abek Posted June 22, 2011 Share Posted June 22, 2011 Hi Everyone, I've been following this forum for some time now and just recently decided to sign up. I'm currently in the full line vending business, with several soda and snack machines. Recently a opportunity presented itself so that I can sell office coffee, can someone please guide me as to how office coffee works. I understand you have to buy the machines and supply the coffee, but as far as pricing goes how does it work? Also how do I decide which machine to purchase? what other info do I need to start providing coffee? Thank you for nay help, Abe Link to comment Share on other sites More sharing options...
RJT Posted June 22, 2011 Share Posted June 22, 2011 Hi Everyone, I've been following this forum for some time now and just recently decided to sign up. I'm currently in the full line vending business, with several soda and snack machines. Recently a opportunity presented itself so that I can sell office coffee, can someone please guide me as to how office coffee works. I understand you have to buy the machines and supply the coffee, but as far as pricing goes how does it work? Also how do I decide which machine to purchase? what other info do I need to start providing coffee? Thank you for nay help, Abe I dont have a long to post at this time but I can say this. Stick with Bunn and Newco for your brewers and Keurig for single cup brewers. Typical markup from wholesale to retail is around 30/35%. Link to comment Share on other sites More sharing options...
abek Posted June 22, 2011 Author Share Posted June 22, 2011 I dont have a long to post at this time but I can say this. Stick with Bunn and Newco for your brewers and Keurig for single cup brewers. Typical markup from wholesale to retail is around 30/35%. Thanks for the reply. Do I charge them for the machine? How much do I charge them for the coffee, supplies etc... Link to comment Share on other sites More sharing options...
RJT Posted June 22, 2011 Share Posted June 22, 2011 Thanks for the reply. Do I charge them for the machine? How much do I charge them for the coffee, supplies etc... No you do not charge them for the machine. You leave it on "loan" as long as they are buying coffee supplies products. Like I said you mark most items up about 30% give or take what the going rate is for your area. You will offer and supply: Coffee Tea Hot Chocolate Cups Stir Ticks Creamer Sugar Sweet and Low type products This is just the basics and you could add some other items.... You could also offer other type supplies like paper plates and such because some customers may want them. I also have clients that buy drinks by the case to keep in the office. Office coffee is usually done on net 30 billing cycle so be prepared for that along with cash flow. You will need to offer a few varities of brands and styles of coffee along with different types of other things like canisters of sugar along with packets. The same goes for creamers. A few different size cups but the most popular is 8,10 and 12oz. I also supply my customers with cleaning solution and brushes to keep the pots clean. Hope this helps.... Link to comment Share on other sites More sharing options...
mission vending Posted June 22, 2011 Share Posted June 22, 2011 No you do not charge them for the machine. You leave it on "loan" as long as they are buying coffee supplies products. Like I said you mark most items up about 30% give or take what the going rate is for your area. You will offer and supply: Coffee Tea Hot Chocolate Cups Stir Ticks Creamer Sugar Sweet and Low type products This is just the basics and you could add some other items.... You could also offer other type supplies like paper plates and such because some customers may want them. I also have clients that buy drinks by the case to keep in the office. Office coffee is usually done on net 30 billing cycle so be prepared for that along with cash flow. You will need to offer a few varities of brands and styles of coffee along with different types of other things like canisters of sugar along with packets. The same goes for creamers. A few different size cups but the most popular is 8,10 and 12oz. I also supply my customers with cleaning solution and brushes to keep the pots clean. Hope this helps.... That just about covers it. In my case, I charge a little more for the coffee but give "free" filters and stir sticks. Link to comment Share on other sites More sharing options...
abek Posted June 23, 2011 Author Share Posted June 23, 2011 That just about covers it. In my case, I charge a little more for the coffee but give "free" filters and stir sticks. Do I charge for all the supplies, cups, creamer. etc..? if yes, is it 30-35% of each product? Link to comment Share on other sites More sharing options...
RJT Posted June 23, 2011 Share Posted June 23, 2011 Yes, you charge for everything except the brewer. Yes, typical mark up is around 30-35% of each product. Keep in mind I dont have a clue about what market you are in so I dont know what the "going rate" is people are charging for OCS. Link to comment Share on other sites More sharing options...
abek Posted June 23, 2011 Author Share Posted June 23, 2011 Yes, you charge for everything except the brewer. Yes, typical mark up is around 30-35% of each product. Keep in mind I dont have a clue about what market you are in so I dont know what the "going rate" is people are charging for OCS. New York City. Manhattan Link to comment Share on other sites More sharing options...
RJT Posted June 23, 2011 Share Posted June 23, 2011 New York City. Manhattan Still does not help me because I dont conduct business in that area. The 30/35% markup is an average that I think most OCS suppliers use no matter the area. However, in my area I have a couple companies that low ball prices and is around a 20/25% markup. Link to comment Share on other sites More sharing options...
mission vending Posted June 23, 2011 Share Posted June 23, 2011 Yes, you charge for everything except the brewer. Yes, typical mark up is around 30-35% of each product. Keep in mind I dont have a clue about what market you are in so I dont know what the "going rate" is people are charging for OCS. Just to complicate things a little..... I have run into a couple of occurrences in which the OCS provider was charging a $5.00 monthly rental fee for the brewer. I think they did this instead of a price increase on the coffee, but that is speculation on my part. Link to comment Share on other sites More sharing options...
RJT Posted June 23, 2011 Share Posted June 23, 2011 Just to complicate things a little..... I have run into a couple of occurrences in which the OCS provider was charging a $5.00 monthly rental fee for the brewer. I think they did this instead of a price increase on the coffee, but that is speculation on my part. Yep, have seen the same thing aq few times over the years but most times the brewer is "free". I am like you never could figure out "exactly" why they were charging rent other than they could get away with it. I didnt want to confuse him and renting a brewer is not the norm. Link to comment Share on other sites More sharing options...
Beach Bum Vending Posted June 28, 2011 Share Posted June 28, 2011 Thanks for all the info guys thinking getting into this side of the business. And vending times has great article in the last issue I got all about OCS. Link to comment Share on other sites More sharing options...
abek Posted June 28, 2011 Author Share Posted June 28, 2011 Thanks for all the info guys thinking getting into this side of the business. And vending times has great article in the last issue I got all about OCS. Hi, Where can I get a copy of this particular issue? Link to comment Share on other sites More sharing options...
Beach Bum Vending Posted January 8, 2012 Share Posted January 8, 2012 subscribe or email the publisher I assume Link to comment Share on other sites More sharing options...
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