Vending 101

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  • 1. Welcome toVending 101Vending the Right Way

2. Page 2Page 2 2WITTERN GROUPToday The Wittern Group manufactures the most complete arrayof full-line vending merchandising equipment in the world. Oursupport staff are customer driven. Our products and facilities aremodern and satisfy a growing global customer base.We provide a full circle of support to assist with your automaticmerchandising 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 3. 3EQUIPMENTFawn Vendors offers a full range of products tomeet all of your vending needs. 4. 4NICHE MARKETIdentify Your Niche MarketTarget places of employment.Place machines in businesses with 40 - 160 plus employees. 5. 5VENDING OPPORTUNITIESOpportunities for New BusinessWhat locations are looking for:Quality Vend Products Fresh Products Healthy Products Variety of ProductsQuality Vend Equipment New, Attractive Equipment Dollar Bill Acceptance Consistent PerformanceQuality Service Machines Kept Filled Clean Vend Area Machine Repaired Promptly 6. 6BASIC COMPONENTSBasic Components of a VendingBusinessMerchandiseWhere to Purchase Your Vending Products Vending Service of America (VSA) Wholesale Clubs (SAMs, B.J.s) Local Vending Merchandise Suppliers Local Delicatessen Local GrocerSelecting & Purchasing Merchandise Name Brand Products Regionally Recognized Products Seasonal & Special Event Products Customer Knows BestLocationExceptional Target Accounts Manufacturing Fabrication Shops Nursing HomesEquipmentThe Right Equipment for the LocationAlways make sure that your equipment coincides with thenumber of employees or traffic for the location. Alwayskeep equipment clean and in good working order. 7. 7HOT LOCATIONSHOT Location Hit ListAutomotiveDealershipsTire StoresCar Care CentersRecreationalHealth ClubsSkating ComplexPersonal CareChain Hair Cutting SalonsBeauty ParlorLaundromatsHospitalityHotelsMotelsEvents Centers 8. 8BUSINESS POSITIONPosition Your Business for Maximum$alesCustomerCustomer 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 dont supply it, the locationwill find a vendor that will.Breakfast Breaks Lunch Pastries Juice Coffee Salted Snack Items Chocolate Cold Drinks Cold Food Fruits Soups 9. Page 2Page 2 9MERCHANDISE COSTS &MARGINSVending 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 payoutWholesale costof the productVend $alePrice 10. 10MERCHANDISE COSTS & MARGINSThese charts break down each vend product categoryand describes the industry suggested vend/cost prices and marginsProduct Unit Cost Vend Price Gross ProfitGPMSalted Items .16-.28 .45-.50 .22-.3444%-64%Frito Regular .16Diamond Blue .28Choc. Items .30-.32 .60 .28-.30 47%-50%Reeses PBC .30Mounds .31Snickers .325Cookie Items .16-.26 .45-.50 .24-.39 48%-64%Frito Regular .16Diamond Blue .28Meat Items .26 .50-.60 .21-.35 48%-55%Frito Regular .26Product Unit Cost Vend Price Gross Profit GPMPastry Items .29-.40 .60-.75 .31-.46 47%-61%Reeses PB .29Hostess Cakes .37O.S. Muffins .40Canned Bev. .26-.41 .55-.75 .29-.49 53%-65%12 oz. Coke .1612 oz. Pepsi .28Bottled Bev. .50-.60 .90-1.00 .40-.50 33%-50%20 oz. Pepsi .5216.8 oz Evian .6016 oz. Snapple .50 11. 11GROSS PROFIT & EXPENSESGross Profit from Sale Calculation(vend price - cost of product)Gross profit contributes toward expensesFixed CostRentInsuranceVehicleVariable CostEquipmentInterestFuelNet ProfitSalaryRe-Investment 12. 12QUALIFYING LOCATONS FORFULL-LINE VENDINGTwo Calculating FactorsWhat is the revenue potential? Number of employees Product offering Average per cap salesWhat is the cost of business? Vending equipment Wholesale vending products Vehicle (transportation) 13. 13ESTIMATING LOCATIONREVENUESAMPLE CASH FLOW CHARTAverage Spent Per Working GroupKeep these factors in mind when estimatingthe revenue of an employee site.Blue Collar Gray Collar White CollarFactorsTotal # of Employees ____________Male _________ Plant Employees ________Female _______ Office Employees _______Peak Employment Periods (#emp.)__________Low Employment Periods (#emps.)__________Shifts: 1 2 3Employee Site Evaluation