Operators wanted: VendVue drives growth with national business development program

While Patrick McGinty was certainly an excellent operator, his favorite part of the business was selling new accounts, and he was good at it. Ultimately, he parlayed that skill and his team, creating a marketing and sales machine that is working overtime to generate new business for operators around the country.

This episode of Automatic Merchandiser’s Vending & OCS Nation is sponsored by VendVue. Podcast host Bob Tullio spoke with Patrick McGinty, founder of VendVue, a company that offers an end-to-end business development solution for convenience services operators. 

Tullio notes that it took him a while to wrap his head around what VendVue is doing for operators.

“In my 37 years as an operator, I saw plenty of second-tier locators, lead generation companies, third-party national account suppliers — with results that were mediocre at best. I finally realized that what VendVue offers is a total business development solution. They do the prospecting, the lead generation, the sales presentation — and they ultimately sell the account,” Tullio said. “Any operator who has ever tried to sell and run a company — or manage a sales staff — knows what a challenge that can be. It’s costly, time-consuming and exhausting at times. If an operator can get in sync with VendVue’s program — and they have plenty of success stories to share — it seems like a no-brainer.”

McGinty said his 18-month-old company is actively seeking to partner with operators, offering exclusive relationships in many market areas, to meet the demand as his sales team is running in high gear.

No time to listen? Prefer to read? Here is an edited podcast transcript:

Bob Tullio: This episode of Automatic Merchandiser’s Vending & OCS Nation is sponsored by VendVue. I spoke with Patrick McGinty, founder of VendVue, a company that offers an end-to-end business development solution for convenience services operators…[and] a veteran operator who loves to sell convenience services locations.

Patrick, please share the VendVue story, your journey, where the idea came from, a nice explanation of the thought process and how your idea evolved into a business.

Patrick McGinty: Absolutely, Bob, so VendVue started with a simple observation. The best operators in the vending and micro markets weren’t losing on service. They were losing on business development.

So, big national companies with full business development teams were kind of dominating. Independents were kind of piecing together word-of-mouth, cold calls and a little bit of luck to compete. So, I wanted to kind of build the missing engine or machine, so I began kind of mapping the entire journey end to end — targeting, outreach, qualifying, site survey, proposal, agreement.

You know, basically we tested campaigns, built playbooks, built some solid sales scripts, built an incredible team [and] built something that was repeatable — something that we could scale and enter in every single market nationwide. So as that model worked, VendVue evolved from “We’ll find you a location” into a full-service kind of growth system.

Our partner program matches pre-screened opportunities to vetted local operators or our members. Then it gives them our sales and marketing support and follow-through to win and keep the account. So, it’s essentially 100% done-for-you sales and marketing program.

I created an ecosystem where VendVue is kind of where operators meet opportunity — basically, a business development engine that turns fragmented, one-off sales into essentially scalable growth systems.

Bob Tullio: And then of course, you ultimately can turn that into large regional opportunities. I know you’re dabbling in some national account deals. And the people who are working with you, I would assume they would be well-positioned to capitalize on those opportunities as they come up.

Patrick McGinty: Yeah, absolutely. So, our true strength is coming into a market, deploying our sales and marketing skills to attract your typical vending account, your 100-employee manufacturing facilities, your healthcare communities, maybe some regional chains, things like that.

But what’s starting to happen is because we’re in 300 markets nationwide, some of these larger companies are starting to recognize that the VendVue network is able to provide service for their organization. So, recently we had the honor of participating in a very large hospital system RFP. So, we bid on that on our members’ behalf. It’s three states, 300 pieces of vending equipment, office coffee, all RFP to follow. So, what’s happening is because we’re doing such a great job with our sales and marketing approaches on a local level, we’re starting to get attention from the national companies, and it’s nice to be considered.

So, Bob, I don’t know if we’re going to win that RFP on behalf of our members, but it was nice to just be in the mix. You know, we’re getting a lot of attention from a national level as well.

Bob Tullio: Well, you’re getting in the game, and I think that’s extremely important. So, would you say that if an operator takes on VendVue and goes with the VendVue services, it’s like having a marketing department on your team?

Patrick McGinty: I wouldn’t necessarily just say marketing, Bob. I would say sales and marketing.

So, there have been some industry leaders who have helped a lot of vending companies really grow their marketing department. Where really, our true skillset is the sales. Our true skillset is, is coming into a market and deploying all of our outbound sales strategy. So, we’re not just putting up a website or connecting with locations on LinkedIn and hoping that they respond to a piece of content.

What we’re doing is we’re deploying — on a daily basis — outbound activity to attract desirable accounts. It’s kind of a — you know, marketing would envision kind of a farmer role, where we’re more in with our sales — more in a hunter role. So, we’re going to get into a market and kind of hunt for new opportunities.

So, you know, we have the marketing support to reinforce our brand, VendVue, and to attract desirable customers who come to us. But our true skillset is going out into the market and uncovering desirable vending and breakroom opportunities.

Bob Tullio: So, this is very much a frontline approach. You guys are out there beating the bushes. Tell me about some of the strategies that you employ as a company to generate leads.

Patrick McGinty: Yeah, absolutely. So, envision everything associated with outbound sales approaches. So, we’re going to reach out digitally. We’re going to implement social selling. We’re going to do some state-per-click things to try to drive traffic to our marketing campaigns. We’re going to do over-the-phone telemarketing and strategic outreach via email. Basically, anything you could think of, as if you had a full-time inside sales rep working for your company.

A lot of the things that I discussed, some vending companies could easily do it themselves. What separates us, Bob, is the fact that I’m utilizing the same skills that I’ve developed by building my own vending company. Several years back, we built it from zero machines to 2000 over eight years. So, I’ve really developed kind of a knack for growing vending companies — so my true skillset. I was certainly able to grow very fast and win a lot of large accounts.

I’ve taken [those] years of experience, scaled it nationally, brought on some incredible team members who are passionate about sales and outbound approach, and now we just do it for operators across the country.

So, it’s basically just true outbound sales activity. Everything you could think of, we’re doing on behalf of our operators.

Bob Tullio: You use the term vending, but I think you really are referring to convenience services as a whole.

Patrick McGinty: Yeah, Bob, we’re talking about unattended retail, break room, pantry service, office coffee, micro markets, AI coolers, vending machines — pretty much everything.

Bob Tullio: I just wanted to make sure that was clear to the audience because I know your company covers every channel in this industry, and I think that’s extremely important. And of course, what’s the question that people ask next? What is the cost structure? How does it work?

Patrick McGinty: Yeah, absolutely. So, Bob, when somebody comes on board and takes advantage of our services, there are two parts to our fee structure. So, unlike traditional third-party management that companies may have worked with in the past, we do not tie our fee structure to the gross sales of the account.

We simply take a different approach. We charge a monthly marketing fee, and that can range, starting at say $500 a month if you’re just looking for exclusivity in a territory. And then we charge a one-time location fee starting at $26 an employee, per account.

So, imagine a situation where you came on board, Bob, and you were looking for slight organic growth. You’d be right around $500 a month and $26 per employee.

Now, there are other companies that come on board that are looking for tremendous outbound approach and on a large scale. So, we have plans starting at, you know, $995 all the way up to — we have some companies that are on board for multiple states.

So essentially, there are two parts to our program: a marketing fee that allows us to run the campaigns, build the systems, get everything going, and then that one-time fee per location, starting at $26 an employee.

Bob Tullio: So, as the business developer, your role is to create interest, take a warm lead, turn it into an appointment for my sales rep. Is that correct?

Patrick McGinty: Somewhat. So, let me explain that a little bit deeper.

We’re not a lead generator or an appointment center. We’re a full-service sales and marketing company. So, we generate interest, and then we handle that lead from start — all the way over to turning it over to you for a site survey. So, by the time it gets to you, Bob, they’ve been qualified. They’ve gone through a sales presentation to determine what their needs are. And then we turn it over to you for a site survey.

When it gets to you, Bob, it’s about 90% to the finish line. So, what the operator would do during the site survey: Confirm that everything we say is correct, confirm that they’re able to meet the needs of the customer, and then kind of assume the sale and start to schedule installation.

So, we handle a significant portion of the sales aspect. And by the time it gets to the operator, it’s basically coordinating the installation of the equipment — you know, basically dotting I’s and crossing T’s.

Bob Tullio: So, you truly are a sales organization. You’re talking about generating the lead, acting on the lead, going out and making the deal. I would imagine there’s a lot of communication, though, with the operator along the way in terms of equipment requirements, budget, number of employees — all of the key issues pertaining to a location to determine if it’s feasible or how to best sell it. Is that correct?

Patrick McGinty: Correct. So, we have a dedicated team member who’s responsible for managing those relationships and working one-on-one with each individual operator. So, Bob, what’ll happen is Operator A, that’s based in Cleveland, Ohio, may have completely different goals than Operator B based in Los Angeles, California. So, it’s part of our onboarding process to understand, what are the types of accounts they’re looking for, and then what are their communication preferences, and kind of every little nuance. And then, we have a dedicated partner manager who’s on board to ensure that communication is streamlined and that we can bring these accounts across the finish line collaboratively.

Bob Tullio: So, the communication you have then with the customer — ultimately the end user, the location — is “We’re the sales arm of the company. We represent the sales side of the company, and ultimately, we’re going to bring in the operations/customer service team to make this a smooth transition.”

Patrick McGinty: Sure, yeah. So, we’re going to connect the location with our local operators. So, we represent ourselves as a nationwide breakroom service provider or unattended retail provider. And we provide those services through our member network. So, our goal is to connect the location with a desirable member to provide services. So, we secure the lead, qualify it, walk it through a couple of sales presentations, coordinate their team internally, and then turn it over to the operator basically at the finish line.

Bob Tullio: That’s great. So, do you know who Mario Mendoza is, the baseball player? Have you ever heard of the Mendoza line?

Patrick McGinty: [inaudible] No.

Bob Tullio: Yeah, this is a guy who batted 200. Somehow, they identified it as the Mendoza line — below 200 or above 200. So, does your team bat above 200 when they go in for appointments?

Patrick McGinty: We’re not just going at it blindly. I’d say that we do an incredible job of getting it done. And I have some case studies and things like that that I’d be happy to share with any operator.

The fact of the matter is, I’d say we’re above the Mendoza. We get deals done, and I’m confident in my sales team and our processes and in our entire organization to enter any market across the country in an outbound capacity and put numbers on the board.

Bob Tullio: Sounds to me like you’re at least a 300 hitter from what I’m hearing.

Patrick McGinty: I’ll take it.

Bob Tullio: You could be in the Hall of Fame then. That’s pretty good. So, tell me about the expectations that you have from operators.

Patrick McGinty: Yeah, that’s a great question, Bob. So, one of the biggest challenges that we realized early on is that both the operator and our company are kind of a representation of each other.

So, it’s so important that we connect with operators that share the same core values as we do — that share the same commitment to world-class service — so that we can kind of work in sync. They’re part of the VendVue ecosystem, or our partner network. So, we have to make sure that they’re able to provide world-class service — that they’re able to represent our brand in an effective manner.

You know, when we’re onboarding a new company or a new partner, we’re kind of interviewing each other. We want to make sure that we’re the right fit for them, and they’re the right fit for us, so that we can place accounts.

I conduct myself from an operator perspective. So, every time I think of growing somebody’s business, I take an approach of as if I were the actual operator based on my experience. So, having that experience — actually growing a vending business personally — puts our company at a tremendous advantage.

Bob Tullio: Your experience is definitely an asset. Share some success stories with me.

Patrick McGinty: We’ve been doing well. We have some great accounts that we’ve won recently for our operators. You know, 300-, 400-employee manufacturing facilities, some car dealership chains, Walmart distribution center with 800-plus employees.

Those are the types of accounts that we’re winning on a daily basis. We’ve also won, you know, some smaller ones — 75 employee manufacturing, you know, 600 employee municipalities.

One of the case studies that we’re able to provide potential members is that we had some tremendous impact on a vending operator — or a breakroom service provider operator — in western Pennsylvania. So, on about a six-month campaign, when we were first kind of launching, we secured them about 26 new locations — a combination of all sorts of breakroom services. So, we did a few micro markets, a few office coffee accounts, some AI coolers, and then some traditional vending accounts as well. We were able to help them enter a new market. We were able to attract manufacturing facilities, municipalities, car dealerships, some apartment complexes, warehouses, healthcare communities. So a nice wide variety, but you know, we were able to kind of get into the area and — with this operator — just really skyrocket their growth.

Bob Tullio: So, you’ve got enough activity out there that, right now, your top objective as you continue to do what you guys do every day, and put locations on, is to find qualified vendors to service those locations.

Patrick McGinty: Yeah, absolutely.

So, like I said, Bob, we’ve built our infrastructure so well over the last 18 months. Every day, we have accounts coming to us on a large scale. So, we have an influx of opportunities, and we’re looking to build our network to connect operators across the country — and many, many markets — with those opportunities. Then, when we connect with an operator and there’s some synergy, Bob, that’s when we’ll jump in and do a growth plan and start to really drive growth for that specific operator.

So, it’s kind of a two-part process. A lot of operators come into our network on the one-off locations, where we have a location that just needs service. Turns out they’re very happy with the location. And then we share with them how we’re able to get in there and grow them.

Big focus for us — adding partners to our network.

Bob Tullio: Wow. Are there any regional areas where you particularly need operators to come on board?

Patrick McGinty: So, I’m going to be honest with you. I just spoke to my team today, and we need somebody important. Every day, we’re getting opportunities in Portland.

You know, there are plenty of major metropolitan markets that are still open. If you’re an operator considering working with VendVue, or considering our network, we have a campaign that’s actively producing leads in your area. So, whether you’re looking for just exclusivity on those leads, or whether you’re looking for us to get into that market and really drive growth, there’s definitely opportunity for both.

Bob Tullio: What’s the secret sauce at VendVue?

Patrick McGinty: The secret sauce, I would say, is a combination of industry expertise and a combination of consistency. So, I have very well-trained employees based on my industry expertise. I have incredible systems, but the thing that separates us from a lot of the other companies or just any salesperson in general, in my opinion, is consistency. So, we are doing this consistently on a daily basis. So, when we get into a market or when we partner with an operator, it’s all about getting it done for them on a daily basis — so ongoing basis.

We’re kind of shaking up that third-party approach. Rather than, you know, just waiting or securing a big national account and piecing it together, and then charging that ongoing commission. Rather than having an ongoing customer acquisition cost and have to be tied to specific pricing and things like that, you know, you’re able to approach you know, a sales and marketing program that isn’t — it’s only a one-time customer acquisition cost. So, that’s a big competitive advantage for us.

When I was an operator, Bob, I would think about that — why do I have to pay ongoing commission? Why do I have to constantly, why do I have to price my products, these specific prices? You know, why are there all these restrictions?

So, when I thought about building VendVue, I took all of that into consideration.

Bob Tullio: And then the operator couldn’t make their own pricing structure that makes sense for them. They can determine what kind of products they want to put into the location. They’re not restricted in any way. And really, their cost is no different than having a good sales rep going out and doing the job — without all of the work that goes with having a good sales rep.

Patrick McGinty: That’s the reality, Bob. So, when you think about it, and you think about having an independent sales organization, working on your behalf, everything that we do, you could do internally easily. I think that the difference between us is that we do it at scale. We’ve basically minimized the monthly costs associated with that. So, you’re not going to have additional payroll and employee taxes, a car, fuel card, commission structure, CRM, all of that. So, you could bring us in on a contract basis and have your entire dedicated sales team.

So, say your goal is to grow your route or your operation by 15%. You know, once you hit that goal, you could stop using us, know, Bob. That’s the thing. Or, you can downgrade your plan into just more of an organic growth rather than the outbound growth — and still keep exclusivity of that market.

So basically, it gives you the ability to grow at your pace and with limited resources. You know, you don’t have to necessarily hire and manage an entire sales department.

Bob Tullio: Sounds like a plan. Or, of course, you can then double down and go to 30% growth.

Patrick McGinty: I’m obsessed with growth. It’s something I’ve always been obsessed with.

And I will say that I love growing breakroom service companies or companies in the unintended retail space. It’s very passionate about it. It’s just where I like to be. I like to come in and get people to where they want to go from a growth perspective.

Bob Tullio: Thanks, Patrick.

For more information about VendVue’s end-to-end business development solution, go to www.vendvuevending.com.

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