Thursday, May 13, 2010

E-THOUGHT FOR THURSDAY MAY 13, 2010


Happy Thursday people!!
Are Manufacturers "discounting" them selves out of sales? It makes me wonder because they seem to have A LOT of different options out there for this company or that, and they are all different. Meanwhile unless your are this company or that your pricing is so expensive that it is barely feasible for you to make your margins.
It just seems that unless you are a multi-million dollar vending company everything is working against you and it shouldn't be that way. Every company and every person that is out there now is imperative to the health and welfare of our industry and the Manufacturers should look at it that way.
If there are only 2 Vending companies in the world how many outlet options does that leave the Manufacturers to sell their wares? And who is gonna decide the pricing? The Manufacturers? NO, the companies that have the end user accounts of course. Where as if there are 50,000 vending companies there is a much greater chance of reaching different demographics of people and thus selling much more product and making much more money. So instead of offering this guy or that guy a "back door" deal because they are huge, why not just offer everybody the SAME deal and attach a quantity to it?
If you buy 300 cases you receive this much money? Oh Mfg's will tell you that this is how it works anyway but it is a little more complicated than that. It's just ridiculous all of the variables that they use to "calculate" their deals. I just don't understand(well actually i can) how and why they have gotten to this point. I think the only ones that would have an objection to a "restructuring" of deals thru Mfg's would be the large vending companies that benefit so greatly from the way it is now. Now i don't want some of you to take this the wrong way as i do believe that the reason some companies are so large is because they have worked very hard and diligently to grow their business and take care of their customers, Bravo to them. The issue is now those companies have such high operating overhead that they depend on these "discounts" to make enough money to survive. So even though they are getting the product at a much lower price they can't afford to sell it for less than the operator who is paying an arm and a leg for it.
I just think that we really need to take a hard look at our industry and try to figure out not only this issue but others that we can change to keep our industry alive and well! It could only benefit us all, ya know? Again this is only my opinion and thoughts, I don't intentionally mean to hurt anybodies feelings only to make us all think past the ends of our noses.

Regards
Curt Wokal

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