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commission VS charity


premiervending
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It seems when you go the charity route, location just get to where they will let everyone and his brother in the location and then your profits are watered down,  And with commission you can cut down on the competition, but then you have to payout more.  Here is the question that I'm getting to: Has anyone ran the numbers to see how you come out?  I would rather give a little more(commission route) than to have to continue looking for better location because the place you are in gets flooded with other venders.  Where do the numbers fall?...anyone have insight?

Thank you,

Chris 

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  • 2 weeks later...

This is a very interesting thought. I am going with charities only because it is simpler. If you give commission at a good location that could easily be a sizeable chunk out of your profits. I have good locations that don't want commission.  

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I'll have to go with Joebob on this one. Charity seems to be the overall better route. Commision can really add up. There are some great locations to be had with charity that aren't flooded with machines.

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It all depends on what you are selling.  You won't get away with charity when you do racks with toys.  But giving commision is a big chunk out of you profits if you are doing candy. 

Simple dollar figures will show that charity is much cheaper than commision.  But having said that, commision machines may be easier to get you into a location, and provide a way for keeping the competition out.

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As a salesperson for many many years I have found that people will let you do your thing if the "CAUSE" is something they can buy in to...

I am new to this..BUt I decided that the Charity route was the way to go...BUT with a little twist...I noticed that all of the vendors here were using national charities...I decided to use the local town charity...A family who had a recent tragedy and I offered to give a donation to the cause.

The local business's have been very open to this.

I would suggest that you find a local charity that the people in your area will accept...

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  • 1 month later...

Chris,

I have run into the same frustration as you on the charity routes.  Having some 2200 machines, I have seen a couple of develepments lately (both positive and negative).  On the positive I'm seeing some vendors pull out because of high gas prices and leaving me in better position.  On the negative, I have other competition arising in with my charity accounts.  When this happens and it cuts my machine averages down, I try changing products (even different kinds of gum) to try to keep my averages good.  New machines don't always bring my averages down depending on what they go in with, but usually its a 15-25% knock.

I really believe in keeping yourself motivated, and one of things I tell myself is "there is never a shortage of accounts!"  The best way to compensate for more competition (if its too bad) is to go out and find other accounts.  Go to some of the non-traditional businesses instead of restaurants, hardware stores and the like.  You'll find some gems that compensate for the disappointing accounts that have fallen off.

I have also noticed if I want a good account like a new restaurant or the like that I will go in with a commission and multiple machines.  It seems to me in the marketing changes I've made in the last year businesses are much more receptive to a commission and my account longevity seems much better.  Volume often compensates for increased commission expense.  I don't think you should approach this business as an "either-or" decision of charity vs. commission.  It depends on what you can offer product and machine-wise.  I would rather pay 30% commission on $400 than 15% of $50. 

I've placed over 100 machines in the last year and am moving more to the commission side of marketing IF I feel the account warrants it.  Also, a great tip I use constantly is to spend money on things I need at PLACES I HAVE TARGETED FOR MACHINES.  When you flash the cash, ask to place a machine at the business.   I have consistently high results when doing this.

Best of luck to you!

Mark Evants

vendingarticles.net 

 

 

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I have found almost any place can be good provided:

1) It has at least minimal traffic

2) Several Employees

3) Seems a reasonably secure place for the machine

Understand my philosophy is not to hit a home run with every machine but to have multiple "bread and butter" accounts in mom and pop stores as well as higher traffic flow places. If I had only a few machines I would be more particular with the locations to be able to multiply profits to buy more machines.

Some of the places specifically might be lawn mower repair shops, tattoo shops, local newspaper office, utility offices, court houses etc. It seems lots of vendors frequent restaurants, parts and hardware stores, and locations with lots of kids. I find I have adults just as crazy about gumballs as the kids are. You just have to find them! You also have to be willing to place and remove low-producing machines.

Hope this helps,

Mark

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We went with a charity the locator suggested.

Which is fine...given everytime we approached the manager of a location, they would ask "What's in it for me?"  That's when we show they the charity info and they seem to be OK with that.

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