Snack Man 2000 Posted October 22, 2016 Share Posted October 22, 2016 I had a large company contact me about putting in machines. Before we got off the phone the person made it sound like we had the account, and we should go ahead and order the new machines. When I called back they stated that they were talking to two other vending companies now. So I have to send our proposal next week. What is a fair commission to offer? What else should I offer to sweeten the deal. I mentioned offering pay range which is like apple pay, and she said that sounds good. The company has about 150 employees. Link to comment Share on other sites More sharing options...
zjtaylor Posted October 22, 2016 Share Posted October 22, 2016 Is this bulk or full line? Companies like ability to take credit cards. Tell them you'll give them 50/50 split because that's what the other operators are going to do. Then just give them whatever percentage you need for your margin. They don't know how much money you're making. Might consider offering full commission for the first month too. I personally don't go too far out of my way to get a location unless it is absolutely huge like a mall or something. I'm already not liking this location because of the callback about the other companies. Link to comment Share on other sites More sharing options...
BlindVending Posted October 22, 2016 Share Posted October 22, 2016 1 hour ago, zjtaylor said: Is this bulk or full line? Companies like ability to take credit cards. Tell them you'll give them 50/50 split because that's what the other operators are going to do. Then just give them whatever percentage you need for your margin. They don't know how much money you're making. Might consider offering full commission for the first month too. I personally don't go too far out of my way to get a location unless it is absolutely huge like a mall or something. I'm already not liking this location because of the callback about the other companies. Lol wow. No. He's talking about full line BTW. Link to comment Share on other sites More sharing options...
Snack Man 2000 Posted October 22, 2016 Author Share Posted October 22, 2016 I have a hotel we pay 35% of profits, and it seems to work out fine for both of us. I will be investing quite a bit of money into this new account. At first the said they only want new machines. I only use Vendo 721 machines so that's alread $6500. So I guess you mean I need to play the numbers game to get in. The person has not mentioned the other companies offering any commissions. Link to comment Share on other sites More sharing options...
zjtaylor Posted October 22, 2016 Share Posted October 22, 2016 1 hour ago, BlindVending said: Lol wow. No. He's talking about full line BTW. What's wrong with doing business like this? If I had two other operators in the ring I would assume they would do the same to me. Link to comment Share on other sites More sharing options...
QuikVend Posted October 22, 2016 Share Posted October 22, 2016 Sell them on your service, updated and new equipment with a manageable commission. Your prices should take into account your commission rate. You don't want to give away the farm, definitely wouldn't go 50/50, I don't think that is sustainable in full line. Basically give them the best you can do, if they chose one of the other companies so be it, you did the best you could. Link to comment Share on other sites More sharing options...
BlindVending Posted October 22, 2016 Share Posted October 22, 2016 1 hour ago, zjtaylor said: What's wrong with doing business like this? If I had two other operators in the ring I would assume they would do the same to me. What's wrong with starting you're business relationship with the location as a lie? Hmm no idea. Anything over 10% commission in full line is not worth it Link to comment Share on other sites More sharing options...
Zigzag Vending Posted October 22, 2016 Share Posted October 22, 2016 Just remember to run YOUR business. Locations you want are ones you make the needed margins on. If they are already pushing, who knows if theyre being honest about the other companies. But they might learn they can scare u into increased commissions or other offers you cannot afford. Decide on what you are worth and sticks to your guns, respectfully. Make yourself stand out by your excellent customer service. I also clean windows for a living. I once lost an account i charged $50 for once a month. Someone came around and offered $20 for the same service and the company had them do it twice a month. Less than 6 months later Im back because the other guy flaked out. I now charge $55 and never did they complain about the $5 raise. EXCELLENT. CUSTOMER. SERVICE. Stand up for your company. Link to comment Share on other sites More sharing options...
Chkoolaid1 Posted October 24, 2016 Share Posted October 24, 2016 I very rarely give over 10% commission. I also never promise a commission that I'm not going to give fully. $6500 for one machine and 35-50% of the revenue would take you years to work off. Get a refurbed machine for 800-1300 bucks and it'll look and function like new. They're telling you new because they don't want junk. Give them something that's clean and they'll be happy. Have they had a vendor in the past? If so, how much of a commission did they receive? How much was that a month? Use those numbers to reverse engineer how much the vendor was making. If you haven't asked yet, do it. Those are questions that can provide you with important numbers. If you know what you're likely to make you can more accurately determine a commission. I landed a big account (well big for me) last month because I listened to what their current frustrations are and addressed those problems. Ask them what their biggest concerns/needs are and address those points. Don't waste your time selling them on points they don't care about. You'll gain more credit by showing them how you listen and solve problems rather then selling them the sun and stars. Numbers are everything, if they don't make sense walk away. It's not always easy but we're all here to make money. For me, I try to take the excitement away from a situation like this and just do good business. If it works out great, if not, you did good business by not putting yourself into a bad situation. Good luck! I'm pulling for ya! Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
Snack Man 2000 Posted October 24, 2016 Author Share Posted October 24, 2016 This is a brand new facility, so there wasn't a prior vendor. Where do you get machine that cheap? I usually stick with vendo 721 because they are so reliable. Refurbished Vendor 721s run $2000 plus shipping and tax each. Link to comment Share on other sites More sharing options...
Chkoolaid1 Posted October 24, 2016 Share Posted October 24, 2016 That's not bad, I usually pay 1500 for a refurbed multi price bottle/ can machine. 800-1200 may be a little low. I responded really early this morning and I think my tiredness was confusing the numbers. haha. The level of refurbishing also plays a part in the price.Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
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