MidStateVending Posted April 9, 2015 Share Posted April 9, 2015 Tomorrow I am meeting with a warehouse manager who wants the following: 2 drink machines 1 snack machine coffee water 12 microwaves 2 side-by-side freezers ice maker They currently have 90 employees and said to expect 300 by July. No commission. I would love to land the account, but in my estimation it would set me back $15K just in used equipment. Not sure it's worth it. Recomendations welcome. Link to comment Share on other sites More sharing options...
Feral Vending Mechanic Posted April 9, 2015 Share Posted April 9, 2015 This is exactly the reason the Big vending companies get good accounts. They are willing to make the investment. And you don't even know if they guy is blowing smoke about "expansion plans." The no commission part is reassuring, but are they willing to give you a contract? Link to comment Share on other sites More sharing options...
moondog Posted April 9, 2015 Share Posted April 9, 2015 Tomorrow I am meeting with a warehouse manager who wants the following: 2 drink machines 1 snack machine coffee water 12 microwaves 2 side-by-side freezers ice maker They currently have 90 employees and said to expect 300 by July. No commission. I would love to land the account, but in my estimation it would set me back $15K just in used equipment. Not sure it's worth it. Recomendations welcome. What are you waiting for? This is the kind of account we all dream of getting. What's with the 12 microwaves? Link to comment Share on other sites More sharing options...
Feral Vending Mechanic Posted April 9, 2015 Share Posted April 9, 2015 What are you waiting for? This is the kind of account we all dream of getting. What's with the 12 microwaves? Everyone seems to want freaking microwaves. And then they don't take care of them. Jerks. Link to comment Share on other sites More sharing options...
AZVendor Posted April 9, 2015 Share Posted April 9, 2015 If you aren't selling any food to them (and don't suggest it unless it's frozen food) then they are just too cheap to buy their own microwaves. I used to provide them where I had food machines but 12 is ridiculous - as is the side by side freezers and ice maker. They need to put their own money up for the non-revenue producing pieces. I don't think this is a good deal for you otherwise as there's no guarantee of sales volume and of more employees. What happens if they go belly up and you own freezers, microwaves and an ice machine? And I forgot about the water cooler(s) they expect. Even if you opted to buy all of that, they should then lease it from you at an amount that would pay them off in 3 years. But do you really want to be a bank? Link to comment Share on other sites More sharing options...
MidStateVending Posted April 9, 2015 Author Share Posted April 9, 2015 "no guarantee of sales volume and of more employees" Thank you AZ! I will tell him exactly that. Also, I never supplied microwaves before... would I be responsible for cleaning them? Link to comment Share on other sites More sharing options...
AZVendor Posted April 9, 2015 Share Posted April 9, 2015 I'd leave the cleaning to them but don't expect them to do it. I always used commercial microwaves but they're kind of rare now. They last longer because they are old school. The model I used was the "Sand 7D." Link to comment Share on other sites More sharing options...
EatMoreJunk Posted April 9, 2015 Share Posted April 9, 2015 I provide microwaves to several of my accounts, primarily because these locations have a frozen food machine. I typically have to replace them once per year at a cost of approx $70 each ... no big deal. And I do NOT clean them. Link to comment Share on other sites More sharing options...
Feral Vending Mechanic Posted April 9, 2015 Share Posted April 9, 2015 Commercial microwaves are harder to find/cost way more. NCV had started picking up super cheap Walmart microwaves, because they were a tenth the price. Sure, they'd die occasionally, but they're cheap to replace. As far as cleaning goes, yeah. I'm sure they would like you to clean them. But you're not running a janitorial business, now, are you? I work for one of the big guys, and we don't even make that kind of investment very often. We have installed ice makers at a hand full of accounts. All super high profile accounts with micro markets and multi-year contracts. And I can't think of any locations we have with a dozen microwaves. I don't get calls on microwaves, though, so we could have them and I just don't notice. Link to comment Share on other sites More sharing options...
orsd Posted April 9, 2015 Share Posted April 9, 2015 Just tell them the Walmart microwaves are domestic use only and that you don't want liability Link to comment Share on other sites More sharing options...
Georgia bulldog Posted April 13, 2015 Share Posted April 13, 2015 I pulled out of a account a while back the owner wanted 4 new microwaves a ice maker I bought one ice maker for 1400.00 dollars but it was not good for him he wanted one for 3000.00 dollars I showed him I only gross on a good week 450 dollars but all he could say was I did not have to pay commission so It was only fair that I buy all this stuff. I tried to explain to my fellow Redneck friend that out of that 450 dollars less than half is profit taxes are taken out and fuel cost so we backed the truck up and loaded the machines and waved good bye. Link to comment Share on other sites More sharing options...
AngryChris Posted April 13, 2015 Share Posted April 13, 2015 I agree with everyone here. It's asking for a lot. There isn't much to add from my perspective. It would be different if you already had 20 microwaves out in the field because you were a large company. Sometimes, these accounts ask the little guy to provide more because the big guy already said no. Link to comment Share on other sites More sharing options...
MidStateVending Posted April 13, 2015 Author Share Posted April 13, 2015 Thank you for everyone's reply. Based on your responses I have decided to mail them a proposal today anyway, that they lease the non-income producing equipment from me at $995/mo. I'll post back if I get a reply. Link to comment Share on other sites More sharing options...
Poplady1 Posted April 23, 2015 Share Posted April 23, 2015 Hi MidState, I think we worked together on a large account a few years ago. I would handle this a little differently using the step program. First off you are probably using bottlers equipment (?) which means one Coke and one Pepsi. If the water means the 5 gallon type that shouldn't be a big deal. If not then toss in a drink machine selling nothing but water...again use a bottler. On the microwaves I assume the two frozen means lots of frozen foods. Offer one frozen until they need another. And the ice machine again that shouldn't be too much...here is a nice one ready to go...http://www.ebay.com/itm/ice-machine-Scotsman-MDT4F12A-1H-water-flake-ice-machine-/321734091567 it is easy to find out if this expansion is going to happen...give me a call if you want me to confirm it for you. Knowing your area, I would go for it on this one. Link to comment Share on other sites More sharing options...
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