Partnering with Coke/Pepsi…

[Aloha Fresh]

Hello….Up until now I have always done snack vending. Don’t really have any interest with beverage due to all te extra taxes Hawaii imposes on cans/beverages. Has anyone ever used coca-cola/Pepsi to supply the beverage  end? They only offer full-service in my state and I do not want to spend the money to buy a drink machine. Any suggestions would be helpful. Thanks 

Edited May 6, 2022 by Aloha Fresh

[AZVendor]

You're losing out on the most profitable products in vending.  Unless your taxes truly prevent that, but all you need to do is build your tax costs into your pricing - make the customer pay it.  Coke and Pepsi will probably be willing to do full service in your accounts but they might not cut you in on the deal.  The downside is that full service anywhere by the bottlers is horrible.  They commonly allow their machines to run empty before they service them and if you are tied to the machines somehow, in the eyes of your location, it then makes you look bad.  You should actually buy your own soda machines.  It's time to step up into the big time.  How many snack locations do you have now?  If you are between 5-10 then you are able to properly maintain your stales.  If you have some rockin' snack accounts then you definitely need to put your own soda machine in there.

Edited May 6, 2022 by AZVendor

[AngryChris]

Technically, snacks are more profitable for me on a percentage level, but beverages are way faster to restock.  About the only time you might want to settle on just snacks is when the bottlers have soda contracts at schools and you can do the snacks.  Otherwise, you want both or just soda at smaller locations that don't justify snacks.

[Southeast Treats]

You really have to reach out to the bottlers in your area to see what they might do, every region seems to be different.  I have relationship with Coke, Pepsi, and 7 Up and use their machines, and also use my own machines depending on the location and circumstances.  I would ask each of them about getting machines from them that you would stock.  You need to ask about monthly minimum purchases, delivery minimums and restrictions, product cost, and how they handle machine repairs.  Typically you will find pros and cons to each company.  Coke and Pepsi can be very sticky about "foreign product" in their machines (no mixing coke and mountain dew!).   Overall Upside - no capital outlay for equipment.  Downside - limited to one product line in the machine, harder to make the location happy.  Also may pay more for the product from them than other sources depending on your volume and product mix.  Deposit?  Just an added cost that you will pass on.  Taxes?  well don't we all have to deal with them?  I understand local sales taxes and "sin" taxes on sugary drinks are raging in some areas, but it's just another cost to pass on.