coinvestor Posted June 13, 2010 Share Posted June 13, 2010 I have an account that I am working on a proposal, and I need to run some numbers by you guys. The location is an industrial equipment type service center. The location has 40 employees plus waiting customer traffic. By the nature of the business, the trucker that brings in the equipment will usually wait a couple hours for the equipment to be ready. They have drink, snack, cold food, and vended coffee. The GM says that the current vendor comes in to fill the machines everyday!!! I know that the big variable is how much customer traffic they have, but I need a number to work with. The location seems to be a great blue collar location, but I'm not sure I want to do cold food for an account this size. What would you estimate the weekly sales to be? Thanks JD Link to comment Share on other sites More sharing options...
mxer518 Posted June 13, 2010 Share Posted June 13, 2010 buy them a nice microwave and convince them that there is way more selection on frozen food items and that will also allow you to sell ice cream. Link to comment Share on other sites More sharing options...
Poplady1 Posted June 13, 2010 Share Posted June 13, 2010 I have had these types of accounts in the past and they were good but I can't remember one that we visited that often...and if they currently have that equipment now you won't be able to get in there offering less options. Based on the information you have here it would be hard to guess what the income might be but... if the service schedule is correct, it is making some good sales. Are they changing because of poor service, poor selection or pricing. I think your income will be enough to justify the expense as long as it doesn't make things too tight budget wise. Is the coffee a full size machine or just a coffee service? If you are going to pick up the equipment using a leasing company, I certainly think you will be able to cover the monthly payment plus put some money in your pocket. Be sure to check out the companies history and current credit rating. If you want me to run a quick report just PM me and I will look it up for you. Blue Moose Link to comment Share on other sites More sharing options...
coinvestor Posted June 13, 2010 Author Share Posted June 13, 2010 buy them a nice microwave and convince them that there is way more selection on frozen food items and that will also allow you to sell ice cream. Mxer, this was my plan exactly! Poplady, they were looking for more selection which is why the frozen route was looking like a good idea. They have vended coffee with a full size National machine. It would be a tough sell to convince them to start paying for a coffee service, if they currently have vended coffee although I will try:) I am using an estimated $250 - 300 weekly with vended coffee and Frozen food. Does this sound high, low, about right? Thanks for the help, JD Link to comment Share on other sites More sharing options...
Poplady1 Posted June 13, 2010 Share Posted June 13, 2010 Are you looking at just the food and coffee sales with that figure? If so that sounds like it is in the ballpark. I don't think they would go for a coffee service either. Is commission involved in this account? Blue Link to comment Share on other sites More sharing options...
coinvestor Posted June 13, 2010 Author Share Posted June 13, 2010 Are you looking at just the food and coffee sales with that figure? If so that sounds like it is in the ballpark. I don't think they would go for a coffee service either. Is commission involved in this account? Blue No, I was referring to the whole thing, coffee, ice cream, snack, and drink. Too low? I try to be very conservative with estimates as it allows for good surprises later:) There is no commission with this account. Link to comment Share on other sites More sharing options...
Poplady1 Posted June 13, 2010 Share Posted June 13, 2010 I think you might be low on the entire account. From looking at the information you sent on your PM, this company has a good history. Also the type of operation tends to be solid with vendors. Just try to get the best equipment, offer a fair price matching the current vendor or offer a short term discounts to bring in the business and you should be good. Some vendors offer free coffee for a day when they take over an account. If they are wanting more variety bring in a multiprice machine with cans, botttles and sport drinks. These are mostly guys working in a non airconditioned area so they will drink gators, monsters and mountain dews..plus water, water. When you make your proposal take some generic photos of the style of equipment you might buy for them, explain the actual machines may have a different front but the size and number of selections will be the same. Get the photos off the web and just print them out on nice paper. And be prepared for the current vendor to fight to keep the account. Don't buy any equipment until you have an installation date on this one. Also get something in writing from them before buying the equipment. Just prepare your proposal and if they accept ask them to wait until you have all of your equipment ready for installation before giving the other vendor notice to remove their machines. Don't take a chance on the other vendor being upset about losing the account and just pulling out the equipment leaving them without... My two cents. Blue Moose Link to comment Share on other sites More sharing options...
mission vending Posted June 14, 2010 Share Posted June 14, 2010 Don't buy any equipment until you have an installation date on this one. Also get something in writing from them before buying the equipment. Just prepare your proposal and if they accept ask them to wait until you have all of your equipment ready for installation before giving the other vendor notice to remove their machines. Don't take a chance on the other vendor being upset about losing the account and just pulling out the equipment leaving them without... Any idea how much traffic, that seems like it could be a big variable. If they are really servicing daily due to need the number would have to be nearly double your estimate or they are way over servicing for some reason. Is the existing vendor a large operation or a mom and pop type operation? If they balk at an agreement you always tell them that you are going to be getting new equipment for them and that that finance company or lease company requires a written agreement to fund the equipment purchase. Agreed, when buying new equipment its best to wait until you actually have possession of the equipment before notifying the other vendor, even if it means covering the first payment before you actually get the equipment in and set up. Link to comment Share on other sites More sharing options...
mxer518 Posted June 15, 2010 Share Posted June 15, 2010 If they balk at an agreement you always tell them that you are going to be getting new equipment for them and that that finance company or lease company requires a written agreement to fund the equipment purchase. Typically true with leasing company's but also a wonderful way to get account to sign 5 year contracts, I have been able to get several signed agreements this way. Link to comment Share on other sites More sharing options...
coinvestor Posted June 19, 2010 Author Share Posted June 19, 2010 Turns out the account did $1500 a month. This was easy to determine after they finally told me they were getting a comission We could not come to terms on pricing, so I didn't get the account. Some other sucker can pay 10% on .60 cans. Thanks everyone for the help! JD Link to comment Share on other sites More sharing options...
coinvestor Posted June 26, 2010 Author Share Posted June 26, 2010 Thanks for everyones help! I have another proposal I am working on and need to bounce it off you guys. It is a two site location. It is a "work program" for the disabled. They do simple assembly type manufacturing (folding boxes, assembling information packets etc). Because it is a work program the jobs are below minimum wage. They have ~ 320 employees accross the two sites. It would require 2 snack, 2 frozen, 4 drinks, and 4 microwaves. I don't really know what kinds of sales to expect from this kind of customer. I am using $500 - 600 a week as a minimum. Does this sound about right? Thanks for any input. JD Link to comment Share on other sites More sharing options...
mission vending Posted June 26, 2010 Share Posted June 26, 2010 From past experience I'd be pleasantly surprised to meet your minimum estimates. Link to comment Share on other sites More sharing options...
coinvestor Posted June 27, 2010 Author Share Posted June 27, 2010 From past experience I'd be pleasantly surprised to meet your minimum estimates. What do you think is a good safe number to use for weekly sales? Link to comment Share on other sites More sharing options...
tedk Posted June 27, 2010 Share Posted June 27, 2010 JD. I don't think you will have any trouble making those numbers. I have a similar place that does $18.00 - $20.00 a day out of a Seaga combo. There are about 30 people there 5 days a week. Ted Link to comment Share on other sites More sharing options...
coinvestor Posted October 20, 2010 Author Share Posted October 20, 2010 Thanks for everyones help! I have another proposal I am working on and need to bounce it off you guys. It is a two site location. It is a "work program" for the disabled. They do simple assembly type manufacturing (folding boxes, assembling information packets etc). Because it is a work program the jobs are below minimum wage. They have ~ 320 employees accross the two sites. It would require 2 snack, 2 frozen, 4 drinks, and 4 microwaves. I don't really know what kinds of sales to expect from this kind of customer. I am using $500 - 600 a week as a minimum. Does this sound about right? Thanks for any input. JD Just wanted to update on this. I ended up getting the smaller of the two locations out of necessity. They called me because 3 of there 5 machines were not working and they wanted them out in a hurry. The smaller location has 120 of the 320 employees. They have been averaging ~$900 month ($225 a week). I just did a presentation to the employee council at the second (and bigger) location this morning. If I get the second location they should come out right around the $500-600 a week that I was using for an estimate. JD Link to comment Share on other sites More sharing options...
mission vending Posted October 21, 2010 Share Posted October 21, 2010 Just wanted to update on this. I ended up getting the smaller of the two locations out of necessity. They called me because 3 of there 5 machines were not working and they wanted them out in a hurry. The smaller location has 120 of the 320 employees. They have been averaging ~$900 month ($225 a week). I just did a presentation to the employee council at the second (and bigger) location this morning. If I get the second location they should come out right around the $500-600 a week that I was using for an estimate. JD Thats about $1.875 per week per employee, not bad numbers for the type of location, I would have projected around 1.25 - 1.50 per person per week. I've got a place that does piece work specialty garments. A lot of women on the sewing machines I only average about 1.30 per person per week there. Good luck on the proposal, let us know how it works out for you. Link to comment Share on other sites More sharing options...
coinvestor Posted October 30, 2010 Author Share Posted October 30, 2010 I just got word today that I got the second site! Thanks guys for your help and input. JD Link to comment Share on other sites More sharing options...
mission vending Posted October 30, 2010 Share Posted October 30, 2010 Isn`t a great feeling when you finally get that call? Congrats. Link to comment Share on other sites More sharing options...
coinvestor Posted October 30, 2010 Author Share Posted October 30, 2010 Isn`t a great feeling when you finally get that call? Congrats. Thanks and yes! The first time I did a proposal for this site was 2.5 years ago. So it was a long time coming. Link to comment Share on other sites More sharing options...
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