[vendtalk] SODA MACHINES

Mon Oct 22 02:52:44 UTC 2012

Don't know if this answers any of your concerns or not, but here goes -

Contracting soda machine service and receiving commissions, etc. where the
manager still services the snack machines, is usually done via the big guys
in Texas, but may still be with mom & pops or full line vending companies as
necessitated by the size and location of the site.  Commissions used to be
good (25-35%) years ago but the manager may now experience 8-16%, and that
is highly dependent on circumstances. This compares with self-service of
30-50% margin for bottles (gross sales price less tax, less cost/unit for 20
oz., divided by gross sales price less tax)  A lot of facts may be involved
in deciding the approach and final decision.  Maximum income may not be the
deciding factor for some.

There is no "one way" or "one right commission" that is good for all
situations.  If one achieved 15% on gross sales less tax through
out-sourcing the vending operation entirely, that might be considered pretty
good, all things considered.  The good old days are generally gone and some
companies may try and load extra costs as deductions against today's lower
commissions, like fuel surcharges, so beware.  Yes, there are some who say
they are getting much higher commissions, but I wonder if they are relying
on old history and relationships for their sweetheart deals that the rest of
us can't obtain.

For Unmanned Vending (old term) contracts for a specific location/facility
where the state is the contracting party and recipient of income, the amount
of commission could also vary a lot depending on circumstances and how
aggressive that program manager is, and all of that is highly influenced by
the size of the total opportunity potential to the potential external party.
Size does matter!

The one important thing to remember for any manager is a good contract that
protects the manager and the program.  The contract should also deal with
the usual problems - bankruptcy, abandonment, "acts of God", vandalism,
compliance with changing laws and regulations, liabilities, auditing rights,
service level measures, termination notices, etc. that will always impact
someone or the other at some point.  Murphy's Law reigns supreme.

I am also eager to hear from other states.

Mike Vandervoort
Abilene, Texas

-----Original Message-----
From: vendtalk [mailto:vendtalk-bounces at nfbnet.org] On Behalf Of Rhonda
Hutson
Sent: Sunday, October 21, 2012 7:32 PM
To: Vendor Talk Mailing List
Subject: Re: [vendtalk] SODA MACHINES

We only have one place where there is unassigned vending. The rest is filled
by the managers. I'm still interested in learning more about unassigned
vending in the different states.

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: mazher
Sent: Tuesday, October 16, 2012 4:49 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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