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Merging Bulk, Vending, & Games
Operations
Most operators of vending machines,
bulk vending or games consider themselves to
be highly specialized vendors in their respective fields. For
many years, this has been traditionally accepted with few
exceptions. However, as the bulk, vending and games
business climate become more competitive, we all need a
competitive edge. Mergers and acquisitions are becoming more
popular and vendors are trying to learn new ways to please their
existing customers while steadily adding new and improved
equipment and services.
Vending machine operators will
sometimes find it profitable to take over the bulk or
game vending operations at locations where the services of the
other vending operator may
have deteriorated and the location management may be
entertaining new bids from outside vendors to take over the
account. Vendors who specialize in a specific field of coin
operated equipment do not ordinarily go out of their way to take
over new business that is outside of
their specialty.
They may sometimes feel pressured into
taking such action because the location management
will approach the vendor who is offering the best service to
take over the
rest of the coin operated business at the location. If a game
and bulk vending operator notices that the full service beverage
and snack vendor has neglected the vending machines, everyone
becomes concerned. Many a good vendor has lost accounts because
another specialized vendor within the same accounts neglected to
give good service. Management
at the location may sometimes make the decision to turn over the
account to a new outside vendor who claims to offer better and
complete services for all three categories of the coin operated
business. By then, it may be too late to reason with the
location or try to salvage the account. |
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Some vendors have strong, life long and
friendly relationships with their fellow vending
operators. They may even offer business leads to each other in
their respective categories of vending or games. There are
gentlemen�s agreements, formal or informal understandings or in
many cases, companies have different divisions serving the same
locations. Regardless of the relationships, business trends are
changing and the older generations are being gradually replaced
with the younger and more vibrant and aggressive operators.
Diversification can be healthy and in some cases, necessary
for survival. There is no �silver bullet� solution or
recommendation to follow. However, if you are currently running
a route in one specific field, you should be considering all
your options. In certain saturated geographic areas, merging
other services and equipment categories is the only way for some
operators to survive or grow. |
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Location owners are also taking a
closer look at their vending, games and bulk
operations. They usually receive a tidy commission and would
ordinarily not pursue the ownership and operation of the
equipment. However, I have seen more and more location managers
deciding to take over the coin operated business at their
locations and operate it themselves. The principal reason for
taking such action is primarily because the service became
sloppy or the operators refused to offer a fair split. |
Sometimes the operators refuse to
upgrade the equipment, or response to repairs was no
longer acceptable. By the time a location manager calls Hanna
for a consultation, they are already studying the situation
seriously and have zoomed in on the profit center within their
location as a new way to shore up their own bottom line. In some
cases, the vending operator may decide to come back and offer
what the location demanded to begin with. However, all to often,
it is too late. The location management will often make the
difficult
but necessary decision to merge all the coin operated equipment
and services together
and stumble into the venture on their own. |
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Locations demand good service, good
equipment and yes, they all want to make some money
when and where possible. They respect the operators who can
deliver satisfaction and reliability consistently. They are also
considering operators who can deliver consolidated equipment and
services and maximize their commissions. They are looking for
less service hassles and appreciate having one phone call to
resolve all issues with their full service vending, games and
bulk vending. In my opinion, the time has come to take a closer
look at merging services where it makes most sense to do so. |
 For a FREE INFO & PRICES on 100�s varieties of vending machines,
bulk, games, vending machine educational materials and more,
call Hanna Vending: 913 894 4979 or 800-397 8363 or visit us at:
www.hanna-vending.com
or email:
[email protected] |
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Hanna sells vending and
related equipment at factory direct wholesale
prices |
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