Welcome to
Vending 101“Vending the Right Way”
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WITTERN GROUP
Today The Wittern Group manufactures the most complete array of full-line vending merchandising equipment in the world. Our support staff are customer driven. Our products and facilities are modern and satisfy a growing global customer base.
We provide a full circle of support to assist with your automatic merchandising needs:
- Design service programs - State-of-the-art manufacturing facility - Re-manufacturing facility - Financing and leasing programs - International sales and marketing - National account management - Facilities planning services
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EQUIPMENT
Fawn Vendors offers a full range of products to meet all of your vending needs.
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NICHE MARKET
Identify Your Niche Market
Target places of employment.
Place machines in businesses with 40 - 160 plus employees.
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VENDING OPPORTUNITIES
Opportunities for New Business
What locations are looking for:
Quality Vend Products• Fresh Products• Healthy Products• Variety of Products
Quality Vend Equipment• New, Attractive Equipment• Dollar Bill Acceptance• Consistent Performance
Quality Service• Machines Kept Filled• Clean Vend Area• Machine Repaired Promptly
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BASIC COMPONENTS
Basic Components of a Vending Business
Merchandise Where to Purchase Your Vending Products
– Vending Service of America (VSA)– Wholesale Clubs (SAMs, B.J.s)– Local Vending Merchandise Suppliers– Local Delicatessen– Local Grocer
Selecting & Purchasing Merchandise– Name Brand Products– Regionally Recognized Products– Seasonal & Special Event Products– Customer Knows Best
LocationExceptional Target Accounts
– Manufacturing– Fabrication Shops– Nursing Homes
EquipmentThe Right Equipment for the Location Always make sure that your equipment coincides with the number of employees or traffic for the location. Always
keep equipment clean and in good working order.
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HOT LOCATIONS
HOT Location Hit List
AutomotiveDealerships
Tire Stores
Car Care Centers
RecreationalHealth Clubs
Skating Complex
Personal CareChain Hair Cutting Salons
Beauty Parlor
Laundromats
HospitalityHotels
Motels
Events Centers
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BUSINESS POSITION
Position Your Business for Maximum $ales
CustomerCustomer spends $5.00 per day on convenience food.
DemandFill the demand: Vending is a convenience food business.
ProductsPosition product choices for all times of the day.
“If you don’t supply it, the location
will find a vendor that will.”
Breakfast Breaks Lunch
• Pastries• Juice • Coffee
• Salted Snack Items• Chocolate• Cold Drinks
• Cold Food• Fruits• Soups
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MERCHANDISE COSTS & MARGINS
Vending Merchandise Costs & Margins
• Industry Standard Pricing• Gross Profit Margin Goals (45% - 55%)• Calculating GPM = Vend price - Cost of product sale price
• Adjusting price according to commission payout
Wholesale cost of the product
Vend $alePrice
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MERCHANDISE COSTS & MARGINS
These charts break down each vend product categoryand describes the industry suggested vend/cost prices and margins
Product Unit Cost Vend Price Gross Profit GPM
Salted Items .16-.28 .45-.50 .22-.34 44%-64%Frito Regular .16Diamond Blue .28
Choc. Items .30-.32 .60 .28-.30 47%-50%Reese’s PBC .30Mounds .31Snickers .325
Cookie Items .16-.26 .45-.50 .24-.39 48%-64%Frito Regular .16Diamond Blue .28
Meat Items .26 .50-.60 .21-.35 48%-55%Frito Regular .26
Product Unit Cost Vend Price Gross Profit GPM
Pastry Items .29-.40 .60-.75 .31-.46 47%-61%Reese’s PB .29Hostess Cakes .37O.S. Muffins .40
Canned Bev. .26-.41 .55-.75 .29-.49 53%-65%12 oz. Coke .1612 oz. Pepsi .28
Bottled Bev. .50-.60 .90-1.00 .40-.50 33%-50%20 oz. Pepsi .5216.8 oz Evian .6016 oz. Snapple .50
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GROSS PROFIT & EXPENSES
Gross Profit from Sale Calculation(vend price - cost of product)
Gross profit contributes toward expenses
Fixed CostRent
InsuranceVehicle
Variable CostEquipment
InterestFuel
Net ProfitSalary
Re-Investment
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QUALIFYING LOCATONS FOR FULL-LINE VENDING
Two Calculating Factors
What is the revenue potential?• Number of employees• Product offering• Average per cap sales
What is the cost of business?• Vending equipment • Wholesale vending products• Vehicle (transportation)
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ESTIMATING LOCATION REVENUESAMPLE CASH FLOW CHART
Average Spent Per Working GroupKeep these factors in mind when estimating the revenue of an employee site.
Blue Collar Gray Collar White Collar
Factors
Total # of Employees ____________
Male _________ Plant Employees ________
Female _______ Office Employees _______
Peak Employment Periods (#emp.)__________
Low Employment Periods (#emps.)__________
Shifts: 1 2 3
Employee Site Evaluation
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