4 replies to this topic

[s&s foods]

I have an account that is a 800 employee paper mill. Currently, the soda is all contracted out full service. There are 10 Cheerwine machines, 20 Coke and 20 Pepsi. I contacted the Cheerwine guy who said he is currently giving 40% of gross and the monthly commision is about $800. I still have yet to find out what the current commision is from the Coke and Pepsi people. What should I ask for? I am thinking that if the Cheerwine people are giving 40% and still making money that 20% from Coke and Pepsi may be doable. Thoughts?
Thanks

[BVI]

I have an account that is a 800 employee paper mill. Currently, the soda is all contracted out full service. There are 10 Cheerwine machines, 20 Coke and 20 Pepsi. I contacted the Cheerwine guy who said he is currently giving 40% of gross and the monthly commision is about $800. I still have yet to find out what the current commision is from the Coke and Pepsi people. What should I ask for? I am thinking that if the Cheerwine people are giving 40% and still making money that 20% from Coke and Pepsi may be doable. Thoughts?
Thanks

First, don't even bring up commissions at all unless they ask about it. If you bring it up, you're stuck with it. Personally, I wouldn't do more than 5% of gross - IF - you end up having to pay it. If they don't ask, don't volunteer. If they do ask, try to disuade them. Explain this is in an effort to try to keep prices low.

The deal with commission, is that you raise your prices on as many items as possible beyond your normal price by the amount (percentage) of commission you're having to pay. I would round up to the nearest nickel. The problem with commissions is that since prices are higher, people usually end up not buying as much as they otherwise would if you were charging your normal prices. That means you make less money, and you have the added hassle of handling the commission process.

[kevin]

First, don't even bring up commissions at all unless they ask about it. If you bring it up, you're stuck with it. Personally, I wouldn't do more than 5% of gross - IF - you end up having to pay it. If they don't ask, don't volunteer. If they do ask, try to disuade them. Explain this is in an effort to try to keep prices low.

The deal with commission, is that you raise your prices on as many items as possible beyond your normal price by the amount (percentage) of commission you're having to pay. I would round up to the nearest nickel. The problem with commissions is that since prices are higher, people usually end up not buying as much as they otherwise would if you were charging your normal prices. That means you make less money, and you have the added hassle of handling the commission process.

I agree and that is exactly what I tell my customers and I mean it when I tell them that. As long as its a good consistant account and I dont pay commison I will sell cans at 50 cents and bottles never more then $1. If 40% is what they are really paying and they have 24 case drinks and they are selling them as bottles for $1 then that means they pay $9.60/case. If you are paying $14.00-16.00/case of bottles then that means you lost money. No one pays 40% and makes money. What is probably going on is they are saying they pay taht much but really only pay around 10%. You have to factor in time, gas, truck maintance, and warehouse into each and every account. There is a company here where the guy taht ran it got arrested for fudging his commisions to the state insitutes he was paying out. A disgruntle employee, which was one of our emps for awhile, had a "big mouth". They really couldnt do much to them but fine them for breaking contracts but it did make local news. My best suggestion is to try and give fair prices and a fair commision. I pay the schools 15% and they are my highest commision. Though I also charge 75 cents for candy and 75 cents for SS chips(which is well about our normal price).

Another thing I tell my customers is that these machines are a convience, more so then convience stores and we are cheaper. People use these machines and enjoy them and keeping good working machines will help keep a good atmospher for the employees. I dont really say it like that since its different everytime but I have foudn that to be true. If you keep a good clean machine going and working well people seem to enjoy their job more since that machine is part of the few breaks they get in a day.

[s&s foods]

No, Coke, pepsi and cheerwine are paying ME a commision for the right to vend there. I don't know how much to ask for?
What do you think????????

[kevin]

No, Coke, pepsi and cheerwine are paying ME a commision for the right to vend there. I don't know how much to ask for?
What do you think????????

OHHHH... well I think fair is about 5-8%. I really dont see it being more then that. If its a bottler they can afford about 15% since the overhead is alot less. If you are setting the guidelines then its up to you on fair. I would say 10% since they are bottlers just to be nice.