An Insider's perspective on Vending Management

-Kevin Wall, National Vending

Vending Management is becoming the prevalent method that multi location companies use to procure vending.  What began with Target, Montgomery Ward and Beverly Nursing Homes is now common in all industries throughout North America.

Why did this happen?  Don't take this personally but large companies do not have the time or resources to work with from five to five hundred different vending machine operators to provide vending for their locations. Vending is typically a necessary but non core part of a business, along the lines of waste removal or floor mats.  Parent companies now subcontract the task of finding a local vending company to Vending Management Companies.

This actually works in favor of you the vending machine operator.  By cultivating a relationship with only 3-5 management companies you can have access to hundreds of clients.  Some of these clients will have locations in your area that need vending.

Vending Management Benefits

Access – Many good locations are controlled by management companies.  Your relationship with them will get you access to locations that you could never get on your own.

Unpaid Sales Force – Vending management companies are always looking for good vending operators.  If you decide to take management business that is offered to you, and you do a good job, you will undoubtedly be contacted the next time there is business in your area.  Almost 100% of vending machine operators that we have done business with have asked us to call them the next time we need someone in their market.

Make your business look larger – Management companies make you look larger.  They offer professional marketing materials, meeting facilities and websites to represent their business and by extension yours.

Protection – When clients use management companies they defer decisions regarding selection of vending operators to them.  This means that if there is a new local manager or if the local manager has been offered something, or if the manager's brother in law gets into the vending business you will not lose the stop.  Typically you will only lose business if you don't service the account or you don't pay the Facility Rent that you agreed to.  This should be no different than your other accounts.

Layer of separation – Management companies are engaged to give clients a layer of separation from vending operators.  Corporate downsizing means that they simply do not have the resources to deal with low priority items.  The management company is a middle manager that will give you the chance to speak directly someone who can help you with any vending issues at a facility.

Layer of reinsurance – Management companies carry insurance that acts as another layer of insurance between you and the client.  This is highly valued by corporate America and is something you cannot offer on your own.

Some things to think about. 

Do I have locations that are part of a multi location company?  Have they asked me if I can service all of their locations?  If they have this is a sign that they are considering consolidating their vending program.  If they decided to consolidate are you confident that you would keep the vending?

If you currently do business with a vending management company we would like to answer any questions or concerns that you have.  If there is a common theme, we will address it in a future article.

We want to help.  If you have a client that is considering going to vending management let us know and we will give you some tips of how to proceed. Vending.com @ 1-888-836-3464.