Can anyone help!

[royalforest]

I am working on a nice account that wants a soda and snack account. They are not happy with a 20% net commission and is thinking about going direct to pepsi where they get 100% but has to fill the machine up themselves. Is there any negatives to them handling it themselves so I can give them comparisons? Liability, pepsi don't handle snack machines ect....Thanks Rich

[mxer518]

Lots of things to tell them, the first and most heard issue with "self fill" applications is the issue of internal shrinkage. I have personally taken over about a dozen "self fill" pepsi and coke accounts because the business had to much shrinkage and could not keep up and still make any money. Also if you are going to place owned equipment you can let them know they can have both cans and bottles as well as any brand products they like and they are not tied down to s specific brand. On top of that you can pitch the idea about a snack machine, in my experience they like making more money but vending is not their line of business and it will not be given the same care as a vendor will show them. Ask them if 15% of gross would be better for them, with the adjusted pricing you can still make a good amount of money and still pay out 15% adjusted gross.

[mission vending]

Pretty much what MXER said.

They will also have to store the inventory somewhere, meet minimum order requirements and what are they going to do with out of date product.

Also, let them know that most vendors will not be willing to do snack only if they want snacks.

[mxer518]

I knew I forgot something, which was the minimum order requirements, which is a spiral affect on their out dated product, because they will have to order so much they will end up with a ton of outdated junk product that will completely eat into any profit they thought they could make.

[soco]

You can also promote your responsiveness to any changes/repairs required by this client vs. a corporate bottler who may or may not be responsive depending on how big the account is.  I converted an a/c in my favor once by offering 24/7 responsiveness even though they've never asked me for it.

[royalforest]

Thanks for all the help! Mxer do you mean shrinkage being a reduction of employees and what does adjusted gross mean? Thanks.

[mxer518]

shrinkage is where the employees steal from the location, often many times the only way that the location will be able to self fill is by ordering the minimum cases and having to store 10+ cases some place on the property, i have heard it several times in the past that the employees walk away with cases at a time. Adjusted Gross is referring to the gross income after taxes are taken out.