Priusjames Posted March 11, 2013 Share Posted March 11, 2013 Greetings- I went to look at an account a local is selling outside a major chain grocery store. I rolled up to see about 5 machines in a row, all looked good from a distance. I looked at the other machines first, realized they are bottlers' machines that are serviced by the bottlers drivers. I started to wonder if these guys would try to crowd me out, but the seller claims to have 4 years remaining on his contract. More about this later. As I started to check out the machine that's for sale (the one with generic sodas), I realized something was wrong...there was cold air leaking out from the side. Strange...the door was locked, but I could move it...It wasn't latched. The t-handle was depressed and locked, but the machine door was ajar. I opened it up and saw that there was no product, other than some water bottles jammed in a couple of columns. I also noticed the Coin Changer was missing. The validator was there (and empty). I let the owner know about the problem, his response (we are still emailing) seemed to indicate that he took over one machine and was supposed to replace the rest with his own..but never got around to it. He's willing to hook me up with the management company, to take over and do the deal right, and he claims they will be looking to expand the relationship when they have a vending company who delivers as promised. That's mostly good news, but I need to do a reality check before moving forward. Two things: 1) Do the soda machines outside of grocery stores make decent money? In this case, I'm lead to believe that I could replace bottlers' machines with mine...so I'd own all machines out front. I'll buy nice machines and place them, if I don't hear a bunch of "NO...STAY AWAY FROM GROCERY STORES" responses! 2) My intent would be to own all machines out front. How do the bottlers handle it when they are told to bug out? After getting the Dear john letter, do they just remove the machines quietly, fight back, or offer to allow you to fill their machines (effectively giving away the machine as long as it's being filled with their product)? What else should I be asking/thinking/worrying about? Thanks James Link to comment Share on other sites More sharing options...
CajunCandy Posted March 11, 2013 Share Posted March 11, 2013 I have no experience with grocery stores, but the Chevron combo stations just down the road from me has the cold drink machines selling cans at .50 cent, they must sell a lot to keep the prices so low! mike Link to comment Share on other sites More sharing options...
AZVendor Posted March 11, 2013 Share Posted March 11, 2013 In Arizona, the soda machines in front of grocery stores are all loaned by the bottlers to the grocery chains and the employees of the stores fill them from inventory in the store. These machines are only there as advertising for the bottlers. I too tried to get some of these accounts when I started in 1985, but I quickly learned what the dealio was. The machine you looked at was broken into and that is what you can expect from exposed machines like that. If this guy has a contract I would want to see it and have an attorney look it over. A contract is only as good as how much money you want to spend to defend it and the grocery store has a lot more money than you do. Link to comment Share on other sites More sharing options...
TKK Posted March 11, 2013 Share Posted March 11, 2013 I would just back off. Too many ifs. Or too many future hopes on "maybe they'll kick out the other vendors". I personally have NEVER bought a soda outside of a store. Seems like you'd have to have GREAT equipment and SERVICE just to keep an account that might not sell as well. ESPECIALLY with 4 other competitior machines there. I would not even be at all interested. Buy a location from a person who has been established in that location and is the ONLY vendor there. Link to comment Share on other sites More sharing options...
Priusjames Posted March 11, 2013 Author Share Posted March 11, 2013 ESPECIALLY with 4 other competitior machines there. I would not even be at all interested. Buy a location from a person who has been established in that location and is the ONLY vendor there. I guess I should have made it more clear...the guy selling the "account" was asked by the Management Company to replace *all* the machines at this location...I would be the only vending company there. The implication is that the Management Company wants to get rid of the bottlers' machines...I've just never dealt with bottler-owned machines before. The seller has offered to introduce me to the Management Company, and I'm going to take him up on it...so I can learn exactly what they are up to. Am I dreaming by thinking that the Property Management Company (they do big shopping centers and some restaruant chains) will turn me on to other locations if things go well here? That's what the seller believes, he says he has a full time job that takes him out of state a lot and just doesn't have time to follow through with his commitment to replace the rest of the machines. I don't have blinders on, and am a pessimist by nature, so I believe very little of what somebody trying to sell me something says. I'm exploring factual data, including asking members of this forum about revenues from these locations (so I can figure out ROI), for hints about talking to the Management Company, and for advice from others who may have dealt with replacing bottlers' machines before. Thanks James Link to comment Share on other sites More sharing options...
Happy Vending Posted March 11, 2013 Share Posted March 11, 2013 2) My intent would be to own all machines out front. How do the bottlers handle it when they are told to bug out? After getting the Dear john letter, do they just remove the machines quietly, fight back, or offer to allow you to fill their machines (effectively giving away the machine as long as it's being filled with their product)? I don't have any experience with grocery stores but I have kicked bottlers out of a couple of locations. In my experience they could really care less when you do. Often times they aren't paying much attention to the accounts anyway and they understand the appeal of a smaller vendor. I was told that the cost of hiring a route driver (coupled with theft possibility) is often not worth it and the bottlers are still likely selling some of their product through you so they don't care unless it's a huge account. Usually how it works is the bottler will send a driver to empty anything left in the machine and then someone will pick it up within 30 days. If I am setting up the account I just move their machine out of the way (one of the owners at one of my stops even put it outside). I have even been told that sometimes they don't even bother to pickup the machine!! Link to comment Share on other sites More sharing options...
Priusjames Posted March 11, 2013 Author Share Posted March 11, 2013 I have even been told that sometimes they don't even bother to pickup the machine!! I've heard the same thing...that they'd rather have their brand dispensing their product, and would just as soon leave the machines in place. I guess the Management Company will be able to fill me in on who their contacts are, and I can try to talk them into giving me the equipment (or let them know to go pick it up). The seller claims he holds the contract for all machines in the location, but has been "too busy to deal with it". If that holds true, it sounds like a good opportunity for me to build a route in the area...about 10 minutes from work and 15 from home...not too bad, really! I'm asking for a meeting with the seller and the Management Company, am hoping to learn the value from others (with similar locations) in the interim. Link to comment Share on other sites More sharing options...
moondog Posted March 11, 2013 Share Posted March 11, 2013 In Arizona, the soda machines in front of grocery stores are all loaned by the bottlers to the grocery chains and the employees of the stores fill them from inventory in the store. These machines are only there as advertising for the bottlers. I too tried to get some of these accounts when I started in 1985, but I quickly learned what the dealio was. The machine you looked at was broken into and that is what you can expect from exposed machines like that. If this guy has a contract I would want to see it and have an attorney look it over. A contract is only as good as how much money you want to spend to defend it and the grocery store has a lot more money than you do. I've had the same experience with soda machines outside a super market - kids hang around these places all night long and you can be sure the machines will be vandalized or hacked - they even tried to climb in the back of one of mine. I've also had machines in the breakrooms of super markets - marginal accounts at best. My advice? Forget supermarkets - I wouldn't take one for free!! Link to comment Share on other sites More sharing options...
mission vending Posted March 12, 2013 Share Posted March 12, 2013 I wouldn't take it, and I sure as hell wouldn't pay for it, even if you got the equipment transferred to you on a third party lease program. Locations like this will drive you crazy and out of the business. Link to comment Share on other sites More sharing options...
TKK Posted March 12, 2013 Share Posted March 12, 2013 Don't waste your time...my friend has some outside a grocery store they tried to steal it once but it fell off their truck and it was a poor account. It was as big as a neighborhood Wal-Mart Link to comment Share on other sites More sharing options...
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