nubianqueen Posted June 17, 2013 Posted June 17, 2013 I have about 40 bulk machines, all charity base. I have 1 location that agree to allow us in on charity but then decided to charge commission when they saw the machine is doing well. It is a very good location, considering it's bulk vending. They have other machines in there, a rack (6heads) and one of those large bubble gum machine. The owner said everyone loves and uses only my machine because of the variety and how appealing it is. I am not at the stage where I can afford to pay charity but I'm trying to weigh my options. They are asking 25% from the machine. Whatever I take out they want 25%, doesn't matter. Is this the going rate? The machine at this location is a u-turn 8 select (which I love)! Again, I have about 40 machines all charity base and doing well. This is the one that wants a piece of my pie. Is it worth it to pay the commission or should I just relocate the machine? To give you an idea how much the machine does, it did about $30+ in 22 days. Items I vend within the machine, at this location. M&M Peanuts Mikes Hot Tamales Bubble Gum 1'' Skittles (goes really fast) Reese's Bouncing 1'' Balls
dkochan Posted June 17, 2013 Posted June 17, 2013 Pay the 25% commission and keep your machine where it's earning money Sent from my HTCEVODesign4G using Tapatalk 2
SeaTurtle Vending Posted June 17, 2013 Posted June 17, 2013 you are pretty much breaking even in the p.m., but the rest are high profit. Pay the commission and stay. You might also try and get the others kicked since yours gets the most attention.
adog Posted June 17, 2013 Posted June 17, 2013 How can't you afford to pay commission? It's easy and in al honesty that is dirt cheap!!! Your lucky they choose such a lower commission percentage. However with candy yu can't pay much more unless your just doing gumballs and runts.
massalonvending Posted June 17, 2013 Posted June 17, 2013 He's letting you have a rack for 25%? Take it.
nubianqueen Posted June 17, 2013 Author Posted June 17, 2013 He's letting you have a rack for 25%? Take it. I made no mention of someone giving me a rack. I stated they have a rack within the same location I am in.
VendingExperts Posted June 17, 2013 Posted June 17, 2013 He's letting you have a rack for 25%? Take it. I think he's saying you are making money off 8 heads, call it a rack if you'd like to see it that way!Thank him for offering you such a wonderful opportunity, pay 25%, and call it good!
nubianqueen Posted June 17, 2013 Author Posted June 17, 2013 I think he's saying you are making money off 8 heads, call it a rack if you'd like to see it that way! Thank him for offering you such a wonderful opportunity, pay 25%, and call it good! Thanks for clarifying.
mjacks Posted June 17, 2013 Posted June 17, 2013 This is the one that wants a piece of my pie. Is it worth it to pay the commission or should I just relocate the machine? Don't forget who provides the oven for your pie. I wish I could get away with only 25% Maybe that owner will let you take over the rest of the space since you are doing the best job. Or you could walk away from an opportunity for more. Just saying...
nubianqueen Posted June 17, 2013 Author Posted June 17, 2013 Don't forget who provides the oven for your pie. I wish I could get away with only 25% Maybe that owner will let you take over the rest of the space since you are doing the best job. Or you could walk away from an opportunity for more. Just saying... If they ever ask for 50% I will not hesitate to relocate.
VendingExperts Posted June 17, 2013 Posted June 17, 2013 If they ever ask for 50% I will not hesitate to relocate.Before I would pull it, I'd give a proposition that a greedy person would quickly take when they see "$"!That's when you tell them that you will lease them the machine for $50/month and they can keep 100%! If they are greedy enough to want 50% they would jump at a situation to keep all the money.
VendingExperts Posted June 17, 2013 Posted June 17, 2013 Make it a one year contract! Therefore by the time that they realize it wasn't a better scenario, you have made $600. Loose a location, gain 6 new machines! I'm not about trying to take somebody, but in that situation, and hey they might be happy and who knows how long they would lease the machine from you. I've often thought about a business plan of leasing gumball machines to the business owner for $20-$50/month and letting them control it, ie filling it and collecting their money. A "route" with 100+ leased machines becomes a picture perfect idea!
Cloudedjourney Posted June 18, 2013 Posted June 18, 2013 Haha I feel like you would have to be a pretty bad businessman to lease a 50-200 dollar gum ball machine for 50 bucks a month :-)
VendingExperts Posted June 18, 2013 Posted June 18, 2013 Haha I feel like you would have to be a pretty bad businessman to lease a 50-200 dollar gum ball machine for 50 bucks a month :-)I was farting into the wind!But you get my point. Numbers were examples.
nubianqueen Posted June 25, 2013 Author Posted June 25, 2013 Update, location made $102.50 after 9 weeks. Since it's commission base (25%); I am now vending the following: . M&M Peanuts Mike & Ikes Bubble Gum Skittles Bouncing Balls Chicles Gum Cry Baby Tears Runts
sherlock Posted June 25, 2013 Posted June 25, 2013 I have about 40 bulk machines, all charity base. I have 1 location that agree to allow us in on charity but then decided to charge commission when they saw the machine is doing well. It is a very good location, considering it's bulk vending. They are asking 25% from the machine. Whatever I take out they want 25%, doesn't matter. Is this the going rate? The machine at this location is a u-turn 8 select (which I love)! To give you an idea how much the machine does, it did about $30+ in 22 days. To be honest, $30 in 22 days for 8-selections, is not "very good". That equals only approx $40 per month, which is $5 per selection. This tells me the location is pretty slow given that the owner claims your machine is the one being used the most. The $40 monthly for 8 selections may be ok for a charity spot. But, it would be lousy for a 25% commission stop. Make no mistake, the 25% commission the owner is requesting is very fair and falls within the industry standards. But, this location is not worth 8 selections at those earnings if taking 25% off the top....the location is hardly worth 8 selections for charity.
nubianqueen Posted June 25, 2013 Author Posted June 25, 2013 To be honest, $30 in 22 days for 8-selections, is not "very good". That equals only approx $40 per month, which is $5 per selection. This tells me the location is pretty slow given that the owner claims your machine is the one being used the most. The $40 monthly for 8 selections may be ok for a charity spot. But, it would be lousy for a 25% commission stop. Make no mistake, the 25% commission the owner is requesting is very fair and falls within the industry standards. But, this location is not worth 8 selections at those earnings if taking 25% off the top....the location is hardly worth 8 selections for charity. Okay so what should I be bringing in for a commission location on a bulk? This is my 1st commission location. Please school me on commission, I have always dealt with charity so my knowledge is slim. Also he will only get the 25% when I service the machine, so If I service it every 6 weeks that will be when he gets it. every 10 weeks, it will be when he gets it and so on...
VendingExperts Posted June 25, 2013 Posted June 25, 2013 I forgot that it was 8 heads. I just took $102.50 and came up with $49.35 for a month gross and $37.01 net after commission, which I thought was pretty good. However that would be good for a double or triple. I'm not familiar with Uturn's. Could you weed the machine down to your best 4 products and take off the top tier, making it a 4way? That's probably what I would try before ditching the location.
Makes Cents Posted June 25, 2013 Posted June 25, 2013 I would find a new good charity location for this machine then pull it. At the revenue its making its not even worth it to break out the scale and count out their commission.
orsd Posted June 25, 2013 Posted June 25, 2013 Get a triple or 4 way rack and put toys and or the best candies and a gum
nubianqueen Posted June 27, 2013 Author Posted June 27, 2013 I forgot that it was 8 heads. I just took $102.50 and came up with $49.35 for a month gross and $37.01 net after commission, which I thought was pretty good. However that would be good for a double or triple. I'm not familiar with Uturn's. Could you weed the machine down to your best 4 products and take off the top tier, making it a 4way? That's probably what I would try before ditching the location. $102.50 I made without any any commission taken out. I ask him if we could do the commission thing going forward and he agreed. I will keep you guys updated on my next vend, which will then be commission.
havending Posted June 27, 2013 Posted June 27, 2013 I think he was saying that you are not earning enough to keep the 8 select there. You may want to go to a four. If the 25.% keeps you there don't change it.
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