Buzz Bites Business Model

[Bravo Duck]

Gary Luckner, President of Mad Dog Energy, the distributor of Buzz Bite energy chews and I (tstrong, traditional bulk vendor and Buzz Bite skeptic), have been having a discussion on the merits of the Buzz  Bites business model in several other places on this forum. So to keep from bouncing around the forum I've started this thread.

A quick synopsis:

1. The first issue I raised was people losing money buying Buzz Bites distributorships. There are many machines on Ebay, Craigslist and even here on this forum in the classifieds section that are approximately 1/2 of what the Buzz Bite distributors originally paid for them.

Gary's response was that every distributor has his personal number to call for help and there is an educational/information section of their (Mad Dog Energy) web site.

2. The second issue I raised was inflation. A traditional bulk vendor deals with inflation by 1. finding a less expensive supplier,2. decreasing portion size- neither of these options is available to a Buzz Bites distributor, so the only thing left is 3. increase prices. To increase prices means replacing the coin mechanisms on all of the machines- which is expensive.

Gary's response was that the machine distributors (not Mad Dog Energy) would replace the coin mechanisms for free when returned to the distribution companies.

I asked for written proof of this and Gary suggested that I get in touch with the machine distributors.

 

The complete text of that discussion is here: http://www.vendiscuss.com/forums/view_topic.php?id=1907&forum_id=1

[Bravo Duck]

Now, continuing our discussion.

lucks wrote:

Tom,

I can't speak for them but I bet if you call them and ask they will tell you that. I know they will put it in writing if you ask. It is in our best interest for them to do that. If one day prices did go up and people were not selling our product because of that , it would put Mad Dog out of business. We would not let that happen. That would be stupid on our part. We see our sales going up every week and want to see that continue.

Gary, as president of Mad Dog Energy you should already have copies of the contracts that all your machine distributors are using. If you don't, then a simple phone call will get them faxed over to you and you can post them on this forum. You've said that Buzz Bite distributors have protection from inflation. lets see some proof of that claim. Tom

[grumpy]

http://www.maddogenergyproducts.com/MadDog_Sales_book_.pdf

Buzz Bites and Mad Dog sales book. Should be required reading to participate in this discussion. I found it interesting, not for Buzz Bites but for just general knowledge on the vending industry.

Gary check page 14 of your sales literature and then tell us again that your company does not suggest locations with kids. Also did you not get your hands slapped by the FCC for telling potential vendors how much they could make when the machine was empty? Your sales literature does tell how much a person will make when it is empty.

Oh I'm not accountant so when I saw that 233% markup I could not figure out what you meant at first, I did eventually but I prefer the 70% gross profit way of doing things.

I do like the literature though as it is a great looking sales tool.

[rjpapageorgio]

I have seen and tried the Buzz Bites and I think the other one is called Live Wire, just for curiosity and to see what the hype was about.  These things are ridiculously small for a $.50 a vend, taste like hell, and in no way are you going to generate residual traffic on these like candy does.   People will try them once or twice in the beginning and that's it.  Stay away from another fly by night business opportunity trying to steal your money.  What these so called biz opps don't tell you is that it is very difficult to change the or recreate the wheel (pun intended) when it comes to the market place.  You can't dictate to the market, the market will always dictate to you what is in demand!

Just my opinion.

RJ

[T BIRD]

I try to have a open mind but geez buzz bites and that machine is not for me gang.

[Jax Snacks]

I too try to keep an open mind. However the problem I have with Buzz Bites is not just the biz-op or the cheap machine, but rather the vending of another food product. Bulk vending of food products is very mature and I stopped searching for that next big selling food product years ago. I tried many candies from Concord and Oak Leaf only to throw them into the garbage can. I will never test any new food products unless credible vendors give positive reviews.

I understand people wanting to find the next big hula-hoop product – I do too! But now I limit my hula-hoop search to toys. Food and candy has become ho-hum, gumballs are decent due to the margin, but toys are king for me. Yea, I know that this lead scare from China may have an impact on the future toy prices, but unproven bulk food is a big dead-end for me.

Jax

[aj9088]

i think he is the VP of mad dog and i posted my thoughts on another thread about good ole gary and his ways...

i love it how he separates himself from the companies that sell the machines...mad dog is in charge of the ENTIRE OPERATION!!

[Bravo Duck]

Duly noted, Gary is VP of Mad Dog, not the president.

AJ,would you go on the other forum and Tell Gary that Tom is inviting him back to Vendiscuss to continue our discussion?

[Jax Snacks]

Tom,

You seem to have a personal grudge against the Buzz Bites people. What’s up with that? Now I am not trying to tell you or any one else what to do, but there have been several threads outlining the dangers and risks of this venture. I don’t like biz-ops either and I am very skeptical of this unproven product. But if people want to still spend their cash (or max out their credit cards, home equity, IRA, 401k, etc.) on this stuff after reading all of the postings, well then that’s their decision. There is very little chance that he will come back on and continue the debate with you since his “opportunity†is what it is – a bizop! He has nothing to gain and can only loose potential clients. I am sure he is done here and is looking for greener newbie pastures. At least we all succeeded in warning the members here. Not trying to be a wise guy, but it’s time to move on since we can’t save the world from all the bizops but we can challenge them when they do their pitch on this board. They have been lighting up the Craig’s List ads lately.

Just a comment from one mild mannered guy to another.

Jax

[T BIRD]

Well said Jax!

[Bravo Duck]

Allright, I'll stop beating this dead horse, but I just can't stand to see people being taken advantage of in a systematic way. You're right they're flooding Craigslists across the country and I'm sure people are being fleeced every day.

I think most of the people buying into this are blue collar working stiffs like you and me who can least afford paying a $10,000 credit card bill for the next 5 years. All I want to do is tell the people who will listen that this is a HIGHLY risky bizop.

This is not personal. Buzz bites has done nothing wrong to me, but if I saw some people standing on train tracks facing the wrong direction, I would do my best to warn them of an oncoming train. I have nothing against the train.

[lucks]

Tom,

I am here. Sorry I haven't been here in a while. We are growing and its hard to keep up the debate. I think the larger we get, the more good and bad publicity will happen. People will succeed and people will fail. We don't hear about a lot of people not doing well but the ones that aren't doing well never call for help, how come? Could they be competition posing as customers.

I agree with all you guys about Biz Op companies, at one time I was one of them trying to do right. With the advertising cost to create a customer being so high , people will pay more from a biz op company but at the same time the Business opp company ( A GOOD ONE) will give much more support to a customer than a vending machine supplier. Remember, with the energy product our companies are selling you are getting a lot more than just a vending machine. As far as the energy market it is doing really well. We do have Business opporunity companies selling our product and we feel we have selected the right ones.

We have other products coming out and I hope some of you get involved in them and support M.D.E.P. , I know the next one is going to be something you will all want. So when it is launched please call or email me and if you are part of this forum as a respected member we will work something out in price in exchange for your review

[T BIRD]

I would be interested to see what the new product is.

[AmuseStar Vending Co]

Who knows TBird. He says we all will want it. I have heard stories of when the old chicken machines came out. The manufacturer of them kept saying for years everyone would want it. When they came out, not only did the vendors hate them, the kids hated them more. I would not hold my breath.

Kyle

[antoniocinisi]

only time will tell I guess

[smvending]

I guess you guys were right. This was posted on the Vroom Foods website.

*****IMPORTANT NOTICE******

Buzz Bite® Vending Distribution

[justify] As of September 12, 2008, Vroom Foods, Inc. terminated its relationship with Mad Dog Energy Products, Inc. If you are unable to obtain Buzz Bite® chocolate or mint chocolate energy chews, or would like to be on our mailing list for future vending communication, please contact Vroom Foods, Inc. at www.vroomfoods.com or call us at 949-515-1616. [/justify] [justify]Also, please be advised that Vroom Foods has no responsibility for any representations or claims that may have been made to you by Mad Dog Energy Products, which until last week was a supplier of Buzz Bite® chocolate and mint chocolate energy chews, or any vending machine company suppliers, as those parties are completely independent of Vroom Foods. Vroom Foods has not authorized anyone to offer exclusive territories or vending routes, nor has Vroom Foods required that anyone purchase a minimum number of vending machines or a minimum starting or replacement inventory of product. Vroom Foods is the originator and supplier of Buzz Bite® chocolate and mint chocolate energy chews--that is our business. [/justify] [justify]We are troubled by the turmoil and confusion in the forums and the blogs that we read about--especially over the past several days. We want to assure all of those who have come to know and love Buzz Bite® chocolate and mint chocolate energy chews that we are willing and able to supply product directly to you based on your own needs and requirements, and not on artificially determined amounts imposed by third parties. After all, it is your business and not somebody else's. Buzz Bite® chocolate or mint chocolate energy chews have been around for four years and Vroom Foods has consistently provided a quality product. We encourage you to think and contact us before you decide to change from Buzz Bite® chocolate and mint chocolate energy chews to a new product that has not been tested in the market. [/justify] [justify]Based on our review of the various blogs and forums, it appears that many of you may have legitimate gripes and concerns. We can assure you that Vroom Foods is an ethical business that is not the source or cause of those problems and we are taking appropriate action to protect the good will associated with our corporation name and our trademarks. [/justify]