How would you approach this location owner...

[Rick]

...or would you even approach them at all if you were in my position?

The scenario: I bought an 11 location route about 3 months ago and one of them is an attended laundromat where I currently have two charity vendstars doing a total of just over $50/month. This is a blue-chip location overall and the vending is absolutely saturated in this joint. Among my competitors - a 7-way rack of N'westerns (all 1-2in toys) right inside the front door, an 8-way Termin8or in back, a 5 ft. spiral of gumballs, a double N'Western doing HT and Chicle, and this monstrosity of an antiquated full-line candy machine that is horrifically always low or completely out of product! I have NO idea if anybody is paying a commission but the fact that 1) my crappy vendstars are killing it and 2) nobody else has left in the 3 months I've been there tells me that all of these vendors are making plenty to keep them happy.

The Problem: I don't have much experience, having just started vending bulk about 6 months ago, but my gut is telling me that this location is incredibly exposed. I just have a hunch the clock is ticking down to the day that a "real" vendor like dogcow or mission comes along and has a sitdown with the owner about the amount of commission they are letting walk out the door every month. So cut to the chase, I'm looking for ideas about how to approach this location for exclusive rights. Do I offer a flat rate monthly payment or come with a solid 30% commission proposal?

The second problem: I don't have much cash and the only machines I currently have in my inventory are an army of vendstars, 1-800's and Routemasters, a 4-way TomyGacha that I'm still saving to buy the product for and a 3 way rack of Northwesterns. But my God something like a Chicken machine or a crane would freaking CLEAN UP in this place. I can get my hands on a 5-6-7 way N'Western rack for $30 bucks a head to do the toys, but my real problem would be any full-line machines or the Chicken/crane which I don't have the money for right now. Do I lay low and save up my money so I can come to this owner with a proper proposal of machines ready to place?

Sorry for the novel, any and ALL suggestions are welcome. Thanks for listening...

[bulkdude]

I would stay low and save money. When the time is right you will have the money and you can buy all the machines and attack all at once. But we all have to start out small and grow from there. Thats my 2 cents.

[Rick]

I would stay low and save money. When the time is right you will have the money and you can buy all the machines and attack all at once. But we all have to start out small and grow from there. Thats my 2 cents.

Damnit! I wanted any advice OTHER than that!

Just kidding, thanks for chiming in bulkdude.

[GagesVending]

I agree. I wouldn't jump in if I couldn't put my money where my mouth is at the time I discussed it. I would, however, talk to them about upgrading your equipment. I would sell it to them just as you would in a new location (keeping a clean/well-stocked machine,etc) and let him or her know that it will take over more space. You don't want to come across as a greedy hog that wants all of the sales! If some other operators are doing a poor job, point it out and show them your machines and how you provide better service, that everyone will be happier. Just be friendly and if they decline a "larger machine/more machines," then thank them for what they have allotted you already.

[Toad]

You said it yourself. The hard part is you don't have the money right now or experience to do this yet

[Rick]

Your in over your head. Baby steps till you have the money and confidence to do it right. Save up for unique piece of equipment he doesn't have yet like a crane and pitch him like a new acct (don't mention your vend stars ) and offer a big monthly guarantee on the crane like $200 a month (to get your foot in the door) when you pay him, fish for what he gets from the rest. "I bet this $200 im giving you is more than all the other machines combined!" If he says hes not sure, then sell him on the simplicity of just one vendor. Then make a offer for the rest. "I'm already here every week, I know we can make more money together if I did it all" ect. The hard part is you don't have the money right now or experience to do this yet

I know I am. But isn't EVERYBODY in over their head before they do it once? I know you're giving me sage advice, I just want it to it to happen faster than it's it happening and this is such a prime spot. You're right though, I'm gonna save up for a Chicken machine and maybe that's the wedge I need. That's good advice not even mentioning the vendstars, tough to even take me seriously coming from that angle.

[GagesVending]

I know I am. But isn't EVERYBODY in over their head before they do it once? I know you're giving me sage advice, I just want it to it to happen faster than it's it happening and this is such a prime spot. You're right though, I'm gonna save up for a Chicken machine and maybe that's the wedge I need. That's good advice not even mentioning the vendstars, tough to even take me seriously coming from that angle.

WE know Vendstars are "unprofessional machines" however, most location owners don't. They can tell that they are plastic and probably not as tough and pretty looking as the others there, but I wouldn't worry about it because it's a laundromat. It's not a classy place, so I wouldn't worry about being embarrassed that you're the guy with the Vendstars.

[Toad]

No, the reason for not mentioning that you own the vend stars in his laundry is because your not paying him and he probably thinks a charity owns it and all the money goes to help the missing kids or whatever. Once he sees your trying to make money WITH him on the new machine, he will realize you have been making money OFF of him and will see you as a crook and not want to do new business with you

[GagesVending]

Oh ok, I see where you're going with this. My location owners see my marquees on top of my machines saying "Gage's Vending." All of them placed by locators I've clearly told management that I am in no way associated with them the charity, that I simply donate a percentage to them, so I don't worry about it since I'm straightforward with them in the first place.

[Rick]

No, the reason for not mentioning that you own the vend stars in his laundry is because your not paying him and he probably thinks a charity owns it and all the money goes to help the missing kids or whatever. Once he sees your trying to make money WITH him on the new machine, he will realize you have been making money OFF of him and will see you as a crook and not want to do new business with you

EXACTLY. I can't be BOTH the guy not paying him and the guy that wants to save him from the people not paying him. That just makes me a hipocrit. I need to decide which guy I am.

[Nick505]

EXACTLY. I can't be BOTH the guy not paying him and the guy that wants to save him from the people not paying him. That just makes me a hipocrit. I need to decide which guy I am.

Well you will loose it eventually either way when the owner realizes how much money is being spent in that machine. When I first started I lost my two best shootin hoops accounts. One of them was next to two 5 way racks and did $180/month, The other was next to a couple racks and did ~$100/month. This was a chain with two locations and I lost them because I didn't switch to commission.

[Action Vending]

If you have a solid chance to get the whole account you should be seeking financing for equipment because every day you don't have the equipment in their you are losing money.

[reel]

Rick,

This is what i would do:

1. Obtain/borrow the money to secure a crane.

2. Make an appointment to see the owner armed with a broshure of the proposed crane you would like to install.

3. Say to the owner that you note that he has many different machines on this site all with different owners and is he happy with the commission/income he receives from most ( most excludes charity)?. Say to him that you would like to offer him a brand new crane with a change giving coin mechanism and note acceptor and say that these are the highest income generators in amusement vending with a very small footprint.

4. Also say that as it provides change and accepts notes that it will instantly turnover more cash than the other machines combined giving him more commission plus for servicing issues he has just one number to call and thats you the owner, sell yourself a bit tell him how good you are and the service you provide, give him points of difference between you and the others i.e clean machines, regular service, new machines etc!.

5. Say i can have this machine here onsite setup and working within a week, providing you are granted exclusive vending rights to the site and offer him 25% of the gross sales?

6. If he hesitates say this will mean more money for you with brand new high earning crane and one point of contact and better service,.............repeat if he hesitates and say is next week fine for dropping it off, you must get that yessssssssssss!!!!!!.

7. present the agreement (dont say contract) say if you can ok the delivery here (show him where to sign) and i will have the machine here for you next week, what day suits best!.

I hope this gives you a bit of food for thought, based on my experience to date i must say get in there now dont hesitate otherwise someone else will beat you to it,.......... theres a saying he who hesitates is lost, and i find it to be very true!.

Let us now how you go please.

[shepherdsflock]

If this guy has as much equipment in there as you say, he's probably receiving commissions from most of the machines in there, especially the racks. The owner of 3 of my laundromat locations actually likes having my machines there because of the comissions I pay him. I imagine Rick's location's owner probably started letting most of these folks in for the same reason. He saw the commission he was getting and figured the more machines, the more commission payment. Why he let Rick's charity machine in is a mystery, but I'd bet at least the rack is paying commission.

[Rick]

If this guy has as much equipment in there as you say, he's probably receiving commissions from most of the machines in there, especially the racks. The owner of 3 of my laundromat locations actually likes having my machines there because of the comissions I pay him. I imagine Rick's location's owner probably started letting most of these folks in for the same reason. He saw the commission he was getting and figured the more machines, the more commission payment. Why he let Rick's charity machine in is a mystery, but I'd bet at least the rack is paying commission.

I'd bet he's not. By the way, I DID NOT place this machine. The two vendstars were already at this location as part of a route I bought. But if the owner was receiving a commission from everybody, why would they have allowed these charity machines to be there? My guess is the rack and the outdated full-line machine are both paying a commission, but I'd bet everyone else is in there on charity.

Rick,

This is what i would do:

1. Obtain/borrow the money to secure a crane.

2. Make an appointment to see the owner armed with a broshure of the proposed crane you would like to install.

3. Say to the owner that you note that he has many different machines on this site all with different owners and is he happy with the commission/income he receives from most ( most excludes charity)?. Say to him that you would like to offer him a brand new crane with a change giving coin mechanism and note acceptor and say that these are the highest income generators in amusement vending with a very small footprint.

4. Also say that as it provides change and accepts notes that it will instantly turnover more cash than the other machines combined giving him more commission plus for servicing issues he has just one number to call and thats you the owner, sell yourself a bit tell him how good you are and the service you provide, give him points of difference between you and the others i.e clean machines, regular service, new machines etc!.

5. Say i can have this machine here onsite setup and working within a week, providing you are granted exclusive vending rights to the site and offer him 25% of the gross sales?

6. If he hesitates say this will mean more money for you with brand new high earning crane and one point of contact and better service,.............repeat if he hesitates and say is next week fine for dropping it off, you must get that yessssssssssss!!!!!!.

7. present the agreement (dont say contract) say if you can ok the delivery here (show him where to sign) and i will have the machine here for you next week, what day suits best!.

I hope this gives you a bit of food for thought, based on my experience to date i must say get in there now dont hesitate otherwise someone else will beat you to it,.......... theres a saying he who hesitates is lost, and i find it to be very true!.

Let us now how you go please.

Great stuff - thanks!

[GagesVending]

I have several locations where I'm on charity and my competitors are commissioned. Sometimes the location owners honestly don't care about a machine(s) being there, but if they're offered commission from it, they will take it. It's not always about the money to them; just depends on how you pitch them in the first place. The locations I place, I always first try charity, but tell them I only pay a percentage to charity (I'm not the charity) and if they aren't interested, offer a commission, but not unless I have to.