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08.5.2015

Top 10 Beverage Deal Mistakes & Misunderstandings

By Tim Richardson

If you have thought any of the following thoughts, you would be wrong. We’d be happy to explain why.

1.  “My GPO contracts arlready provide the lowest beverage prices and best rebates possible.”

2.  “We do sole-source agreements all the time. We can surely negotiate and manage a good beverage deal on our own.”

3.  “We have more pressing priorities right now. My team needs to be focused on bigger savings opportunities.”

4.  “My cafeteria contractor knows more about the beverage business than we do. I trust them to get me the best prices and advise me on going exclusive or not.”

5.  “If I do an exclusive beverage deal, my staff and patients will be upset because I will be taking away consumer choice.”

6.  “This is a [fill in the blank with Coke or Pepsi] area of the country. We can’t seriously consider an exclusive agreement with their competitor. My staff would revolt and retail sales would plummet.”

7.  “We want to discourage consumption of full sugar soft drinks, so it doesn’t make sense for us to partner with Coke or Pepsi.”

8.  “I pulled some volume & spend reports and we just don’t spend that much on beverages, so there’s no way that a beverage deal could generate millions in savings for us.”

9.  “If we do go exclusive with Coke or Pepsi, we will lose bargaining power and the winner will take our business for granted.”

10.  “If we do a beverage deal, there’s no need to let Coke or Pepsi take over the beverage vending machines directly.”

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08.5.2015

Top 10 Beverage Deal Mistakes & Misunderstandings

By Tim Richardson

If you have thought any of the following thoughts, you would be wrong. We’d be happy to explain why.

1.  “My GPO contracts arlready provide the lowest beverage prices and best rebates possible.”

2.  “We do sole-source agreements all the time. We can surely negotiate and manage a good beverage deal on our own.”

3.  “We have more pressing priorities right now. My team needs to be focused on bigger savings opportunities.”

4.  “My cafeteria contractor knows more about the beverage business than we do. I trust them to get me the best prices and advise me on going exclusive or not.”

5.  “If I do an exclusive beverage deal, my staff and patients will be upset because I will be taking away consumer choice.”

6.  “This is a [fill in the blank with Coke or Pepsi] area of the country. We can’t seriously consider an exclusive agreement with their competitor. My staff would revolt and retail sales would plummet.”

7.  “We want to discourage consumption of full sugar soft drinks, so it doesn’t make sense for us to partner with Coke or Pepsi.”

8.  “I pulled some volume & spend reports and we just don’t spend that much on beverages, so there’s no way that a beverage deal could generate millions in savings for us.”

9.  “If we do go exclusive with Coke or Pepsi, we will lose bargaining power and the winner will take our business for granted.”

10.  “If we do a beverage deal, there’s no need to let Coke or Pepsi take over the beverage vending machines directly.”

Subscribe to Enliven

Join over 10k other industry experts who receive Enliven's advice direct to their inboxes.

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We Don't Want Your Money

We want to dramatically increase how much money you make - or save - with respect to beverages. And then we want to take a small percentage of that new money that we earned for you. That’s our pay-for-performance model. It ensures that our incentives are aligned. It's why our clients think of us as a true strategic business partner and not just a vendor.

Let's Start a Conversation

We Don't Want Your Money

We want to dramatically increase how much money you make - or save - with respect to beverages. And then we want to take a small percentage of that new money that we earned for you. That’s our pay-for-performance model. It ensures that our incentives are aligned. It's why our clients think of us as a true strategic business partner and not just a vendor.

Let's Start a Conversation