11 replies to this topic

[Ruskie]

This dealership has two drink and two snack machines doing about $2000 per month gross. Dealer wants $500 per month commission.

Sounds a little high you think or about par for the course?

[Ronald]

If it is doing 2000 then profit should be about 1000 to 1200 that would be 50% of your profit I do not pay over 15%

This dealership has two drink and two snack machines doing about $2000 per month gross. Dealer wants $500 per month commission.

Sounds a little high you think or about par for the course?

[Agee Vending]

wow... Well flat fee works for you if the economy comes back. 500 is 25% of gross... thats alot..

This dealership has two drink and two snack machines doing about $2000 per month gross. Dealer wants $500 per month commission.

Sounds a little high you think or about par for the course?

[tooldini]

isn't that good money for one stop though. I am trying to get into vending and here it doesn't seem like I could be that picky LOL

[coinvestor]

This dealership has two drink and two snack machines doing about $2000 per month gross. Dealer wants $500 per month commission.

Sounds a little high you think or about par for the course?

That is insane........

Stay away, even if you can find some pricing that works. Trust me you don't want greedy stingy customers, they are not worth the hassel.

JD

[scottgtt]

Avoid flat fee commissions, you take all the risk. If their business goes down you are stuck with the commission and when things go bad for them they will definitely want as much revenue from other sources like vending as they can get, so they won't be real agreeable to reducing commission. They need to take a percentage so that their return and your return are consistent and both take the same risk.

[tooldini]

Is the market wide open were you guys are from? Seems everywere I go there are machines how can you turn down anything that sounds decent?

Avoid flat fee commissions, you take all the risk. If their business goes down you are stuck with the commission and when things go bad for them they will definitely want as much revenue from other sources like vending as they can get, so they won't be real agreeable to reducing commission. They need to take a percentage so that their return and your return are consistent and both take the same risk.

[scottgtt]

Generally all of the good locations will have machines and also many of the bad, but companies make changes all of the time. You have to make yourself stand out, be persistent and offer something the others don't. But don't set yourself up to fail. A flat fee commission is a recipe for disaster, unless you have a long track record on the business that is not affected by seasonal changes, demand etc... Plus, if your going to do a flat fee, you don't want to start it out at a high rate, you would be better off at a lower rate. I just think most companies will understand this logic and be fine with a percentage. I would rather see you go with a slightly higher percentage, like 15% than a flate fee you can't get out of. At least that way you lock in a profit margin after commissions that does not flucutate with market changes and car dealerships are always subject to market fluctuations.

[tooldini]

Makes sense to me I have another question since your helping me now. I work for the school system here in Michigan and the pop machines are handled by coke,pepsi, and 7 up. They basically suck at keeping them filled at most schools. Is there anyway that you know of that someone could manage these machines for them and share profits. I know 7 up will work with vendors and basically lend them a machine all you do is buy the product from them and keep profit. The juice machine at an elementary empties out in around 2 weeks and stays empty for 3-4 weeks. I watched this happen for months on end and every complained constantly. Sorry if these are dumb questions I am just learning.

thanks
Jeff

Generally all of the good locations will have machines and also many of the bad, but companies make changes all of the time. You have to make yourself stand out, be persistent and offer something the others don't. But don't set yourself up to fail. A flat fee commission is a recipe for disaster, unless you have a long track record on the business that is not affected by seasonal changes, demand etc... Plus, if your going to do a flat fee, you don't want to start it out at a high rate, you would be better off at a lower rate. I just think most companies will understand this logic and be fine with a percentage. I would rather see you go with a slightly higher percentage, like 15% than a flate fee you can't get out of. At least that way you lock in a profit margin after commissions that does not flucutate with market changes and car dealerships are always subject to market fluctuations.

[scottgtt]

Makes sense to me I have another question since your helping me now. I work for the school system here in Michigan and the pop machines are handled by coke,pepsi, and 7 up. They basically suck at keeping them filled at most schools. Is there anyway that you know of that someone could manage these machines for them and share profits. I know 7 up will work with vendors and basically lend them a machine all you do is buy the product from them and keep profit. The juice machine at an elementary empties out in around 2 weeks and stays empty for 3-4 weeks. I watched this happen for months on end and every complained constantly. Sorry if these are dumb questions I am just learning.

thanks
Jeff

Generally, schools are getting there scoreboards and concession stuff provided for by the soda companies so it is next to impossible to get there soda business, but if you find a smaller school, sometimes they are still entirely independent.

[tooldini]

thats what I figured. I wish I had around 50K my friend invest 100K into Yonaturals and is doing real well vending health foods in the schools. Most schools around here are trying to get more health products in the machines but the vendors don't really put anything but candy and chips and maybe one granola bar. They were able to get there machines in and had some other vendors booted due to this. Thats way out of my range though LOL I think I was told at the schools the soda guys give them like 40% I could offer less but would keep the machines full so it would even out. I mean weeks of being empty is just crazy.

[gvending]

I think you'd probably even be better off offering 25 %, at least you would be gauranteed 25% profit. It may be worth it but don't offer a flat rate so you don't run the risk of loosing money.