I had the opportunity to meet, Roger Folz, a titan in the bulk vending industry on one occasion. His life and success are an inspiration. He is a true rags to riches success story! Roger's successes have paved the way for all of us in the industry today. Here's a short biography, written by Randy Chilton (March 2003), on this vending icon.
Meet Roger Folz: Bulk Vendor Extraordinaire
The stories of successful operators in this industry who started with very little, usually one machine, and have built successful businesses are numerous. One story that stands above the rest that deserves special recognition is Roger Folz, founder and owner of Folz Vending, located in Oceanside, N.Y.
Roger turned 75 years old in February. His accomplishments speak for themselves. Roger started the company with one pistachio nut machine in 1949 and built it into a business empire that today employes 262 people, operates 140,000 bulk vending machines and had sales of $55 million in 2002. His client list is a literal who's who of retail businesses in the United States, including Wal-Mart, Toys R Us, Kroger, Safeway, Publix, Winn-Dixie, and many other national retail and grocery store chains. Almost all of the sales, about 95%, are generated from bulk vending machines placed throughout the United States and Canada.
I'm always fascinated by what makes one company stand above all the rest in their industry. I've just read a great business book, "Good to Great," by Jim Collins. It analyzes why the transition from a good company to a great company is difficult to accomplish and is a relative rarity in business today. It also investigates at what point companies make that transition that is, what is the flash point when everything changes, when they transition from a good company to a great company? Folz Vending, as exemplified in the book, doesn't recall a flash point where all of the sudden they were the best and largest bulk vending company in the country. Rather, it was a continual focus on being the best at every facet of their business. The vision has always been clear, and the decisions they made were consistent with that vision, time after time. Today, Folz Vending is a national leader in the bulk vending industry.
In 1955 Roger Folz made a decision that put him on the path he's on today. He sold his small independent routes and focused on national chain accounts. Another program that differentiates Folz from his bulk-vending competitors is that they produce their own display cards in the machines. Bulk suppliers offer these as part of their services, but Folz is one of the few, if not the only, company that produces their own. It gives them quality control and content control. Also key to his success is his continual commitment to maintaining the self-proclaimed "best service and merchandise in the industry." Each of these components by themselves is fairly straightforward. What is constant is that each strategic move, while basic, was fundamental in the way they run their business. His commitment to each change is unwavering. That's what has made Folz Vending the successful company it is today.
There were taxation laws that adversely effected the bulk vending industry. He made a commitment to do something about it. No one in the industry will deny that, to date, Roger has been the most effective, influential lobbyist for the bulk vending industry over the last 50 years. He was the chairman of the National Bulk Vending association's legislative committee for decades. His company undeniably benefited, and he was certainly self-serving in some of his efforts. Yet he has saved numerous bulk vendors thousands and thousands of dollars through his efforts at reducing tax burdens on the industry. He's proud to have sent every President since Eisenhower a gumball machine from Folz Vending. He's also extremely proud of his contributions to the National Bulk Vendors Association.
His largest customer, Wal-Mart director of other income, Chris Wade, has this to say about Roger:
"What I respect is that Roger never accepts the status quo in any aspect of his business. If he doesn't like the law, he works to change it. He overcomes hurdles through being innovative. He's educated an industry, and along the way he's educated me."
I asked Roger a number of questions, but one answer that struck me most is the reply to the question: "If you knew then what you know now, what would you have done differently?" He responded: "I would have bought out more of the competition." Following up with him later, he expounded that the economies of consolidation are significant. He passed on a number of potential route purchases throughout his career that in hindsight he should have pursued.
Roger also noted the importance of choosing mentors early on in your career. He considers the mentors he chose as one key to his success. He went to the association conventions, identified leaders that impressed him, and asked them what advice they would give to a new guy in the business. This advice was invaluable to him when making his early career decisions.
Sugarloaf and Folz Vending have an evolution commonality. Folz, since 1949, and Sugarloaf, since 1986, have raised the standard bar for their respective industries, and by their success, have encouraged new entrants into the industry. Both companies have prospered with new products and opened up new markets, while new competitors have entered the marketplace to compete for these successes. The competition today is intense in both industries. Both companies must continue to get better every day in order to stay ahead of the competition.
Roger Folz turned 75 years old on Feb. 17, and I'm sure that he spent the day in the office, as he does every day. Today his commitment to excellence is as strong as ever. So I say, "Happy birthday, Roger!" Anyone who takes the time to learn about your career, as with others who have accomplished so much, will benefit by seeing what one talented and determined person can accomplish when they set their mind to it.
My hat is off to your accomplishments!
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