Methods you might try to get exclusive in a location?

[bhfisher]

Hi all;

 

I was thinking about what I could do or offer a location owner to have them "kick-out" my competitor?  Example, there are 1 or more competitor machine at your location or you want business owner to replace your competitor machine with yours.

 

As I read these forums, it appears the only methods used (mostly) is to either offer a higher commission, some kind of signing bonus or “feel good” charity.  But I think these methods have been worn-out now.

 

I what to think outside the box here.  When I had payphones, my competitor offered my location free parking lot restriping (cost maybe $80). I have some ideas that might apply to bulk vending, like leaving $2.00 of quarters with the owner so he could treat the children of his customers. 

 

I was curious if any of you have tried something. 

 

Bart

[mjacks]

First off, are your machines better than the competitors and and stand out because of it?  If you have all the space to yourself what can you do different that would generate more money for the owner?  Different types of machines and products?  Crane?

 

Put together a plan of what you would do different with the space that would equal more revenues before you approach the owner.  Start off with that and if that isn't enough figure out how much of a bonus you can afford to offer for the exclusive based on how much more revenue you will bring in.

[havending]

I agree with mjack if you find an under served location jump on it. There are tons of locations that Need machines like cranes, chicken or redemption and simply don't have them. Or the machines are old as the hills. AA has started to build racks for me that are going into locations that had bulk only then I put in a chicken or stacker etc and bam owners ask me what else I have. Look at it from the owners angle there is a guy giving you 40 or 50 a month them there's a guy handing you 300 to 350 who he going to let have the exclusive? Look for old golpher machines and under served locations and be willing to invest

[Action Vending]

Build a relations ship and let your actions show that you are better. 

 

Be a patron of their business once in awhile and show them that you are more than just "the vending guy"

[Tbuford]

hundred dollar bills

[VendingExperts]

hundred dollar bills

Bribes always work!! Lol!

[Tbuford]

I call it a placement fee.

[havending]

Call it what you will it works lol

[mjacks]

I am no stranger to placement fees but some locations get spoiled.  I gave up a chain of Casa Ole's because the owner wanted $3k per location per year for the spot.  I would have been taking a loss on the location just for the priveledge of dealing with their thieving employees.  Lost those locations and a month later got an opportunity to buy out majority control of a larger chain of grocery stores for far less than market value.  I guess I had built up some good karma some how. 

[dogcow]

chinese owners are all about the placement fees, i have done everything i can to avoid paying them 

in my opinion once u start down that road they will always come looking for more cash . 

[Nick505]

I find it is easier to locate racks into locations that are already familiar with them; locations that already have racks in their entry ways. They already know the scoop and how they work. In my area my biggest local competitor is offering a commission ranging from 25-30%. It is very easy for me to come in at a higher commission (35%) and nicer looking machines. My competitors machines are just as old as his outdated commission. I can afford to offer the higher commission because I am also at a higher price point. Don't get me wrong if I can get away with 25% commission I would in a hear beat but it is just asking for the location to be taken over. 

 

So to answer your question more directly I think that you can offer higher commission, better service, and new equipment. Another good selling point I have found is insurance. Carry proof of insurance when locating and use it to sell the location. It is safe to say that 98.9% of all locations have not seen proof of insurance from their current operator. I use this to my advantage whenever I go locating and make sure you ask the decision maker if they have ever seen proof of liability insurance from the current operator because chances are that they haven't. make sure you show him your insurance credentials when you say this.  Also as mentioned above a cash bonus always works well.

[dromero]

What is this proof of insurance???

I actually make contracts in which there are exclusivity clausule before leaving my machines on the site.

Does this work? IDK

I actually had a competitor machine put besides mine, (the business manager didnt read the contract) but I have to say that the competitors machine (a giant buzz light year almost as tall as me (6 feet) gave my Rhino machine no chance in terms of attractiveness. And if I were to discuss over the exclusivity clausule, I am guessing I would be thrown away of the site and they would leave the fu%& Buzz on their site. 

My sales dropped around 10 to 15 percent so its not a big deal. From 25 USD to 20 USD

 

I would make use of the exclusivity clausule if I were making tons of money though.