caserri Posted July 3, 2009 Share Posted July 3, 2009 From The Vending Times Issue Date: Vol. 49, No.6, June 2009. By Henry Schlesinger swag@earthlink.net LAS VEGAS -- Lee Park is out to change the way many operators think about locating services. As the executive sales director of Got Locs? (as in "got locations?"), which has been in business for nearly two decades, he estimates the company has placed equipment for operators in tens of thousands of locations across the country. The company works with those who offer bulk vending, coin-op amusements, ATMs and wireless Internet service. However, it is not just the volume of locations the company has found for operators that Park sees as its selling point. While new locations are generally always welcomed, it is the consulting aspect of his organization that Park promotes as essential to success. "The most important question is absorption," he explained. "What can a company effectively handle? So let's say an operator has large aspirations. He wants 1,000 new accounts for arcade games -- but he only has two employees and no capacity to effectively take care of those 1,000 new accounts. He's in over his head. So the first thing we figure out is what they can effectively absorb." To do this, Park and his team first assess the operator's current equipment inventory, its local competitors and its merchandising programs to establish realistic growth goals. The Got Locs? team, which works on a commission, then begins selling into locations in the operator's market. "We're a turnkey operation," Park said, "and we work fast. We go in as a team, all seven sales people, and work together as a team. We handle the equipment ourselves, install it for the operator and negotiate contracts according to the operator's parameters." A typical negotiation for the Got Locs? team might include 60" of floor space by a door, with the operator choosing how to fill it. Park explained that he recently helped a Los Angeles operator grow from 500 accounts to 1,000 nearly overnight. "He set the parameters and we matched or exceeded them," Park said. Park also touts the creativity of his firm, pointing to a recent job in Chicago for a bulk vending operator. "The operator warned me that I'd see something I never saw before," he said. "He said, 'It's difficult to get into any location with under a 40% commission.' My first day on the street, at one o'clock in the afternoon, I had 12 solid accounts in my back pocket and the average commission was 20%." Park credits innovation as the element necessary to acquire and maintain accounts with reasonable commissions. "We're innovators and we're creative about how we do business," he said. "That may mean adding an operator's equipment in with location-owned equipment, or making a deal for the operator to supply product for location-owned equipment in instead of commission." It's this type of creativity, Park explained, that can save operators in the short and long runs. "I just want to get them to stop giving away all their money," he said. Got Locs? is located in Las Vegas. Call (702) 885-7469. Link to comment Share on other sites More sharing options...
spdydre Posted July 3, 2009 Share Posted July 3, 2009 has anyone here used them before? sounds different and interesting Link to comment Share on other sites More sharing options...
T BIRD Posted July 3, 2009 Share Posted July 3, 2009 Interesting concept. Link to comment Share on other sites More sharing options...
Quarter Master Posted July 3, 2009 Share Posted July 3, 2009 Sounds kinda expensive: "We handle the equipment ourselves, install it for the operator and negotiate contracts according to the operator's parameters." Link to comment Share on other sites More sharing options...
caserri Posted July 3, 2009 Author Share Posted July 3, 2009 Just so everyone knows, I am not endorsing this guy. I've never used his services. I came across this article in the Vending Times and thought it was interesting so I threw it up here for discussion. Link to comment Share on other sites More sharing options...
statik27 Posted July 7, 2009 Share Posted July 7, 2009 Sounds kinda expensive: "We handle the equipment ourselves, install it for the operator and negotiate contracts according to the operator's parameters." Thats was my thought as well. I suppose the operator has to spring for 7 plane tickets, hotel rooms, meal money. Exactly how much is it per location? Link to comment Share on other sites More sharing options...
GotLocs Posted August 25, 2009 Share Posted August 25, 2009 I just joined your forums and look forward to sharing and learning together with your group. I have thoughts and information to share on a great number of topics and interests for learning on even more. If ever I can help with your success feel free to call or email. The vending industry has treated my family and my employees well and we would love nothing more than to give back anywhere possible. Since this thread is specifically about our company I will share a few tidbits about us... We are a small, but mighty urban sales force with a steady "pulse of the street". We have nice offices, desks, chairs and fancy phone systems, but found all of it to be rather ineffective at maintaining or growing viable vending operations. After 16 years of route operation and 19 years of sales, we can strongly confirm that the greatest test of your route's success and future capability depends directly upon the number of pairs of tennis shoes worn out walking streets and working accounts. From time to time our business dealings place us side by side with big players in the business world alongside executives of major companies who all deal with a similar issues on a daily basis..."How do I make my product or service stand apart from the rest? How do I get the all the customers I want to have? How do I get the marketplace to buy my product or service more than anyone else's? How do I make all the money I want to make?" The answer almost always resides in a clear understanding of the "pulse of the street". Our ultra-motivated team spends an average of 6 days in 7 out in the field, wearing out tennis shoes to acquire and install vending equipment for our clients. We do no telemarketing; instead we opt for direct contact with actual store owners and ownership groups...providing us and our clients an unriveled success ratio. ("Direct contact from day 1" will be a thread for another day, but I can affirm that success or failure starts at the very first contact.) Our clients bring in one or more members from the team for short bursts of extreme "street contact". We are paid to leave successfully acquired vending accounts in our wake. ("Successfully acquired vending accounts"...another post for another day, but I can say this...getting your equipment in the door is NOT success!) We have a well established group of clients ranging from small operators to some of the largest in the world. One common thread amongst the most successful is that they are all involved in activities similar to my company on a daily basis. Let's just call it, "Got Locs Light". They don't perform the intensive concentrated sales endeavor like our company, but they know something about all of it. Not to chase clients away, but I must say, if you know nothing about site acquisition you will likely not succeed in the vending industry...especially bulk vending. It couldn't please us more than to know that your company doesn't need our services...in other words, you have developed a sales force internally to keep pulse of the street and equipment out of the warehouse. Even with a strong sales team you still might find it necessary to bring in the big guns from time to time for large growth projects...and we will be right there ready to help!!! We can't wait to get out in the streets with those of you we have not yet met...and for those we already know, HERE'S TO WEARING OUT TENNIS SHOES TOGETHER!!! Link to comment Share on other sites More sharing options...
BorderJerry Posted August 27, 2009 Share Posted August 27, 2009 The critical concept (at least for commercial bulk operators) of your whole strategy is being able to install the equipment as soon as you hear the word 'yes'....not a week later, not a day later...not even an hour later. When locating one of our best crane accounts we had just installed the crane after the owner said yes and the next time we serviced it he said less than a minute after we left his wife came out of the restroom and said "Oh great, that was right where I was going to put a planter...". Of course, after we paid him his first commission he was very happy and quickly agreed when I suggested that I had never yet seen a plant that could produce over $100 a month cash. Link to comment Share on other sites More sharing options...
jayhawk22 Posted March 28, 2011 Share Posted March 28, 2011 The critical concept (at least for commercial bulk operators) of your whole strategy is being able to install the equipment as soon as you hear the word 'yes'....not a week later, not a day later...not even an hour later. When locating one of our best crane accounts we had just installed the crane after the owner said yes and the next time we serviced it he said less than a minute after we left his wife came out of the restroom and said "Oh great, that was right where I was going to put a planter...". Of course, after we paid him his first commission he was very happy and quickly agreed when I suggested that I had never yet seen a plant that could produce over $100 a month cash. I am turning Lee loose this week in Oklahoma. I am excited to see the locations he is going to get me! Link to comment Share on other sites More sharing options...
MrGranger Posted March 29, 2011 Share Posted March 29, 2011 I'm also very interested. Especially considering that LA isn't too far to walk from Vegas for Lee. The idea is a good one. Link to comment Share on other sites More sharing options...
jayhawk22 Posted April 9, 2011 Share Posted April 9, 2011 I'm also very interested. Especially considering that LA isn't too far to walk from Vegas for Lee. The idea is a good one. I ended up bringing Lee up to KS. He ended up getting me 22 locations in 3 days. Dude is a location getting machine! I am more than pleased. Link to comment Share on other sites More sharing options...
amc-vending Posted April 9, 2011 Share Posted April 9, 2011 What did he charge if you dont mind me asking? I would be interested in knowing also Link to comment Share on other sites More sharing options...
lak20019 Posted April 9, 2011 Share Posted April 9, 2011 I'd like to know as well, and I assume they were rack locations? Link to comment Share on other sites More sharing options...
jayhawk22 Posted April 9, 2011 Share Posted April 9, 2011 I'd like to know as well, and I assume they were rack locations? $4,000. Most of them I could put in whatever I wanted. Mostly racks, sticker machines & gumball machines. Link to comment Share on other sites More sharing options...
amc-vending Posted April 9, 2011 Share Posted April 9, 2011 Not too bad for 22 locations - that works out to roughly 182.00 per location Link to comment Share on other sites More sharing options...
jayhawk22 Posted April 9, 2011 Share Posted April 9, 2011 Not too bad for 22 locations - that works out to roughly 182.00 per location I didn't think it was bad. Alot of good locations. Plus I got some leads on several other locations also. Link to comment Share on other sites More sharing options...
Jax Snacks Posted April 10, 2011 Share Posted April 10, 2011 What is his minimum? Link to comment Share on other sites More sharing options...
jayhawk22 Posted April 11, 2011 Share Posted April 11, 2011 What is his minimum? $1,000 for his expenses & then however many locations I wanted. Link to comment Share on other sites More sharing options...
spdydre Posted April 13, 2011 Share Posted April 13, 2011 I think I will try him out with full line vending and see how he does. Link to comment Share on other sites More sharing options...
Jax Snacks Posted April 14, 2011 Share Posted April 14, 2011 $1,000 for his expenses & then however many locations I wanted. Thanks for sharing all that info, jayhawk. And have fun with those new rack locations! Link to comment Share on other sites More sharing options...
jayhawk22 Posted April 14, 2011 Share Posted April 14, 2011 Thanks for sharing all that info, jayhawk. And have fun with those new rack locations! No problem Jax! Its alot of work getting these accounts set up! Also, I don't know if Lee does full line. I think he may do only bulk. Link to comment Share on other sites More sharing options...
spdydre Posted April 14, 2011 Share Posted April 14, 2011 he does full line but he emailed me and said hes backed up until august/september so I will have to wait until then Link to comment Share on other sites More sharing options...
andrewm451 Posted April 18, 2011 Share Posted April 18, 2011 How much is it per location once you pay the $1000? Or does that vary also? Am i correct in understanding he brings your equipment to the locations and sets them up as well? Link to comment Share on other sites More sharing options...
jayhawk22 Posted April 20, 2011 Share Posted April 20, 2011 Go back about 5 or 6 post and you will find your answer I think. Jayhawk gave a total price....so subtract $1000 from that and then divide the remainder by 22 or how many ever locs he got. Yes from what I read he places your equipment when he secures the location. He can place the equipment for you. I don't know but I would guess that it would be more expensive to do it this way. I set up all my own equipment. Link to comment Share on other sites More sharing options...
treadmill Posted October 7, 2011 Share Posted October 7, 2011 Hey Jayhawk22 its been almost 6 months since Lee got you those locations. How about an update. Inquiring minds would like to know. I am thinking about using Lee for my placements. Link to comment Share on other sites More sharing options...
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