ThankYouComeAgain Posted September 4, 2011 Share Posted September 4, 2011 Hi, maybe you can save me from a stupid financial risk. Should someone buy their drink machines, like the Vision 650 live display for $1700, or get the machines from a bottler? Situation: A company with 300 employee needs 3 drink machines for two break rooms, two of the machines needs to be simply a 12oz vending machine, the other needs to vend 16.9 oz bottles and 12oz bottle juices. You expect this location to provide about $400 in net revenue in a month. In case you're wondering, you would need to put two snack machines in each breakroom, but let's just focus on the drink portion here. What is more cost effective? Which option is a wiser financial choice and why? Remember, if you borrow money, you gotta pay that crap back over a long period of time. If you go with a bottler, how do you know who to go to and who to contact? If they make you buy a minimum amount of drinks, can you take those purchased drinks and use them for other locations? Link to comment Share on other sites More sharing options...
dogcow Posted September 4, 2011 Share Posted September 4, 2011 Hi, maybe you can save me from a stupid financial risk. Should someone buy their drink machines, like the Vision 650 live display for $1700, or get the machines from a bottler? Situation: A company with 300 employee needs 3 drink machines for two break rooms, two of the machines needs to be simply a 12oz vending machine, the other needs to vend 16.9 oz bottles and 12oz bottle juices. You expect this location to provide about $400 in net revenue in a month. In case you're wondering, you would need to put two snack machines in each breakroom, but let's just focus on the drink portion here. What is more cost effective? Which option is a wiser financial choice and why? Remember, if you borrow money, you gotta pay that crap back over a long period of time. If you go with a bottler, how do you know who to go to and who to contact? If they make you buy a minimum amount of drinks, can you take those purchased drinks and use them for other locations? you can do whatever you want with the drinks. theres tax advantages of buying equipment this year i believe. Link to comment Share on other sites More sharing options...
ThankYouComeAgain Posted September 5, 2011 Author Share Posted September 5, 2011 I was hoping to get people's opinion as to what it cost them if it cost them anything by getting machines from bottler's and what the demands are put on you as the vendor. Can anyone comment? Link to comment Share on other sites More sharing options...
sbishop Posted September 7, 2011 Share Posted September 7, 2011 I was hoping to get people's opinion as to what it cost them if it cost them anything by getting machines from bottler's and what the demands are put on you as the vendor. Can anyone comment? I am currently using 95% Coke owned machines. The only problem is the 3 week delivery time. Things I like 1- no capital investment for quicker expansion. 2- no moving heavy drink machines. 3- deliveries to my garage. No double loading cases from store to cart to van to garage to van for delivery. Things I do not like 1- only coke products allowed. 2- uhm thats about it Link to comment Share on other sites More sharing options...
mission vending Posted September 7, 2011 Share Posted September 7, 2011 Hi, maybe you can save me from a stupid financial risk. Should someone buy their drink machines, like the Vision 650 live display for $1700, or get the machines from a bottler? Situation: A company with 300 employee needs 3 drink machines for two break rooms, two of the machines needs to be simply a 12oz vending machine, the other needs to vend 16.9 oz bottles and 12oz bottle juices. You expect this location to provide about $400 in net revenue in a month. In case you're wondering, you would need to put two snack machines in each breakroom, but let's just focus on the drink portion here. What is more cost effective? Which option is a wiser financial choice and why? Remember, if you borrow money, you gotta pay that crap back over a long period of time. If you go with a bottler, how do you know who to go to and who to contact? If they make you buy a minimum amount of drinks, can you take those purchased drinks and use them for other locations? I would purchase at least one, preferably 2 machines and get the other(s) from a bottler. This lowers your capital cost going in and gives you the ability to meet product requests for items that are not part of the bottler portfolio you will use. (ie. Pepsi or Mountain Dew in a Coke machine). I mention this also because the trend over the last few years with the bottlers is that they are harder and harder to do business with and if it ever gets to the point where you want them out of your business the transition will be easier if you already own some drink machines. Relying on the bottlers exclusively puts you in a position where they can, if they choose, dictate terms to you which may hurt your business. As for which to use.... which has the biggest market share in your area, which is easiest to deal with, etc. Different areas have different requirements, the number seems to be between 10-20 cases per month per machine depending on the area. They won't want a cut, they make their money when they sell you the product, that's why they have minimum purchase requirements. I'm pretty sure that CCE has by now standardized their contracts across the country and if you look at their vendor contract there is a provision that gives them the right to take back the equipment on 30 days notice. If you are overly dependent on a bottler for your drink machines, in the UNLIKELY event that they would do so, it would cause a major disruption of your business. If you are willing to take a calculated risk then by all means do all bottler equipment, just be aware that the doomsday scenario will always be a POSSIBILITY. I personally still use bottler equipment and will continue to do so but I also can quickly replace their machines with mine and continue without too much disruption and tell to go pound sand while doing so. IMO, one of the machines in an account this size ought to be a glassfront vendor as well. Link to comment Share on other sites More sharing options...
carogan Posted October 22, 2011 Share Posted October 22, 2011 I am currently using 95% Coke owned machines. The only problem is the 3 week delivery time. Things I like 1- no capital investment for quicker expansion. 2- no moving heavy drink machines. 3- deliveries to my garage. No double loading cases from store to cart to van to garage to van for delivery. Things I do not like 1- only coke products allowed. 2- uhm thats about it A few questions regarding the Coke owned machines... The bottler requires the vendor to buy a minimum number of cases so that you can use their machine for free. I understand that a vendor must sell the Coke product line ONLY out of that machine. 1. As long as a vendor buys the minimum number of cases required directly from the bottler, is the vendor required to only sell inventory that is purchased directly from them for every item vended from this machine, or can the vendor buy other Coke inventory from somewhere else? (ie. Costco is selling cheaper Coke than the bottler's wholesale cost). Does Coke even care - so long as you meet their minimum purchase requirements? (I'm guessing they'd prefer for you to buy from them) 2 can the Coke supplier track my sales of units coming from their machines or do they only track what you purchase from them through invoices? Link to comment Share on other sites More sharing options...
mission vending Posted October 22, 2011 Share Posted October 22, 2011 The purchase requirements would be from the bottler. They don't know what you buy from Sam's. Many people do buy from Sam's after they meet minimum requirements because its cheaper. Link to comment Share on other sites More sharing options...
carogan Posted October 22, 2011 Share Posted October 22, 2011 The purchase requirements would be from the bottler. They don't know what you buy from Sam's. Many people do buy from Sam's after they meet minimum requirements because its cheaper. So its not like the supplier has software in their machines that will tell them what the machine vends, so that a rep can compare this count to your account with the bottler? (I know that these units have GPS on them!!) Or that the bottler will send a representative out to "spot check" the machine, buy a unit of inventory, and check a barcode to establish whether the inventory was bought from the supplier or from elsewhere? (And do they even care - so long as your selling their product?) Link to comment Share on other sites More sharing options...
mission vending Posted October 22, 2011 Share Posted October 22, 2011 They have been known to spot check, but in that case they are more concerned about "foreign" product. Pepsi in a Coke machine. They can track product from production codes so if you are transhipping from out of area it could cause problems for you. Personally I've never had a problem with the bottlers in this regard. Just be aware the terms amd conditions in your contract and as long as you play it straight you don't have anything to worry about. Link to comment Share on other sites More sharing options...
carogan Posted October 22, 2011 Share Posted October 22, 2011 They have been known to spot check, but in that case they are more concerned about "foreign" product. Pepsi in a Coke machine. They can track product from production codes so if you are transhipping from out of area it could cause problems for you. Personally I've never had a problem with the bottlers in this regard. Just be aware the terms amd conditions in your contract and as long as you play it straight you don't have anything to worry about. Thanks MV! Link to comment Share on other sites More sharing options...
STAvend Posted October 28, 2011 Share Posted October 28, 2011 Where are you located? In the Dallas/Fort Worth Metroplex we lease out machines for only $11 a week plus tax. This is a great way to start making money immediately as opposed to starting off $4000 under or so. Link to comment Share on other sites More sharing options...
Poplady1 Posted October 29, 2011 Share Posted October 29, 2011 They have been known to spot check, but in that case they are more concerned about "foreign" product. Pepsi in a Coke machine. They can track product from production codes so if you are transhipping from out of area it could cause problems for you. Personally I've never had a problem with the bottlers in this regard. Just be aware the terms amd conditions in your contract and as long as you play it straight you don't have anything to worry about. I enjoyed your remarks Mission.... Poplady Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.