Jump to content

Walmart Realty? Profitable?


vendking

Recommended Posts

Was shopping today at Walmart and as I was walking out I usually go to the Redbox placed by the entrance/exit and I never really noticed but usually if I'm waiting in line for a movie I seem to be attracted to the stuffed animal vending machine for .50 a play and always give it atleast one try if I have change on me. An idea came to mind how about putting a soda can vending machine right by these entrance/exits. I seem to notice Costco has one of generic brand soda for .50 a can. Anyone have experience or inputs about this idea I have already contacted Walmart I'm waiting on reply for price and if they allow it.

Link to comment
Share on other sites

I would be surprised if your Walmart doesn't already have soda machines at their entrances, unless you are in a small town or you have a smaller Walmart.  I haven't seen any Walmart that didn't have 3 or 4 soda machines at each entrance with their own store brand of soda in them.  They stock these themselves and the soda manufacturer provides them with the machines.  If you can get even one soda machine at a Walmart, go for it, it should do well, but remember you are dealing with national company with national supplier contracts. 

Link to comment
Share on other sites

Vendking, what city are you in?  Or maybe you don't want to say in case someone else reads this and hits them up too.  This is very unusual that there isn't even a Coke or Pepsi bottler machine there.

Link to comment
Share on other sites

Having worked for Pepsi most walmarts I know of already have machines out front.

Coke Pepsi and 7-Up are always jockeying for what they call first position

 

The ones in my area are all full service. Pepsi and Coke fill them. Vandalism is extremely high.

 

Sells are not as good as they use to be because there are coolers at all the check outs. Also could be no one will repair them like they should be and people have got tired of losing their money.

 

If you do get it be sure to put hockey puck locks top and bottom. Use a medeco lock with no lock cover no need to loose a padlock just for them to see you have medeco locks. They have to be drilled and can't be pulled..... Thieves know this and are looking for fast easy targets.   

Link to comment
Share on other sites

We service 2Walmarts. They are contracted through Best Vendors. We only do snacks. The bottlers have machines in. Employee break room as well as out front. All pricing is dictated by contract. Below market prices in break room. .50 cans/$1 20oz. Out front machines are filled by bottlers. Just recently went from .75 to $1 cans and from $1 20 oz to $1.25. All venders must also have remote monitoring that reports to Best Vendors.

Sorry, should have said WalMart Super Centers

Link to comment
Share on other sites

We service 2Walmarts. They are contracted through Best Vendors. We only do snacks. The bottlers have machines in. Employee break room as well as out front. All pricing is dictated by contract. Below market prices in break room. .50 cans/$1 20oz. Out front machines are filled by bottlers. Just recently went from .75 to $1 cans and from $1 20 oz to $1.25. All venders must also have remote monitoring that reports to Best Vendors.

Sorry, should have said WalMart Super Centers

Arrrrgggghhhh.  Worst Vendors.... I mean Best Vendors, or in other words Compass Group which means Canteen.  I had my heyday with them, always knowing they could pull my accounts at any time, for any reason, and that time finally came.  I had a really good run with them up until they decided to give all the local Best Vendors accounts from various vendors (except Canteen of course) to North County Vending out of Riverside, CA because NCV wanted to have a presence in Arizona.  NCV's owner was on the Best Vendors board of directors, so naturally when he wanted to move into a market, he could.  The only good thing about Best Vendors was the number of accounts they fed to us and the mostly market pricing or above they allowed us to use.  CV - You must not have a Canteen franchise near your area or they would be servicing all the BV accounts, wouldn't they?  Oh....I think I know what cvending is now.....you probably know this story already. 

 

This was also before they went to the requirement of remote monitoring.  They had started sending letters about how they wanted us to all install the monitoring and how it was going to be so great for the accounts, blah blah blah (they didn't explain how).  They never offered any financial help toward the remote implementation so we just waited it out to see if they meant business or not.  It was more like they were waiting for their vendors to say "Hey, we were thinking of doing this ourselves."  But BV never even suggested which software system they wanted us to use and we wondered how they would collect data from a myriad of remote monitoring programs that any given vendor might choose to use.  It became a moot point when they decided to set NCV up in business in our market.  Now Canteen owns NCV too and our market is all Canteen in BV accounts.

Link to comment
Share on other sites

Doing business with WalMart is the biggest pain.  You are at their mercy and cannot enter the store from the front.  sometimes you have to wait 45 minutes for someone to open the door.  You would think they were union controlled and Jimmy Hoffa was visiting.

We have turned down every request for vending at our local Walmarts and will never ever place machines with them.  They wanted all product to be things they do not carrry.  We figured our time could be put to better use.

Link to comment
Share on other sites

Doing business with WalMart is the biggest pain.  You are at their mercy and cannot enter the store from the front.  sometimes you have to wait 45 minutes for someone to open the door.  You would think they were union controlled and Jimmy Hoffa was visiting.

We have turned down every request for vending at our local Walmarts and will never ever place machines with them.  They wanted all product to be things they do not carrry.  We figured our time could be put to better use.

 

It's interesting that you bring that up.  I know that many people have told me "Hey, why don't you put vending machines in a place like Walmart?" and I tell them that EVEN if I could somehow get my foot in the door of such a monstrosity (a monstrosity in the sense that it is a huge corporation), I would probably be under so much scrutiny that it may not even be worth it.

 

I have serviced a Sam's Club in the past and the location did pretty decent and there were no issues about what to stock (because you can't really buy much in the store for individual use), but that was only for snacks.  The soda machines were stocked by Sam's Club.  The GOOD part was that the prices were good and the sales were pretty good.  I have no idea what kind of commission was paid if any because I was just an employee at the time.

Link to comment
Share on other sites

AZ, we do have a Canteen franchise locally. Best Vendors spreads out the awarding of contracts. While they have offered us some other national accounts, we have turned some down. Local Canteen does service some of them. As for the remote monitoring, BV gave us a choice of InOne or Cantaloupe. They have arrangements with both companies. Weay $6/mo per location for the InOne monitoring. They are our first (and only) experience with remote monitoring.

Link to comment
Share on other sites

AZ, we do have a Canteen franchise locally. Best Vendors spreads out the awarding of contracts. While they have offered us some other national accounts, we have turned some down. Local Canteen does service some of them. As for the remote monitoring, BV gave us a choice of InOne or Cantaloupe. They have arrangements with both companies. Weay $6/mo per location for the InOne monitoring. They are our first (and only) experience with remote monitoring.

Sorry if I made a wrong assumption there.  Good to hear that in your market BV does share the business.  Do they give you the remote data boxes or do you have to pay for those?  Do they give you access to the inventory and sales data or any out of order warnings? 

Link to comment
Share on other sites

How does this work it seems like 3rd party Vending like coke but w snack machines? Why would anyone want that and remote monitoring to them? Do you have to buy product and service and they keep a percentage? Sounds horrible

Link to comment
Share on other sites

How does this work it seems like 3rd party Vending like coke but w snack machines? Why would anyone want that and remote monitoring to them? Do you have to buy product and service and they keep a percentage? Sounds horrible

That's the way of the world with vending management companies.  They manage the vending for national clients and keep a percentage of the sales for themselves, whether any goes to the client or not.  In some cases like Walmart, Target and Home Depot, those clients already have national contracts with Coke, so the vending operator only gets the snacks and, if warranted (or sometimes when not warranted), coffee and food.  Speaking from experience, Target and Home Depot breakrooms have great snack sales, especially during the holiday season.  I got into retail vending with soda, snack, coffee and food during the 90's when the economy was booming.  I made decent money during the year, but when the holidays came along, sales were terrific from October to mid-January.

Link to comment
Share on other sites

I and several friends all had accounts with BV years ago and when compass bought them we all got the 30 day letter. For me it wasn't a big deal, only 4 account, for one of the other guys it was devastating, poof over half his business was gone. The only interest that I have doing business with BV is when I'm sending them a kickout letter.

Link to comment
Share on other sites

BV is not our preferred way of doing business either. We only have 4 accounts through them and only WalMart require the remote monitoring capability. Besides the snacks we vend water too. Bottlers do the soda. We can use our own machines or they will provide equipment. We can only sell Sam's Choice brand water. Using our equipment...4% commission. Use WalMart's equipment...13.5% commission. Guess which we use?

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...