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Location Commissions...


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#1 HooseFoose

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Posted 20 March 2008 - 11:44 AM

What kinds of commissions are reasonable for a location to receive? Obviously, them not giving a commission is the best scenario but I am using their electricity, so I probably should give them something.

Should the commission be based upon the foot traffic? Or the Number of employees?
How much should the commission be in relation to the gross of that location?

Please add your experience and thoughts.

Thanks!

Sincerely,

~HooseFoose~

:D

#2 oldcity

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Posted 20 March 2008 - 07:03 PM

What kinds of commissions are reasonable for a location to receive? Obviously, them not giving a commission is the best scenario but I am using their electricity, so I probably should give them something.

Should the commission be based upon the foot traffic? Or the Number of employees?
How much should the commission be in relation to the gross of that location?

Please add your experience and thoughts.

Thanks!

Sincerely,

~HooseFoose~

:D



usually 10% unless the location is doing very high sales than u might consider higher commission.

#3 BVI

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Posted 22 March 2008 - 07:11 PM

Rule #1 regarding commissions: Never bring up commissions! Never! The higher your prices, the fewer sales you will make and you will not make as much money as a result.

Rule #2 (my personal rule on commissions): Walk away... if they insist on a commission once you've explained you'd rather keep prices low. I have one account that I pay a commission on, and it's not worth the extra record-keeping and administration it takes to mess with it. Just walk away. You'll find a better or as good a location easy and fast enough that won't require a commimssion. I always perfer to let someone else waste their time with it.