Want to make more money vending? Big chain stores are going to be where it's at.

[JEREMYTINA]

Has anyone recently had success locating bulk machines in chain stores or restaurants? Please share your experience. I have been in to Kmart, Dollar Tree, and a few others lately. I have been checking out what they have. The Dollar Tree location had signs taped on six of the eight heads that the machines work out of order. This is a newer staore, and it had equipment that looked ten year old in it. I tried to get a pick, but the assistant manager flipped out and damn near slapped my phone out of my hand saying "You can't take any pictures in here!". She reluctantly gave me the corporate number, and I have since emailed an application to becoome a vendor, and I am planning on calling Monday to get in touch with someone to try and work my way in. Kmart had the sorriest looking group of machines in it serviced by Pelican, and I am going to try to get in touch with someone at a district level and set up a meeting. I don't mind break rooms for candy and gum, but I want to start placing more racks too. There is a lot of info on the forum spread out about this topic, but maybe we can all put our heads together and come up with a game plan using what has worked for everyone in the past, and the present. High traffic is where the money's at, and that's where we all should be IMHO. Hopefully some of our more experienced, longtime operators can chime in here and lend a helping hand.

[MrGranger]

I haven't, but I think this is a great idea. I've been having bad luck with the ma & pa places. I couldn't do any worse with corporate.

[Faith Vending]

Has anyone recently had success locating bulk machines in chain stores or restaurants? Please share your experience. I have been in to Kmart, Dollar Tree, and a few others lately. I have been checking out what they have. The Dollar Tree location had signs taped on six of the eight heads that the machines work out of order. This is a newer staore, and it had equipment that looked ten year old in it. I tried to get a pick, but the assistant manager flipped out and damn near slapped my phone out of my hand saying "You can't take any pictures in here!". She reluctantly gave me the corporate number, and I have since emailed an application to becoome a vendor, and I am planning on calling Monday to get in touch with someone to try and work my way in. Kmart had the sorriest looking group of machines in it serviced by Pelican, and I am going to try to get in touch with someone at a district level and set up a meeting. I don't mind break rooms for candy and gum, but I want to start placing more racks too. There is a lot of info on the forum spread out about this topic, but maybe we can all put our heads together and come up with a game plan using what has worked for everyone in the past, and the present. High traffic is where the money's at, and that's where we all should be IMHO. Hopefully some of our more experienced, longtime operators can chime in here and lend a helping hand.

Don't waste your time or money. I would concentrate on "locally owned" chain stores. I tried for a good year with corporate national chains and it is an excercise in frustration. You never get to an owner and you are basically ignored. National chains have solid contracts with National operators and they only want to deal with the big boys; you basically don't have a chance. It is to bad because these "big boys" sell stuff nobody wants from what I see. Sorry to be negative about this; just my experience. I gave up on national chains some time ago.

[Jax Snacks]

I have the same frustration. I see more and more neglected racks than ever before. You would think that they were abandoned Vendstars rather than a rack (sorry, just a little humor). Many of these racks are at 50 cents on the top and 25 cents on the bottom. But really, how can any vending operator make any money by paying a large commission AND paying employees to service them AND paying rising vehicle expenses AND paying rising products costs under the current economic situation? Well, they don’t anymore. It seems like many of the vending companies now extend their service cycles to 3 or even 4 months. Or they simply neglect service calls when machines are empty. And it shows!

There is a Golden Corral near me that constantly has empty heads and out-of-order signs. This rack used to be a Foltz rack, but was recently taken over by a Colorado company (that is what is on the contact label). The “new” rack was beat up and looked 10 years old and the chrome stand was rusted. The manager gave me a corporate contact. But the contact told me that they just recently signed a new 2 year contract. The vending operator there does the cranes and also does the bulk. Let the big boys do the cranes/electronic. But we local guys could do a better job with the bulk if they would let us. But the corportate entities don't want to deal with us local "Billy Bobs". And the big boys are just protecting their turf and want every quarter.

But this is the good old boy corporate schmoozing system in place here! Just bend over, give the corporate fat cats what they want, then maybe you will get a few pennies in the end (no pun intended)!

[Hillbilly]

Sounds like corporate chains are a pain in the rear.

[noved1]

What about the locally owned chains with say 2 or 3 stores?

[havending]

There are some mixed opinions and some half truths maybe I can help. First of all, If you want to make it big in bulk chains are not the way to do it. In fact many companies are going away from bulk. The May Company, WalMart, Belk, Big lots, and many others. True that chain locations are under contract but not with the vending company owners. Most are under contract by vending managment companies. They will contract with smaller guys as well as the large vending companies. But when you take on a company you have to do many locations and many times have to buy certain types or machines. So with product and machines it could run 1500.00 each location and you may have to take on 20 or 30 locations. And the comm is 40%. Many of you on here cry and kick over 20 or 30%. I have seen guys have to pick up 70 locations because of a lost contract. Its best to build on locals and if you can swing it. call a vending management company. Extended service cycles are more and more common and you need them to turn a profit. im at 8 to 12 weeks on most

[gumball guy]

Havending has many good points....one in particular is losing a huge number of locations all at once if you lose the contract. That is a killer. Another thing to consider is some chains.....lets' say a regional c-store chain will expect you to put equipment in every store. You will soon find out that alot of those locations are dogs but you are stuck with them. Bottom line is alot of equipment sitting in sub par accounts. I really like independent locations where I can get to know the owners and cultivate a friendship. Once they like you and your service...you're in forever.

[West Coast Vend LLC]

I have a big chain that I have done very well with for a few years. I have lived off of their business. One thing that is differently true is, if you don't diversify your mix of accounts, you could lose the business over night. Therefore, I pray every night that they stay around. The reason I have the account is because I know what keeps chain accounts interested in vending machines. I have been in sales for over 40 years and have used my experience to maintain a steady, thriving business.

Gary

[Jax Snacks]

Very cool topic indeed. Enjoyed reading the input from all the big rack vendors. I guess we can conclude that corp chains are a whole different ball game. And you have to know how and be willing to play that game. Plus pay extra (commissions) to play that game too.

Not to get too off topic, but in some ways this reminds me of a similar situation in my corporate software days in Metro DC. But in this case it was getting federal government deals. The company had no luck getting those big government deals. So they hired a top notch sales rep experienced in selling software to the government. He told us that selling to commercial accounts was radically different than selling to the government. He created a new department just to deal with the government sales process. It took much more time to close a deal, but they were very lucrative when they did close. Again, the company was willing to play a different game to get that business.

[noved1]

well if anybody is interested here is a link to every supermarket chain in the USA big and small.

http://en.wikipedia.org/wiki/List_of_supermarket_chains_in_the_United_States

[Beach Bum Vending]

I have the same frustration. I see more and more neglected racks than ever before. You would think that they were abandoned Vendstars rather than a rack (sorry, just a little humor). Many of these racks are at 50 cents on the top and 25 cents on the bottom. But really, how can any vending operator make any money by paying a large commission AND paying employees to service them AND paying rising vehicle expenses AND paying rising products costs under the current economic situation? Well, they don’t anymore. It seems like many of the vending companies now extend their service cycles to 3 or even 4 months. Or they simply neglect service calls when machines are empty. And it shows!

There is a Golden Corral near me that constantly has empty heads and out-of-order signs. This rack used to be a Foltz rack, but was recently taken over by a Colorado company (that is what is on the contact label). The “new” rack was beat up and looked 10 years old and the chrome stand was rusted. The manager gave me a corporate contact. But the contact told me that they just recently signed a new 2 year contract. The vending operator there does the cranes and also does the bulk. Let the big boys do the cranes/electronic. But we local guys could do a better job with the bulk if they would let us. But the corportate entities don't want to deal with us local "Billy Bobs". And the big boys are just protecting their turf and want every quarter.

But this is the good old boy corporate schmoozing system in place here! Just bend over, give the corporate fat cats what they want, then maybe you will get a few pennies in the end (no pun intended)!

Here is what you can look into and maybe do. It might be a bit of a rat race and bantering back and forth and lots lots hoops jump through. And lawyers may have be advised.

But you could ask what are terms of contract and see what canceling penalties are. Maybe offer pay it for them. And in selling your selling your self the service will follow. Your winning points are you are local and have up to date machines and work and will respond to service call in such & such amount of time garunteed. You can win these big chain locations. Just have to tell them what like to hear. And back it up and go above and beyond there expectations. And give back to the big accounts. You scratch there back they will scratch your back so speak. So if really like account go after it. Never say never anythings possible It is what can "I" offer that current company is lacking. Just stay positive and look into it see what it would cost you and what take win account.