Jump to content
newguy47591

New location questions

Recommended Posts

Monday I received a call from a possible new location. Location has just over 300 employees. Its a big office with call center and more.  They currently have Pepsi Foodservice but are looking for a local company that will offer better service. Pepsi here has HORRIBLE service, machines empty for weeks, outdated products, machines broke down and more..so I usually get a lot of their stops.

Anywho..I went in today for a meeting with this company.  They currently have 5 soda units (4 vendo bubble fronts and 1 glass large_gr1.jpg.1cccf8b7a8f3136d2fe739450ae77cce.jpglarge_gr4.jpg.ea6b4f8704e24c6c6c5bcbec3b866516.jpglarge_gr2.jpg.0c4b1334ac5259f4d0ee83a8d8249d1d.jpglarge_gr3.jpg.9d3d8e1800026c1e2994c2e557ca1054.jpgfront)...3 snack units...1 cold food unit...1 changer

Location asks for 10 percent of gross.  The pricing is decent on the machines. My questions is what type of machines are the snack and cold food units they have currently? I included pictures.  They said I can go with same make or model of these units or choose my own..so if you had to take over this account..what would you place machine wise? What kind of prices am I looking at if I buy new units?  Im just trying to get a ballpark idea.

Thank you.

Share this post


Link to post
Share on other sites

Those are Vendo 721 sodas, Crane Merchant snacks, a Bevmax 4 or whatever it's called today and a Rowe bill changer.  Go for it at 10% and make your killing.  It's just money on the table for you. 

Share this post


Link to post
Share on other sites

The Pepsi bottler in your area sells Coke in their vending as well? Interesting...

Share this post


Link to post
Share on other sites

If you look close those are canteen machines.

Share this post


Link to post
Share on other sites

Be careful if you'e new. Although this is likely a great location the machines you showed us will be very expensive. Make sure you know how to fix them and service them properly if you'e jumping into an account with 300 people!

Share this post


Link to post
Share on other sites

I'm also thinking that the current vendor has them over equipped to try and reduce their service trips.  300 people need several machines and call centers can do pretty well, but if you are able to service more often you might start with a few less.  Look at 6 wide merchant snack machines instead of the 4 wides that are there, 2 of those will be the same as 3 of the 4 wides and cost less.  Find your Crane Rep for your region and talk to them about buying direct and financing, they offer pretty good terms.  And they ship quickly!

Share this post


Link to post
Share on other sites

What are the prices on everything?  You said the pricing is decent.  I would want to do a little better than "decent" if I have to pay them 10%.  If you know you are going to drastically improve their service/happiness, I would look at increasing a price or two.  How close are you to the account?  As Southeast Treats said, if you can service the account 1-3 times a week or even more, you could get away with less equipment.  If everything worked out, I would take them 2-3 new AMS 5-wide snack machines, one of those being a machine with a refrigeration unit in it so I can satisfy their cold food needs.  We have never used the bevmax machines personally, so I would take them 3-4 Vendo 721 live display machines.  I would go all new, CCReaders on all of them.  You could maybe try and get away with payrange units but a big account like that is going to want/deserve CCReaders.  That puts you at an all-in total price of $23,000-ish.  You could do one less snack machine and one less drink machine to start out and save $7,000 or so.  Before I spent that much coin, I would want to really double check everything and make sure I can make that back in a reasonable period of time.  

 

What do you think it will do in a year?

Share this post


Link to post
Share on other sites
On 12/21/2017 at 4:44 PM, orsd said:

If you look close those are canteen machines.

They use to be Canteen machines but Pepsi Foodservice took over the account. Pepsi here runs snacks, soda, coffee, and water. They will vend all Pepsi products except they will do Coke and Diet Coke only in machines to get accounts. But its funny cause if they do coke and diet coke bottles they are 16.9 while the rest of the machine will be 20 oz at the same price! People golpher all the time when I solict new stops that why should they pay the same price as a 20 oz for a 16.9 bottle.

Pepsi bought out ALL my competition here. They grew to quick to fast. This helps me big time tho as they hire these young route guys who don't care about locations, they only care about that pay check..so Ive saw machines empty for weeks... products in soda machines in wrong selections..several outdated products...several machines out of order. Its so bad now that if I want a location and walk in and see Pepsi stuff sitting there I can usually secure the location.

Share this post


Link to post
Share on other sites
5 hours ago, CapitalCityVendingLLC said:

What are the prices on everything?  You said the pricing is decent.  I would want to do a little better than "decent" if I have to pay them 10%.  If you know you are going to drastically improve their service/happiness, I would look at increasing a price or two.  How close are you to the account?  As Southeast Treats said, if you can service the account 1-3 times a week or even more, you could get away with less equipment.  If everything worked out, I would take them 2-3 new AMS 5-wide snack machines, one of those being a machine with a refrigeration unit in it so I can satisfy their cold food needs.  We have never used the bevmax machines personally, so I would take them 3-4 Vendo 721 live display machines.  I would go all new, CCReaders on all of them.  You could maybe try and get away with payrange units but a big account like that is going to want/deserve CCReaders.  That puts you at an all-in total price of $23,000-ish.  You could do one less snack machine and one less drink machine to start out and save $7,000 or so.  Before I spent that much coin, I would want to really double check everything and make sure I can make that back in a reasonable period of time.  

What do you think it will do in a year?

Prices are:  soda 20 oz=1.50   cans=.75  Energy=2.50  Gatorade=$1.75  Starbuck Coffee Glass Bottles = 2.25

chips, cheezit, snack mix and so on= 1.00  Candy=1.00  Crackers=.75

Cold Food ranges of course.

I know they use the cold food machine more then anything. As you can see in the pictures it was empty except for the tea in bottom.

I wouldnt be able to take out any machines if I was to pickup the location. This is due to this is a HUGE building and these machines are scattered in 4 break areas. The biggest area being the 2 soda, 1 snack, 1 cold food picture.

I was considering AMS also. I love my AMS cold food and snack units I currently have on my route. Never had a problem them and they look nice. On the BIG break area Id do 2 royal glassfronts, and 2 ams cold food/snack units. I think that would be great for there.

I could always get my soda units from Coke third party to save some up front cost on machine purchase then once I start making money there I could switch them 1 by 1 or all out to my machines.

They HAVE to have credit card readers. This was one of the main request from the location.

Sales Im not sure. I know he said Pepsi services every monday and by Friday they are BARE .. they only service once a week cause their depot is a little over a hour and half away so they dont get down here much, especially since I took almost all their accounts here. I would be in the location 2 or 3 times a week. Its literally 5 minutes from my warehouse!

Share this post


Link to post
Share on other sites

Is there a contract?

Share this post


Link to post
Share on other sites

and if your purchasing machines for this...get a contract.... 10% is pretty good, get this account;D

Share this post


Link to post
Share on other sites

Easy account, get newer stuff, im sure its gotta make atleast 3k a month. Never seen pepsi selling food and snacks lol

Share this post


Link to post
Share on other sites

Looks real good man. I’d just look into the contract before doing anything. A lot of accounts don’t even know they’re under contract and will tell you that there isn’t one. This is usually not true and I’ve been burned by that before. Just tell them that you need to see the current contract so you know the terms of how to terminate. My competitor has annual renewals and I’ve seen some as long as 60 months. It’s very important to see the contract before buying any equipment.  

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×