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What do you expect from a locator?


BluePlate

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I had a long drive today and I was thinking about locators.  I would like to throw this out to the group.  In general are you happy with the locator community?  If not why?  Is our expectations too high?  Is there a lack of communication? Lack of trust?

I have a thought and was wondering if anyone is on board for this.  I would like to create a round table of vendors and locators.  This round table group will work to create a locator/vendor bill of rights.  This "Bill of Rights"  would be basic rules and expectations between vendor/locator.  My thoughts is we could use a few tools, a group of surveys posted here, maybe the Vendiscuss conference line.  In the end, the Bill of Rights will be an outline of expectations.  Locators who commit to the Bill can post a logo we create on their website. 

Anyone on board, or am I crazy?

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Kick Start here, well, I think the Idea is interesting. I would happy to be there to input what can and can't be realistically accomplished.

Regards,

Rob

http://www.kickstartlocations.co

Rob,

Thank you for stepping up!  I thought getting the locators involved would be the hardest.  BUT, I do think sometimes vendors come in with expectations that just are not real.  In the end I think we all want the same thing.  To make money and have fun.....

 

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Wow!  Thread was viewed 29 times and only 2 replies!  Even if your not willing to be a part of the round table, have some input on what you want from a locator.  Nobody would think twice to complain about a locator. 

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Sadly, IMO most locators will not participate since their business model is based on exploiting newbies. I think only Midwest and Kickstart would want to participate and we already know that they are quality locators who will "make it right" in the end. The internet has become the shady locator's worst nightmare since they are now easily exposed for what they are. Hope I am wrong and you get lots of locators to participate.

As far as what I personally want from a locator. I just want to get my money back if things don't work out - pretty simple! We need to shift the risk onto them. After all, they agreed to take on the order and if they hit a difficult area or some snags, well that is their problem. Just offer us a refund and tell the vendor that you simply can't help them. Better yet, we should not pay until the location is inspected and placed. It's all about getting the terms in our favor. In the past, I have run some ad's in CL looking for telemarketers. I found a few that got me some good locations. They all understand they they only paid only when I successfully place the machine. I have never stiffed any telemarketer that got me legitimate spots and I pay them promptly since I am always looking for new locations and want to keep a good thing going. In this economy, we vendors should be able to control the terms which is "No Money Until the Location is Placed".

Jax

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Jax, I think you hit the nail on the head with risk.  Is the locator and vendor willing to share the risk?  I like the 50% down model myself.  If you look at risk models of services, it's rare to pay 100% of cost up front.  If I have a new roof put on my house, the standard is 50% down.  If I have a repair done to my car, I pay when it's done (although they can hold the car until I pay). 

When I originally posted this thread, I received an email from a smart person on this board mentioning an escrow service.  Any thoughts?

How about communication?  This is a big one to me.  If they can not secure a quality location, I would like an email or a phone call stating they can't get this done in a timely basis.

Another thing to think about, if you where to go out and hire a non-vending telemaketer.  Tell them what you want, you would find something between $15-$30/hour, minimum 20 hours to start the campaign.  As vendors are we expecting too much for $45-$50? (this should get some response)

 

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BluePlate, You have some good points, but the devil is always in the details! We need to be practical here, after all these ARE LOCATORS! (lol) I really don't see an escrow account as being practical - who would administer it. Communication is always important, but who really takes the time to do it? It has always been a problem in the corporate world as well. The locator would need to make communication a priority and thus reduce a staff/telemarketers calling time just to give status updates.

I really think that trying to get locators to change their ways is like kicking a dead horse. Locators are set in their ways and want to control all the terms and take no risk. I have essentially given up on locating companies and (other than Midwest or Kickstart) will never give any money upfront again.

Rather than dealing with unproven locators, why not just place a classified ad in CL or a local paper to find someone part time to make some calls for you? These people would have no prior exposure to vending and would not yet be corrupted by the dark side of vending. Kind of like Mr. Smith goes to Washington (to sell gumballs of course). Remember that old Jimmy Stewart black-and-white film? That's the kind of person we want!

So IMO you are really better off trying to find some work-at-home mom who wants to make a little income but needs to stay at home. Telemarketing is a perfect fit for them. But don't pay them by the hour, only by the location. Maybe even offer some kind a bonus for every 3 locations they get. They also need to understand that they only get paid when a location is physically placed. If you do this, you will need to have a script ready for them and a detailed outline of how their compensation plan works. Another angle to play would be to find some ex-salesmen to do in-person locating - say a retired insurance salesmen for example.

It all about controlling the terms and reducing the risk. There are people out there who just want some part time money (cash) and will accept our terms - we just have to find them. And in this economy that should not be that difficult.

Jax

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 Another angle to play would be to find some ex-salesmen to do in-person locating - say a retired insurance salesmen for example.

I USE A FRIEND OF MINE THAT sells credit card terminals/service to businesses,just another idea.
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I feel lucky, I have found a locator that does a nice job for me.  We have developed a relationship where we trust each other.  This is important.  I also am able to take time to do my own locating. 

The points I'm making here wher in response to some other threads.  There seems to be some real frustrastion with locators.  While I have been in the vending business only 1 year, in past business experience some of my biggest successes where when my vendors where part of my success. 

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I don't mind paying up front--though I only order in small amounts. I do expect warranties on what I'm purchasing. I'm buying a location from Rob, and I do expect the revenue stated in the package. I think most locators are crap, and they are in business to steal from the gullible. The others plan to get repeat business by helping our business be profitable. If Rob can place double heads for me with 20-35$/month average, I will be able to afford to purchase more, and will routinely buy his service. Noone wants the risk to be on them, but the risk will be somewhere. I feel it is worth paying a little more for a good guarantee, though 60$ is beyond what I'd be willing to pay. IMO, even a slow location needs to give me enough profit margin to pay off the locator in 3 to 4 months. Preferably two months profit margin.

My current accounts are not very hot. Because of that, I realized Rob could probably place machines for me where they would generate money. It isn't just that I don't have to go locating, it's that the machine he was directing is able to produce more cashflow for me. Of course, the 2 year 20$ replacement location is nice also. He knows he won't be working for free, his costs are covered, and I know if I do lose the location it won't be so bad to get a new one.

I may try midwest for a few also to compare, depending on how well Kickstart does. They will get first go, if they blow me away with quarters... I think it would be tough to get most locators to buy into this, because their goal is to defraud people. For most locator's it is a biz op. However, having our opinions as a group on what is important may help Kickstart and Midwest with free market research. I want their business to be successful also, and I think the problem is the genuine apathy towards the success of the other person.

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  • 1 month later...
  • 1 month later...

Using a telelocator is something I never considered...anyone ever try to get one and just pay them by the placements received? How much would you pay them per location? Say $25 instead of the $50 or $60 that a professional locator costs?

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