Brich1906 Posted January 27, 2013 Share Posted January 27, 2013 Hello guys... I'm new to this but I need a little help. just wanted to get advice or your opinion on what I should do. I have about 250 lollipop boxes out right now. I want to get 750 out total and maybe even 1000. I know it seems like a lot but I'm in a untapped market and I see the profit in these boxes. After all, it's a numbers game. The question that I have is recently I talked to a locator about my plan of getting up to 750 to 1000 boxes. He's willing to help me grow my territory and this is what he's charging. 20 dollars to locate a box. I have to pay for his place to stay while he is here. I have to give him an allowance for gas. I think that's pretty good but let me know what u think guys. Is 20 bucks fair? Now the second part of the deal is slightly different. When I continue to grow and get at least 500 boxes out, he wants to take 30% of what I make from the boxes weekly minus expenses. So it would kind of be like commission to him. He stated that some locaters just put out boxes anywhere and just be done with it. He saying that this way, you know that you will get good locations because its commission. It makes he locator work better for you. My expenses would include, candy cost, monthly cost for stickers, and gas allowance for him. So say I made 1300 in 1 week and expenses were 300. I would get 700 and he would get 300. As we grow, we would both make more money. It would basically be like a partnership. When I talked to the guy on the phone, I had to think about it. I'm actually still thinking about it. Don't really know what to do. I would appreciate it if you guys that's been in the business for a while give me your honest opinion. Thanks Link to comment Share on other sites More sharing options...
Toad Posted January 27, 2013 Share Posted January 27, 2013 No residual commission for a locator and locating fees! It is a numbers game, but I would rather have 20 $1000 locations than 1000 $20locations. This reminds me of somebody spinning plates on sticks, you might be able to keep up with 1000 for a while, but your gonna end up with a lot of "broken plates" on the floor Link to comment Share on other sites More sharing options...
Brich1906 Posted January 27, 2013 Author Share Posted January 27, 2013 @GBOkc. So you don't think the commission idea is good to do? I totally understand the concept of 20, 1000 dollar locations but were talking about lollipops here. The locater has a partner so I really wouldn't be doing much. They would be locating and servicing the boxes. They would bring the boxes back to the office and we would count the money together. Link to comment Share on other sites More sharing options...
treadmill Posted January 27, 2013 Share Posted January 27, 2013 Personally I think this deal is a bad one all the way around. Run away from this as far as possible. He's charging you for this and charging you for that. This guy is scum. My advice to you is buy the boxes and the suckers and place them yourself. They are very easy to locate. Start out say with maybe 100 boxes and place those. They should take maybe 5 days to place them. Then rinse and repeat. I have mint honor boxes and my locator charges me 22.50 per box placed. I do not pay any extra nor I pay him commission. Any other questions feel free to drop me a PM. Link to comment Share on other sites More sharing options...
dogcow Posted January 27, 2013 Share Posted January 27, 2013 im sort of confused by the specifics. so he wants $20 per box plus 30% on the back end? i would take any deal where the locator would do it based on back end money % but not if it included an up front fee. that is to say if hes willing to place the boxes and take 30% and thats all he gets, i would take that deal in a second,that means the locator has to really produce or hes wasted his time. ive never heard of a locator working like that tbh most will just try to slam equipment anywhere they can to get their fees. if he gets all his money on the back end worst case scenario he doesnt produce, he doesnt make anything you have no risk, i offered my sales guy this deal, $30 per appt or 2 months net from the location he took the $30 always, now im working on a deal with a bowling alley if he took the back end money that would have been a lot of money for him Link to comment Share on other sites More sharing options...
Brich1906 Posted January 27, 2013 Author Share Posted January 27, 2013 @Treadmeal.. Out of 250 boxes, I haven't put out one box.. My locator put them out. but now he has a partner. Not really sure what to say to get them out. It's gonna take me longer to grow because I have a full time job.. So i really dont have the most of time. On the positive side, they will be doing everything.. Assembling the boxes, putting the suckers in them, and locating them. All I have to do is buy everything. He said it would take him a little under 2 weeks to complete the job. @dogcow. Once we get to 500 boxes, he wants to start the 30% deal. Starting out, there gonna place 250 boxes and were gonna get the feel of each other and see if we can work together. Once they get the 250 boxes out and we have 500 then I can decide if I wanna keep working with them or not. So your saying that you wouldn't pay the 20$ to locate and the gas. You would just make the deal with 30% across the board? How would you approach him and pitch that? What would you say it offer him? Link to comment Share on other sites More sharing options...
treadmill Posted January 27, 2013 Share Posted January 27, 2013 I think he gouging you there are other locators that will do just as good but I can't see paying him $20 location plus gas plus hotel. For example if he locates 500 boxes that's $10000 locating fees plus gas and hotel. As far as I am concerned he can pay for that himself just give him a 25% deposit to cover his expenses and then give balance on completion of location. By the way what kind of gross are you averaging? Net? Cogs? Link to comment Share on other sites More sharing options...
treadmill Posted January 27, 2013 Share Posted January 27, 2013 More keep coming up. Too many red flags in my opinion. Where did you find this locator? How well do you this guy? I just wouldn't go into a partnership with just anybody. This is your business not his and by the way locations are hit and miss in this business. I've been in this business since 1995 and I haven't seen a guaranteed goog location yet. I guess what I am trying to say here is slow down and ask many more ?? and sit down and think about it more before you make a possible wrong financial decision. If you want to talk about this more drop me a PM with your phone number and I will call you to discuss further. Link to comment Share on other sites More sharing options...
newheart53 Posted January 27, 2013 Share Posted January 27, 2013 Words from a song comes to mind " DON"T TOUCH THAT" Link to comment Share on other sites More sharing options...
dogcow Posted January 27, 2013 Share Posted January 27, 2013 So your saying that you wouldn't pay the 20$ to locate and the gas. You would just make the deal with 30% across the board? How would you approach him and pitch that? What would you say it offer him? i would say look lets make this a partnership i will stake you 30% to do all the sales work, so you're getting a piece of the business effectively free. if you dont feel your locations are gonna produce then obviously im not gonna pay you up front for them, if you believe in your work its the deal of a life time. good sales person is worth their weight in gold especially if you are not . $20 a location plus hotel is fairly common for in-person honor box locators, ive never had one ask me for gas but asking for a hotel per-diem is not unheard of. I think he gouging you there are other locators that will do just as good but I can't see paying him $20 location plus gas plus hotel. For example if he locates 500 boxes that's $10000 locating fees plus gas and hotel. As far as I am concerned he can pay for that himself just give him a 25% deposit to cover his expenses and then give balance on completion of location. By the way what kind of gross are you averaging? Net? Cogs? i dont know i have talked quite a few in person locators $20 per loc is about right for honor boxes, some will cut a deal down to $10 on a big volume order like that about 1/3 of the locators i talked to ask for a hotel per diem the others dont, nobody ever asked me for gas money that is weird. Link to comment Share on other sites More sharing options...
Brich1906 Posted January 27, 2013 Author Share Posted January 27, 2013 ok. thanks guys. you guys are profesionals and You guys have helped out alot. @treadmill, I sent you a message with my number. Please call me when you get some free time. I would love to talk to ya in person. Thanks My first 44 boxes that checked, my average was about $12.27. thats after i took the price of the suckers out. My 2nd service, I serviced 58 boxes and my average was $13.92. I've had 2 boxes stolen and prolly 15 or so locations that wanted me to take them out. So I have about 230 or so boxes out now. Link to comment Share on other sites More sharing options...
bulkjake Posted January 29, 2013 Share Posted January 29, 2013 Too many 'Junk Fees'. Here is what I would do: 1) Place an ad on Craigslist under the Sales Jobs section. Hire a Sales Rock Star - someone local in your market. 2) Interview and hire the best person for the task. Someone with sales experience and who can give you 100% effort. No 'I have a full time job and looking for extra money...' 3) Pay this person $12 - $15 MAX to place boxes. I pay $15 for my locators to locate 1-800 triples. No residual. That is not a good deal... 4) Issue this person a 10-99 on your taxes (if you want) and have them fill out an independent contractor agreement with non compete clauses ex... Hiring your own locator and not using a company or service gives you full control over what types of locations you want, pay structure, locations that you don't want, as well as customized scripts and training that you will provide. I spend about 1-4 hours training my locators over the phone and give them my 'training manual' with scripts...ex. It is required that they go over these materials before going out into the field to locate. I also do optional role playing over the phone with them to turn them into locating monsters. Some of these things I do are optional, some are not. Pick and choose what you are comfortable with and crush it. Link to comment Share on other sites More sharing options...
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