Jump to content

Is bulk like full line where if you want a good location you have to kick someone else out?


Zeusophobia

Recommended Posts

Hi, I was doing full line vending and found out the hard way that if you want a good location you 100% have to talk your way into someone elses location. 

 

It's not that I'm not willing to compete, but I absolutely hate having to do business this way.

 

I was wondering if the same was true for bulk. 

Link to comment
Share on other sites

absolutely true. vending is a cut throat business, because there are very few ways to differentiate your product and equipment. odds are someone already has all of the good locations in your area. that doesn't mean you won't be able to get in them. it's a hard sell if the account already has a vendor unless the machines are out of order or empty.the metropolitan areas we operate in are saturated with mom and pop vendors that pay outrageous 40 and 50 percent of gross commissions! why would anyone want to talk their way into accounts that have already been trained on such high percentages? I would suggest doing some legwork for a few days. profile your area, talk to some managers, find out what the going commission rate, and who your competition is. probably not a good idea for you to move forward with your position on competition.

Link to comment
Share on other sites

And look for a specialty unit that is not being used in that area / target location. We went into an new market and got our foot in the door (18 new accounts that had racks in them already) with a 'pumpo the clown' unit...those are very good now when used with the punch ball, rocket balloons and other inflatables. Shootin Hoops, gumball as pinball units, specialty 49mm ball units...there is a lot out there, the trick is to get a good deal on nice used units.

Link to comment
Share on other sites

Learn how to navigate your local BBB, Chamber of Commerce and city business lisence applications. I've walked onto job sites. One way or another you have to hustle, develop a bread n butter and become the best at it in your service area.

Link to comment
Share on other sites

also watch for new business postings. Like Rick said, the Chamber will also know of New businesses. That's how I just got a Fun Zone for kids.  

It is very competitive in bulk! I don't know about full size, but bulk is very cutthroat! I think that's why I like it. It's not so much the servicing, it's the deal itself. I could locate everyday in restaurants where it's tough. It's fun.

Link to comment
Share on other sites

Two rules to bulk vending, #1 Keep start up costs low (machine, location, candy) #2 service locations regularly. I have spent $55 per location to place a $150 machine that I filled with $50 worth of candy. Rookie mistake!! I have made a few work even with a bad start by servicing them regularly. Always be professional and honest.

Link to comment
Share on other sites

I understand that it's competitive, but I don't understand how competing would be done.

 

I worked sales for a while and I remember my first sales call and my trainer laughing his golpher off at one thing I said.

 

"You shouldn't use them because we're better."

 

He told me you always have to explain why you're better.

 

I have no earthly idea how to explain that my gumball machine is better than the gumball machine that's already there. 

 

A gumball machine is a gumball machine. Even if I had a beaver and they had a rhino, I don't think the location would give a damn.

 

So basically what I'm trying to ask is, how exactly is competing done in this line of work?

Link to comment
Share on other sites

service, service, service, commission, prices, and did i mention service?

service includes presentation of machines, even if they have a later model national with a G3 royal but its all beat up, show them your machines, if they are all nice and shiny , great paint(auto wax works real good) no smudges on glass, lights work, no grime or dirt, no tape, etc the sign and buttons are all crystal clear not faded yellowed or scratched, use professional flavor strips, not napkins with coke scribbled on it in sharpie, etc.

also call back, if they say they have a contract ask then when it expires, then call back when it almost expires and remind them etc etc

Link to comment
Share on other sites

It's done exactly the same as it's done in every other industry.  If you walk into a location that already has bulk equipment, check for curb appeal, amount of product, functionality and amount of empty space directly around the equipment.  

Look the manager in the eye, politely introduce yourself and say "It looks like you've got a great business here.  I see you have some vending equipment over there by there front door and I'm a vendor as well.  I run a whole bunch of locations in this area including (brand name pizzaria) and (brand name laundry/bowling/theatre/Mexican).  If you don't mind me asking, are you happy with their service and how much commission are they paying you?"  

 

And the conversation is taken from there.  If the owner says NOPE I couldn't be happier thanks, the equipment looks great and I can't beat the commission, leave a business card and say thanks. Everything else is a problem and you're just the man to solve it.  

Link to comment
Share on other sites

You just hit the nail on the head zeus..  Your gumball is no different than my gumball...  Its a commodity...  so, how do you compete in a commoditized industry AND STILL MAKE MONEY ?

 

NO   1. pay higher commission

NO   2. service more often.

YES 3. differentiate with packaging/bundle product.

 

1 and 2 are straight forward, but probably wont get you in the door, and they will cost you money.. not make you money.. 

 

so focus on #3.

 

You have to bundle/package your gumball differently.

 

1. put your gumball in an interactive machine.

2.  offer two gumballs for a quarter?? 

3. offer something other than gum, just to get your foot in the door.  if they don't have nerd gum, put in a 4 way rack with 1"toys..  and offer nerd gum.  In 2003 (the year we started in toy vending) we would put out bulk machines next to other vendors all of the time..  If they were not selling 49mm balls, we would slam down a bounce-a-roo... our machine would do $300-500  the first month..  I would use that as an opportunity to kick out the other guy.  If we saw a huge grocery store and the vendor wasn't selling "homies" we would offer slotting fees and kick the guy out.. 

 

within a year, it was obvious that the party was over.. I called an emergency meeting and laid out a trend line to show everyone that we would run out of money if we kept on the bulk path!!!  Fortunately, we started down a different vending path!!!      

 

Needless to say, I have a very negative bias towards bulk.  I live in the northeast part of the country, and ever since 2004/5 bulk stinks!!!

 

IF I were going to invest money in bulk I would only use NW 60's and offer two products, gum and balls (unless there was a hot 1" toy)  I would put them in every pizza shop, takeout Chinese, diner, bar, salvation army, grocery, etc..  on CHARITY...  I would setup my routes on a N,W,E,S rotation, and have 40,80,120,160 day service cycles....  every week I would travel all 4 directions and take care of the minimal service calls while on the route...  THAT IS THE MOST EFFICIENT WAY TO GET A SIX FIGURE INCOME IN BULK, NOT HAVE A MOUND OF DEBT, AND HAVE A BUSINESS THAT WILL WEATHER THE RECESSIONS AND LAST FOR A LONG TIME..     

 

The reason...  people will always chew gum, and kids will always play with balls....  you will never get stuck with inventory, and your machines will run forever...   If gas ever spikes, you can operate out of a car and still have a nice $ capacity.   

Link to comment
Share on other sites

Hot dog you just gave away the keys to the bank!! Let's see how many people argue about it! Lol

 

No argument here.  That is absolutely the blueprint for success summarized by hotdog in 500 words or less.  If I'm nitpicking, I could make the case that commission doubles (highly dependent on area of the country) has it's advantages - but I agree 100%, double GB/BB on an optimized service cycle is the no brainer way to 6-figures.  

Link to comment
Share on other sites

  • 2 months later...

A lot of charity vends down here, little in the way of comission pay-out from what I've heard from people in the area so far. I also see many establishments that simply do not have any bulk dispensers. As soon as I have some to put out, I'll be placing them as quick as possible. I have great local charities to donate to, which I think will be more of a draw than the big national charities, since local people know people actually involved with the local charites directly, and the home-town fame of them.

Link to comment
Share on other sites

Archived

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

×
×
  • Create New...