cadbury proposal

T h e C a d b u r y P r o p o s a l 2 0 1 0

Making more than just centS... for you!Making more than just centS... for you!

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The Cadbur y Proposal 2009

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Making more than just centS... for you!


Dear Prospective Cadbury Vending Operator,PK Vending Distributors and Cadbury thank you for responding to our call for potential vending machine operators. Cadbury have decided to create a presence in the vending industry with their well-known brands. In order to achieve this on a national basis they have decided to partner with would be entrepreneurs like yourself. So you get to partner with an internationally recognized brand.

Briefly put, Cadbury will provide you with exceptional discount of 15 % on all Cadbury product purchased directly from themselves for the next five years, to secure the sale of their products through your vending machine. The machine can either be a combination machine (sells cans and snacks, etc.) or snack machine (sells snacks only). Please note: Other products are also allowed.

The cost of Cadbury machines vary from R55,000.00 to R 59,500.00 depending on the number of machines purchased. The price includes VAT, initial stock, change for the initial filling of your machine as well as a location for the machine.

A conservative projection is attached and an average return on investment is ±40% per annum.

Cadbury will require you to sign an agreement with them and purchase stock directly from them or their nominated agent.

The Cadbury vending program has been extremely successful in New Zealand, the United Kingdom and Australia. There are no hidden costs and this is a Turn-key program. The price of this stock will be Cadbury’s best price less a further 15%.

Do not miss out on the opportunity to get in on the ground floor, as Cadbury’s is limiting the total number of operators and machines for the South African market.

We have attached a proposal for your perusal. To get started, please call us!!

The PK Vending Team Please note: Should you be purchasing a generic machine, PK Vending still provide all the services herein except for filling of stock and a discount from Cadbury


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Table of Contents4 COMPANY BACKGROUND - Vending Commercially4 Your Key to a Successful Business in Vending

4 A Good Investment

4 The objective of this business is...

4 Your Customers...

4 Your Role...

4 Our Role in the Business…

5 Finding your locations

5 Maintaining your sites and satisfying your customers

5 The Profits

5 A Complete Business Plan5 Summary of Business

5 The Equipment Supplier

5 The Equipment

5 Equipment Maintenance

6 Equipment Placement Procedure

6 Illustration (Profit per product)

6 Stock and Merchandise

6 Pricing

6 Locations

6 Future Expansion

6 Questions Investors Frequently Ask6 Why is vending a good investment?

6 What sort of equipment do I need to start off with?

7 Who will do the siting?

7 How many sites will I need?

7 Where will my sites be?

7 Where do I get stock?

7 Will I get training?

7 What vehicle will I need?

7 Does PK Vending Distributors offer any guarantees?

7 Is there an industry watchdog?

7 I’m interested, what do I do now?

8 CADBURY MACHINE FINANCIAL PROJECTIONS


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COMPANY BACKGROUND - Vending CommerciallyPK Vending has been in business for over 14 years and has provided the industry with quality cost-effective machines. The sale of products in these machines range from confectionery and cold drinks to combinations of snack and cans. We supply new and refurbished vending equipment on a trade basis specialising in confectionery vending distributing both imported and locally assembled machines.Purchasing machines from PK Vending Distributors means that you get the opportunity to buy direct at wholesale prices - no middlemen. We don’t restrict your area because it stunts commercial growth. We don’t charge franchise fees because it is in our interests to offer the required assistance to help our customers’ businesses grow and therefore help us sell more machines. We do sell very reliable, secure and versatile vending equipment at the lowest prices. We will show you how to set up and run your own independent vending service to businesses in your own area, advise you how and when to expand, what equipment and product mix you will need for individual sites and how to obtain the highest returns from each site.PK Vending are members of the Vending Association of South Africa (VASA) and adhere strictly to their charter.Cadbury have chosen to partner with PK Vending in the establishment and running of their vending program.

Your Key to a Successful Business in VendingA G o o d I n v e s t m e n tWe will show you how to set up and run your own independent vending services to businesses in your own area, and advise you how and when to expand and what equipment you’ll need for individual sites to obtain the highest returns from these sites. When you consider the Return on investment on other products such as Bank Fixed Deposits (10%) and the Stock Market (± 20%) The Return On Investment of ± 40% per annum can be achieved on cash purchase of a machine is highly favorable. Should finance be required, we can liaise with any finance company of your choice.

T h e o b j e c t i v e o f t h i s b u s i n e s s i s . . .To provide a complete solution to run your own highly profitable business from a small capital outlay, by eliminating unnecessary costs like franchise fees, area licenses, etc. You will be providing a unique vending service to companies, offices and factories in your area by supplying low cost, quality vending machines stocked with brand name snack products such as Nestlé, Coca-Cola, Simba and Cadbury’s. Even once your business is running, we will provide on-going help and advice without imposing restrictions, leaving you free to expand and develop at your own pace.

Yo u r C u s t o m e r s . . .Will be factories, offices, hospitals, schools or any working environment that will benefit from having a snack/can vending machine on their premises. Many businesses value the opportunity to have snack vending machines on their premises as this often reduces the amount of absenteeism whilst employees wander to the snack shop or canteen during working hours. This yields more productivity to the company and is often described as an “invisible” asset. Few businesses of suitable size object to vending machines being sited on their premises.

Yo u r R o l e . . .Is to offer and provide a snack/can vending service on a company’s premises in and around your area (it should be noted that we do not have any restrictions on where you operate the machines, but it does make practical business sense to have machines sited within easy traveling distance). You will be required to stock and cash these machines on a regular basis. All proceeds from the takings of these machines are yours.

THE MORE SITES YOU OPERATE,THE MORE PROFIT YOU WILL MAKE !!

O u r R o l e i n t h e B u s i n e s s …Is solely to supply you with the equipment, at trade prices, and give you all the advice necessary to operate your business successfully. PK Vending only profit from the sale of its machines. It is in our interests to give you all the advice and knowledge to help your business succeed, as your success contributes to our success. We will even find sites for you, so all you have to do is install the machine, keep it stocked and collect the cash. Should a machine not perform adequately within three months of being sited PK will supply a secondary site for you free of charge, you will however have to pay for the movement of the machine which can be carried out by our trained technicians.


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F i n d i n g y o u r l o c a t i o n sFor some people the idea of picking up the phone, arranging appointments with prospective customers and selling the idea may be daunting. As briefly explained in the previous paragraph, we find your locations for you so all you have to do is maintain the sites. It is surprising how quickly your business can grow with this approach. References are available on request.

M a i n t a i n i n g y o u r s i t e s a n d s a t i s f y i n g y o u r c u s t o m e r sOnce your sites are up and running, you will be required to keep them stocked with products on a regular basis. At the same time you will cash the machine (all takings are yours). The machines are designed to be easily accessible, and PK Vending provides full training on the operating of your machines and advice on how to deal with your sites.

T h e P r o f i t sOn average, one machine makes a profit of around R1 800.00 per month that is a profit of R21 600.00 per year, per machine. You could comfortably maintain around 10 machines a month generating a profit of R 216 000.00 per year. We already have customers making good profits and purchasing machines from us on a regular basis.Please note that this is still a part time business.

We don’t …• Charge any franchise fees• Charge royalty or license fees• Restrict your area

We do...• Supply all types of vending equipment• Provide and guarantee locations• Provide full business and technical support

A Complete Business PlanS u m m a r y o f B u s i n e s sTo provide an in-house vending service to businesses. It is intended to offer this service free of charge to the businesses. Approaching companies of small to medium size, as it is this area of the vending market that to date has been neglected by traditional vending supply companies.The business will initially be operated on a part time basis, with the intention to develop this over the next 12 - 18 months, so that it will become a full time concern. Once the vending equipment has been placed into appropriate locations, these machines will then be visited at least once weekly for re-stocking and cash collection. It is likely that some sites will require further visits. Stock will be purchased from local wholesalers.

T h e E q u i p m e n t S u p p l i e rPK Vending specializes in the distribution of floor model vending equipment, designed primarily for the entry-level start up of vending operators. We supply locally assembled and imported machines that are S.A.B.S., EC and Cadbury approved.PK Vending Distributors, although not a franchise, does offer full business start-up assistance and advice, and this is available on an on-going basis. We do not charge any royalties or start-up fees, and do not impose any contractual restrictions on our clients.

T h e E q u i p m e n tPK Vending will provide a minimum of 1 new machine either snack or combination. These machines are either locally assembled or imported and are S.A.B.S. and E.C. approved.

E q u i p m e n t M a i n t e n a n c eNo special maintenance contracts are required for the electronic vending machines. PK Vending offers full training to enable the operator to troubleshoot his or her own machines. Operators are expected to carry out routine cleaning and servicing as required. Full technical backup is available from PK Vending.


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E q u i p m e n t P l a c e m e n t P r o c e d u r e• A deposit is received from the investor• Site and area information is requested from the investor• Where appropriate companies / sites are contacted to secure interest• Site is secured by PK Vending and approved by the investor• Balance of funds are transferred and machine delivered within seven days

I l l u s t r a t i o n ( P r o f i t p e r p r o d u c t )Fresh Food Items e.g. BLT

Chips Cans ChocolatesSELLING PRICE R 4.00 SELLING PRICE R 6.50 SELLING PRICE R 6.50COST PRICE R 2.20 COST PRICE R 4.00 COST PRICE R 3.60PROFIT R1.80 PROFIT R2.50 PROFIT R2.9045% Gross Profit 38% Gross Profit 44% Gross Profit

S t o c k a n d M e r c h a n d i s ePK Vending and Cadbury offer complete product advice as to which product lines to stock the equipment with. This includes advice about seasonal variations of products and alternative products that can be placed within the equipment. Stock can be purchased directly from manufacturers or from wholesalers such as Makro, Trade Centre etc. Cadbury stock can be purchased directly with the added benefit of a 15% discount.

P r i c i n gIn some instances prices may be rounded up or down to make the denominations of coinage easier for the end user i.e. a product that retails at R 2.30 may be marked up at R 2.50 to make it easier for the consumer when obtaining change. PK Vending will be able to advise you in this regard.

L o c a t i o n sDue to the high capital costs traditionally associated separate machines ie can vendor and snack equipment, it has been financially not viable for vending operators to site equipment into smaller sites. The new combination machines offered by PK Vending Distributors are relatively low in capital cost and are ideally suited for this type of location.

F u t u r e E x p a n s i o nThis is the initial period for Cadbury into vending, within 12 months budgets will be increased to place even more machines under this program. You therefore can expand your business at your own pace

Questions Investors Frequently AskW h y i s v e n d i n g a g o o d i n v e s t m e n t?All people eat and drink foods of one description or another, and by providing vending equipment on site, you are giving your customers a convenient way to purchase leading brand products. The confectionery-vending sector is one of the fastest growing sectors of the vending industry with an annual growth rate of 12%. This growth actually increased to 15% during the recession of the early 90’s.

W h a t s o r t o f e q u i p m e n t d o I n e e d t o s t a r t o f f w i t h ?Cadbury have approved two types of machines the one being a snack machine, which dispenses snacks only. The other a combination machine that dispenses both snacks and cold drinks. Please note the new equipment is capable of also dispensing water, Energade as well similar types of plastic bottles and Tetra Packs.


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W h o w i l l d o t h e s i t i n g ?We dispatch an experienced representative who does your initial siting and, where appropriate, train you to be able to carry out some of your own siting in the future. We accept that, for various reasons, some operators do not wish to be involved and therefore provide this service.

H o w m a n y s i t e s w i l l I n e e d ?Under the Cadbury program the number of locations required depend on the number of machines you purchase.

W h e r e w i l l m y s i t e s b e ?Your sites will usually be set up close to your residence or work but again we impose no restrictions. Therefore, if you wish to have your equipment sited in a different area for any reason, then this can be arranged. In most cases your sites will be located on Industrial and Trading Estates. P K will do their best to accommodate you within a geographical area however in some instances you may have to go further to get better locations.

W h e r e d o I g e t s t o c k ?All Cadbury products can be purchased directly from Cadbury and will be delivered to your door. A super discount rate of Cadbury best price less a further 15% will apply. For chips and drinks, you may use local wholesales i.e.: Makro Trade Centre or order directly from the manufacturers.

W i l l I g e t t r a i n i n g ?You will be trained on all mechanical aspects of the equipment, shown how to adjust the coin mechanisms and taught how to carry out routine service and repairs. We will also, where appropriate, give you advice on running your business, taking into account stock control, merchandising and product selection.

W h a t v e h i c l e w i l l I n e e d ?Initially a family type car or sedan would be suitable, but as your business grows and develops you will probably find it useful to acquire a small van.or trailer.

D o e s P K V e n d i n g D i s t r i b u t o r s o f f e r a n y g u a r a n t e e s?Because the only money you pay to us is for vending machines, your investment is 100% secured against your equipment. So, should you ever wish to stop trading, you can return your money by selling your vending machines or vending business. And, in most instances, you would make a profit from your sale. In addition PK offer a 3 month labour and one year warranty on all working parts on all new machines supplied.

I s t h e r e a n i n d u s t r y w a t c h d o g ?PK Vending Distributors and Cadbury are members of the Vending Association Of South Africa (VASA) and we encourage all new operators to join the Association and to adhere to its code of ethics and charter. They can be contacted on 086 110 0610.

I ’m i n t e r e s t e d , w h a t d o I d o n o w?Contact the office and speak to one of our staff, we will be happy to discuss your particular requirements. If you prefer, then we can arrange for one of our vending experts to visit you for an informal discussion, allowing us the opportunity to furnish you with all the details that you will need to make an informed decision for your future.

For more information contac t PK Vending on 0861656055

or visit w w w.pkvending.co.za

CADBURY MACHINE FINANCIAL PROJECTIONS

call us on 0861 656 055 and visit www.pkvending.co.za for more information

Terms and Conditions: A 50% deposit with orders are required and the balance is payable 7 days prior to delivery. Financing is subject to credit approval. Delivery and installation outside Gauteng will cost R2 500.00 per machine. E&OE.* Bear in mind that these fi gures are only an indication of potential fi nancial viability and may not be achieved. Your management style and overall commitment are crucial to success. Making more than just centS... for you!Making more than just centS... for you!

LOCATIONSPROVIDED

& GUARANTEEDCOUNTRYWIDE

1 Machine 2 Machines 3 Machines

R59 500.00 permachine fully inclusive



Above price includes the following:• Site provided by PK Vending 100 people or more.• Start up stock provided.• Start up change provided.• On site training and ongoing training provided.• Delivery and installation in Gauteng.• 12 months warranty on all working parts and three months on labour.• Financing available from banks. • Note reader and coin acceptor

Standard Configuration

Selections Number of selections Capacity

Sweets / chocolates 8 items 135

Snacks / chips 10 items 80

Drinks 24 items 120

Total Selections 42 335

* Profit Potential

Average price for Drinks is R 6.50, Chocolates R 6.50, Chips R 4.00

15 Chips,15 Drinks

10 ChocolatesDaily for 22 Days

20 Chips20 Drinks


25 Chips25 Drinks


30 Chips30 Drinks


Total Sales (Rands) 4807 6765 8635 10505

Less cost of sales (snacks & drinks at 60% - Rands) 2884 4059 5181 6303

OPERATING PROFIT (per month in Rands) 1922 2706 3454 4202

RETURN ON INVESTMENT (%) 38 45 69 84

Purchase Price Based on R59 500 incl. VAT

New Combination VendorSells beverages, sweets and snacks

Dimensions - 1040 (w) x 960mm (d) x 1970 (h)

Please note: Actual machines may vary in branding

call us on 0861 656 055 and visit www.pkvending.co.za for more information

Terms and Conditions: Deposit required with � nance application. Financing is subject to credit approval. Delivery and installation outside Gauteng will cost R2 000.00 per machine. E&OE.* Bear in mind that these fi gures are only an indication of potential fi nancial viability and may not be achieved. Your management style and overall commitment are crucial to success. Making more than just centS... for you!Making more than just centS... for you!

Above price includes the following:• Less 15% off purchases from Cadbury.• Site provided by PK Vending 100 people or more.• Start up stock provided.• Start up change provided.• On site training and ongoing training provided.• Delivery and installation in Gauteng.• 12 months warranty on all working parts and three months on labour.• Financing available from banks. • Note reader and coin acceptor

Standard Configuration

Selections Number of selections Capacity

Sweets / chocolates 8 items 135

Snacks / chips 10 items 80

Drinks 24 items 120

Total Selections 42 335

* Profit Potential

Average price for Drinks is R 6.50, Chocolates R 6.50, Chips R 4.00

15 Chips,15 Drinks


20 Chips20 Drinks


25 Chips25 Drinks


30 Chips30 Drinks


Machine 1 4807 6765 8635 10505

Machine 2 4807 6765 8635 10505

Machine 3 4807 6765 8635 10505

Total Sales (Rands) 14421 20295 25905 31515

Less cost of sales (snacks & drinks at 60% - Rands) 8652.6 12177 15543 18909

OPERATING PROFIT (per month in Rands) 5768.4 8118 10362 12606

RETURN ON INVESTMENT (%) 41 59 75 91

Purchase Price Based on R165 000 incl. VATor a deposit of R33 000 and R3750 per month for 48 months (subject to credit approval)

New Cadbury Branded Combi VendorSells beverages, sweets and snacks

for a deposit of only R33 000GET 3 MACHINESGET 3 MACHINES

EARN A PART-TIME PASSIVE INCOME NOW!

Dimensions - 1040 (w) x 960mm (d) x 1970 (h)

LOCATIONSPROVIDED

& GUARANTEEDCOUNTRYWIDE

Please note: Actual machines may vary in branding

cadbury proposal

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