Good day fellow vending enthusiast, I am constantly amazed by all of the "added expenses" there are involved with any type of consumer or end user product or service these days. One good example would be the added cost of having a "broker" that represents a manufacturers line of goods.
When the Manufacturer uses a brokerage house rather than a direct sales person their is a percentage of the cost of those goods that goes to that particular broker. This percentage is worked into the cost that we as a wholesaler pay for the goods. I would think that this is less expensive for the manufacturer as they in turn don't have to pay for a sales persons salary,health benefits, commissions etc.
I don't mean to pick on brokers as a lot of times they are easier to deal with than the manufacturer. But a lot of times they are not and when they don't do their job it is very difficult to get the answers you need quickly or any answer at all for that matter. I am not going to point any fingers but some brokers are better than others.
You would think that since they get a percentage of the product they sell, they would work very diligently to sell all they could(not so).
It would seem however that lately more and more manufacturers are going with their own inside sales force which also tends to be difficult as these sales people usually have huge territories to cover and are only representing your area for a certain amount of time per month.
Now I'm not telling you this to harp negatively on brokers or manufacturing reps, I know a lot of my friends are going to give me grief about writing on this subject and actually I hope they do. I would just ask that they do it by replying with comments in this format so that you can read their response as well.
I just think that with the less than desirable state of the economy that we (including me) are in, that everyone would be doing everything in their power to justify to each other why we need each other and what we can be doing for all of us to thrive and make it through this.
Vending has been around for a very long time and I am sure it will continue, whether you and I will be around depends on if we are able to be innovative, communicative, and resourceful.
Never forget that these "reps" work and are here because you are! Make them do their jobs and provide you with the tools to be successful. It is included in the cost that you are paying for your product! I would be happy to provide anyone who wants with the names and phone numbers fore all of these people. I am also always willing to do whatever I need to do to make our customers playing field as level as possible so that they can enjoy the same benefits that the "conglamo's" receive. Just ask.
Regards
Curt Wokal
I've been where you are for about 8 years of my career and am sure I was critical of brokers and mfrs reps at one time or another. I am now on the other side as a manufacturer direct sales rep. The missions of manufacturers and distributors compliment each other. The simplest model is that the manufacturer creates demand and the distributor satisfies demand. Of course, it isn't quite that black and white but that is the basic plan.
ReplyDeleteManufacturers use many marketing tools to promote products. In vending, anything that works for retail, probably works for vending. Manufacturers spend millions of dollars to reach the consumer so when they see the product, whether in a store or your vending machine, they hav the desire to buy it. If you want to see what people are buying, check out the grocery stores, C-stores and discount chains. Look at the end caps, notice signage, note what is new, what is being promoted. Vending machines are no different than a micro version of Wal-Mart. If retail is pushing it, you probaby should be too. I'd love to get a call from an operator asking me about the marketing behind a product line. When operators have questions or want something, please, just ask.
Finally, I'm going to make another pitch for operators to get involved with NAVA/NAMA. Trade organizations exist for the common good of the industry. Government regulation is not going away. Taxes on snack foods and soda are increasing. Washington and Oregon have huge deficits and our products are seen, in my opinion, in the same genre as tobacco and liquor-taxable! There are laws being proposed as I write that will cost you considerable captial to comply. For some, it could put you out of business. Please folks, check out www.vending.org for tools to inform you and improve your business. Then, join.