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Is 38$ bad for first week profits from soda machine selling 16.9 oz at 1.00$ each it's located at a hotel but the owner wants 15% and don't want me to charge over 1.00$ 

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I sell cans for $1.00 without any commission but with a commission I adjust my price accordingly.
Never let a location dictate your price, this will only lead to problems if and when you have to increase your price because your cost has gone up . I know that some vendors want or need a location bad enough to let this happen but it always leads to issues. There are always extra cost in operating and if our margins aren't large enough then there will be problems in the future that may lead to our going out of business. You have to work with the customer but your main goal is to succeed.
Does your customer let his customer dictate price ? I'd think not !


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On 5/19/2017 at 9:39 PM, Joe101us said:

I've found a car dealer ship but they want 3 soda and 3 snacks don't think it will support that many machines 

Sounds like a large dealership.  How many employees.  Do they want a pair in the service area, one in the showroom and another at the used car building?  New car dealerships are some of the most sought after accounts by large companies. Don't be too quick to turn it down. You can get custom fronts too.  They will want Credit Cards now as well.  They do not normally want a commission.  

On these large accounts don't blink an eye at their requests.  Just write it down. Use your phone to take photos of the existing machines so you know what you are up against. Check the pricing on the current products.  Never say anything negative about the current vendor no matter how bad the machines look or setup.  

On car dealership accounts you want to always offer some cheap cheese crackers or cookies for kids.  Put an off brand of cola in the beverage machines for kids too. Only do this on the showroom machine. They hold people hostage for hours and they use those machines.  If you offer things like that, the manager might take a risk on you because they think you understand their business. Normally those large accounts will not go with an independent vendor because they do not want to hear the boss say, what were you thinking?

Good job on even getting the chance to talk to them

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On 5/19/2017 at 8:05 PM, Joe101us said:

Is 38$ bad for first week profits from soda machine selling 16.9 oz at 1.00$ each it's located at a hotel but the owner wants 15% and don't want me to charge over 1.00$ 

$38 would not be terrible if the pricing was correct.  You need $50 a week.  Just change the product mix.  Add cans at 1.00_20% bottles 1.50 and water 1.00.  Pay the commission on the costs of goods example  Example (38.00 less cost of goods 50%) would leave approx 2.56

Don't ask if you can change the product mix, if he asks just tell him nothing is selling not even enough to pay commission. if he wants to make any money you need to change the product mix and both of you will be fine.

Bottom line, if he wants to sell items at 1.00 you are happy to lease the machine to him for $200 a month. or you will move it.

Sounds like Mr. Patel

 

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58 minutes ago, Poplady1 said:

Sounds like a large dealership.  How many employees.  Do they want a pair in the service area, one in the showroom and another at the used car building?  New car dealerships are some of the most sought after accounts by large companies. Don't be too quick to turn it down. You can get custom fronts too.  They will want Credit Cards now as well.  They do not normally want a commission.  

On these large accounts don't blink an eye at their requests.  Just write it down. Use your phone to take photos of the existing machines so you know what you are up against. Check the pricing on the current products.  Never say anything negative about the current vendor no matter how bad the machines look or setup.  

On car dealership accounts you want to always offer some cheap cheese crackers or cookies for kids.  Put an off brand of cola in the beverage machines for kids too. Only do this on the showroom machine. They hold people hostage for hours and they use those machines.  If you offer things like that, the manager might take a risk on you because they think you understand their business. Normally those large accounts will not go with an independent vendor because they do not want to hear the boss say, what were you thinking?

Good job on even getting the chance to talk to them

They want a set in the show room a set in service and a set for employees I took the account they did not have a vendor there already they had one coke machine that they filled but The  thermostat went out 

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2 hours ago, Randymire said:

I sell cans for $1.00 without any commission but with a commission I adjust my price accordingly.
Never let a location dictate your price, this will only lead to problems if and when you have to increase your price because your cost has gone up . I know that some vendors want or need a location bad enough to let this happen but it always leads to issues. There are always extra cost in operating and if our margins aren't large enough then there will be problems in the future that may lead to our going out of business. You have to work with the customer but your main goal is to succeed.
Does your customer let his customer dictate price ? I'd think not !


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I told him that same thing

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44 minutes ago, Poplady1 said:

$38 would not be terrible if the pricing was correct.  You need $50 a week.  Just change the product mix.  Add cans at 1.00_20% bottles 1.50 and water 1.00.  Pay the commission on the costs of goods example  Example (38.00 less cost of goods 50%) would leave approx 2.56

Don't ask if you can change the product mix, if he asks just tell him nothing is selling not even enough to pay commission. if he wants to make any money you need to change the product mix and both of you will be fine.

Bottom line, if he wants to sell items at 1.00 you are happy to lease the machine to him for $200 a month. or you will move it.

Sounds like Mr. Patel

 

His last name is Patel 

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I had a car lot call me, started out wanting 9 machines!  I finally did agree to give them 4; 2 did OK for a while but the business was new and didn't even make a year before they went out of business.  Selling cars is their business, vending is yours.  You have to consider as much info as possible to decide which risks to take...

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11 minutes ago, Southeast Treats said:

I had a car lot call me, started out wanting 9 machines!  I finally did agree to give them 4; 2 did OK for a while but the business was new and didn't even make a year before they went out of business.  Selling cars is their business, vending is yours.  You have to consider as much info as possible to decide which risks to take...

I only put two sets cause I don't feel the employees need there own machines 

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I have a large dealership.  It currently has 5 machines over 3 different buildings, including 3 soda machines, 1 3-wide snack, and 1 cs-12 snack.  I expect the 4th building to do 5k by itself.  These locations aren't great individually but I collect about $200 in 1 hour pretty easily.

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Our new car dealerships are pretty good but their customers and sales people need easy access and I would definitely put card readers on. Sales people will frequently buy drinks for customers. 

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So he wants to please his residents with low pricing AND get commission + rent but YOU pay for machines. Bad deal. I wouldn't. Let's do the math.  $38 in 4 weeks is $152. 15% is about $22.5. Add $50 to that and you're at $72.50. Assuming cost of goods is half, he's getting ALL of the profits. Just pull it. He wants YOU to make HIM money. I dealt with people like this for 7 years in convenience stores. He'll try to convince you that his idea is the best way and you should do it. He will lie and cheat to get YOUR money or anyone else who is stupid enough. Guaranteed, he'll claim that he "knows" that electric costs so much money from vending and you should be making hundreds of dollars every week and you only pay so little and you should mop his floors and do everything else he wants because he thinks you are an idiot.

I had a small hair salon for about a year when I first started. It did about $35 every two weeks which was good out of an anteres machine. The ladies at the salon told me one day "the owner says you need to pay him $20/month for electric." I told them that was all of my profit and it did not cost that much. Plus, everything was cheap. This guy didn't care though. I pulled the machine out and sold it for $300.

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Our new car dealerships are pretty good but their customers and sales people need easy access and I would definitely put card readers on. Sales people will frequently buy drinks for customers. 


As an ex manager I'll admit that happens all the time!

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19 minutes ago, AngryChris said:

So he wants to please his residents with low pricing AND get commission + rent but YOU pay for machines. Bad deal. I wouldn't. Let's do the math.  $38 in 4 weeks is $152. 15% is about $22.5. Add $50 to that and you're at $72.50. Assuming cost of goods is half, he's getting ALL of the profits. Just pull it. He wants YOU to make HIM money. I dealt with people like this for 7 years in convenience stores. He'll try to convince you that his idea is the best way and you should do it. He will lie and cheat to get YOUR money or anyone else who is stupid enough. Guaranteed, he'll claim that he "knows" that electric costs so much money from vending and you should be making hundreds of dollars every week and you only pay so little and you should mop his floors and do everything else he wants because he thinks you are an idiot.

I had a small hair salon for about a year when I first started. It did about $35 every two weeks which was good out of an anteres machine. The ladies at the salon told me one day "the owner says you need to pay him $20/month for electric." I told them that was all of my profit and it did not cost that much. Plus, everything was cheap. This guy didn't care though. I pulled the machine out and sold it for $300.

How would you compare vending to convenience stores? I recently had the opportunity to take over a gas station/convenience store. I declined as it was too far from where I live. Is Vending more profitable typically?

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