beejaykc aka Munch A Bunch Posted April 19, 2013 Share Posted April 19, 2013 20 oz soda bottles (90 day shelf life) = $0.86 20 oz lemonade (6 month shelf life) = $0.86 Full Throttle and NOS 16 oz cans (12 month shelf life) = $1.28 20 oz Powerade (9 month shelf life) = $0.77 20 oz Dasani water = $0.48 12 oz soda cans (3-9 month shelf life) = $0.36 10 case minimum for free delivery. How do these rate? I probably have the highest price based on low volume. Link to comment Share on other sites More sharing options...
mission vending Posted April 19, 2013 Share Posted April 19, 2013 20 oz soda bottles (90 day shelf life) = $0.86 20 oz lemonade (6 month shelf life) = $0.86 Full Throttle and NOS 16 oz cans (12 month shelf life) = $1.28 20 oz Powerade (9 month shelf life) = $0.77 20 oz Dasani water = $0.48 12 oz soda cans (3-9 month shelf life) = $0.36 10 case minimum for free delivery. How do these rate? I probably have the highest price based on low volume. A little high but not surprising for a new, low volume account. Look into the pricing for the flavored stuff, Fanta, Barq's Root Beer etc. they are generally a bit cheaper than Coke, Dr. Pepper etc. Link to comment Share on other sites More sharing options...
beejaykc aka Munch A Bunch Posted April 19, 2013 Author Share Posted April 19, 2013 A little high but not surprising for a new, low volume account. Look into the pricing for the flavored stuff, Fanta, Barq's Root Beer etc. they are generally a bit cheaper than Coke, Dr. Pepper etc. Mission - those prices are the same as the above soda prices. That's where they screw me. LOLI have access to TONS of other Coke products too. Not that I'd vend much else, but it's there. Juices, Vitamin Water, other size bottles/cans, etc. Link to comment Share on other sites More sharing options...
Lake Cities Vending Posted April 19, 2013 Share Posted April 19, 2013 Sounds about right until you start buying more volume. My Fanta flavors are cheaper as Mission said. Link to comment Share on other sites More sharing options...
moondog Posted April 19, 2013 Share Posted April 19, 2013 A little high but not surprising for a new, low volume account. Look into the pricing for the flavored stuff, Fanta, Barq's Root Beer etc. they are generally a bit cheaper than Coke, Dr. Pepper etc. If you find yourself selling a lot of Dasani water - look for a better source. That's about twice what I pay for 20 oz Arrowhead. Link to comment Share on other sites More sharing options...
AZVendor Posted April 20, 2013 Share Posted April 20, 2013 Unless they have products you can't find elsewhere, they require you to purchase direct, or you're willing to pay for the convenience of delivery, such as it is, you are much better off doing your buying at the club stores and saving your money. The prices you were quoted are the same as any Mom and Pop store or small business with one machine would get. You need to buy locally until you are big enough to get pallet deliveries. That's where you get your best prices. When we were getting truckloads at a time we got rebates, sale prices around holidays and got truckload prices when Coke or Pepsi needed to make a quota. They would actually call us with sale prices, sometimes for just 4 -8 pallets. Link to comment Share on other sites More sharing options...
mission vending Posted April 20, 2013 Share Posted April 20, 2013 When we were getting truckloads at a time we got rebates, sale prices around holidays and got truckload prices when Coke or Pepsi needed to make a quota. They would actually call us with sale prices, sometimes for just 4 -8 pallets. Those were the good old days. Around here the last few years those kinds of deals are few and far between . Link to comment Share on other sites More sharing options...
Broncho Posted April 20, 2013 Share Posted April 20, 2013 Those were the good old days. Around here the last few years those kinds of deals are few and far between . We are expected to do 5% growth against the prior years quarter or we lose our status(Gold, silver, bronze). Even though we have been doing this, we still got 2 price increases within 4 months for a total of 8%! Coca Cola and Pepsi are getting out of hand and even at almost 1000 cases a week they are not giving breaks like they use too. Link to comment Share on other sites More sharing options...
AZVendor Posted April 20, 2013 Share Posted April 20, 2013 I know back in the 90's here, this was considered to be the most competitive soda market in the country. Even today we see competing lowball pricing at grocery stores leading up to a major holiday and any given grocery chain will put Coke on sale one week and Pepsi the next. I find it amusing that both bottlers try hard to confuse people as to the unit price by selling refrigerator 12 packs and 32 ct cases. It's hard to find 24 ct cases anymore. Link to comment Share on other sites More sharing options...
mission vending Posted April 20, 2013 Share Posted April 20, 2013 We are expected to do 5% growth against the prior years quarter or we lose our status(Gold, silver, bronze). Same here, no doubt I will be losing my Gold status this year. I'm not growing now by choice and have complained quite vocally about being "penalized" just for keeping my business going and not growing..... and the reps wonder why we keep putting off our meetings with them and why we don't like to talk to them. Link to comment Share on other sites More sharing options...
Broncho Posted April 20, 2013 Share Posted April 20, 2013 Same here, no doubt I will be losing my Gold status this year. I'm not growing now by choice and have complained quite vocally about being "penalized" just for keeping my business going and not growing..... and the reps wonder why we keep putting off our meetings with them and why we don't like to talk to them. I straight out told them that they are "jackasses" and it didn't go well. It didn't help that it was a meeting with the regional district manager(about as high as I could go), for implementing this. I also told them to stop sending sales people by and pass the savings on to people like us. They are hiring on drivers for $250 a day now and their sales people are making $70,000+ here and thats were a lot of the problems are stemming from. Im being told that its necessary to get talent and CDL drivers, due to the areas growth, but I hear a lot of bad things from drivers. Link to comment Share on other sites More sharing options...
beejaykc aka Munch A Bunch Posted April 20, 2013 Author Share Posted April 20, 2013 The pricing they're giving me is the Gold CMA pricing. Even at just 3 machines from them. No minimums. They did say that if "over time" the machines were deemed "slow" - they would want to pick up the machines. What this tells me is that if they get in an asset crunch - which they always are - they will ABSOLUTELY take my machine away and put it somewhere more productive. What I'd like to know is what that process looks like. I'm not going to go and try to service a machine that mysteriously has vanished.......am I? Maybe this isn't the best route to go...but it helps my desire to grow quickly for now. I can move machines and install my own once locations prove themselves I suppose. I know a lot of guys on here do the 3rd party program. Anybody reading this thread think it's not worth the time as a growth strategy? Link to comment Share on other sites More sharing options...
mission vending Posted April 20, 2013 Share Posted April 20, 2013 I straight out told them that they are "jackasses" and it didn't go well. It didn't help that it was a meeting with the regional district manager(about as high as I could go), for implementing this. I also told them to stop sending sales people by and pass the savings on to people like us. They are hiring on drivers for $250 a day now and their sales people are making $70,000+ here and thats were a lot of the problems are stemming from. Im being told that its necessary to get talent and CDL drivers, due to the areas growth, but I hear a lot of bad things from drivers. Around here its about the same, being the largest metro area near the Eagle Ford Shale play, the trucking companies are paying crazy money to get drivers/haulers to work so many of the route guys are quitting and going to work for the oil companies forcing the bottlers to raise pay scales to the ones they have left. I've had several times over the last few months my deliveries delayed by a day or two because they didn't have enough drivers. The pricing they're giving me is the Gold CMA pricing. Even at just 3 machines from them. No minimums. They did say that if "over time" the machines were deemed "slow" - they would want to pick up the machines. What this tells me is that if they get in an asset crunch - which they always are - they will ABSOLUTELY take my machine away and put it somewhere more productive. What I'd like to know is what that process looks like. I'm not going to go and try to service a machine that mysteriously has vanished.......am I? Maybe this isn't the best route to go...but it helps my desire to grow quickly for now. I can move machines and install my own once locations prove themselves I suppose. I know a lot of guys on here do the 3rd party program. Anybody reading this thread think it's not worth the time as a growth strategy? Read your contract, it'll have the terms there. Mine gives them the right to pick up machines with 30 days notice. Its not a bad growth strategy, the problem comes from allowing yourself to become dependent on them. I still have 3rd party machines with them and will continue to do so, but I am also prepared to replace those machines on short notice if the terms and conditions under which I am allowed to use their equipment become unacceptable. Link to comment Share on other sites More sharing options...
moondog Posted April 20, 2013 Share Posted April 20, 2013 The pricing they're giving me is the Gold CMA pricing. Even at just 3 machines from them. No minimums. They did say that if "over time" the machines were deemed "slow" - they would want to pick up the machines. What this tells me is that if they get in an asset crunch - which they always are - they will ABSOLUTELY take my machine away and put it somewhere more productive. What I'd like to know is what that process looks like. I'm not going to go and try to service a machine that mysteriously has vanished.......am I? Maybe this isn't the best route to go...but it helps my desire to grow quickly for now. I can move machines and install my own once locations prove themselves I suppose. I know a lot of guys on here do the 3rd party program. Anybody reading this thread think it's not worth the time as a growth strategy? Beejay, I don't trust the bottlers as far as I could throw them - they could all use a good swift kick in the "golpher". Capitalism dictates that any business that continues to alienate their clientele at the rate these guys are is destined for a big fall. When that day comes, everybody's invited over to my house - we'll tap a keg and toast their demise. Link to comment Share on other sites More sharing options...
beejaykc aka Munch A Bunch Posted April 20, 2013 Author Share Posted April 20, 2013 Beejay, I don't trust the bottlers as far as I could throw them - they could all use a good swift kick in the "golpher". Capitalism dictates that any business that continues to alienate their clientele at the rate these guys are is destined for a big fall. When that day comes, everybody's invited over to my house - we'll tap a keg and toast their demise. Can we come over and tap that keg anyway? Link to comment Share on other sites More sharing options...
mission vending Posted April 20, 2013 Share Posted April 20, 2013 Beejay, I don't trust the bottlers as far as I could throw them - they could all use a good swift kick in the "golpher". Capitalism dictates that any business that continues to alienate their clientele at the rate these guys are is destined for a big fall. When that day comes, everybody's invited over to my house - we'll tap a keg and toast their demise. Is already here, I already am putting Jolly Rancher sodas and Arizona 23 oz teas into machines and looking into importing Big Shot brand sodas from New Orleans to reduce my reliance on the major bottlers. Link to comment Share on other sites More sharing options...
moondog Posted April 20, 2013 Share Posted April 20, 2013 Is already here, I already am putting Jolly Rancher sodas and Arizona 23 oz teas into machines and looking into importing Big Shot brand sodas from New Orleans to reduce my reliance on the major bottlers. Yep, I had to open up a new account with a semi-local distributor to get all the Arizona products. This took some effort, but if it means I can convert a few people away from Coke products, it will be well worth it. Link to comment Share on other sites More sharing options...
beejaykc aka Munch A Bunch Posted April 20, 2013 Author Share Posted April 20, 2013 Yep, I had to open up a new account with a semi-local distributor to get all the Arizona products. This took some effort, but if it means I can convert a few people away from Coke products, it will be well worth it. Don't you guys run the risk of losing the accounts by moving away from the big guy brands? Some accounts I can see allowing the switch.....but most accounts want the recognized brands. Link to comment Share on other sites More sharing options...
mission vending Posted April 20, 2013 Share Posted April 20, 2013 Yep, I had to open up a new account with a semi-local distributor to get all the Arizona products. This took some effort, but if it means I can convert a few people away from Coke products, it will be well worth it. Not only that, but the product is cheaper so more profit for me. Don't you guys run the risk of losing the accounts by moving away from the big guy brands? Some accounts I can see allowing the switch.....but most accounts want the recognized brands. I still keep the major brands, just limit them a little and promote the alternatives. Primarily in my glassfronts with 45 facings the major brands are kept on the bottom shelf or two and the alternatives are kept higher and are more readily visible to the consumer. Link to comment Share on other sites More sharing options...
AZVendor Posted April 20, 2013 Share Posted April 20, 2013 They did say that if "over time" the machines were deemed "slow" - they would want to pick up the machines. What this tells me is that if they get in an asset crunch - which they always are - they will ABSOLUTELY take my machine away and put it somewhere more productive. What I'd like to know is what that process looks like. I'm not going to go and try to service a machine that mysteriously has vanished.......am I? This is how the program works and you have to beat the bottlers at their own game. In our area, they don't seem to pick up machines from anybody, even the guys that run foreign products or who pass leased machines from vendor to vendor, it seems. But what you have to do is meet and beat the purchase minimums for your leased machines. The best way to do this is to not have too many 3rd party machines, especially not too many slow ones. Then you make sure you have enough of your own machines to pad your numbers. They don't care where the product goes, they just want you to purchase X number of cases per leased machine per month. If you do that you should be golden. I ran 100 Coke and Pepsi machines, but did enough volume in all my other owned machines that I could purchase truckload quantities and never worry about minimums. Link to comment Share on other sites More sharing options...
Lake Cities Vending Posted April 20, 2013 Share Posted April 20, 2013 Not to mention I got a letter Coca-Cola a couple of weeks ago that they are raising prices. Link to comment Share on other sites More sharing options...
beejaykc aka Munch A Bunch Posted April 20, 2013 Author Share Posted April 20, 2013 What about the possibility of taking over Coke-run locations for them? Any chance they'll be willing to hand them over to me? Link to comment Share on other sites More sharing options...
Broncho Posted April 20, 2013 Share Posted April 20, 2013 What about the possibility of taking over Coke-run locations for them? Any chance they'll be willing to hand them over to me? The only ones they are ever willing to give up are ones that run under 5-10 cases a month. You are not going to want these accounts to begin with and are better off looking for accounts that you can obtain a decent profit at. Link to comment Share on other sites More sharing options...
beejaykc aka Munch A Bunch Posted April 21, 2013 Author Share Posted April 21, 2013 So explain to me why they wouldn't turn them over to someone that's already a coke customer to run them for them. I'm still buying the product from them (at a low-volume price by the way) and they're not having to run the labor. So they reduce the expense.....increase the profit......satisify a current Coke customer......and increase the liklihood that I buy more from Coke. Seems like a near win-win for Coke. I would understand not wanting to hand over the machine(s) to a new, unproven vendor. Lots of risk there. Link to comment Share on other sites More sharing options...
AZVendor Posted April 21, 2013 Share Posted April 21, 2013 I doubt you could just call Coke and ask them to turn over slow accounts to you. When they will turn them over (though not all the time) is if you sell the account yourself, causing them to lose the account, and then ask Coke to leave the machine there, change the lock and convert it to a lease in your name. When they won't do this is when they have a real new asset in a location they know doesn't sell much. They will prefer to pull the quality machine so that they can use it in a better full service account. They always keep the best and newest assets for full service. Link to comment Share on other sites More sharing options...
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