ruff84 Posted February 24, 2013 Share Posted February 24, 2013 I got a call on Friday from a small factory about 7 blocks from me wanting service. They have only been open about 4 months and have about 20 employees, over the next several months they will be adding employees. They want soda vending and snack vending, i am happy to do soda but i know the snack isn't really going to make me any real money. He was adament about only using coke products, i told him i can do a mix but i am not sure he realized it doesn't have to be 1 or the other. He asked about commissions and then said i should bring a proposal over on Wednesday, he is also contacting a pretty big operator in my area and will choice between the 2 of us. What do i need to put in the proposal? 1.Drink & snacks available? (should i add pepsi products as well) 2. How often i will service the equipment? (i plan on going once a week after i get everything settled) 3. Commission? i plan on offering 10% which seems about the standard for the accounts that want it. As for prices are .75 cent cans & 1.25 16.9 bottles ok prices. Any thing i should add to set my self a part to my competitor, i plan on using the fact that the competitor has many.... many accounts and his will only be 1 more for the other guy while i will take special care of his needs and that he isn't just another account to me. Any other suggestions? I am going to look at the download section to look at the proposals there now. Link to comment Share on other sites More sharing options...
Gamvend Posted February 24, 2013 Share Posted February 24, 2013 This seems like it may be an ok account even with a snack machine. I would never offer a commision on an account like this. I always explain to my accounts especially of this size that you need to make money on your investment. It has to work on both sides. In order to make up for the fact that they only have 20 employees you need to keep your prices low so your volumes stay high and so that their employees get a good value. With 75 cent sodas and a 10% commission with only 20 employees you'd almost be spinning your wheels. Link to comment Share on other sites More sharing options...
mission vending Posted February 25, 2013 Share Posted February 25, 2013 I got a call on Friday from a small factory about 7 blocks from me wanting service. They have only been open about 4 months and have about 20 employees, over the next several months they will be adding employees. They want soda vending and snack vending, i am happy to do soda but i know the snack isn't really going to make me any real money. He was adament about only using coke products, i told him i can do a mix but i am not sure he realized it doesn't have to be 1 or the other. He asked about commissions and then said i should bring a proposal over on Wednesday, he is also contacting a pretty big operator in my area and will choice between the 2 of us. What do i need to put in the proposal? 1.Drink & snacks available? (should i add pepsi products as well) 2. How often i will service the equipment? (i plan on going once a week after i get everything settled) 3. Commission? i plan on offering 10% which seems about the standard for the accounts that want it. As for prices are .75 cent cans & 1.25 16.9 bottles ok prices. Any thing i should add to set my self a part to my competitor, i plan on using the fact that the competitor has many.... many accounts and his will only be 1 more for the other guy while i will take special care of his needs and that he isn't just another account to me. Any other suggestions? I am going to look at the download section to look at the proposals there now. Let me start with this, I wonder if the "big guy" would even have any interest in a account this small so you might be putting more pressure to compete than there actually is. I had a place many years ago much like this, a small company that no one wanted to service. I agreed to provide service and grew with them and moved several times with them as they grew. Because I provided great service when no one else would they stayed with me over the years even thought they were solicited by others many times. In 2008-2009 they were one of my top 5 accounts doing in excess of 1500 a week..... and then the wicked stepmother got involved and wound up destroying the business,,, but that's a story for another thread. Prices sound reasonable, just be who you are, a small owner/operator that is focused on providing excellent service at a fair price. Link to comment Share on other sites More sharing options...
AngryChris Posted February 25, 2013 Share Posted February 25, 2013 Let me start with this, I wonder if the "big guy" would even have any interest in a account this small so you might be putting more pressure to compete than there actually is. I had a place many years ago much like this, a small company that no one wanted to service. I agreed to provide service and grew with them and moved several times with them as they grew. Because I provided great service when no one else would they stayed with me over the years even thought they were solicited by others many times. In 2008-2009 they were one of my top 5 accounts doing in excess of 1500 a week..... and then the wicked stepmother got involved and wound up destroying the business,,, but that's a story for another thread. Prices sound reasonable, just be who you are, a small owner/operator that is focused on providing excellent service at a fair price. Isn't that the truth. The big guy might make a ridiculous offer like providing JUST a soda machine or inflating prices even BEFORE offering a commission, and then inflating prices even higher OR the big guy might just walk away with a "thanks, but no thanks." Do as mission said and be yourself and do what you feel comfortable with. Big vendors will often just throw something in a smaller location if they feel that it can make some money *potentially* in the future, but they usually won't put much effort into sealing the deal because they could put their equipment in larger locations and pay their drivers to actually make some "real money" rather than messing with a small 20-employee location. Make an offer that is reasonable to everyone, stress that you are offering a superior service, and if they want a commission, explain that you need to increase prices to do that. It may not be difficult to talk things down into some kind of an employee-benefit fund where you don't offer cash but you provide snacks and refreshments once a year instead. It could save you a lot of money (instead of paying commission) and you can easily write these expenses off. Just make sure that your offers are presented DURING your proposal so that you don't feel pressured to start coming up with numbers out of the blue. Link to comment Share on other sites More sharing options...
ruff84 Posted February 25, 2013 Author Share Posted February 25, 2013 Been working on a price list, let me know if anything is out of whack. Any thing need raised or lowered? Item 0% Commish 10% commish 16.9 bottle $1.00 $1.25 Cans .65 .75 Candy Bars .90 1.00 Small Chip/cookies .65 .75 Crackers/ Peanuts .45 .50 Big Cookie .75 .80 Pastries 1.00 1.10 Doughnuts .80 .90 Sports Drink 1.25 1.35 Energy Drink 2.25 2.50 Water .65 .75 This is for Central IL in a small factory setting Link to comment Share on other sites More sharing options...
beejaykc aka Munch A Bunch Posted February 25, 2013 Share Posted February 25, 2013 Any chance you can take your water to $1.00 and find a way to level off some of the other pricing? Being all over the board is something I'm struggling with as well, being new, but I'm trying to reign it in a bit. I'd like to only have 2-3 prices throughout the machine. If nothing else, just for back end tracking and visual appeal. I think it signals "small vendor" when you have so many different prices. My 2 cents. Great work! I'll be watching!!! Link to comment Share on other sites More sharing options...
Sparta_Automation Posted February 26, 2013 Share Posted February 26, 2013 The prices are fine......and as was mentioned, it is easier to group similar products in price groups. For example: All of my candy bars and LSS size chips are $1. Soda are .85 (cans) Soda are $1.50 (bottles) Energy drinks are $2.50 Pastries are $1.50 Juices are $1.50 BTW, I pay a 10% commission on Net Travis Link to comment Share on other sites More sharing options...
ruff84 Posted February 27, 2013 Author Share Posted February 27, 2013 Good news.... I landed the account. We talked and he showed me around the facility, there are around 20 employees and will increase gradually. Also right now it's only 1st shift, but in the near future they are going to be 2nd, and 3rd shifts. No commission, i showed him the price list and told him if we did 0 commission i could provide the snacks and drinks at a christmas party or something. Snack and soda only, he asked if i was able to do cold food and i told him at this point i am not able to. He said he the spoiled food would probably kill any profit i could get, which seems to me like this manager is atleast looking at it from a vendors point of view which is nice. Don't think it will be quiting my day job and going full time with vending with this account but it is definately a step forward. Link to comment Share on other sites More sharing options...
treadmill Posted February 27, 2013 Share Posted February 27, 2013 Congrats. Link to comment Share on other sites More sharing options...
mission vending Posted February 27, 2013 Share Posted February 27, 2013 Awesome. Way to go!! Link to comment Share on other sites More sharing options...
indiana Posted February 28, 2013 Share Posted February 28, 2013 Good news.... I landed the account.We talked and he showed me around the facility, there are around 20 employees and will increase gradually. Also right now it's only 1st shift, but in the near future they are going to be 2nd, and 3rd shifts. No commission, i showed him the price list and told him if we did 0 commission i could provide the snacks and drinks at a christmas party or something. Snack and soda only, he asked if i was able to do cold food and i told him at this point i am not able to. He said he the spoiled food would probably kill any profit i could get, which seems to me like this manager is atleast looking at it from a vendors point of view which is nice. Don't think it will be quiting my day job and going full time with vending with this account but it is definately a step forward. Congrats! Keep building! Link to comment Share on other sites More sharing options...
TKK Posted February 28, 2013 Share Posted February 28, 2013 Nice man! A new account let's hope it does good! Link to comment Share on other sites More sharing options...
Sparta_Automation Posted February 28, 2013 Share Posted February 28, 2013 Congrats.....now kill them with GREAT customer service....you never know who he might recommend you to. Travis Link to comment Share on other sites More sharing options...
spdydre Posted February 28, 2013 Share Posted February 28, 2013 Congrats.....now kill them with GREAT customer service....you never know who he might recommend you to. Travis This is important. My smallest and first account got me into one of the highrises downtown here just by good customer service and referring me. Also I notice some of the larger cmopanies always want referrals so customer service is key Link to comment Share on other sites More sharing options...
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