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Is 50% too high for a location?


mppuzzled

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So I snagged a spot on my first attempt! But the guy wants 50%! There are already some machines in there but no FLAT Vending Machine.  So I offered my 6 column sticker/tattoo machine and offered a higher commission than what other other vendors were offering. (is that a ahole move to make)  His response was "if you cant offer more than 50% than I wont take out any other machines because they all pay me 50%.  So will you pay 50% on the sticker/tattoo machine?"  I shook his hand and agreed because it is currently in my living room and I need to get it placed and it was my first try and somewhat a success so I was excited.  The perk is that it is at one of the best Laundry Mats that is always busy!  

 

What do you think?

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Here's how the conversation goes: "OK, 50%. We subtract a flat 30% for product costs, then we split 50/50. If they agree then you're good to go, if they continue to say they want 50% of gross then say : If we give you 50% and product costs are 30%, then that only leaves us 20% and we can't run a business that way." At this point they will either agree or you didn't want to do business with them long term.

Any business agreement has to work for both parties.

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There are a couple of vendors in my area that claim 50%, but they're doing off profit like mentioned above. At 35% of gross they told me we give then more than anyone. Most people that say 40-50 are going off profit.

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Pay the location 30% but, report 50% on the sales receipt showing amount collected and commission paid. I bet your competition is doing the same thing as I suggested.

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Lol. I bet they are. To top off the craziness, they have a 9 head northwestern rack that is selling all toys at 25 cents still. Punch balloons in 1 inch capsules at 25 cents! I have mine at .75.

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Lol. I bet they are. To top off the craziness, they have a 9 head northwestern rack that is selling all toys at 25 cents still. Punch balloons in 1 inch capsules at 25 cents! I have mine at .75.

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i guess I misread where you said 2".
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Right. The other vendor was selling punch balloons in 1 inch capsules in a 1 inch machine at .25. However, I sell mine in 2 inch capsules in a 2 in machine at .75.

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Right. The other vendor was selling punch balloons in 1 inch capsules in a 1 inch machine at .25. However, I sell mine in 2 inch capsules in a 2 in machine at .75.

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In the same location?

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I'd ask the other vendors, if they would tell you the truth, of what they are paying there. Just to see if the owner is honest or not.

I am opening up a restaurant and my friend so and so said you give him 50%, can you offer me the same deal?

edit:dont use your cell phone.

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