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Tips For Getting Started
In Small Locations Vending By Tim Holdsworth For existing operators of for the entrepreneur just starting out, becoming successful in small location vending (SLV) isn't a quick or easy process. Building a successful small location vending program requires commitment, proper planning and a lot of sweat equity. One person who knows this first had is Ed Klein, president of United Vending Group, Minneapolis, Minn., an affiliate company of LOBO VENDING. Klein's company has been supplying snack and soft drink services to accounts with four to 50 employees since 1984, growing from 500 to 24,000 accounts. Along the way, Klein has developed a method and philosophy of doing business which he shares with new small location operators during seminars and training sessions that UVG offers throughout the year. From Klein's experience, the biggest challenge small operators face is sales and marketing. "Most people who contact us need help with sales and marketing. They have had it with locators and the high price they pay to get their vending equipment on location." said Klein. At the most recent of these training sessions, Klein touched on some basics for those starting out in the small location market; finding locations, training sales personnel and customer service. Determining market sizeDownsizing is the principal reason for the increase in the market for small location vending, which Klein defines as 20 to 49 employees. This segment grew from 433,000 locations in 1985 to 600,000 in 1992. To determine the market potential in your area, you will have to do some research. If the potential is good, you'll then want to find out who and where those locations are. Klein said that operators can measure the small location market potential for their area by checking into County Business Patterns for your state. This publication should be available at you local resource library or can be ordered from the Superintendent of Documents in the U.S. Government Printing Office. County Business Patterns will tell you for each state, county b county, how many businesses there are with 20 to 49 employees. The listings are categorized by type, which allows you to exclude certain types of business that you don't want to sell to, such as convenience stores and grocery stores. To Be Continued in the "How To's of Vending" Training and Educational program. This is a reprint of an article that appeared in Automatic Merchandiser Magazine on January 1995 |
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