kiwi Posted December 8, 2012 Share Posted December 8, 2012 Sounds like a great situation for you. Had a friend of mine really that took a HUGE account from a bottler a little over a year ago and they were telling me Coke tried to buy their way back in on the anniversary date. Offered 50K cash and 20% commission and it was still not good enough for the location to seriously consider taking them back. I had a friend of mine that lost an account to Coca Cola because they came along with there cheque book & offered them $250K & 25% commission for his university site which is the biggest won here. The funny is that the contract was for 3 years & they have been giving such a crappy service that the university wants them out! I don't think they will renew it no matter how much they get offered next time around. Im looking forward to this actually, Coca Cola has a bunch of kids as sales people now. They are uninformed and not willing to learn and because of this they burn bridges. In my experience they will make someone mad enough to file them away as a no bid vendor. They do the same thing here. They kept begging one site I took off them to give them another go.. they even sent in a young girl in a mini skirt to offer free Rugby tickets to a guy the runs the site. Only problem is that the guy they spoke too is a good friend of mine that I grew up with so he took the tickets them & he took me to the game! Link to comment Share on other sites More sharing options...
Broncho Posted December 8, 2012 Author Share Posted December 8, 2012 Around here Coke is pretty competent on the sales side and it's hard to beat them straight up because of the commission structures they offer, especially on the larger accounts. They are struggling on the service side, all the bottlers are, as many drivers are quitting and going to work in the Eagle Ford Shale play just South of the San Antonio metro area. It seems at least once a month my deliveries get delayed by a day or two because they don't have enough drivers to get their deliveries out on time. The best chance to get them out of a location is on the renewal when the customer is frustrated with their dealings with them and the commissions don't matter as much. That is were we are now. They are extremely frustrated at this point. They have done things like set machines at the wrong price points and not fix a machine in the best area for over a week. We did analysis on there machines over 30 days and found that on average the top selling items were sold out 30% of the time. We also did a comparison on working vs non working sales data and then showed what they would do with working machines from us. Even at a lower commission rate they are going to make a lot more with us. Then I sweetened the deal by offering some upfront money and a few charity gifts for raffles. Link to comment Share on other sites More sharing options...
kiwi Posted December 8, 2012 Share Posted December 8, 2012 That is were we are now. They are extremely frustrated at this point. They have done things like set machines at the wrong price points and not fix a machine in the best area for over a week. We did analysis on there machines over 30 days and found that on average the top selling items were sold out 30% of the time. We also did a comparison on working vs non working sales data and then showed what they would do with working machines from us. Even at a lower commission rate they are going to make a lot more with us. Then I sweetened the deal by offering some upfront money and a few charity gifts for raffles. Great idea to show this comparison to the site. I have to do something similar as I have tried to explain this to sites before but had nothing on paper to back it up. Its true that sometimes a greater commission doesn't always mean they are better off. Link to comment Share on other sites More sharing options...
kiwi Posted December 8, 2012 Share Posted December 8, 2012 Just wondering how you the sales analysis? Did you go off the machine's counter using the external password or just take a rough estimate by looking thru the glass? Link to comment Share on other sites More sharing options...
Broncho Posted December 8, 2012 Author Share Posted December 8, 2012 Just wondering how you the sales analysis? Did you go off the machine's counter using the external password or just take a rough estimate by looking thru the glass? Most of it was done through the external password counters and some as done through watching Coca Cola's drivers deliver products. It helps that we share this account at this point so that we are able to notice more. I also have a pretty good relationship with the people in charge and they have given me rough ideas of what to expect for commissions and the like. I'm pretty sure our commission rate is lower than Coca Colas but our service and remote monitoring of the account should be more then enough to put us over the edge. Link to comment Share on other sites More sharing options...
WillisNYC Posted December 30, 2012 Share Posted December 30, 2012 Our route drivers in NJ make comparable to what they are paying in Texas. I expect a driver to collect $6000/wk minimum and pay him 10% of that as a base. He can make more than that by collecting more, but it is fairly difficult to do given that I do not have too many 'monster' accounts. I am instituting a bonus system much like missions in the New Year. The bonus will be based on increasing sales on existing accounts and will be based on 10% of the increase in sales. $600/wk works out to $15/hr in a 40 hr week. With our higher cost of living here, landing on the higher end of the Texas pay scale works out bout right. We pay unskilled help $10 an hour here for warehouse type work as well. $6000/week works out to $1200/day. The COG is $600 + $100 for the driver and $50/day for the truck. That works out to a little smaller gross profit/day ($450) to what broncho describes above. Because my company is still small, those are the only costs that I can present. If I can get the gross collections up a little bit, (with my commission system) then I can get the profit/day up close to Bronchos numbers. Link to comment Share on other sites More sharing options...
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