Pitching a product to a Hotel Group

Scarface123

I have a business idea, with the objective being that the hotel purchases my product ( a particular type of vending machine ) and puts it on the premises for the customers use. My question is, Who should I approach about getting a chance to do my sales pitch? If the hotel is part of a chain, would I be contacting the manager of each individual hotel in the group or would I be better of to get in contact with One individual who may have purchasing power for all of the hotels? As in would it be a case of a chain or group purcahsing a machine for either all of its hotels or none at all? Im just not sure how it works! So any information or experiences would be greatly appreciated. Thanks in advance.

ptyloch

If it's a chain you're approaching contact the head office directly. Ring them up and ask for the name of the relevant manager ( group F&B manager, group purchasing manager, etc) and try contacting them. Talking to properties will only result in them sending you away to contact the head office.
Where I work we have a list of approved suppliers and any purchases from outside the list have to be approved.
All the vending machines we have though remain the property of the supplier and the business just gets a cut every month or two.

Hope this helps, good luck!

minidazzler

Vending machines for smokes, condoms etc are put in by suppliers who pay to have them there. The hotel won't be purchasing them.

Scarface123

Thanks for the info guys. And just for the record I used the term vending machine very loosely, it has absolutely nothing to do with cigarettes, condoms, snacks etc. but I dont want to be giving away my idea, and for practical and logistical reasons it would suit me a lot better if the hotel purchased the machine outright and kept 100% of the revenue generated, while I would still offer a maintenance/backup service if ever needed.

It depends on the type of hotel group. Most of the big ones all the purchasing is done centrally, and the local manager won't have the authority to do it. Start off with boutique hotels would be your best bet.

Bandara

Scarface123 wrote: »

Thanks for the info guys. And just for the record I used the term vending machine very loosely, it has absolutely nothing to do with cigarettes, condoms, snacks etc. but I dont want to be giving away my idea, and for practical and logistical reasons it would suit me a lot better if the hotel purchased the machine outright and kept 100% of the revenue generated, while I would still offer a maintenance/backup service if ever needed.

I'd imagine the idea of buying the machine won't be a runner at all

You supplying and maintaining everything and profit sharing with the hotel is far more palatable for then.

You have no serious track record or big company behind you to justify them purchasing equipment when you could be gone in a few months

Scarface123

Quite the contrary my friend, I would have a very large company behind me with a proven track record in this very specialised market, for which I would become one of their distributors in a certain territory, so I wouldn't worry about that side of things at all.

Bandara

Scarface123 wrote: »

Quite the contrary my friend, I would have a very large company behind me with a proven track record in this very specialised market, for which I would become one of their distributors in a certain territory, so I wouldn't worry about that side of things at all.

You should have outlined that in your original post tbh.

Having a reputable companies backup will make it far easier to get facetime, not to mention the access to marketing, brochures etc will help also.

I still think that them buying the machine makes no sense whatsoever for the Hotel. Why should they spend x amount on something that might not work or may become obsolete in 2 or 3 years? I have a good few machines of various types in my sites and they are all on profit share with the suppliers - which works very well for both of us. They supply and maintain everything and we split the profits at an agreed rate, some are 60/40 in their favour, some 80/20 in mine - depending on the item involved and its cost etc. My question is always if the supplier genuinely believes the product is a money maker then why would they not profit share? From my point of view it also reduces the need for maintance contracts and if the machine isn't earning enough to justify itself I can terminate the agreement once the year is up.

I personally think your aim to sell the machines is the wrong approach. Unless its a little €250 shoeshine machine thats really just a star rating gimmick I would not see a case for the hotel to buy.

Scarface123

Bandara wrote: »

You should have outlined that in your original post tbh.

Having a reputable companies backup will make it far easier to get facetime, not to mention the access to marketing, brochures etc will help also.

I still think that them buying the machine makes no sense whatsoever for the Hotel. Why should they spend x amount on something that might not work or may become obsolete in 2 or 3 years? I have a good few machines of various types in my sites and they are all on profit share with the suppliers - which works very well for both of us. They supply and maintain everything and we split the profits at an agreed rate, some are 60/40 in their favour, some 80/20 in mine - depending on the item involved and its cost etc. My question is always if the supplier genuinely believes the product is a money maker then why would they not profit share? From my point of view it also reduces the need for maintance contracts and if the machine isn't earning enough to justify itself I can terminate the agreement once the year is up.

I personally think your aim to sell the machines is the wrong approach. Unless its a little €250 shoeshine machine thats really just a star rating gimmick I would not see a case for the hotel to buy.

I do see your point and thanks for that, and I do take it on board and will obviously look at a profit share basis, it's just that it would have suited me better not to have to go down that route. As for the machines, I am 100% confident in their success, for years to come, and if I was at liberty to say exactly what they are then you would see why. I guess we'r after straying a little off my original question, which was whether to approach hotels as a group or on an individual basis.

pedroeibar1

Scarface123 wrote: »

..... As for the machines, I am 100% confident in their success, for years to come, .............my original question, which was whether to approach hotels as a group or on an individual basis.

Approaching the correct person is important, but are you asking the correct question?

It does not matter who or what you ask, because if the underlying product/business idea is not coherent you will not succeed. Asking a hotel to buy your distribution machine is capital expenditure for which 90% of hotels currently have absolutely zero budget. Apart from big cities such as Dublin too many hotels are being run by receivers, so for them a capex budget is out of the question.
Four words on your post – wrong question, wrong model.

Scarface123

I should clarify that I'm not talking about Ireland, but Spain rather. And Yes I'm obviously aware of Spains economic crisis these days, but the irony is that that is all the more reason why they rely more heavily now on the tourism industry, and it is the one sector there that is actually growing in recent years, and I would see my product as being very attractive and benificial to any Spanish hotel, apartment complex, waterpark, golf course etc., thus I would put it to any purchaser that it would very much work in their favour to have such a service available on their premises.

pedronomix

If, as you say, the company providing you with the product is a large and well organised operation, the norm would be that they have all the issues raised here, including basic sales methods, well sorted or worked out. Is it a franchise or just some company who makes the machines? I just don't get what the business model is here.
You do seem somewhat misguided about who is important here. What suits you is totally irrelevant, the potential end user somewhat less so, but not much! What is in it for the site owner for no input other that providing the machine site and some modest power usage is the key factor.
If it is say a suncream vending/dispensing system, they will never get involved in, holding/securing/controlling stock, refilling/cleaning the machines and will run a mile if there is any potential for a slippy mess from wrong use by punters.

elastico

Scarface123 wrote: »

Quite the contrary my friend, I would have a very large company behind me with a proven track record in this very specialised market, for which I would become one of their distributors in a certain territory, so I wouldn't worry about that side of things at all.

I am a bit confused here, sometimes this is your idea, your product, now you seem to be just looking for distributer rights for somebody elses product.

If this very large company already have a proven track record they would surely be dealing with an international hotel franchise who have hotels in Spain and can make an introduction for you into their hotels in Spain.

It sounds like you saw something somewhere that you think seems to work, notice its not in Spain yet, have no money to support your venture and hope to make a few quick quid getting these into some hotels in Spain before somebody else gets there anyway.

pedroeibar1

Scarface123 wrote: »

Quite the contrary my friend, I would have a very large company behind me with a proven track record in this very specialised market, for which I would become one of their distributors in a certain territory, so I wouldn't worry about that side of things at all.

Scarface123 wrote: »

I should clarify that I'm not talking about Ireland, but Spain rather.

“What we’ve got here is a failure to communicate.” (Cool Hand Luke)

Drip-feeding info like that is wasting of everyone’s time. You have given no coherent information, not even the price of the machine or even the basics of a business model (including the shelf-life of the items within).

If you are as experienced as you state you are why are you not testing this in Ireland? Marketing 101 is never launch a new offer in a new market – you have no benchmarks so no means of measuring where the offer is succeeding or failing and therefore no knowledge on how to adjust the market approach.
Do you even speak business Spanish?

Scarface123

elastico wrote: »

I am a bit confused here, sometimes this is your idea, your product, now you seem to be just looking for distributer rights for somebody elses product.

If this very large company already have a proven track record they would surely be dealing with an international hotel franchise who have hotels in Spain and can make an introduction for you into their hotels in Spain.

It sounds like you saw something somewhere that you think seems to work, notice its not in Spain yet, have no money to support your venture and hope to make a few quick quid getting these into some hotels in Spain before somebody else gets there anyway.

I'm sorry if you can't understand a simple statement, even tho you quoted it yourself above. And I'd love to know where once in my posts did I give the indication that I have no money? Money is not an issue at all. If you like I can lend you some so that you can pay for a few spelling lessons.

Scarface123

pedroeibar1 wrote: »

“What we’ve got here is a failure to communicate.” (Cool Hand Luke)

Drip-feeding info like that is wasting of everyone’s time. You have given no coherent information, not even the price of the machine or even the basics of a business model (including the shelf-life of the items within).

If you are as experienced as you state you are why are you not testing this in Ireland? Marketing 101 is never launch a new offer in a new market – you have no benchmarks so no means of measuring where the offer is succeeding or failing and therefore no knowledge on how to adjust the market approach.
Do you even speak business Spanish?

Because that info is on a need to know basis. The product would not work in Ireland, there would be no market here for it. And please show me where I stated that I am experienced? Why do people not read posts properly before they type.

pedronomix

What is the rationale in coming on here looking for information on how to sell some vending machines in Spain. Did you expect to find some guru on the topic of Spanish hotel procurement lurking amongst the posters here? You have given insufficient information for even the most helpful posters to give you any useful ideas/information.
Have you actually done even the most basic market research in your target market, like asking some folks in that business in Spain? It is selling for dummies to learn about the products being sold, the needs of the potential customer and the availability of any market opportunity. I would never have wrongly accused you of being experienced!

Scarface123

pedronomix wrote: »

What is the rationale in coming on here looking for information on how to sell some vending machines in Spain. Did you expect to find some guru on the topic of Spanish hotel procurement lurking amongst the posters here? You have given insufficient information for even the most helpful posters to give you any useful ideas/information.
Have you actually done even the most basic market research in your target market, like asking some folks in that business in Spain? It is selling for dummies to learn about the products being sold, the needs of the potential customer and the availability of any market opportunity. I would never have wrongly accused you of being experienced!

And I would never have accused you of being a helpful poster. You have done nothing but focus on the negatives and gotten Way ahead of yourself, all that talk about suncream vending machines was totally irrelevant. If this thread upsets you so much how about you just leave it off and don't reply, I'm sure you have much better things to be doing with your time.

Bandara

I personally would think of you have this machine in place in a decent hotel group you could then build your client list on the back of that

(I'm using Ireland as an example for simplicity)

You could approach someone like the Jury's group and offer to place the machine FOC into their hotels. You bear all costs and installation fees and offer them a % of the profits. Do this on a strictly documented 3 month basis and try to insert an agreement that if the units hit certain revenue levels you then enter into a more permanent agreement. Maybe (just taking a punt here) one where the hotels buy them over a period of one year by surrendering their profits until the items are paid for (your obviously retaining ownership until fully paid).

Your getting over the initial capex issues that hotels will have, yet they get the fully working service added to their hotels and as a side benefit you also get top dollar for the units as haggling over the price won't be possible due to the deal being over an extended period. If you incorporate any financing fees that it costs your to fund the items over a year to them you can eliminate all ancillary costs to yourself.

The main point I'm getting at (in a convoluted way) is you then have a reputable hotel group using your product. You base your brochure with photos of your units in each location etc etc

Gives you a far stronger hand when our asked the inevitable sales question "where can I see your machines in operation".

As a side bar, once you have agreement for a hotel group you then approach the big company that makes the units and request they should supply you with some units on a demonstration basis, on the back our your confirmed prospect. Again reduces any possible outlay by you.

I'd pick a respected hotel group, offer them a unit for their best 3 or 4 locations and build from there

Good luck either way

Scarface123

Bandara wrote: »

I personally would think of you have this machine in place in a decent hotel group you could then build your client list on the back of that

(I'm using Ireland as an example for simplicity)

You could approach someone like the Jury's group and offer to place the machine FOC into their hotels. You bear all costs and installation fees and offer them a % of the profits. Do this on a strictly documented 3 month basis and try to insert an agreement that if the units hit certain revenue levels you then enter into a more permanent agreement. Maybe (just taking a punt here) one where the hotels buy them over a period of one year by surrendering their profits until the items are paid for (your obviously retaining ownership until fully paid).

Your getting over the initial capex issues that hotels will have, yet they get the fully working service added to their hotels and as a side benefit you also get top dollar for the units as haggling over the price won't be possible due to the deal being over an extended period. If you incorporate any financing fees that it costs your to fund the items over a year to them you can eliminate all ancillary costs to yourself.

The main point I'm getting at (in a convoluted way) is you then have a reputable hotel group using your product. You base your brochure with photos of your units in each location etc etc

Gives you a far stronger hand when our asked the inevitable sales question "where can I see your machines in operation".

As a side bar, once you have agreement for a hotel group you then approach the big company that makes the units and request they should supply you with some units on a demonstration basis, on the back our your confirmed prospect. Again reduces any possible outlay by you.

I'd pick a respected hotel group, offer them a unit for their best 3 or 4 locations and build from there

Good luck either way

Thanks for your helpful and insightful reply, you make some good points. It's nice to see some positivity for a change!

pedroeibar1

Scarface123 wrote: »

And I would never have accused you of being a helpful poster. You have done nothing but focus on the negatives and gotten Way ahead of yourself, all that talk about suncream vending machines was totally irrelevant. If this thread upsets you so much how about you just leave it off and don't reply, I'm sure you have much better things to be doing with your time.

I guess that the other Pedro has turned off by now, but if you read back over what you have posted (more correctly the lack of information and drip-feed of info) and compare it with the advice you have been given you might learn something. Just because some of the suggestions offered do not suit you is not an invitation to make smart assed replies on advice received or spelling. Goodbye.

pedronomix

I had not bothered responding as the project is void of basic research, ill-conceived and naive and the OP is unable/unwilling to answer even the most basic valid direct and relevant questions posed, Do you speak Business Spanish? No Answer! Have you done local market research? No Answer! etc etc.