locating strategy for rack placement

[Profits]

I'm going to order a NW 5-way rack tomorrow.  The burning question in my mind is how to go about approaching locations for rack space.  What strategies do you find get the best results?  What is your most successful pitch?  What is the typical pitch a company like Kickstart would use while telemarketing for these types of spots?

[dperry]

I don't usually start out by placing a rack.  I usually start out with a single gumball machine, then I work my way up if the location warrants it.  I've gotten burned on some locations where I've placed a rack.  I have this one nice little BBQ joint with no competition.  While I was there to put in the rack, there were a number of families coming through, and they all had little children.  I placed the 5-way rack (2 2in, one for 50c and one for $1, and 3 1" for 50c), and two months later I went to service it, and it had a grand total of $5.

[fronk327]

That is an expensive lesson.

[Rick Falcon]

I usually approach them wit the commission pitch I try explaining to them that their commission will be allot higher with a rack in a pose  to a triple or double.

[Profits]

So what's the standard initial approach when contacting locations for the first time?  Direct mail, telemarketing, or face-to-face?  I need to formulate a plan that I feel good about implementing.

I think beginning with singles is an interesting idea, however I'm pretty sure I can distinguish between a single-head location and a rack location.

How long did it take for you to figure out the difference?

[Mercury]

Keep in mind that while you are screwing around with a single head in there, some ELSE is going to put in a rack! Put in the rack FIRST, and usually, no one else will try!

Merc

[sprint54fan]

Keep in mind that while you are screwing around with a single head in there, some ELSE is going to put in a rack! Put in the rack FIRST, and usually, no one else will try!

Merc

Merc is exactly right!! I used to place singles and doubles then let the location go for a bit then try a rack..well once my locations started getting racks besides my machines (that is if they decided to even keep my machines after the racks came).. I became smart and started placing racks first at all my new accounts. Dont get me wrong..I dont do racks at ALL the new places but 90 percent of the time they at least get a 4 way in them.. espically in resturants.. I have learned to place as much equipment in a new location as you can get away with..cause if you take all the floor space, it saves other guys from coming in and saying HEY! I can place my machine right there in that spot and  pay you double what your making with this guy..then the location goes for it and either you will get a boot or you will have competition for the life of the location..

[Profits]

Merc & Sprint54, thanks for the reply. That's exactly what I have assumed.

[havending]

I'm going to order a NW 5-way rack tomorrow.  The burning question in my mind is how to go about approaching locations for rack space.  What strategies do you find get the best results?  What is your most successful pitch?  What is the typical pitch a company like Kickstart would use while telemarketing for these types of spots?

I thought that you had this bisiness all figured out after i saw your lesson on how we should all pay comm. 

Place the rack first.  Reason being the most easy location to get is one where there is already a machine.  ESP a charity machine.  No matter if its charity or a comm double or triple if it looks like a good location some one like me or kelly  or gumball prince will come in a slap a rack right next to your double.  Always locate in person.  Be honest and upfront.  also besure your talking to the right person.  Owner or general manager.  And ALWAYS offer the comm on gross

[caserri]

Commission racks = Easiest placement.

Pitch = "I see you've got some empty space right there, can I pay you for it?"

[sherlock]

I thought that you had this bisiness all figured out after i saw your lesson on how we should all pay comm. 

Crap!

I didn't even realize this.

Here I was waiting for Profits to enlighten me as to his pay-off-profit system, too.

Heck, I even asked twice.

Sorry, Profits..I thought you were already working with racks.

To answer your questions, Profits...

I have never located racks by phone.

Experienced people recommended I locate my racks in person.

That's what I have done (I'm new to racks too) and so I have no experience telemarketing for racks.

As to locating in person -- as already mentioned here: I just bring up the fact that I can turn an unused space in the business into a source for cash at no cost to the business.

If there is already a rack (or any other vending machine) placed that is NOT charity, I don't let if stop me from asking for the remaining space.

In those situations, I offer to start my machines off with items NOT already being vended by the other vendor and say something like, "I'm not here to replace your existing vendor if he's doing good for you. I'm just here to add to what you provide your guests/customers and try to increase the money you make from vending machines."

Good luck to you.

[havending]

No I won't..out of money!

kelly you have alot of passion for this business.  If you had the racks to put out there would be no stopping you.