Strategic Expansion Efforts

Surpass is embarking on a growth trajectory by targeting larger accounts, expanding its reach beyond its original territory, which is located about an hour south. CEO Rainey emphasizes the company’s shift towards auto dealerships and universities, focusing on visibility and accessibility in their installations.

“Every time I take a location, I’m like, ‘I know this is not going to be a good location’ — and it has never been a good one,” Rainey stated, underlining the importance of site selection.

Commitment to Visibility and Aesthetics

Rainey highlights that Surpass prioritizes the visibility and presentation of its smart markets. The highest-quality installations are strategically placed where customers will engage with them, rather than tucked away in less accessible areas. This visibility not only enhances customer experience but also creates a competitive advantage that is difficult for others to replicate.

Transition to VMS-Driven Operations

Recently, Surpass adopted VMS (Vending Management Software) operations after previous years of managing without a comprehensive picking system. This transition involved substantial logistical changes, including acquiring a warehouse, racking systems, and detailed data management.

“It took hours and hours and hours,” Rainey noted regarding the challenging process of integrating new technology to improve operational efficiency.

Enhancements in Technology and Customer Service

The company is poised for further enhancement with plans to move into a larger warehouse and introduce advanced software like Lightspeed. Additionally, tools such as Panoptyc and ProWatch are utilized to monitor potential theft, while ZippyAssist aids in service communication.

Despite these technological improvements, Rainey emphasizes that the family-owned nature of the business is its greatest asset, particularly in customer relations. “I am so on with customer service — answering my phone, answering emails. If there’s an issue, fix it immediately,” Rainey explained, showcasing the company’s dedication to immediate problem resolution.

Merchandising and Route Optimization

Surpass values meticulous merchandising, ensuring markets are reset perfectly after service visits, with products displayed attractively. Rainey’s hands-on approach extends even to smaller clients, which he treats with equal importance as larger accounts.

Continuously seeking operational improvements, he has solicited feedback from drivers for optimal route restructuring following a recent business acquisition. Rainey’s insights into route complexity reflect a thoughtful approach toward employee well-being: “If I were a route driver, I would probably hate going there,” he said, acknowledging potential stressors in their daily tasks.

Challenges and Future Ventures

Fresh food offerings remain a challenging area for Surpass. Rainey mentioned difficulties with shelf life, profit margins, and account sizes. However, items like refrigerated Uncrustables have seen success in smart stores.

Aiming to innovate further, Rainey is considering the establishment of an unattended convenience store in a downtown area, where demand for easy access to snacks and drinks is high yet under-served. This strategy aims to mitigate labor costs while satisfying consumer needs.

Adapting to Industry Changes

Reflecting on his experiences, Rainey acknowledged the need for operators to adapt to evolving market conditions. “There are a lot of operators that are stuck in old times. My advice is, stay in old times, and we’ll take over,” he remarked, emphasizing the importance of embracing modernization.