[vendtalk] SODA MACHINES - Texas

Tue Oct 16 22:49:31 UTC 2012

In Texas, like Michigan, soda machine service ("coke machines" down here in
the south) is at the discretion of the manager.  Most choose to obtain
machines from Coke, Pepsi, Dr Pepper, or Big Red.  Some have large accounts
and may obtain from both Coke and Pepsi.  That way, the maintenance is
usually handled by them, but some still do the actual detailed maintenance
and even obtain parts from the Coke's technicians or service centers.  In a
few isolated cases the state has provided a couple of machines but that is a
rare and specific exception.  Some are contracting out the drink side of the
business.  The state is now providing specifics on what a good sub-contract
must have ad not have in it for those wishing to sub-contract the drink side
of the operation.  All state owned machines (snack, cold food, etc.) must be
serviced by the manager.  

Texas is large and spread out and with not much population in many areas, so
there are many considerations depending on your abilities and where you
live. Owning your own machine frees you up for flavor selections but brings
up the service question.  Where I live, there is only the big guys or you
pay to have someone drive 200 miles to you or take your machine to them, or
else you get good at your own repairs.  All of that independence is at your
own expense, of course.    

In Texas, the Texas prison system is the largest "single" entity buyer of
Coke products, or so it is said.  We cannot even come close.  I would like
to give up my "independence" and coat-tail on their contracts since we sell
on the same property and to one population (the guards) who can buy from
either the commissary (run by the state) or in our non-commissary locations
like visitation, etc.  12 Oz "sodas" are sold cold with the state markup for
around 40 t0 45 cents and without state sales tax, which I am required to
charge, collect, and pay.

Mike Vandervoort
Abilene, TX

-----Original Message-----
From: vendtalk [mailto:vendtalk-bounces at nfbnet.org] On Behalf Of mazher
Sent: Tuesday, October 16, 2012 4:50 AM
To: 'Vendor Talk Mailing List'
Subject: Re: [vendtalk] SODA MACHINES

In Washington DC, we contract out all of our vending machine business and
vendors receive a commission check.  Many vendors are unhappy about not
being able to fill their own machines, so we are actively exploring that
option.  I believe neighboring Maryland has similar arrangements in place.
How is this handled in New York, Pennsylvania, Illinois, Texas and
California, anyone? 
Mazher

-----Original Message-----
From: vendtalk [mailto:vendtalk-bounces at nfbnet.org] On Behalf Of Rhonda
Hutson
Sent: Sunday, October 14, 2012 6:01 PM
To: Vendor Talk Mailing List
Subject: Re: [vendtalk] SODA MACHINES

Oklahoma has a majority of their state owned machines but we do have some
pepsi and coke machines where our agency could not afford to get them for
us.

Rhonda Hutson
918-962-5445 Home
918-774-3213 Cell
rhondahutson3 at gmail.com
Order Corinthia Falls by Kim Hutson!
www.kimhutson.com/
-----Original Message-----
From: Dennis Horn
Sent: Sunday, October 14, 2012 4:30 PM
To: 'Vendor Talk Mailing List'
Subject: Re: [vendtalk] SODA MACHINES

The blind vendors in Florida, when they were under the control of
Tallahassee, were perceived by Coke & Pepsi as a single buying unit.  We
received prices in line with being one of the largest wholesales soda
purchases in the sate.  Since we became independent contractors, Coke has
been able to exploit the fact we are all small vendors.  They are
automatically raising prices at least 3% /year regardless of their cost
increases.  We threatened, they called our bluff, and they won.  Because of
this our prices will soon be in line with small third party vendors
throughout the state.  The vendors have become a paper tiger when it comes
to any meaningful negotiations with Coke and Pepsi, which follows Coke.

The reason for my first message is to find if any states buy their own soda
machines in order to enable vendors to legitimately buy from other sources.
I would appreciate any information or opinion regarding this alternative.

National contracts are done by both Coke and Pepsi.  The RSVA is working
with Pepsi for rebates, so the door is open there.  Coke just granted a
national buying contract to a friend of mine in Florida who buys 10% of what
the vendors do.  He is only in Florida and we are in all the states.

Independence is great but, unless a means of addressing our wholesale price
vulnerability is found, it may make the program less enticing to operators.
Right now I hear complaints from vendors not making enough money.  But they
will not participate in any concerted effort to bargain with any wholesaler.
They are independent, which I applaud.  Sometimes, however, I think they are
cutting their nose off despite their face.

I brought up a national contract years ago and was told it was in the
process and would soon be done.  Nothing ever materialized.

I know this will be difficult.  I have grown my own business outside of the
program in order to partake, in a meaningful way, rebates and those
discounts achieved with greater purchases.  I don't have an answer.  But, in
my mind, the only means of making this program what it has the potential to
be, is pursuing national contracts.

Dennis Horn

-----Original Message-----
From: vendtalk [mailto:vendtalk-bounces at nfbnet.org] On Behalf Of mazher
Sent: Sunday, October 14, 2012 9:30 AM
To: 'Vendor Talk Mailing List'
Subject: Re: [vendtalk] SODA MACHINES

Whatever has gone before is water under the bridge.  I think we all have a
shared interest in putting our collective buying power to work.  The trick
of course is to come up with an end result that has some real tangible
benefit for the individual vendor.  Far too often in the past, the benefits
of partnership have been too elusive and indirect.  This looks like a doable
and worthwhile initiative.  Let's give it a collective push to see what we
can score.  If I can lend a hand, please contact me at the email address
below.

Mazher at comcast.net
Phone: (202) 415-9450.
Chair, Policy Sub Committee
DC Randolph Sheppard Vending Facility Program

-----Original Message-----
From: vendtalk [mailto:vendtalk-bounces at nfbnet.org] On Behalf Of Kevan
Worley
Sent: Thursday, October 11, 2012 5:43 PM
To: Vendor Talk Mailing List
Subject: Re: [vendtalk] SODA MACHINES

There are plenty of long winded reasons why it hasn't been done. However, I
believe there are exciting things to come in this area. Nicky Gacos,
President, NABM, is working at a high level with Coke and Pepsi, as well as
some other possible partners to create a national buying program. It is
heavy lifting, but if anyone can do it he can. Many states have worked with
both Pepsi and Coke to get a pretty low, competitive wholesale price. Most
states, I think, get their machines directly from the soft drink companies,
but some also buy some of those machines. If you'd like to work with our
leadership team on this effort, let's do it. I hope that's a short winded
response. I wish it was a better one.

Kevan Worley
Executive Director
National Association of Blind Merchants
kevanworley at blindmerchants.org
866-543-6808

Buy your amazing Vacation Travel Raffle tickets now!
http://www.nfbco.org/vacation-travel-raffle

-----Original Message-----
From: vendtalk [mailto:vendtalk-bounces at nfbnet.org] On Behalf Of Dennis Horn
Sent: Wednesday, October 10, 2012 10:04 PM
To: 'Vendor Talk Mailing List'
Subject: [vendtalk] SODA MACHINES

Are there any states that buy their own soda/pop/beverage machines?    In
Florida we are all third party vendors which puts us at a decided
disadvantage when it comes to bargaining.
Also, what about a national contract with Coke/Pepsi/Dr pepper Snapple 7 Up?
Any ideas?
Please no long winded reasons why it can't be done.

Thanks,

Dennis Horn

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