Flyboy718 Posted October 30, 2016 Share Posted October 30, 2016 I have gotten our first machine of gumballs placed for 10% commission, the owner said they normally want 30% which I think is high? For the rest of our placement pitches at potential locations I was thinking about a game plan of a small brochure of some type and a flat rate commission of 20%-25%. They either take it or leave it. I believe in offering a honest deal. Whats good for both parties is a good deal. What say you? How much commission do you pay on gumballs? Link to comment Share on other sites More sharing options...
Zigzag Vending Posted October 30, 2016 Share Posted October 30, 2016 Its always your decision, but on gumballs 30% of gross would usually leave plenty of profit, since gumballs are so cheap typically. on candy that would be near impossible to make a decent profit. all of it depends on how much u vend and your business goals. and congratulations on your first loc. Link to comment Share on other sites More sharing options...
zjtaylor Posted November 3, 2016 Share Posted November 3, 2016 I will do commission as long as a location has gumballs. I won't do commission on candy. I think the rate should be dependent on the location. I used to offer a flat rate of 20% and if they didn't like it, I wouldnt place the machine. Then I had one guy demand 50% on gumball so I just tried it. I only service it every 2 months and it's near several other locations and does very well so I'm still making money despite the huge commission. And the owner is happy every time he gets his his fistfuls of quarters. Link to comment Share on other sites More sharing options...
Zigzag Vending Posted November 3, 2016 Share Posted November 3, 2016 Quick tip: for a cheap candy look at dubble bubbles knock-off of runts called rascals. 17,000 pcs, recommended 10-12 pcs per vend, roughly $55 shipped, do the math. Ill be getting some soon. that may be the x factor in places where skittles dont pan out. ive got one loc with 2 vendstars. hot tamales, Pm&ms, jelly beans, reeses pieces avg $5 for the worst and close to $10 for the best per month. m&ms and skittles barely skim $3 avg. gonna switch them for polarmint chicle and rascals. both super cheap cogs. Link to comment Share on other sites More sharing options...
CJvend Posted November 3, 2016 Share Posted November 3, 2016 I will do commission as long as a location has gumballs. I won't do commission on candy. I think the rate should be dependent on the location. I used to offer a flat rate of 20% and if they didn't like it, I wouldnt place the machine. Then I had one guy demand 50% on gumball so I just tried it. I only service it every 2 months and it's near several other locations and does very well so I'm still making money despite the huge commission. And the owner is happy every time he gets his his fistfuls of quarters. Does the globe empty every 2 months? Why not stretch it out to 4?Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
zjtaylor Posted November 3, 2016 Share Posted November 3, 2016 3 hours ago, CJvend said: Does the globe empty every 2 months? Why not stretch it out to 4? Sent from my iPhone using Tapatalk It's well under half full at 2 months. I like to keep my machines around half or more. And the rest of the route is on 2 months anyways so I just service it with everything else. Link to comment Share on other sites More sharing options...
vendtex Posted November 4, 2016 Share Posted November 4, 2016 6 hours ago, Zigzag Vending said: Quick tip: for a cheap candy look at dubble bubbles knock-off of runts called rascals. 17,000 pcs, recommended 10-12 pcs per vend, roughly $55 shipped, do the math. Ill be getting some soon. that may be the x factor in places where skittles dont pan out. ive got one loc with 2 vendstars. hot tamales, Pm&ms, jelly beans, reeses pieces avg $5 for the worst and close to $10 for the best per month. m&ms and skittles barely skim $3 avg. gonna switch them for polarmint chicle and rascals. both super cheap cogs. where do you get rascals? Link to comment Share on other sites More sharing options...
Determined Posted November 4, 2016 Share Posted November 4, 2016 1 hour ago, vendtex said: where do you get rascals? Order online with Sam's club. I never had any luck selling them though. Link to comment Share on other sites More sharing options...
CJvend Posted November 4, 2016 Share Posted November 4, 2016 It's well under half full at 2 months. I like to keep my machines around half or more. And the rest of the route is on 2 months anyways so I just service it with everything else.Can't complain about that.Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
Guest Gumball prince Posted November 13, 2016 Share Posted November 13, 2016 Congratulations on your first account. I think a 10% commission is great for you, but the store owner will soon figure out he can do better. When he sees the machine 1/2 empty, and receives a whopping $6.00, while you are walking out with a hefty $54.00, he will realize he can do better. A low commission rate will have him listening to sales pitches from your competition, who will gladly offer 30% for an account. I would recommend telling him you are paying him 30%, which seems to be the norm. Link to comment Share on other sites More sharing options...
Flyboy718 Posted November 13, 2016 Author Share Posted November 13, 2016 I was thinking of offering a flat 20% commission Link to comment Share on other sites More sharing options...
rodney69 Posted November 14, 2016 Share Posted November 14, 2016 Something I've learned over time is that if it's not enough to make it worthwhile, they will eventually kick a vendor out. I used to think that when they confronted me I would just tell them I'll pay more, but what I've figured out is at that point they're done and have already promised someone else to come in. It's rare that anything under 30% stays in my experience with my locations and customers. I've seen some operators pay 50%. Way to high for me, but it happens. Link to comment Share on other sites More sharing options...
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