Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.
Issue link: http://automaticmerchandiser.epubxp.com/i/331646
uccess in today's vending arena means knowing how to pair the best of yesterday's vending business while offering competitive vending technology. No one understands that better than Rick Pavlic, a 30-year veteran of the industry and CEO of Pavlic Vending, a third generation com- pany that his grandfather started with a tobacco route in the 1940s. Pavlic believes in the personal touch — in being easy to work with — and it shows. The company's sales were up nearly 10 percent this year, surpassing the pre-recession high water mark of 2007. Pavlic Vending is the oldest independent in the Milwaukee, Wis., market- place. It is also one of the largest OCS providers in the area and the local distributor of Avanti Mar- kets. With all this success, Pav- lic still believes in being a family business. Customers call and they can speak to a real person — no voicemail — and it's often a family member. "There's still a Pavlic at Pavlic Vending," Rick Pavlic said. 67 year vending legacy Pavlic's grandfather Victor started the business in the 1940s. He began as a tobacco wholesaler. As demand for the 'new' technology of the day increased, he started provid- ing cigarette vending machines to local businesses and taverns. The business evolved into workplace refreshment in the mid-1960s. Pav- lic's father grew up working in the family business and took his turn leading it until his death in 1998. He was profled in a 1996 edition of Automatic Merchandiser. Current Pavlic CEO, Rick Pav- lic, began running deliveries for the family business when he was in high school. While he attended college, he learned to repair and service machines. In 1982, after graduating with a degree from Marquette University in Business, Pavlic went to work for the vending operation full time. He is the third generation to own and operate the company and he's not alone. His wife Shae, mother Marge and two sisters, Laura and Linda also work at Pavlic Vending full time. His kids help out as well when they are home from college. Because fam- ily depends on the business, Pavlic is very conscious of the return on investments of various purchases, including technology. Hard look at ROI Technology was not something Pav- lic Vending added because it was the latest trend. Each switch had to have a solid business case with a needs versus costs comparison. "We've always tried to grow pru- dently, as well as proftably," said Pavlic. "I have many people [family and employees] relying on the suc- cess of the company." In 1994, Pavlic's father added ChallengeMaster Vending Manage- ment Software after carefully con- sidering what was available at the time. The company still uses that system to provide cash account- ability, commissions processing and route management. Pavlic Vending has not yet added handhelds or telemetry, but instead trains its route driv- ers on how to choose products for the machines and anticipate what will be needed on a route. Nearly all of the Pavlic vending machines accept only cash. In fact, it was just this year that Pavlic Vending added its frst credit/debit card readers to machines at the urging of a local high school. Pavlic chose the USA Technologies ePort system and he has seen moderate adoption. "Not a huge portion is cashless — maybe 5 to 10 percent," said Pavlic. He will likely add more credit card readers S Rick Pavlic has been CEO of Pavlic Vending — Modern Coffee in Waukesha, Wis., since 1998. Carrying local roasters Pavlic Vending — Modern Coffee has been very active in partnering with local cof- fee roasters, especially those with a community presence. Colectivo, formerly Alterra, was a regional favorite that Pavlic added in 2001. He has found this a great ad- dition to his OCS product line as coffee houses really gained popularity. "More people are looking for that culture in the workplace," he explained. He still carries Colectivo as well as other regional and national coffee brands like Stone Creek and Starbucks. This past year, Pavlic added Valentine Cof- fee, an up-and-comer to the industry who treats coffee more like wine tasting or crafting beer. "They remind me of what Alterra was 20 years ago," said Pavlic. Kelly Turkowitch, a 27-year veteran salesperson, has helped drive the Valentine name within Pavlic Vend- ing — Modern Coffee. "It's about community," she said. "They are eager, and I appreciate that." Valen- tine will host local tastings and is part of the farm- ers' market, as well as the signature coffee in a few well-known Milwaukee, Wis., restaurants. Turkowitch says the partnership with the roaster has been valuable for both sides. "They help us by giving us leads, and we promote their brand," she added. June 2014 VendingMarketWatch.com Automatic Merchandiser 19 S U C C E S S S T O R Y autm_18-25_0614OpProfile_F.indd 19 6/10/14 11:49 AM