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Cheapest Isn’t Always Best… or Forever

February 28th, 2013 by Peter

 

Over the last couple of weeks we’ve been inundated with calls from customers of one of the big (multi)national vending providers, who of course we’re far too professional to name!  It transpires that they (the provider) have just sent out letters to at least 700 of their customers telling them they are losing money on their account, and as a result are either going to have to impose a £30-£50 per week increase on their overall management charges, or remove the equipment and completely stop their operating service, irrespective of any finance or contractual arrangements, within 28 days.

 

Needless to say this is causing a lot of companies a lot of problems, and of course we’re more than happy to help pick up the pieces for those customers affected.

 

What it does also prove is that anyone can gain new business by quoting ridiculous prices, but ultimately can you maintain it?  At Select Drinks we’re not embarrassed to say that we need to make an operating profit – every business does – and therefore our pricing will reflect that, but we also recognise that any potential customer wants a good deal for their business.

 

Simply put, it has to be a “win win” relationship – a high level of service and very low level of involvement for the customer, in return for a realistic level of renumeration for those services to the supplier.

 

Our model is simple and exactly that – we will quote a price that we know we can maintain, and stick to it as long as possible, preferably for the length of your agreement with us.  If a commodity price goes through the roof, we’ll tell you what’s happening and why, and give you a decent period of notice and a full explanation as to why the price is having to go up.  If we need to vary the costs of our services, again we’ll give you the reasons why and wherever possible, a suggestion to negate or lessen the effects of the increase.

 

We don’t operate a “standard” annual increase policy – any increase or charge we have implemented has been for an underlying, proven reason.  Over the last 5 years we have increased our management charges once (by 95 pence), our hot drinks prices once (by 1.5 pence), and our snack and can prices twice (in 2009 and 2012) – but only because of the exorbitant cost of fuel in the case of management charges, commodity prices such as plastics, milk and chocolate in the case of hot drinks prices, or annual cost increases that we have to bundle up over 2-3 years into 10p increments in the case of snack and can prices.

 

This honest approach to business, delivered by a small, dedicated personal team of real-life people, is why I believe we are one of the fastest growing vending companies in the South East and have maintained double-digit growth for the last 8 years, all despite a challenging economic climate.

 

Some might think that this sounds like an unashamed advert and they would be 100% right. We are all in business to win customers, succeed, and return a profit.  Why do we have to be shy about that?

 

So if you’re one of the unlucky recipients of a letter from the company that sounds a bit like us but definitely isn’t (and by the way we had the name first!) or for that matter any other company that’s over-promised and under-delivered – why not contact me, Ryan, Steve or any else at Select Drinks on 0800 652 3842, or email to info@selectdrinks.co.uk, for independent, honest advice on how best to move your vending service to a new (and very different) type of vending provider?

 

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  • Select Drinks Limited
  • Units 11-14 Angora Business Park
  • Peartree Road
  • Stanway
  • Colchester
  • Essex
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