I could use your advice.....

[beejaykc aka Munch A Bunch]

One of my first locations is a machine factory. They work in a non-air conditioned warehouse, and in the summer work from 6am to midnight. They have ~50 mechanics and ~20 office workers in the building at all times. I'm replacing a lousy vendor that has an OLD 8 select can soda machine and a 40 select snack machine. I'm going in with a brand new 10 select soda and a brand new 40 select snack. Both with dollar bill acceptors.

Current pricing on cans is just $.55. I want to go in with 16.9 bottles but want to go to $1.25 as well. Is there a ton of risk here? The primary reason for the location making a move is that the current vendor doesn't service regularly, services at bad times of the day (like during meetings), and doesn't have a great selection.

I surveyed the employees with a paper survey to get an idea of what products they want - but that doesn't tell me if they'll pay more.

I suppose I could do all cans (except water, which they don't currently have) out of the new machine, but I wouldn't do that at $.55.

Would you suggest going to bottles to give the "new machine, no look, new variety" feel - or would you suggest sticking with cans and going to like $.75?

Thanks yet again! You guys/gals are great!

[executivevending]

If you're wanting to test it I would try doing a little bit of both so you could test both of them. Maybe do 2 selections of mountain dew(since it's popular) 1 can 1 bottle. And see what does best and sort the rest of with what you want. I personally would just do all cans(at least with the less used selections). They take longer to expire and are cheaper. Just my opinion

[dogcow]

Do bottles easier to justify price inc.

I get nervous when I see low prices and poor svc sometimes indicates real bad volume at the loc but hard to know for sure good luck

[beejaykc aka Munch A Bunch]

In your experiences, how has a new location responded in a price increase like that? Remember, they're at $.55 today. Will going to $1.25 put them in an uproar.....or will they understand the value in the bottles? It's my personal opinion that they'll see the bottles as a higher class product and vendor. Besides, I rarely see a can soda vending machine in public anymore.

[beejaykc aka Munch A Bunch]

Do bottles easier to justify price inc.

I get nervous when I see low prices and poor svc sometimes indicates real bad volume at the loc but hard to know for sure good luck

Totally understand your nervousness. I evaluated the location and surveyed the employees. EVERYONE seemed to be excited about getting a new vendor. In fact, they're hoping down the road that I'll want to bring in a frozen food machine. They participated in that portion of my survey as well with surprising results. No fear, I'm not looking at bringing that machine in anytime soon. The warehouse is a good 5-7 minute drive to the nearest fast food restaurant, so nobody is leaving for lunch really. In fact, they've got 5 microwaves in the breakroom and a number of tables. Here's hoping.......

[moondog]

One of my first locations is a machine factory. They work in a non-air conditioned warehouse, and in the summer work from 6am to midnight. They have ~50 mechanics and ~20 office workers in the building at all times. I'm replacing a lousy vendor that has an OLD 8 select can soda machine and a 40 select snack machine. I'm going in with a brand new 10 select soda and a brand new 40 select snack. Both with dollar bill acceptors.

Current pricing on cans is just $.55. I want to go in with 16.9 bottles but want to go to $1.25 as well. Is there a ton of risk here? The primary reason for the location making a move is that the current vendor doesn't service regularly, services at bad times of the day (like during meetings), and doesn't have a great selection.

I surveyed the employees with a paper survey to get an idea of what products they want - but that doesn't tell me if they'll pay more.

I suppose I could do all cans (except water, which they don't currently have) out of the new machine, but I wouldn't do that at $.55.

Would you suggest going to bottles to give the "new machine, no look, new variety" feel - or would you suggest sticking with cans and going to like $.75?

Thanks yet again! You guys/gals are great!

A lot of times, the factory guys prefer the bottles as they can't have open containers on the floor - just remember that the shelf life on bottles is 3 months vs 10 months for cans, so you'd have to monitor that pretty close.

There's no way you can sell cans at 55 cents unless you're stealing them - you'll need to go to 75 cents.

I find that the paper surveys are not that accurate - you'll end up stocking things that one guy buys every 4 days. Start with the basics and monitor it for awhile until you know what moves.

This sounds like it might be a decent account but I wouldn't have bought brand new machines - you really need about 200 plus people to consider doing that as it's costing you about 8 to 10 grand upfront resulting in a really weak ROI unless each guy is hitting your machines 4 times a day - what machines did you buy?

One thing I do with my snack machines during the summer, in non A/C spaces, is pull the entire candy shelf out so the machine doesn't look so empty - finding non-meltable stuff to put in those 10 candy slots is tuff.

[beejaykc aka Munch A Bunch]

A lot of times, the factory guys prefer the bottles as they can't have open containers on the floor - just remember that the shelf life on bottles is 3 months vs 10 months for cans, so you'd have to monitor that pretty close.

There's no way you can sell cans at 55 cents unless you're stealing them - you'll need to go to 75 cents.

I find that the paper surveys are not that accurate - you'll end up stocking things that one guy buys every 4 days. Start with the basics and monitor it for awhile until you know what moves.

This sounds like it might be a decent account but I wouldn't have bought brand new machines - you really need about 200 plus people to consider doing that as it's costing you about 8 to 10 grand upfront resulting in a really weak ROI unless each guy is hitting your machines 4 times a day - what machines did you buy?

One thing I do with my snack machines during the summer, in non A/C spaces, is pull the entire candy shelf out so the machine doesn't look so empty - finding non-meltable stuff to put in those 10 candy slots is tuff.

The breakroom is air conditioned. So I'm not so worried about the chocolate in that room. Bottles for the guys in the factory makes sense. I will play around a bit and do a good job at justifying the price and selection. That's where my salesmanship comes in.

I believe in the "if you're going to do it, do it right" theory. When I started my ATM business I started with 5 brand new ATM's and acquired used machines once I knew what I was doing. That's my theory here as well. Bought my first 5 machines brand new, and will acquire machines along the way. I believe that when you're new, you have to have a differentiator. New equipment sometimes is that differentiator. Yes, it's expensive. Yes, it takes time to pay for itself. But realistically, you're not making any REAL money with just 5 machines as the new guy anyway. 5 machines gets you to know what you don't know, understand the mechanical workings of the business, and helps you prepare for expansion.

I'm not playing around with the business. I'm "IN" the business. Notice to my competitor(s) has been served. LOL

Yeah, I'll probably be the first one in line at the Salvation Army in a month or two. But I really belive in the do-it-or-don't strategy. My ATM adventure tought me that.

BTW, sold that business to a competitor for a profit because of it.

[cvending]

I am not sure about 16.9 bottles. I never had good luck vending them. Are they a vend bottle or a retail bottle? If they vend OK, I would start with bottles at 1.25. If there is a lot of pushback then give them the option of cans at .75. That way they see you are not disregarding their input. I would not use a mix with them flavors in cans as bottles.

[ruff84]

I vend 16.9 bottles out of a vendo 511 with no problems.

Around here Pepsi product in 16.9 oz are $5.48 / 12 pack

Coke $3.98 / 6 pack

[AngryChris]

A lot of times, the factory guys prefer the bottles as they can't have open containers on the floor - just remember that the shelf life on bottles is 3 months vs 10 months for cans, so you'd have to monitor that pretty close.

I find that the paper surveys are not that accurate - you'll end up stocking things that one guy buys every 4 days. Start with the basics and monitor it for awhile until you know what moves.

I agree. In fact, I have found that the best method is to enter the location with your own line of products (based off of their demographics) and allow them to REQUEST what they want. A single customer is capable of coming up with maybe 5 ideas as to what they would "like to see in the machine" but maybe only 1 or 2 ideas of what they would "actually buy."

My rule is this: if they go through the effort of requesting me in some direct manner (written or verbal), that means that they REALLY want the item (and are willing to pay for it).

[moondog]

The breakroom is air conditioned. So I'm not so worried about the chocolate in that room. Bottles for the guys in the factory makes sense. I will play around a bit and do a good job at justifying the price and selection. That's where my salesmanship comes in.

I believe in the "if you're going to do it, do it right" theory. When I started my ATM business I started with 5 brand new ATM's and acquired used machines once I knew what I was doing. That's my theory here as well. Bought my first 5 machines brand new, and will acquire machines along the way. I believe that when you're new, you have to have a differentiator. New equipment sometimes is that differentiator. Yes, it's expensive. Yes, it takes time to pay for itself. But realistically, you're not making any REAL money with just 5 machines as the new guy anyway. 5 machines gets you to know what you don't know, understand the mechanical workings of the business, and helps you prepare for expansion.

I'm not playing around with the business. I'm "IN" the business. Notice to my competitor(s) has been served. LOL

Yeah, I'll probably be the first one in line at the Salvation Army in a month or two. But I really belive in the do-it-or-don't strategy. My ATM adventure tought me that.

BTW, sold that business to a competitor for a profit because of it.

Do they run the A/C on the weekends? Got burned by that one pretty good when I started.

[mission vending]

One of my first locations is a machine factory. They work in a non-air conditioned warehouse, and in the summer work from 6am to midnight. They have ~50 mechanics and ~20 office workers in the building at all times. I'm replacing a lousy vendor that has an OLD 8 select can soda machine and a 40 select snack machine. I'm going in with a brand new 10 select soda and a brand new 40 select snack. Both with dollar bill acceptors.

Current pricing on cans is just $.55. I want to go in with 16.9 bottles but want to go to $1.25 as well. Is there a ton of risk here? The primary reason for the location making a move is that the current vendor doesn't service regularly, services at bad times of the day (like during meetings), and doesn't have a great selection.

I surveyed the employees with a paper survey to get an idea of what products they want - but that doesn't tell me if they'll pay more.

I suppose I could do all cans (except water, which they don't currently have) out of the new machine, but I wouldn't do that at $.55.

Would you suggest going to bottles to give the "new machine, no look, new variety" feel - or would you suggest sticking with cans and going to like $.75?

Thanks yet again! You guys/gals are great!

Going to 1.25 bottles is not a price increase its a different product. I think you would get more blow back by going to 75 on cans than by introducing bottles at 1.25.

When in doubt ask the location for feedback. Good luck with the setup and installation and be sure to keep us updated.