Thrifty Posted July 11, 2011 Share Posted July 11, 2011 Something that I don't understand is these large vending companies with great locations. I look at their racks and they are selling a 2 inch dollar item for .50. And the lower levels are filled with candy (stale) and crappy 1 inch products. They also pay commission,gas, a service guy, vehicles, interested expense, offices, warehouses, admin expenses, etc. How do they make it? Whats the point? For example I look at my local publix and there is this large ninehead rack, and its in a bad spot(in a corner, far away from the bulk of traffic). I walk up to it and they are selling this huge fruit gum that shold be a buck for .50. I mean its huge and must cost .2-.3 cents. The whole toy and candy selection seems to have been picked by an idiot. Link to comment Share on other sites More sharing options...
will.vend Posted July 11, 2011 Share Posted July 11, 2011 Something that I don't understand is these large vending companies with great locations. I look at their racks and they are selling a 2 inch dollar item for .50. And the lower levels are filled with candy (stale) and crappy 1 inch products. They also pay commission,gas, a service guy, vehicles, interested expense, offices, warehouses, admin expenses, etc. How do they make it? Whats the point? For example I look at my local publix and there is this large ninehead rack, and its in a bad spot(in a corner, far away from the bulk of traffic). I walk up to it and they are selling this huge fruit gum that shold be a buck for .50. I mean its huge and must cost .2-.3 cents. The whole toy and candy selection seems to have been picked by an idiot. great observation I agree! Link to comment Share on other sites More sharing options...
Hillbilly Posted July 11, 2011 Share Posted July 11, 2011 They probably have route guys who don't get to pick the items they vend. It is all shipped in by corporate. Clean machines just mean more work for them so they don't bother. The route guys probably don't even let the management know what is the hot movers. As far as upgrading to higher price points, with the number of machines they have, it would make doing all of them very costly. So, i am sure they just do their mega accounts. A lot of the stuff they vend for .25 I get .50 for just a short distance away. Same for the 2" stuff. I do have some locations though, that the higher price points just don't work. Link to comment Share on other sites More sharing options...
Smiley Posted July 11, 2011 Share Posted July 11, 2011 They probably have route guys who don't get to pick the items they vend. It is all shipped in by corporate. Clean machines just mean more work for them so they don't bother. The route guys probably don't even let the management know what is the hot movers. As far as upgrading to higher price points, with the number of machines they have, it would make doing all of them very costly. So, i am sure they just do their mega accounts. A lot of the stuff they vend for .25 I get .50 for just a short distance away. Same for the 2" stuff. I do have some locations though, that the higher price points just don't work. They are getting volume discounts and pay far less for the merchandise than you are paying. Also, especially in an account like Walmart, they are under pressure to show higher sales. Most tests have shown that most items are generating higher gross sales at the lower price points. In addition, Walmart has a reputation for being the low price leader for everything in their store and I am sure they don't want vendors selling something in their store for 50 cents that can be found in another store for 25 cents. Thats the problem with hearing things most time its just talk. They are doing plush, Red Box, Coin Star and redemption type machines. The three companies you listed done even cover the entire country. Walmart has around 40 vendors that they have given vendor numbers to. You may see a rack go in here and there but over all most are coming out. Haven, I got my info from a very reliable source. You might want to ask someone at A&A or Cardinal or Northwestern to get the real story. How is it, exactly, that NEN doesn't cover the whole country when they are essentially the bulk business of Coinstar, which did have bulk machines all over the country? After all, NEN does stand for NATIONAL Entertainment Network. Link to comment Share on other sites More sharing options...
havending Posted July 11, 2011 Share Posted July 11, 2011 Much of nen bulk was contracted out to other vending companies. Many people think that Folz was a cost to cost company but they also used a franchised type system in that most of the machines were owned and operated by smaller operators. I don't need to ask AA cardinal or NW about anything even though i talk to them every week. And I have been buying from all 3 for nearly 18 years. And I send Walmart a comm check every month and attend the yearly meeting held by the director of other income. Link to comment Share on other sites More sharing options...
havending Posted July 11, 2011 Share Posted July 11, 2011 They are getting volume discounts and pay far less for the merchandise than you are paying. Also, especially in an account like Walmart, they are under pressure to show higher sales. Most tests have shown that most items are generating higher gross sales at the lower price points. In addition, Walmart has a reputation for being the low price leader for everything in their store and I am sure they don't want vendors selling something in their store for 50 cents that can be found in another store for 25 cents. Haven, I got my info from a very reliable source. You might want to ask someone at A&A or Cardinal or Northwestern to get the real story. How is it, exactly, that NEN doesn't cover the whole country when they are essentially the bulk business of Coinstar, which did have bulk machines all over the country? After all, NEN does stand for NATIONAL Entertainment Network. There is no pressure to show higher sales. And Walmart has never tried to swing vend prices one way or another. My machines as well as most of Segas bulk has gone to .50 on the bottom and .75 on top. There is no magical discount for larger operators. When i order by the pallet my discount is 2 to 3 dollars a bag. Smaller companies like SSM and flatline will discount a bit more just to move product. The reason you see many large operators slower to remove candy and go to a higher vend price is because of the cost to do so. Link to comment Share on other sites More sharing options...
Smiley Posted July 11, 2011 Share Posted July 11, 2011 Much of nen bulk was contracted out to other vending companies. Many people think that Folz was a cost to cost company but they also used a franchised type system in that most of the machines were owned and operated by smaller operators. I don't need to ask AA cardinal or NW about anything even though i talk to them every week. And I have been buying from all 3 for nearly 18 years. And I send Walmart a comm check every month and attend the yearly meeting held by the director of other income. I'm 45 and I've known Roger Folz for basically as long as I can remember and my company has been competing with his since 1966 and this is the first time anyone has ever said that Folz subcontracted out any business. As far as I know, it was his own machines and route drivers. Over 110 route drivers at one point in time. I guess it's possible that in a rare case, if he got an account that carried him into a sparsely populated area that he didn't already cover, he would look to sub out some stores. With the volume that a Walmart does, I doubt he would take this strategy. That being said, it doesn't change my point of NEN being able to handle the whole country. They would just do it through their existing networks. By the way, just out of curiousity, do you have the name of anyone that ever got subcontracting work from Folz? Link to comment Share on other sites More sharing options...
T BIRD Posted July 12, 2011 Share Posted July 12, 2011 Thats the problem with hearing things most time its just talk. They are doing plush, Red Box, Coin Star and redemption type machines. The three companies you listed done even cover the entire country. Walmart has around 40 vendors that they have given vendor numbers to. You may see a rack go in here and there but over all most are coming out. Smiley is correct. Those are the 3 companies. Not sure what you heard Have Man.......... Link to comment Share on other sites More sharing options...
Smiley Posted July 12, 2011 Share Posted July 12, 2011 There is no pressure to show higher sales. And Walmart has never tried to swing vend prices one way or another. My machines as well as most of Segas bulk has gone to .50 on the bottom and .75 on top. There is no magical discount for larger operators. When i order by the pallet my discount is 2 to 3 dollars a bag. Smaller companies like SSM and flatline will discount a bit more just to move product. The reason you see many large operators slower to remove candy and go to a higher vend price is because of the cost to do so. Companies like NEN, Vendomatic and Service order by the TRAILER not the PALLET. And they get better prices than we do. Link to comment Share on other sites More sharing options...
havending Posted July 13, 2011 Share Posted July 13, 2011 Bottom line is that Walmart is not into adding more bulk. Only Cranes and redemption machines along with more red box. And there has never been (including folz) a nation wide 50 state bulk vending company. Link to comment Share on other sites More sharing options...
Smiley Posted July 14, 2011 Share Posted July 14, 2011 Bottom line is that Walmart is not into adding more bulk. Only Cranes and redemption machines along with more red box. And there has never been (including folz) a nation wide 50 state bulk vending company. From their website, notice the right side where they state they cover the entire country. http://www.nen-inc.com/bulkMachines Link to comment Share on other sites More sharing options...
havending Posted July 14, 2011 Share Posted July 14, 2011 I'm 45 and I've known Roger Folz for basically as long as I can remember and my company has been competing with his since 1966 and this is the first time anyone has ever said that Folz subcontracted out any business. As far as I know, it was his own machines and route drivers. Over 110 route drivers at one point in time. I guess it's possible that in a rare case, if he got an account that carried him into a sparsely populated area that he didn't already cover, he would look to sub out some stores. With the volume that a Walmart does, I doubt he would take this strategy. That being said, it doesn't change my point of NEN being able to handle the whole country. They would just do it through their existing networks. By the way, just out of curiousity, do you have the name of anyone that ever got subcontracting work from Folz? WOW you started your business when you were a new born. Your 45 and been competing since 1966. It says coast to coast and the entire nation. I really don't think that they are in HI and AK but if they are its been in the past year or so. Link to comment Share on other sites More sharing options...
Smiley Posted July 15, 2011 Share Posted July 15, 2011 WOW you started your business when you were a new born. Your 45 and been competing since 1966. It says coast to coast and the entire nation. I really don't think that they are in HI and AK but if they are its been in the past year or so. Actually, I wrote my company has been competing with Folz since '66. My grandfather started my company. I, personally have only been doing this for 24 years. Unless you want to count working with my dad during the summer. Then it would be 32 years. Whether or not they are in HI or AK is really nitpicking. I would guess sometimes nationwide is used when people mean continental US. Link to comment Share on other sites More sharing options...
BorderJerry Posted July 15, 2011 Share Posted July 15, 2011 "...when you were a new born. Your 45 and been competing since 1966." ----------------------------------- He had to start his own biz. When he was 8 months old he was laid off from E Trade....too old... Link to comment Share on other sites More sharing options...
havending Posted July 16, 2011 Share Posted July 16, 2011 Actually, I wrote my company has been competing with Folz since '66. My grandfather started my company. I, personally have only been doing this for 24 years. Unless you want to count working with my dad during the summer. Then it would be 32 years. Whether or not they are in HI or AK is really nitpicking. I would guess sometimes nationwide is used when people mean continental US. I have two young daughters and they really enjoy vending. I hope that one day they will want to take over. I think passing a business down is real nice. Where do you guys operate? We are in the south and up to the mid west. And also up in MD,DE and southern NJ Link to comment Share on other sites More sharing options...
Smiley Posted July 16, 2011 Share Posted July 16, 2011 I have two young daughters and they really enjoy vending. I hope that one day they will want to take over. I think passing a business down is real nice. Where do you guys operate? We are in the south and up to the mid west. And also up in MD,DE and southern NJ NY, NJ, CT, Philly Link to comment Share on other sites More sharing options...
Smiley Posted July 28, 2011 Share Posted July 28, 2011 Bottom line is that Walmart is not into adding more bulk. Only Cranes and redemption machines along with more red box. And there has never been (including folz) a nation wide 50 state bulk vending company. Spoke to someone at NEN today. He confirmed that they are reinstalling a very large quantity of bulk at Walmart. Not a rumor anymore. Consider it fact. This is good for the industry. It allows our suppliers to buy in larger quantities. Also, I always liked to tell a prospective account that didn't have machines that the most successfel retailer in the world, Walmart, has machines in all their stores. Link to comment Share on other sites More sharing options...
havending Posted July 28, 2011 Share Posted July 28, 2011 Then you would not be telling your new clients the truth. Why? Because bulk will still not be in every Walmart . There are many Walmart stores that have been built that do not include areas for bulk. nen is only one of about 50 companies that are approved to provide bulk to walmart. There will be many areas of the country esp in the south where sega is big stores will remain bulkless. So I would say your fact is full of holes. Sent from my Desire HD using Tapatalk Link to comment Share on other sites More sharing options...
Smiley Posted July 28, 2011 Share Posted July 28, 2011 Then you would not be telling your new clients the truth. Why? Because bulk will still not be in every Walmart . There are many Walmart stores that have been built that do not include areas for bulk. nen is only one of about 50 companies that are approved to provide bulk to walmart. There will be many areas of the country esp in the south where sega is big stores will remain bulkless. So I would say your fact is full of holes. Sent from my Desire HD using Tapatalk It's a sales pitch, not a fact. Link to comment Share on other sites More sharing options...
havending Posted July 28, 2011 Share Posted July 28, 2011 Your post called it a fact Sent from my Desire HD using Tapatalk Link to comment Share on other sites More sharing options...
Smiley Posted July 29, 2011 Share Posted July 29, 2011 Your post called it a fact Sent from my Desire HD using Tapatalk These reading comprehension issues are starting to get tiresome. The FACT in my post was that Walmart is adding a ton of bulk to their stores. The sales pitch was telling an account that Walmart has bulk in all their stores. Link to comment Share on other sites More sharing options...
caserri Posted July 29, 2011 Share Posted July 29, 2011 Wow, 50 posts in this thread and only 11 of them have anything to do with the original topic? C'mon guys! Link to comment Share on other sites More sharing options...
havending Posted July 29, 2011 Share Posted July 29, 2011 But they don't have bulk in all their stores. So its a lie and a sales pitch. Sent from my Desire HD using Tapatalk Sorry Steve just busting his balls a little. Smiley the first round of drinks is on me at the NBVA this year. Sent from my Desire HD using Tapatalk Link to comment Share on other sites More sharing options...
havending Posted April 26, 2013 Share Posted April 26, 2013 I'm so glad I was wrong and took a shot. If I were to sit on the side lines and just watch then some one may have placed some in my accounts. But now I'm the one placing them and very happy I am. Link to comment Share on other sites More sharing options...
sherlock Posted April 26, 2013 Share Posted April 26, 2013 Thinking about taking a flyer out to locations I never had any success getting into and see if it raises eye brows. If it is successful maybe Frank can give a guy a Vendiscuss discount. What ya say Frank? I think the TVF discount is a fantastic idea. I'd also be VERY interested in hearing about your experience in those places you take the flyers into. Please let us know how that goes. Link to comment Share on other sites More sharing options...
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