jasonkw Posted October 28, 2012 Share Posted October 28, 2012 Just wondering what everyone's standards are when it comes to having machines on a location. What is the minimum revenue you require per machine (or items sold per machine) per month? I'm in the middle of dealing with pulling a bunch of machines that the local Pepsi bottler placed into a high end hotel that are making next to nothing. There are 8 machines, and they sold a grand total of 367 20oz bottles in one month. Makes me wonder if I'm just being picky or if these are indeed way too low to keep there. I'm planning to pull at least 4 machines from this property to redeploy them. The vend price is $2.50/bottle, which is probably why the sales are low. But then again, the hotel charges $4.00/bottle for water in the room. Thanks. Link to comment Share on other sites More sharing options...
moondog Posted October 28, 2012 Share Posted October 28, 2012 If you're saying that your average is $100 per month per machine then I'd say that's real low. My soda machines average $400 per month but they're placed in blue collar accounts. My lowest machine does $200 per month which I only service once a month. $100 per month doesn't seem worth it especially since you're doing bottles (short shelf life). That account only justifies 3 machines max. Link to comment Share on other sites More sharing options...
Walta Posted October 28, 2012 Share Posted October 28, 2012 Do you need to think about it monthly? Think about profit per hour of labor spent servicing the equipment. If the bottler provides the equipment and the soda has 90 day sell by dates, service the machines every 75 days. It seem you found the price point where most of your potential customers will get in there car and drive to the gas station. Walta Link to comment Share on other sites More sharing options...
dogcow Posted October 28, 2012 Share Posted October 28, 2012 I like to see 50/wk bur I have accts I do every month. What comission ru paying can u being down the price that seems high even foir hotel pricing id figure 1.75 or 1.80 might be closer to tghe righ sweet spot Link to comment Share on other sites More sharing options...
jasonkw Posted October 28, 2012 Author Share Posted October 28, 2012 Well, for starters I didn't put those machines in there. They were previously operated by the Pepsi bottler who handed this account over. They put one machine per floor, and the vast majority of sales comes from machines on the lower floors. The top floors are filled with high end guests who don't use vending. I'm arranging to pull at least 4 machines from this property to redeploy elsewhere. The hotel wants $0.50/bottle sold as Pepsi was paying them that. They are open to adjusting it lower, however. Link to comment Share on other sites More sharing options...
dogcow Posted October 28, 2012 Share Posted October 28, 2012 just give them a flat % of your total sales, 25% is common in hotels i usually go in @ 25% unless its too small to get commission yes pull the higher floors or put them every other floor, no point in having that much equipment. Link to comment Share on other sites More sharing options...
AngryChris Posted October 29, 2012 Share Posted October 29, 2012 Well, for starters I didn't put those machines in there. They were previously operated by the Pepsi bottler who handed this account over. They put one machine per floor, and the vast majority of sales comes from machines on the lower floors. The top floors are filled with high end guests who don't use vending. I'm arranging to pull at least 4 machines from this property to redeploy elsewhere. The hotel wants $0.50/bottle sold as Pepsi was paying them that. They are open to adjusting it lower, however. This account seems to have several problems. Firstly, if the account is really a high-end account with some wealthier people, and not a family-oriented type of place (probably more business related), you have to ask yourself a few questions. Firstly, do these people even WANT what you are offering in the machines? I am sure they get thirsty, but do they just want Pepsi, Mountain Dew, Diet Pepsi, etc... or do they want something else? The problem is that these are Pepsi machines and it can be difficult to provide what they want. Secondly, do these people even have cash??? They might want your product but they might not have cash! Can you fix this problem? Probably not... because you don't want to invest in Pepsi's equipment.... I wouldn't even consider that due to the situation. Thirdly, is the price a factor? If they have plenty of money (cash or not), they may not care if the soda is $1.75, $2.00, $2.50, or even $3.00. However, they may want something catered in with some wine to relax a bit during business meetings and vacations. I am not telling you that this location can be good with improvement at all.. I am really saying that it sounds like, even if you tried to make improvements, you probably wouldn't make a huge impact on the sales in this location. I would consider $2.00 for the soda but I think $2.50 is fine. Pulling equipment and placing it elsewhere sounds like a good idea... I don't like hotels in general. Link to comment Share on other sites More sharing options...
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