Third Party Requirements?

[NinnJinn]

I understand the pros and cons of 3rd party vending. If I had resources and the know how to move machines, I would just buy my own machines.  But since I don't have a way to transport or setup machines, I feel at this point, 3rd party is the way to go.

I have also ran into "island" vendors and to my surprise 4 out of the 5 vendors don't own their machines.  They are third party.  However, they will not budge on letting me know how to get into 3rd party or what the requirements are.

I know about product loyalty and the quota.

But do you need State tax id?  Fed ID? have an actual company with employees? When I call, who do I ask for? And what do I say?

I'm sure each region/state is different, but at least I could possibly be prepared and not sound like an idiot when I call.

Also,  I see the 3rd party operators with a lot of 12packs (cans)  Does the bottlers consider these "cases"?

Thanks for all the info.

[mission vending]

I understand the pros and cons of 3rd party vending. If I had resources and the know how to move machines, I would just buy my own machines.  But since I don't have a way to transport or setup machines, I feel at this point, 3rd party is the way to go.

I have also ran into "island" vendors and to my surprise 4 out of the 5 vendors don't own their machines.  They are third party.  However, they will not budge on letting me know how to get into 3rd party or what the requirements are.

I know about product loyalty and the quota.

But do you need State tax id?  Fed ID? have an actual company with employees? When I call, who do I ask for? And what do I say?

I'm sure each region/state is different, but at least I could possibly be prepared and not sound like an idiot when I call.

Also,  I see the 3rd party operators with a lot of 12packs (cans)  Does the bottlers consider these "cases"?

Thanks for all the info.

You will at least need a DBA (doing business as) or assumed name on file at local county courthouse. Something like NinnJinn Vending. Once you get that a "resale" certificate for sales taxes from the state comptroller, at least that's what they call it around here.

More than likely you will need a commercial address, many cities will prohibit delivery to a residence, a mini storage unit usually will work. Just need to pay attention to the driveways so that you get a place that the delivery vehicle can get to.

They might require that you have been in business for a period of time (1-2 years).

A case in 12 oz can or bottle is 24. More than likely those 12packs came from the grocery store because they are cheaper and the vendor is slipping them into the machines to get a better gross margin.

Good luck

[spdydre]

When I first tried Coke wanted 300 case minimum per month and 25 machine min and you needed a dock for delivery.  When I purchased a route recently the guy already had an agreement with Coke and it transferred to me.  25 case minimum per quarter and I have it delivered to a storage unit.  I'm not sure if its because he has been with them for awhile or what but I know they try and weed out the small guys in some cases.  I got lucky.

[mission vending]

When I first tried Coke wanted 300 case minimum per month and 25 machine min and you needed a dock for delivery.  When I purchased a route recently the guy already had an agreement with Coke and it transferred to me.  25 case minimum per quarter and I have it delivered to a storage unit.  I'm not sure if its because he has been with them for awhile or what but I know they try and weed out the small guys in some cases.  I got lucky.

I've heard several different versions of that before. My rep has said that she won't open an account for someone that has not been in business for at least two years. So it seems that there is some discretion at the local level as to who can qualify to participate in a third party program.

[NinnJinn]

If you are running a successfull business for two years, why would you need their help?

[mission vending]

If you are running a successfull business for two years, why would you need their help?

Faster growth, less capital, shared risk of vandalism to name a few.

To further expound on my reps comments, the reason for the two years requirement is that if you last 2 years you will likely be around a while. It greatly reduces THEIR risk of losing machines when someone gives up on vending and simply abandons equipment. Its their equipment, they get to make the rules if you want to use it.

[NinnJinn]

Faster growth, less capital, shared risk of vandalism to name a few.

To further expound on my reps comments, the reason for the two years requirement is that if you last 2 years you will likely be around a while. It greatly reduces THEIR risk of losing machines when someone gives up on vending and simply abandons equipment.

Ahhh,  I never thought about it from that view point.  Thanks for the insight Mission.