oheric Posted March 8, 2014 Share Posted March 8, 2014 All- Part of a vending machine business that I am thinking about buying has 6 Coke machines placed with businesses. According to the current owner, the relationship with Coke is such that the owner of the route needs only to buy and fill the machine with product purchased from Coke. All other responsibilities with regard to the machine are handled by Coke. These include repair and moving of the machines. Is this accurate? Will Coke do all of the "heavy lifting" in this business relationship? Thanks Eric Link to comment Share on other sites More sharing options...
moondog Posted March 8, 2014 Share Posted March 8, 2014 All- Part of a vending machine business that I am thinking about buying has 6 Coke machines placed with businesses. According to the current owner, the relationship with Coke is such that the owner of the route needs only to buy and fill the machine with product purchased from Coke. All other responsibilities with regard to the machine are handled by Coke. These include repair and moving of the machines. Is this accurate? Will Coke do all of the "heavy lifting" in this business relationship? Thanks Eric That's the general agreement though I've heard that getting them to actually do their part in a timely manner is often difficult. Your best bet, if you buy this route, is to place your own machines in those locations - it'll save you a lot of grief and at least 10% on product costs and you'll be able to vend other popular brands like Pepsi, Mountain Dew and 7-Up in the same machine which should greatly increase your sales. Link to comment Share on other sites More sharing options...
orsd Posted March 8, 2014 Share Posted March 8, 2014 and if coke decide to back out, your screw if you dont have your own equipment ready Link to comment Share on other sites More sharing options...
FrCorey Posted March 8, 2014 Share Posted March 8, 2014 true. they do every thing for the machines but you have to buy coke products from them. cheaper to get your own and stock it from grocery deals or wholesale clubs. and like the others said, if coke changes their mind, you lose. and good luck getting your machines contents and moneys back from coke too. Link to comment Share on other sites More sharing options...
mission vending Posted March 9, 2014 Share Posted March 9, 2014 All- Part of a vending machine business that I am thinking about buying has 6 Coke machines placed with businesses. According to the current owner, the relationship with Coke is such that the owner of the route needs only to buy and fill the machine with product purchased from Coke. All other responsibilities with regard to the machine are handled by Coke. These include repair and moving of the machines. Is this accurate? Will Coke do all of the "heavy lifting" in this business relationship? Thanks Eric It's called a third party lease. I wouldn't pay more than 300 plus inventory for the 6 coke machine locations. Before you do that you need to meet with the account rep to see if they will even transfer them to you. In some areas they won't set up a account for a vendor until they have been in business for a year. You also need to know what your purchase quotas are as not meeting them leaves you vulnerable to having the machines taken back by Coke. From the statement of making a net of 150 a week, these are not very good accountsso if it was me in your shoes I'd be very hard pressed to go over 4K on this deal, including inventory and coin mech money. Link to comment Share on other sites More sharing options...
spdydre Posted March 9, 2014 Share Posted March 9, 2014 Ive had a good relationship with coke but that's only because my sales guy is cool he doesn't bother me . I would still suggest you to purchase your own. I hate going to Coke meetings(mandatory) once a year to resign the contract. They also started this new thing for me where I have to turn in my asset list etc. Its no big deal but just taking time to do this stuff is annoying sometimes. Link to comment Share on other sites More sharing options...
Sparta_Automation Posted March 10, 2014 Share Posted March 10, 2014 You would save more then 10% by buying your own product at Walmart and stocking your own machines. I looked into 3rd party when I first started....and they wanted like $9 a case....it was ugly. Travis Link to comment Share on other sites More sharing options...
Walta Posted March 10, 2014 Share Posted March 10, 2014 There is no free lunch, You can buy the machines up front or pay for them by paying 3.00 more a case and buying the required number of cases. Most bottlers also have a minimum purchase requirement. If you fail to buy the required number of cases they can pick up all their equipment with little notice. More often they will refuse to renew the contract. Often it is no surprise and unscrupulous people will try to sell the failing route to someone who does not understand. Walta Link to comment Share on other sites More sharing options...
TKK Posted March 11, 2014 Share Posted March 11, 2014 My buddy became a vfo or something like that gets great deals. 2 12 packs for 5.85 and monsters for $20 a case. Ima start buying from him, .24c a Coke vs. 32 at sams. They dropped his prices as hes not labeled third party vendor anymore Link to comment Share on other sites More sharing options...
AngryChris Posted March 18, 2014 Share Posted March 18, 2014 That sounds like a great deal but it does nothing to help anyone on the forum unless they can somehow get the same deal. Link to comment Share on other sites More sharing options...
snack dude Posted March 18, 2014 Share Posted March 18, 2014 Reading the above posts I feel like I have the greatest coke rep ever. I have several coke glass fronts and a couple of bottle vendors and I have never renewed a contract or been asked for a asset list, In fact I am not sure if I have a contract. I get gold level pricing and my rep calls about once a quarter to tell me if I am up or down on ordering and any specials they might have. ( I will say that I only order bottles from them) Cans I get at Sams. I have said this before on here, I think it really varies between bottlers and regions Same with pepsi, My operation is on the border of two pepsi bottlers and they couldnt be any different if they tried. One is "Whatever you need" and the other is doing me a favor answering the phone. Of course sometimes it does not hurt to pit them against each other. Hey coke is giving me this pricing what can you do for me, or I need a pepsi glass front to go next to the new coke glass front that I just installed in the vending area next to the main entrance of a 26 floor office building. ( Yes I have done that more than once) Link to comment Share on other sites More sharing options...
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