grocery stores

[SeaTurtle Vending]

Alright. My bulk machines are usually single or double heads. I am Vending nerds gum, 1" toys and balls. This is where my experience lies. However, I have come across a few major grocery stores that do not have any vendors in them. Locating is not really an issue with my single heads, but I have not tried going the route of a major rack.

In addition, all my machines are charity. What is the standard commission rate for these type of locations?

[Elite Vending]

I try to keep everything at 20% of gross sales, it seems to be a number that the locations accept without a counter offer. There is also a lot of good information in the locating section of The forum.

[Big Mike]

Not to be a downer but........ Most location without vending don't have any for one of two reasons. It isn't a good location which is highly unlikely in the instance or they don't allow it. That being said there isn't ant reason not to give it a shot. The biggest problem you will face is dipping your toe in the rack business is it is hard to do. You will face product rotation issues. When we made the switch we bought 10 NW racks and went for it. Commission rate will likely have to be in the 35% range.

 

Mike

[mjacks]

What are the demographics of the area?  Low income, middle, high?  White, Asian, Hispanic, black?  In my part of town at the nice grocery store the rack they have sitting by the entrance has no kids anywhere around it when I am watching but the locations I have in the lower income areas make a killing.

 

In my area 35% or better will be needed to keep you from being replaced.  Plenty of competition here.

[Tbuford]

I don't know about current times but 7-8 years ago if you wanted to compete for the chains you were having to pay 35%-42%.

[havending]

I try to keep everything at 20% of gross sales, it seems to be a number that the locations accept without a counter offer. There is also a lot of good information in the locating section of The forum.

20% on super markets ? Where state do you vend in?

I try to keep everything at 20% of gross sales, it seems to be a number that the locations accept without a counter offer. There is also a lot of good information in the locating section of The forum.

20% on super markets ? Where state do you vend in?

[SeaTurtle Vending]

Thanks everyone. The info is as I expected. I just wanted to double check.

[How2vend com]

25-30% in my area seems to be the norm.

 

 

I agree...you should not break the 25% standard commission rule. 25% of gross sales to product. 25% percent of gross to customer. 50% percent gross sales for take home and other operating expenses. 

[How2vend com]

Another note to take home with you. Is Once you get to 250 - 500 locations with bulk racks your 25% of gross for product purchase becomes a lot more powerful. Really the definition of "Bulk Vending". You will be able to quadruple the amount of product you get dollar for dollar because of the price breaks.

 

For instance a bulk route that grosses a $1000 dollars will be spending $250 bucks on product and a lot of that $250 bucks actually goes to shipping. Were as when you are grossing $10,000 a week your $2500 will purchase a whole pallet of product and in some circumstances "delivered" to your house or shop making a 2" item go from .20-.30 cents per item at $250 bucks and order to .9-.14 cents per item with a $2500 dollar item. 

 

Also note at these price breaks the "operator" can then begin to offer higher commission rates to locations because their product costs goes from 25% percent of gross to about 12% of gross.

 

 

The money is in highend locations that get a percentage of gross with lots of foot traffic. Not in small locations with a single machine for a charity. 

 

What would you rather have? A single or double bringing in $20-$80 dollars a month or 1 bulk rack the brings in $2,3,4,5,600 dollars a cycle?

 

Hop in the "commission" game. It is far more rewarding than charity vending any way you look at it. 

[Action Vending]

Another note to take home with you. Is Once you get to 250 - 500 locations with bulk racks your 25% of gross for product purchase becomes a lot more powerful. Really the definition of "Bulk Vending". You will be able to quadruple the amount of product you get dollar for dollar because of the price breaks.

 

For instance a bulk route that grosses a $1000 dollars will be spending $250 bucks on product and a lot of that $250 bucks actually goes to shipping. Were as when you are grossing $10,000 a week your $2500 will purchase a whole pallet of product and in some circumstances "delivered" to your house or shop making a 2" item go from .20-.30 cents per item at $250 bucks and order to .9-.14 cents per item with a $2500 dollar item. 

 

Also note at these price breaks the "operator" can then begin to offer higher commission rates to locations because their product costs goes from 25% percent of gross to about 12% of gross.

 

 

The money is in highend locations that get a percentage of gross with lots of foot traffic. Not in small locations with a single machine for a charity. 

 

What would you rather have? A single or double bringing in $20-$80 dollars a month or 1 bulk rack the brings in $2,3,4,5,600 dollars a cycle?

 

Hop in the "commission" game. It is far more rewarding than charity vending any way you look at it. 

Ya but you also have alot more riding on that spot. When that spot closes or another operator takes it you are screwed. 

I like both racks and singles and doubles. the old 20 -80 rule. 20% of your locations will be 80% of your income. 

A good mix is important IMHO. 

[How2vend com]

Ya but you also have alot more riding on that spot. When that spot closes or another operator takes it you are screwed. 

I like both racks and singles and doubles. the old 20 -80 rule. 20% of your locations will be 80% of your income. 

A good mix is important IMHO. 

 

I get what you are saying and the 80-20 rule does apply. Locating is a constant process for any vending machine operator and everything is constantly riding on that. Nothing new to me. Because I locate my own equipment i fear nothing. once an area is shared by an equal competitor they generally get tired of swapping locations and begin to leave me alone. They take one of mine. I take two of theirs. They quickly get tired of screwing with me

[SeaTurtle Vending]

Any food product i sell will always be charity sponsored regardless if I pay a commission on it or not. In FL. charity sponsored sales for $.25 or less on food is tax free. The $$ spent on charity does not even come close to the money saved from the sales taxes.

 

fyi- gum and candy are considered food.

[How2vend com]

Any food product i sell will always be charity sponsored regardless if I pay a commission on it or not. In FL. charity sponsored sales for $.25 or less on food is tax free. The $$ spent on charity does not even come close to the money saved from the sales taxes.

 

fyi- gum and candy are considered food.

I love Florida. My parents second home is in Clearwater. Love that place.

[SeaTurtle Vending]

Ditto about Clearwater. The drive is not too long and the beach there is beautiful.

 

At the moment I am staying away from doing racks. With my full time job and young kids I am having a hard enough time keeping up with what I have. When my wife gets out of school and starts working, I am looking into quitting teaching and move into the vending full time. That is when I will start bringing racks/cranes into my line up.