national contracts

[Vendingwarehouse]

You don't need millions, there's enough big operators on here to get enough money together.

[Rossi fan]

Hi Noel,

If everyone on here put 10k in and created a large fund. Most of it would be wasted, trying to compete with already established companies like Perform marketing and many of the others placing crane grabbers in every managed house. As I said before, the group is only as strong as the weakest person, so when things get tough, someone will want their money back, and there will not be any to give. The vast majority of ops on here, are working with a miniscule cash flow, so one slip up and it is curtains.

Thanks,

Paul

[chcvending]

Miniscule cash flow is right Paul ... 10 k ?? never seen that amount in one place :) Personally I would not be keen on greasing palms on top of paying commission. Thats not real business it`s bribery and corruption... sadly this seems to be the way of business these days

[Dan vending]

I think national contracts is a great idea

I'm happy to cover Herts and /or North London

Regards

Dan

[FlintVending]

Hi Noel,

If everyone on here put 10k in and created a large fund. Most of it would be wasted, trying to compete with already established companies like Perform marketing and many of the others placing crane grabbers in every managed house. As I said before, the group is only as strong as the weakest person, so when things get tough, someone will want their money back, and there will not be any to give. The vast majority of ops on here, are working with a miniscule cash flow, so one slip up and it is curtains.

Thanks,

Paul

Hi Paul

Looking back over some of my old posts, they do tend to be rather negative, and I hate that as it maybe gives the impression that as I am well established older operator that I dont want to upset the apple cart by trying out something new!
There is an element of this in my thinking but I really do not think that a national contract with a pub chain is the best use of the talant and the limited resources us operators on the NV forum have!
Far better to keep swapping ideas for unique and profitable items to vend amounst ourselves for our existing sites which must be in the ten thousands when banded together!
I think small is good, also many minds focused on new things (phils skill machines are a good example) make it likely that when something good comes along we can all either take it or leave it.
These pubcos like to dictate everything, even stupid things like there own unique machine colour or design, so it will mean every single operator will have to cow tail to ther every whim or pull out, resulting in a Broken chain!
I agree with you Paul, sorry guys, but im out.

Nigel

[Vendingwarehouse]

I am neither in nor out, but some of the thinking is too much inside the box. Firstly , you don't have to go after the big chains at the outset. Secondly you don't have to go national at the start. There are loads of smaller chains dotted around the country in grocery, retail, hairdressers, that can be approached . Getting on board with a small local chain between a few operators is what I would reccommend. It gives you a smaller group of people in the group to start with , so less of a chance of anyone dropping out. It also gives you a chance to iron out any problems in the first 6 or 12 months before moving on to bigger and better things.
National contracts are a big headache and cost a lot of money, but smaller regional ones can be quite lucrative as well.

[Rossi fan]

Hi Noel,
I agree with your suggestion, as it will test the theory out, but I am still out at the moment.

Thanks,

Paul.

[david@naughtyvend]

Trouble is that very few of you (if any) actually want to work together or as part of a group..., which is why companies owned by people like Abrahams' continue to prosper. Until you truly unite there will be no strength within independent operators.

As to Nationals, well been there done that and could write a book but won't share it on here. :)

[FlintVending]

Had quite an enlightening chat with Simon at tubz vending today!
Being a supplier too Perform marketing he was able to tell me what the Perform deal is with Marstons.
It seem that they have to leave all money generated by machines with the SITE and the OPERATOR share is invoiced after 30 days and typically paid to the operator 30 days later.
So any operator on here who thinks this is a national contract worth chasing may want to get there head tested!

No offence meant to Ade, it was a great thing to do by taking the initative, but I know from experience that big national contracts always have things so heavily waited in there favour as they consider you should be "honoured" you have a contract with such a high profile customer
I think it likely there maybe operators on here whose cashflow would not be able to stand a two month wait!
probably a good thing, as there is no money to be made here for a independant operator, just a load of hassle!
Simon also think the share to site is 30% but not absolutely certain!
Dont see why Simon should make this up and he alos pointed out that perform approached Hurleys as well so if tubz vending didnt supply them, Hurleys would have!
Simon also pointed out that Perform Marketing already had the contract to supply sweets into Marstons and Greene King managed houses via bulk venders long before they approached tubz vending!

Cheers
Nigel

[Rossi fan]

Hi,
I wonder what the % is they are paying each site.
The other thing to consider is that when the contract ends, Perform will have a lot of machines to re site if they lost the contract, so I doubt they will allow that to happen easily. A larger organisation has more financial freedom than an individual operator, or group of individual operators. Thirdly, a company like Marstons will only deal with an established organisation, they will check out its finances and will never give a contract to an outfit that does not have a good balance sheet. A co-op is one thing, but how does a group of self employed vending operators create a vending organisation, with a good financial history, without forming a company.

Thanks,

Paul