getting into a site?

[morby]

Hi Guys,

Im new here, first post. Hi.
I had an idea about certain businesses and places i have visited that could really do with a vending machine, or better services. The problem is these places seem too be large national companies. i have everything in place too my new business plan and venture, but before i go shelling out cash and resources i want too be able too secure some sort off contract/verbal agreement.

i was thinking free standing machines that sold drinks and snacks, but also personalized goods suited too the business on a 10/90 split on profits..

Has anyone secured a big deal or contract before? how did you make contract? what was said? how did you wow them and convince them too take you on?

many thanks..

[PabloV8]

Hi Morby,

I think you are going to at least increase your percentage to at least 20% before any [most] business is interested as they have far bigger margins that you are considering.

Cheers.

[PabloV8]

Awful grammar - to early in the morning! Need to use the preview more!

Hi Morby,

Business operates at high markup profits, so I would up your margins more than 10% to any prospective company as it will make it more worthwhile to them.

Cheers

[morby]

ok, so all numbers can be negotiated too suit.

but the initial contact, one is 40 sites nation wide potentially £250,000 turnover a year. i only have an email address for the marketing lady. i have no idea how too approach and haven't set up the business email address, or turnt it into a company just yet as was wanting a verbal/contact sites first.

the other is 2,900 sites maximum, already figured the approach I'm taking with them.

[Coin Operated Group]

Couple of things, I don't ever offer commissions on big vending machines, operating costs, maintenance and initial purchase prices are a hell of a lot more. If you add a % commission it simply bumps the price of the goods up and people wont use the machine.

Only places we offer commissions are high footfall public places ie football stadiums where a premium price is generally accepted.


If starting a new business and taking on a nationwide contract, if you only had 40 machines you would lose money logistics is far too expensive. We operate a 20 mile radius maximum and regularly turn down big sites further than this due to associated costs.

Are you looking at new or used machines?


40 large sites (assuming three machine per site) most blue chip companies expect a separate snack & drink and a hot drinks machine rough cost 3k per machine, that's £360,000 start up costs for equipment alone plus probably £25k for stock

You would then need full time maintenance engineer (30k) 2 staff to refill (40k) and that doesn't include vans insurance stock premises etc.

Not trying to put you off but its not just as simple as winning a nationwide contract. Off 250k you would expect a gross £120k profit. that's one big pot of cash you would need!!

[morby]

yeah saw and thought about that,
the maths behind it was renting out the rounds
10% site
10% me
80% supplier and round

over time as business grew and company turned profit looking at each location after a 12 month period and then buying the profitable sights.

outsourcing

[Style]

Matt, what do you do with sites you turn down. Presumably sell the leads on? I would always be interested in anything Milton Keynes, Northampton way.
Cheers

Andy

[Coin Operated Group]

So you rent out the sites and then take back the ones that are making money? Hmm.

Nobody operates sites and gives permanent commissions to site finders. A site fee yes, but when you get a nationwide contract and you have a site say in middle of nowhere that nobody wants what happens then? You are obliged to provide a service at a loss.

Best advice can give you is get the contract and sell it on to a national company who would pay good money.

[Coin Operated Group]

Matt, what do you do with sites you turn down. Presumably sell the leads on? I would always be interested in anything Milton Keynes, Northampton way.
Cheers

Andy

It's mainly Midlands sites , but will gladly if any turn up.

[morby]

So you rent out the sites and then take back the ones that are making money? Hmm.

Nobody operates sites and gives permanent commissions to site finders. A site fee yes, but when you get a nationwide contract and you have a site say in middle of nowhere that nobody wants what happens then? You are obliged to provide a service at a loss.

Best advice can give you is get the contract and sell it on to a national company who would pay good money.

do you have any information on such companies?