the box make you good money? Link to comment Share on other sites More sharing options...
loach33 Posted January 11, 2013 Share Posted January 11, 2013 IMO I'd tell him that the shortage is abot an industry average and at this stage of the game is acceptable, but if it gets worse then will come the time too make a command decission to remove it. One question though, Dose the box make you good money? Forgot to add that. Yes, I would say. It does about $13 a week. We go every 3 weeks. It's made $160 on $260 in sales. So, I would rather not move it Link to comment Share on other sites More sharing options...
Rick Posted January 11, 2013 Share Posted January 11, 2013 If it routinely runs 15-20% short I think it's okay to tell a white lie here and say that all of the money was accounted for this time. If that's what's going to put the manager at ease and allows your box to stay on location it's not hurting anybody and, in fact, saving him a great deal of stress and discomfort from the sounds of it. I would never mention theft to him again. I'd decide right now what's an acceptable shortage % for me and either live with it or pull the box. Otherwise this whole thing is placing an undue amount of worry and stress on an honest, innocent bystander. That's not what vending is about. Link to comment Share on other sites More sharing options...
jharper2346 Posted January 13, 2013 Share Posted January 13, 2013 Great thread! Keep the updates coming Link to comment Share on other sites More sharing options...
Dennis23 Posted January 23, 2013 Author Share Posted January 23, 2013 The only time I tell an account how short they are is in a last ditch effort to hold onto them. I have many accounts that are just like your owner and have found that they worry to much about the box. if I card them for being short I would normally play it down with something like someone probably just forgot to get there money in and this is just a freindly reminder. I like to leave the card on the box without saying anything the day Ieave it. I have found that to often the owner will say just don't leave another box. When I come back in a couple of weeks it has normally had the desired effect on the person who is stealing and the owner has had time to calm down. Hope this helps. Dennis Link to comment Share on other sites More sharing options...
Dennis23 Posted January 23, 2013 Author Share Posted January 23, 2013 It been just over 3 and a half months since I started my snack box route. I'm averaging about $15.00 in cash per box. I'm getting excited because I have always seen sales in the tank from between a week before Christmas till my birthday which is 1-21. Now sales are beginning to climb and should remain constant until the summer heat hit when it will slow down again. The reason for the dip is home made Christmas candy in the work place and then New Year diets that are pretty much over around the 3rd week of January. I have 246 accounts now and I'm growing 1 new account each time I run a route. I felt like it was time to take some profit that is why I'm only placing 1 new account each time I run a route. I have accounts that don't eat anything in a cycle and accounts that will conpletely clean out a box each cycle. In the years I have owned snack box routes I give a small account plenty of time to get into the habit of becoming a snacker. Once the habit is formed it is hard for them to break it. I would say that if I can start all over again at 60 you young guys should be able to start and build a route that will provide you and your family with an above average income. I appreciate the kind words many of you have left on the forum and the pm's you have sent. Dennis Link to comment Share on other sites More sharing options...
treadmill Posted January 24, 2013 Share Posted January 24, 2013 Great job. Looks like you're 2/3 the way to your goal. Keep up the good work. Link to comment Share on other sites More sharing options...
Dennis23 Posted February 10, 2013 Author Share Posted February 10, 2013 Hello Everyone, It's Sunday afternoon and I thought I would give you an update on how things are going. Sales are averaging $23.00 per box and they are averaging $16.00 for money in the box. This puts me at 30% shortage and where I'm pricing everything at $1.25 I'm comfortable with this shortage percent. I have been doing some carding which must be done in this business or the shortage can get out of control. I have not pulled a single customer because of shortage it will probably be awhile before I do. I have had a couple of time when the box was cleaned out and not a dime in the box. Thats $92.50 shortage from one account and you can imagine how that shoots the shortage up. I still hold onto them and I write down on the shortage control card that they were $92.50 short it gets the attention of the good honest hard working people and puts the thief in the hot seat. I just want you who are starting out in this business to know it takes a lot for me to remove a customer from my routes I would rather work to correct the problem than to throw away an account. My shortage control cards have a space where I can write down how much they are short but truthfully I rarely do. The person who comes up to you to ask how much it was short is most likely one of your good honest customers and I will normally play it down with a comment like someone probably didn't have the right change and meant to pay it later and this is my way of reminding them. The one not paying know better than this but remember who you are talking to. I now have 255 accounts and I still plan on building the route to 360 accounts but I'm placing one new account each time I run a route. This has allowed me to start taking some profit. I'm now sitting in a position where I can order 50 cases of product from Vistar every other week (their minimum order without a $35.00 delivery fee). I now have a route that can support my wife and I and the best part is that I don't have a dime borrowed at the bank on the business. How many businesses can you name that can be started and in 4.5 months support a family without owing the bank a dime. I remember one gentleman that wrote a lot of bad things about the snack box business on this great forum and he played a part in me putting my money where my mouth has been. If I can start from scratch with 2 artificial knees at the age of 60 and make a go of it I know there are many younger people who can do the same thing even better than I. I truly enjoy hearing from those of you who have written on the forum and from those of you who have sent personal messages. Dennis PS I'm wondering how many of you remember the fat Dennis in the suit and tie. I may get another picture posted of the new Dennis it may surprise you. Link to comment Share on other sites More sharing options...
sherlock Posted February 10, 2013 Share Posted February 10, 2013 Dennis, I am so pleased to follow your success here. This has become one of my all-time favorite threads. I wish you continued happiness with honor-boxes...you are an inspiration. THANK YOU. Link to comment Share on other sites More sharing options...
mission vending Posted February 11, 2013 Share Posted February 11, 2013 What a great read, Congrats on your success. Link to comment Share on other sites More sharing options...
newheart53 Posted February 11, 2013 Share Posted February 11, 2013 I am so happy for you. I'm your age and have had my physical problems. I just don't have even the minnimum to start out this system. Had some very lucky opp for my bulk route. You are an insperation to all on this forum. Keep it up. Link to comment Share on other sites More sharing options...
jshisler1 Posted February 28, 2013 Share Posted February 28, 2013 Dennis, I greatly appreciate you inspiring story of building this business for the second time. It greatly offsets the neighsayers stories of immanent failure. I am overtaking a small route that my wife started almost a year ago. She now has a regular job, and I have a business with flexible hours, so I want to build up the rout as a supplemental income. Given your successes, I have a few questions for you: 1.) When you had the goal of 10 new accounts per day, how manybusinesses, on average, did you have to pitch in order to get 10 new accounts? 2.) When you are building a route, do you simply go door to door from one street to the next until you place 10 boxes? If not, how do you plan your route? 3.) Are there any particular business types that you favor? Are there any you avoid? I've heard several different answers to these questions. I would just like to see how a proven success does it. Anyone else's input is welcome and appreciated. Link to comment Share on other sites More sharing options...
Erosenlieb Posted March 29, 2013 Share Posted March 29, 2013 A great story needs a ending Update Please Link to comment Share on other sites More sharing options...
Dennis23 Posted April 10, 2013 Author Share Posted April 10, 2013 Hello Everyone, I now have 280 accounts and have started weeding out the bad accounts. I'm a patient person when it comes to this business but one must weed out the accounts that just won't heed the warnings about being short. I have talked with several of you since I started this thread and it has been a joy visiting with all of you. My phone number is on my web site. Monday I had my first route hit the 60 account mark which has been my goal for each of my routes. That route did $1090 in sales. There was $901.00 in the boxes. That made the shortage just over 17%. I'm charging $1.25 per snack and the profit is there when you control the shortage. Now I will just need to maintain this route. My customers are beginning to know me now and that makes all the difference in the world. Until they get to know you if you card them for being short some will think your just trying to get ahead of them. WARNING be careful when you card someone. I just sent out an ezine to my subscribers with my thoughts on when and how to card accounts. Keep in mind that in the vending business you will normally have to pay a commission to your locations and in the snack box business you will have shortage, it is 6 of 1 or half dozen of the other. I'm going to paste my ezine on controlling shortage because I think this is something that most of you that are new to the snack box business have questions about. Controlling Shortage In Snack Boxes The New Operator Many new snack box operators don’t give enough thought to controlling shortage in their new start up venture. This can be a fatal mistake or at a minimum a set back for them. There are two ways of controlling the shortage and the first would be to card your account letting everyone in the business know that the box is coming up short and the other way is to take the box out. When To Card When I have counted the money from a route one of the last things I will do is to make a list of every account that went over 30% shortages. I will put their name on a 3x5 card and along side their name I write the dollar amount of shortage and then the percent they were short. After this is done I will take a highlighter and high light the worst offenders. Accounts I’m not going to card on this list are accounts that lets say I talked with about the shortage or accounts that have had an employee quit that may have been the problem or accounts that were carded the last time I dropped off a box. How To Card When I get to an account that I have determined needs to be carded I will put the card on the box when I’m getting it out of the van. In most cases I don’t write the amount that they were short on the card. If I do write the amount down it is because I have been carding them say at least a couple of times without putting the amount down and it is not changing the shortage. If the customer does not respond to the card when I write down the amount then I’m going to be taking the box before long. When I take the box into the location I don’t say anything to anyone at this time about the shortage. I just leave the box with the card on it and leave thanking them on the way out. Some of you may wonder why I approach carding in this manner. The reason is I have found that this will upset the owner or manager to the point that they are likely to tell you if the employees can’t be honest then just take the box out. In most cases I do not want to pull the box I just want to control the shortage. By not saying anything it gives the owner or manager a couple of weeks to cool off before they talk with me and in many cases they will never say anything to me but will have a talk with their employees. Summary If someone comes up to me to talk about a shortage control card that was placed on their box, that is probably not the offender but someone that is truly concerned and pays for their snack every time they patronize the box. When talking with someone like this I will down play the problem and tell them this is just my way of telling the employees they need to get their money in the box in a more timely manner. This implies they were going to pay all along and didn’t have any intentions of not paying and will help you hold onto the account. Dennis Link to comment Share on other sites More sharing options...
Dennis23 Posted April 10, 2013 Author Share Posted April 10, 2013 Dennis, I greatly appreciate you inspiring story of building this business for the second time. It greatly offsets the neighsayers stories of immanent failure. I am overtaking a small route that my wife started almost a year ago. She now has a regular job, and I have a business with flexible hours, so I want to build up the rout as a supplemental income. Given your successes, I have a few questions for you: 1.) When you had the goal of 10 new accounts per day, how manybusinesses, on average, did you have to pitch in order to get 10 new accounts? 2.) When you are building a route, do you simply go door to door from one street to the next until you place 10 boxes? If not, how do you plan your route? 3.) Are there any particular business types that you favor? Are there any you avoid? I've heard several different answers to these questions. I would just like to see how a proven success does it. Anyone else's input is welcome and appreciated. Questions 1-I have a lot of competition in my area and I would say about one new account per 3 pitches. 2-I will work one street at a time hitting every door that is unlocked. 3-I don't have any favorites as such and don't avoid any. Two businesses that come to mind, that I have not had the best of luck with are police and lawyers. Some have made good accounts but shortage overall has been high in these locations. Best of luck Dennis Link to comment Share on other sites More sharing options...
Rick Posted April 10, 2013 Share Posted April 10, 2013 A great story needs a ending Update Please No. I hope this story never ends! Link to comment Share on other sites More sharing options...
Dennis23 Posted August 18, 2013 Author Share Posted August 18, 2013 It's been a long time since I have updated everyone. I just set down with a glass of wine and I'm ready to share a little more of my story. I have decided to stop at 50 accounts per route as the day after is a full day when you count and refill the boxes. I'm setting at just under 300 accounts now. I made some mistakes along the the way and one of them was holding onto bad accounts too long (bad account is one that shortage is too high). Since getting rid of several of the bad accounts the profit sure has climbed. I know alot of people are hitting the business with a lot of negativity and I feel for them. The truth is that most people should never attempt building a business and should remain employees. I truly enjoy what I'm doing and plan on doing it until I retire. I enjoy going out on the route as at this time I have made a lot of freinds and I look forward each day to seeing my customers. This business has always treated me good. My wife and I are taking off to Cancun Mexico in a few weeks and are living a life that I never would have dreamed possible when my wife and I first met. If you are planning on going into this business know it is just like any other business. There are certain things that must be done and the main one in this business is controlling shortage or it will become a shark that can eat you alive. Having said that when you take care of business it can be a very profitable and socially rewarding business. Until the next time I want to say thanks for all the positive comments I just read on this thread. Being negative never gets you ahead and being positive does. Best of luck to all you entrepeneurs!!! Dennis Link to comment Share on other sites More sharing options...
sherlock Posted August 18, 2013 Share Posted August 18, 2013 Awesome post Dennis! Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.