Jump to content

what do some vendors smoke


TKK

Recommended Posts

I am in Arizona, I don't understand why this guy would go around advertising prices like this but it bugs the hell out of me because I know I do not want to go to 65 cents on soda and no way can i do candy for 85 cents.  I bet once he gets into an account he raises his prices. 

 

I have seen in the last 60 or so days a couple machines at 2 different accounts I walked into and the current vendors have 50 and 55 cent can soda I walked right out...I don't understand how or why they would want to go that low..

Link to comment
Share on other sites

I see why randy aka AZ got out of the business....

http://phoenix.craigslist.org/wvl/for/4442684898.html

sure its profitable, but do you really need to go that low? I hate when a place calls me they r looking for a new vendor and their current machines are rediculous pricing like .50c all across

Must be a bad sales tactic.

I've had a location call me for new service, even though their snacks were at $.50, that's how bad their vendor's service was. I said my prices were higher, they agreed. It was a flower distributor or the likes, 10 employees or so. I drove by the place, but I never bothered going inside or contacting them again. Lol.

Link to comment
Share on other sites

I am in Arizona, I don't understand why this guy would go around advertising prices like this but it bugs the hell out of me because I know I do not want to go to 65 cents on soda and no way can i do candy for 85 cents.  I bet once he gets into an account he raises his prices. 

 

I have seen in the last 60 or so days a couple machines at 2 different accounts I walked into and the current vendors have 50 and 55 cent can soda I walked right out...I don't understand how or why they would want to go that low..

 

I got to talking to a guy last year about his building.  He had an ice chest and he paid for the ice to keep the plastic cool for his plastic mold shop.  He seemed to legitimately care about his employees and he had about 20 of them working 24/7 (in staggered shifts) so I decided to take a look at his vending bank.  There, I saw 1 bottle machine, 1 can machine, 1 food machine, and 1 snack machine all in this vending bank.  What were the prices?  Bottles were $1, cans were 50 cents, chips were 50 cents, pastries were about 75 cents, I didn't even look at the food.  But the kicker?!?!  Candy was FIFTY CENTS!!  I asked the guy how he got such good pricing and he said he didn't really care what the prices were as long as his employees could get a candy bar and a soda for $1.  I had the nerve to tell the guy that his vendor was losing at least 5-10 cents on every candy bar he sold in there (and the place was hot so the candy probably melted a lot ).  I NEVER gave that guy a bid.  It just wasn't even worth messing with because I am not going to go in and tell a bunch of workers "Hey, I am your new vendor and you get no food machine and no bottle machine.  Cans are now 50% higher in price and candy is now 100% higher in price.  Be happy with that."  I just walked away from it completely.

Link to comment
Share on other sites

I got to talking to a guy last year about his building.  He had an ice chest and he paid for the ice to keep the plastic cool for his plastic mold shop.  He seemed to legitimately care about his employees and he had about 20 of them working 24/7 (in staggered shifts) so I decided to take a look at his vending bank.  There, I saw 1 bottle machine, 1 can machine, 1 food machine, and 1 snack machine all in this vending bank.  What were the prices?  Bottles were $1, cans were 50 cents, chips were 50 cents, pastries were about 75 cents, I didn't even look at the food.  But the kicker?!?!  Candy was FIFTY CENTS!!  I asked the guy how he got such good pricing and he said he didn't really care what the prices were as long as his employees could get a candy bar and a soda for $1.  I had the nerve to tell the guy that his vendor was losing at least 5-10 cents on every candy bar he sold in there (and the place was hot so the candy probably melted a lot ).  I NEVER gave that guy a bid.  It just wasn't even worth messing with because I am not going to go in and tell a bunch of workers "Hey, I am your new vendor and you get no food machine and no bottle machine.  Cans are now 50% higher in price and candy is now 100% higher in price.  Be happy with that."  I just walked away from it completely.

 

On something like this and the owner wants the price really cheap has anyone ever thought about talking to the owner and agreeing to price it the way the owner wants and bill the owner for the difference in costs of your regular price?

 

If I owned a business with employees that I wanted to stay working I would take the hit for a small amount of money to boost morale and productivity for my employees.

Link to comment
Share on other sites

On something like this and the owner wants the price really cheap has anyone ever thought about talking to the owner and agreeing to price it the way the owner wants and bill the owner for the difference in costs of your regular price?

What you are referring to is called a subsidized vending program..

Link to comment
Share on other sites

What you are referring to is called a subsidized vending program..

 

I have read a lot about it but have never ran into anyone actually doing this for an account? Does anyone have any experience with this?  the good? the bad?

Link to comment
Share on other sites

It can be easily done as long as you are certain you will be paid for the subsidy.  I have done this a few times and only got hosed once when a business went bankrupt after I had foolishly carried 3 weeks of subsidy.  The advantage to the vendor is that the employees will eat and drink like it's going out of style.  This can sometimes turn the business off from the subsidy when the pay you so much money, but it depends on the business and how they feel about their employees.  If you do this, they need to agree to write you a check on each service day based on either your meter readings or the actual units you count as sold. 

Link to comment
Share on other sites

I did subsidized vending at an account for a couple of years. The company paid 25 cents on each sale. I billed the at the end of the month and they paid in ten days. I like the idea of them writing a check every service cycle if you can get them to agree to it, but I wonder if you customer would agree to it. There would likely be problems finding the person to write check and someone to sign the check, all the while you are waiting.

 

The problem I had was, right when I was going in to talk about raising the prices by 25 cents across the board, the customer called and said they decided to discontinue the subsidy. I didn't see how I could get a fifty cent increase to the employees so I felt I had to delay my portion of the increase. A friend of mine had an account that was was subsidizing 90 cents. Sales where incredible. but imagine what would happen when they decided to stop the subsidy.

Link to comment
Share on other sites

To answer you question about what some vendors smoke......

 

t3079.gif

 

 

 

 

 

 

Subsidized locations are great. Currently have a couple and have had about a dozen or so over the years. In my case the subsidy is for the sodas only, the employees pay only a quarter and I bill the difference on a monthly basis. It makes a 20-30 employee location so totally worth it because of the increased volume it creates.

Link to comment
Share on other sites

Subsidy is great and lots of companies are doing it right now.  At one time they may have offered free coffee or drinks.  They often want you to come in and increase prices on a step chart.  Such as a price goal of .85 on cans.  Start at .50 (they sub .35 per vend) at 3 mos. go to .65 (They sub .20 per vend) and finally at 6 months you are at the mark.  Also if the company changes management and they want proposals most vendors will walk in and see that low pricing and leave.

 

Anytime you see low pricing, never leave.  Stick around and ask if they subsidize a portion of the vending...you might be surprised.  Most of the companies that do that are larger companies.  Often they are unhappy with the vendor because they will not service the machines as often as needed.  On subsidy pricing they items really sell fast.

 

I probably get at least one request per week.  Last week a 90 employee window mfg wanted us to bring in two drinks for .25 vend for 6 months. They are subsidizing .60 vend.  They wanted a snack on normal pricing because they did not have snacks before so they weren't spoiled.  The company we set up with this account with was in the same city (Long Beach) so they can service daily if necessary.

Link to comment
Share on other sites

We have a substantial amount of subsidized accounts. One with a national company where every snack is 25 cents, every soda, powerade and water is 25 cents, and every energy drink or juice is a dollar. The key for these kinds of accounts is giving them a deal on the overall cost. So while the company pays a percentage, their overall cost is lower than what we'd price these items at a normal account. This is because you can make up difference in lower pricing in volume. It's also great for getting rid of short-dated items because as others have said, employees at these companies go nuts for this stuff. Dude, Jacks Links is 25 cents and it's usually $2.00 at the store?! I'll get 8 of them! Then, you just have to worry about keeping the employees from taking grocery bags worth of stuff home with them (I've seen it) so the account doesn't get angry and stop the program.

Link to comment
Share on other sites

Has anyone offered subsized to accounts that want healthy vending, either for the whole account or just the healthy items. If you have a contact that is adamant about healthy stuff it might be an option instead of walking away.

Link to comment
Share on other sites

Archived

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

×
×
  • Create New...