mission vending Posted June 22, 2010 Share Posted June 22, 2010 Apparently the bottlers are getting quite upset with the Wal-mart $5 cases of soda. http://www.beverageworld.com/index.php?option=com_content&view=article&id=37950&catid=3&Itemid=173 Don't know about you guys but reading that article put a smile on my face. Link to comment Share on other sites More sharing options...
Sparta_Automation Posted June 23, 2010 Share Posted June 23, 2010 ;D I hope it goes for a VERY long time ;D Link to comment Share on other sites More sharing options...
Mikey B Posted June 23, 2010 Share Posted June 23, 2010 ;D I hope it goes for a VERY long time ;D I second that! I live in a small town, and I have seen owners of mom and pop type establishments at Wally World stocking up on the cases of drinks for their stores, restaurants and their machines because they can get them cheaper there than through their own bottler accounts. One local store owner that goes to our church stated that even with ordering 35 cases a delivery of Pepsi products, it still costs him $5.75/case and thats before his weekly delivery fee! Its pretty sad when the owner of a small store has to go to a bigger store to save money over ordering direct from the supplier! Link to comment Share on other sites More sharing options...
coinvestor Posted June 23, 2010 Share Posted June 23, 2010 The bottlers did this to themselves. I don't buy from any bottler. When I call the bottlers they give me outrageous prices like $8.60 a case of cans. Why would they give me a price higher than the price that sams is reselling there same product for. Sams is getting a good enough price from the same bottler that they can buy a case, add on the margin, and still sell them for $6. They deserve to get burned. By trying to not deal with smaller vendors directly, and pushing us to buy from wholesalers, they have put WalSams in a very powerful position. Now WalSams is exploiting that position like they always do. When your business model involves price fixing (20 oz bottles) and turning away potential customers like myself, or take 3 days to call back potential customers, you need to either change or die!! Get'em Walsams!!! JD Link to comment Share on other sites More sharing options...
BenG Posted June 23, 2010 Share Posted June 23, 2010 I really dig the low prices. Keep em coming WalyWorld Link to comment Share on other sites More sharing options...
G-Vending Posted June 23, 2010 Share Posted June 23, 2010 The store close to my home has a 2 case per brand limit but can go 5 mile on down the road to another Walmart and get all i want Love the prices Link to comment Share on other sites More sharing options...
JamesCatt Posted June 23, 2010 Share Posted June 23, 2010 I wish wisconsin didn't have laws preventing walmart from selling below cost, I am not allowed to buy them at $5. Link to comment Share on other sites More sharing options...
Big Mike Posted June 24, 2010 Share Posted June 24, 2010 "Sams is getting a good enough price from the same bottler that they can buy a case, add on the margin, and still sell them for $6" This is a loss leader item. You go get the pop that they are losing a dollar on and buy the Cooler, Grill, Swimming Pool ect to go with it at the 4th of July party. Mike Link to comment Share on other sites More sharing options...
sherlock Posted June 24, 2010 Share Posted June 24, 2010 Walmart is taking a bigger hit on their profit than the bottlers on this deal, but it's still making a profit. If they're making a profit, you can bet the bottlers are too. They're not going to sell Walmart the product for less than cost, so they MUST be making a profit. Seems to me like the bottling reps complaining may just be trying to stir up free marketing for Walmart's deal. A wise person once said, "There's no such thing as bad publicity." Link to comment Share on other sites More sharing options...
coinvestor Posted June 24, 2010 Share Posted June 24, 2010 "Sams is getting a good enough price from the same bottler that they can buy a case, add on the margin, and still sell them for $6" This is a loss leader item. You go get the pop that they are losing a dollar on and buy the Cooler, Grill, Swimming Pool ect to go with it at the 4th of July party. Mike I know that the $5 is a loss leader for walmart, but I don't think that the $6 case price from Sams is (I could be wrong). Since Sams has no limits on purchases I doubt they would have a loss leader and they claim to never have "sales". I got there the other day and a guy showed up before me and bought 3 pallets full of coke and bought it all! My point of all this was even at $7 a case my comment still applies that after Sams markup I still get a better price from them than from the bottlers. JD Link to comment Share on other sites More sharing options...
mission vending Posted June 24, 2010 Author Share Posted June 24, 2010 I've had this conversation (getting better pricing) with my rep many times over the years. The generic response is always something along the lines of when I can buy multiple tractor trailer loads every week then I can get a better deal. Well it seems that now that WalSam's (I like that ) is passing the savings along instead of dropping it to the bottom line that the bottlers are getting their knickers all twisted up. I'm sure one of the reasons is that they are getting a lot of feedback of the negative variety from many wholesale accounts. Link to comment Share on other sites More sharing options...
NinnJinn Posted June 25, 2010 Share Posted June 25, 2010 Let me be the first to say "Thank you Wal-mart for allowing me to stock/setup my first machine for under $80!" I hope they keep these prices for a very long time! Now if they would just carry the 20oz bottles, A lot more full line vendors would be even happier! Link to comment Share on other sites More sharing options...
antoniocinisi Posted June 25, 2010 Share Posted June 25, 2010 MICKEY B:I agree IT is sad that I can go to walmart and get cheaper soda then thru my suplier.I even switched over to 24 oz bottles of soda to make some profit instead of 20 oz.pepsi sells 20 oz for 1.03 and I CAN GET 24 OZ for 78 cents from walmart. COINVESTER:I AGREE 100% WITH REPLY number 3 MISSION VENDING:I get the same song and dance,we dont have the volume they tell us. ninnjinn no one will ever get 20 oz i believe except thru botlers so 3rd party vendors cant pull a fast one. Link to comment Share on other sites More sharing options...
Jax Snacks Posted June 25, 2010 Share Posted June 25, 2010 Sounds like a good deal for you full line guys. Now we just need Sam to cut a sweet deal on those Peanut M&M for us bulk guys! Link to comment Share on other sites More sharing options...
whaletail116 Posted June 25, 2010 Share Posted June 25, 2010 Wal-Mart has a stranglehold on all of their suppliers and their business practices are why many refuse to shop there. Some businesses are able to profit from their strangleholds (us vendors) while the rest are unable to compete and eventually go out of business themselves. What is Coca-Cola going to do, not sell their product at Wal-Mart? Nope. Link to comment Share on other sites More sharing options...
MrEen Posted June 26, 2010 Share Posted June 26, 2010 WTF?!? Last paragraph of the article: Even if lower prices create a volume spurt, in the long-term "it wouldn't be good for anyone in the industry to see irrational pricing," said Sicher. "If you have bottlers that are strapped, it's not good for the industry." WallySatanWorld™ is still paying the same wholesale prices as they were before they lowered their price (I rather doubt this removed ALL profit.) If they are paying the bottlers the same price then how can this lead to "bottlers that are strapped"? Oh wait. I get it. They are afraid this will lead to enough "little people" freaking out on their reps and demanding more realistic costs! By the way, for anyone (industry scammers insiders) who thinks the prices WE pay are legit, I've seen your vending contracts and the commissions you seem to be able to offer without any haggling involved. MrEen P.S. One of my local Sam's Club's (I have 3,) has a few Coke flavors available in 20oz bottles, but the price is ridiculous (over $19.) Link to comment Share on other sites More sharing options...
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