question from bulk vendor looking to get into food & beverage

[jayhawk22]

I am a bulk vendor that operates in KS, OK, NE & MO.  I have the bar equipment, arcade & bulk vending in a Ramada hotel.  It is a huge hotel with indoor pool & slide, large commons area etc.  They recently approached me about doing their snack & soda machines too.  So I have several questions for you guys.  Is $1.00 a can too much in a hotel?  I know their prices are usually high.  Also, what do you suggest for pricing on candy bars, chips & other snacks?  Do you pay any commission?  If you do what do you give?  The current vendor gives them nothing & they are looking for at least a little.  Any suggestions on buying new or used equipment or where the best place to buy is.  I am located in Salina, KS.  Thank you in advance.

[alboy88]

well ill tell you this  dont let this slip away !!! people will pay whatever you charge because there isnt anything else there   $1.00 for a can is good  chips should be .65 or .75 depending

on what size bag you vend. candy bars can go for .75 or 1.00  pastries can go between 1.00 to 1.25  as far as commission  10- 20 %  to start off  as far as equipment  look on ebay or cl          

     

good luck

[jayhawk22]

Thanks 88!  I know my arcade, bar & bulk equipment do great there.  So I figure the food & drinks should do just as well.  I'm assuming since I have a captive customer I can have a higher price point.  Any more suggestions are appreciated.

[RJT]

I price everything .75 and $1.00 This depends on your market area because you may could go higher. In my area this is about a max we can go and still move a decen volume.

standard size chips .75 crackers .75

candy, cookies, pastroes $1.00

Can drinks $1.00 bottle drinks $2.00

My standard commission for hotels with that pricing is 20% to 25%

You dont make as much on candy and pastry but you make good on the chips, crackers and cookies. A bag of Wise chips from Sam's is around .12 each. Crackers are around the same.

If they are getting no commission you may want to offer 15%. Problem with that is if somone comes along and offers them higher amount. On commission type accounts I go ahead and offer the max so people cant do that. If someone comes along and offers a crazy commission over 25% I have a chat with the manager and show them what we pay for the product and explain to them their is no way anyone can pay that type of commission and dp it honestly.

Good luck and congrats on the account.

[jayhawk22]

Thanks RJT.  What are the quality brands I should look to buy for soda & snack machines?

[RJT]

The three brands for snack machines I prefer are Crane National, USI, and AP. You can find these on Craigslist from anywhere from a couple hundered dollars and up.  A USI 3015, AP7600, Crane National 154 or 146 are good machines and can be found at decent prices.

For drink machines I prefer Dixie Narco, Vendo, and Royal. Hard to beat a good Dixie Narco 501. Be sure whatever you buy is multi price so you have the option of having different price points if needed.  Again these can be found on Cl for a few hundered and up. Contact me before you buy and let me know what you are considering and I will tell you if it is a decent machine and price.

You will want to look for a 5 wide snack machine so you will have the capacitiy and not have to work the machine as often.

[RJT]

I found these for you on Craigslist.

http://kansascity.craigslist.org/bfs/1864395891.html

http://kansascity.craigslist.org/bfs/1813704784.html

http://springfield.craigslist.org/bfs/1894122199.html

http://springfield.craigslist.org/bfs/1813438635.html  (I would buy this one and put black Tuffronts in place of the wood grain on it and it would look nice.)

http://wichita.craigslist.org/bfs/1889199327.html

http://wichita.craigslist.org/bfs/1871645257.html

http://wichita.craigslist.org/for/1825187052.html

http://omaha.craigslist.org/app/1820635794.html

These are ONLY examples of the type machines I would consider. Price vary but if you are in need of them now then you might have to pay a little more than if you could bargin shop and buy.

However, I would not pay over $800 to $1000 for a GOOD snack or drink vendor that is pretty much ready to go.

I would NOT put out a machine with wood grain fronts. The fronts can be changed to black and look 100% better. You can just buy replacment panels or cover the existing woodgrain with a vinyl you order from a vending parts house. I prefer what is called black pica. It is a textured black.

[jayhawk22]

Thanks RJT.  This info is very helpful!

[mission vending]

Whatever equipment you go in there with the most important thing is that it looks good. It can be old, it just needs to look good. Hotels as a general rule are pretty picky about appearances.

Go ahead and spend a few extra bucks and get some high security locks like abloy to keep vandals out. Any machines at the end of long hallways and upper floors will be targeted at some point.

The Pricing RJT mentioned sounds about right. Although I only do the 20oz bottles, at a $2.00 vend after COGS, sales taxes and commission I make .80- .85 profit per bottle. If only all locations could have this kind of profit margin................

[jayhawk22]

Thanks mission.  I am appreciating all the good info from you guys!  Keep it coming.........