High comission

[PerformaVending]

I went locating the other day before work, and decided to stop into one of the numerous technical colleges in the area. After obtaining an audience with the building administrator, he gave me a contract, and we began discussing what that would entail for each of us. I was thinking doubles or triples in some of the common areas that already had vendors (full line) that seemed to do well. Then, the kicker: 70% for them, 30% for me. I thanked him for his time and left. I've had guys ask for money up front, and some unreasonable offers, but 70%? I'm curious as to how the current vendors stay afloat!

So, to the point my fellow vendors, what is the highest commission split, or most unreasonable offer you've ever been given?

[treadmill]

The most I will go is 30% to location. They were trying to turn the tables on you.

[antoniocinisi]

are you sure you understood them right?

I had a guy wanting 50/50 on a rack once.I told I couldn`t do it.he told me to think about it.needless to say I put a lot of thought into it...not

[jj54]

JUST A THOUGHT, DO IT ON NET! BUT NOT 70%

[havending]

40% is my max. But I have a a few here and there where I pay 50% mostly just to keep another guy out.

Dont get caught up in a max % its best to try and get them low but if you need to move up on some here and there do it just so your yearly adv over all is a number you can live with.

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But 70% is crazy be it net or gross

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[PerformaVending]

are you sure you understood them right?

I went back to them today, and asked a different guy (building maintenance head) about this. The more I thought about it, the more I agreed with Antonio- I must have understood them wrong, or the first guy might have missed something, or gotten it all wrong and thought I was vending something else entirely. I'm not really sure, but I assumed it must have been a mistake with one of us. However, this guy reiterated that vendors pay the college 70% of their net. He explained that it was a "better deal" than for the college to charge vendors fees to clean up wrappers from the campus. I don't know what to say to logic like this. The best part for me though- they teach business AND accounting at this school. Last I heard it didn't cost much to clean up skittles! So, this location is a definite no! Thanks for sharing everyone!

[JimmyT]

So I was talking to my cousin yesterday who used to own a laundromat. When they moved in, there was already a vendor there with a rack 6 way. My cousin told me every month the vendor would empty out the machines, put all coins in their coin counter and split it 50/50 with my cousin.

I was like...What????? That is a 50% gross commission. That kind of blew my mind because if gross comission is 50%, 30% is product cost, then there is only 20% left to pay yourself.

I think that rack grossed $400 every month. So 20% x $400 = $80 per month.

What do you guys think? Would you do it?

I can't imagine 70% gross commission.....You'd get paid what, 5-10%

[PerformaVending]

So I was talking to my cousin yesterday who used to own a laundromat. When they moved in, there was already a vendor there with a rack 6 way. My cousin told me every month the vendor would empty out the machines, put all coins in their coin counter and split it 50/50 with my cousin.

I was like...What? ? That is a 50% gross commission. That kind of blew my mind because if gross comission is 50%, 30% is product cost, then there is only 20% left to pay yourself.

I think that rack grossed $400 every month. So 20% x $400 = $80 per month.

What do you guys think? Would you do it?

I can't imagine 70% gross commission.....You'd get paid what, 5-10%

I have a couple machines that work this way. These can be done, but your profits need to be high enough to warrant it. Better still if you have a lot of machines to off-put the deficit.