CajunCandy Posted October 18, 2013 Share Posted October 18, 2013 I think it is a dirty word in vending! Ranting! mike I didn't know were all RICH and can give money away. still RANTING! Thanks I needed that! Link to comment Share on other sites More sharing options...
Amigo Posted October 18, 2013 Share Posted October 18, 2013 It's not that bad...most places get 5% of the net. You deduct any waste you have and the taxes and call it a day. After all the location has to pay for electricity and a soda machine costs about $15 or $20 a month to run. It is better than sitting in your warehouse. Link to comment Share on other sites More sharing options...
snack dude Posted October 18, 2013 Share Posted October 18, 2013 It's not that bad...most places get 5% of the net. You deduct any waste you have and the taxes and call it a day. After all the location has to pay for electricity and a soda machine costs about $15 or $20 a month to run. It is better than sitting in your warehouse. I have one account out of 48 that I pay a kickback on. I inherited it that way when we first started out. Calling it a commission makes it sound professional and its not, IMO. A kickback is what it really is. So Amigo when a tradesman comes to your house to lets say put in a new roof and needs to plug an extension cord into your outlet do you expect to get 5% of his net? ( I doubt it) I just close on an account Wednesday. 12 floor office building with a hugh break room on the 6th floor 500 to 600 employees no kickback. Because when i told them that other vending companies they were talking to were going to show up and promise them outrageous numbers and that the vending company making such promises were still going to make their full profit and that their employees would be the ones paying the kickback. The head of the committee that I was meeting with said that it has already happened and that they made their decision and gave us the account. So if you have been counting along thats account #49 ( wasnt that a joe walsh song when he was with the James Gang) with one kickback. One of my other aces i play when this subject comes up is " They have to offer you a commission because thats the only way they can get new accounts and hang on to the old ones" Think about it, if you are a great vending service and coffe company with a good reputation then why do you have to walk thru my door and offer to bribe me right up front. Who are you, the mob? Just keep right on RANTING Cajun I am with you on this one. Link to comment Share on other sites More sharing options...
mission vending Posted October 19, 2013 Share Posted October 19, 2013 I'm happy to pay commissions in the locations that warrant it. If it wasn't for having to sign checks totaling well over $20,000.00 a year to one location I wouldn't have the privilege of keeping the rest of it. :-) Link to comment Share on other sites More sharing options...
AngryChris Posted October 19, 2013 Share Posted October 19, 2013 I'm happy to pay commissions in the locations that warrant it. If it wasn't for having to sign checks totaling well over $20,000.00 a year to one location I wouldn't have the privilege of keeping the rest of it. :-) The fact is that some accounts want that commission for whatever reason. If you don't give it to them, someone else will. Link to comment Share on other sites More sharing options...
snack dude Posted October 20, 2013 Share Posted October 20, 2013 Fine by me.......whatever floats your boat. Link to comment Share on other sites More sharing options...
QualitySelectionsJ Posted October 21, 2013 Share Posted October 21, 2013 It's not that bad...most places get 5% of the net. You deduct any waste you have and the taxes and call it a day. After all the location has to pay for electricity and a soda machine costs about $15 or $20 a month to run. It is better than sitting in your warehouse. From what my technician says, Beverage machines may consume around $5 a month considering the door is only opened on service dates (machine maintains its temperature efficiently). Average commissions down here are 15%; and we do provide a good, free service to our locations, something they should appreciate. Link to comment Share on other sites More sharing options...
jerry1973 Posted October 21, 2013 Share Posted October 21, 2013 I feel like its justified IF its a solid performing account AND the sales are not strictly from their own employees. If an establishment collects a commission/kickback and its them and their fellow employees who are using the service, then there is really no point, because prices will just be raised to compensate therefore they are paying their own commissions. If however its equipment that gets used by the public and its a solid performer, I can see how they would want a share. Just my opinion, and regardless if its a good account and I want it, I won't let a small commission get in the way. Link to comment Share on other sites More sharing options...
CajunCandy Posted October 22, 2013 Author Share Posted October 22, 2013 My rant explained. After a year and half of good service to one of my first locations full line, the owner calls me into his office and says he wants commission from machines. I replied when I offered to pay you $25 a month for the cold drink machine for the electricity it burnt you declined. All along I gave him drinks, chips, and bottles of water every time i would service machines there. His altitude changed recently for no reason to everybody? Come to find out his wife left him for what ever reason and now he wants me come across with money because he is hurting financially, I tried to explain to him about me having to go up on prices in machine to make up the difference in my lost. The machines is not raking in big dollars, not like he thinks between $350 and $400 a month gross. I never did tell him what I gross and it is none of his business. If it gets any worse than this I will just pull my machines and move on. As jerry173 said it is mostly the employees that uses machines because the stores is to far. mike Link to comment Share on other sites More sharing options...
AngryChris Posted October 22, 2013 Share Posted October 22, 2013 I understand what you guys are saying. I agree that it would be BETTER for the employees (and us, the operators) if we didn't have to pay commissions. Prices would be lower for the consumer and sales volumes would be higher for the operator. However, some people are greedy. The question is, when is it unreasonable? If a location has 30 employees and they want a 10% commission from the GROSS, then that is COMPLETELY unreasonable (unless this location is a HOT factory with NO air conditioning, NO refrigerators, NO convenience stores nearby, and LONG hours). But... if it is a good account... the next question is do you forgo the opportunity to make a profit while the other guy takes that profit or not? If it is profitable, I will take the deal. Link to comment Share on other sites More sharing options...
TKK Posted October 22, 2013 Share Posted October 22, 2013 I pay comission to only 2 of my 14 locations. I show them a chart and offer 10-15% but depending in gross 0-200 a month 0% 200-500 a month 10% 500+ 15% They never ask about it again. Sometimes I tell them its just not making alot and a comission would greatly cut into any of my profits. I hate it yes. Theres one company I pay 5-600 a month but the guy before me was paying 1100 a month so im ok w it Link to comment Share on other sites More sharing options...
jerry1973 Posted October 22, 2013 Share Posted October 22, 2013 Everyone has their own set of variables that are a little different. Basically you have to make a profit or you are wasting your time and money. The minimum amount of profit you are willing to accept after your time, effort and equipment investment is a decision that only you can answer for yourself. Its totally unreasonable in my mind that the location should pocket the majority of the profit when they have used and enjoyed the service and have put zero labor in and don't have a penny invested. Link to comment Share on other sites More sharing options...
snack dude Posted October 23, 2013 Share Posted October 23, 2013 If you want to charge me $50 dollars rent I am ok with that. One other thing, " Mission if you are paying someone $20,000.00 a year for kickbacks I am in AWE and not worthy" Link to comment Share on other sites More sharing options...
abcoffee Posted October 23, 2013 Share Posted October 23, 2013 It's kinda funny... it's usally the large accounts that demand fresh food that also want a payout.... When I got in this business I started right off the bat with brand new equipment and was supplying fresh food to my first big account.... 7 years later I only buy used equipment, currently don't offer food, and don't give a comission to anyone. I do try to meet them in the middle. I do things like providing them with a double door cooler for free, or for one account I set them up with 2 water filter bars at no charge.. I only have 300-400 dollars in them and they are long paid for , plus filter cost is only about $130 a year for 2 machines... this is a large factory and well worth the free equipment to save them money.... At a new account I have started offering the money after cost of supplys in the coffee machine ( products are marked up the same as if the company was buying coffee to provide to the clients ... at least a 100% markup ) but as far as pop and snack I won't offer comissions. Before our family stated an OCS and Vending business 7 years ago , we were in a Landscaping business for 25 years.... I found that the clients that tryed to squeeze the most out of you for price were the same clients that complained the most... So basically those who want the cheap price also want the world from you as well. When I started in that business I catered to those clients fearing that I would not have enough money to survive, I later learned a great truth from a very sucessful landscaper, GO AFTER THE CLEINTS THAT DON'T CARE WHAT IT COSTS... THEY JUST WANT A GOOD JOB" I was shocked when I started to " OVERBID " jobs, just how many jobs I got.... and many of these clients never even questioned my high price. Any person that would say " im on a budget" or " what's you best price" would end up getting refered to any of the guys that were undercutting me on jobs. That same landscaper taught me to flood the other guys with the garbage jobs and keep the great ones. I did the math and realised that I could do half the work of the other cheap landscapers and in the end make more after expenses. What I'm trying to get at here is I agree totally with the others that say that it is something you have to do if you want to get certian jobs... that is very true! But I don't want every job! I live in a city of 30,000 and there are factorys here that are over 800 workers... but I don't want them because they want fresh food and a 20% comission of total sales... there are smaller accounts that I can service with 80-200 workers that don't ask for a comission or fresh food. I try to get all the great jobs and send the other jobs to the guys who will do anything to get the account. If a machine goes down at one of my accounts i'm usually there in less than 30 mins.. no later than 1 hour... my vending clients LOVE that..... and I should not have to pay the company ANYTHING for my great service.... perhaps I should ask a comission from them...... lol I often thought it would be fun to get all the vendors that service my city to sit down for coffee and all agree to dump comissions at the same time.... nice idea and one that would help every vendor... but strangely I doubt the other guys would go for it.... sad really! Ok my rant is over!!! Link to comment Share on other sites More sharing options...
AZVendor Posted October 23, 2013 Share Posted October 23, 2013 What I'm trying to get at here is I agree totally with the others that say that it is something you have to do if you want to get certian jobs... that is very true! But I don't want every job! I live in a city of 30,000 and there are factorys here that are over 800 workers... but I don't want them because they want fresh food and a 20% comission of total sales... there are smaller accounts that I can service with 80-200 workers that don't ask for a comission or fresh food. I try to get all the great jobs and send the other jobs to the guys who will do anything to get the account. This is what is great about this business. The locations one vendor doesn't want or won't take are locations another vendor will take. There is plenty of business to go around. I often thought it would be fun to get all the vendors that service my city to sit down for coffee and all agree to dump comissions at the same time.... nice idea and one that would help every vendor... but strangely I doubt the other guys would go for it.... sad really! Here in the US that is considered Collusion and is illegal - and also a sure waste of time as you already deduced. In the same vein, getting together with your competition to set standard pricing for products among several vendors is called Price Fixing here in the US. Link to comment Share on other sites More sharing options...
abcoffee Posted October 23, 2013 Share Posted October 23, 2013 It makes one wonder if it would be actually illegal... since you are not changing or setting a price standard... rathar you are choosing not to pay someone money.... But like I said before... it's a waste of time... there's allways that "one" I do think however, that in time we may see less and less companys offering comissions... mainly due to rising prices with products and much higher equipment costs, fuel etc... I know of a few very large national vendors that will not give a comission, perhaps in time as things get tighter and more and more pressure is applyed to the vending industry. fewer will choose to offer them. Link to comment Share on other sites More sharing options...
mission vending Posted October 23, 2013 Share Posted October 23, 2013 One other thing, " Mission if you are paying someone $20,000.00 a year for kickbacks I am in AWE and not worthy" No reason to be awestruck, I was very lucky landing this whale and having it does not make me better than you or that my opinions carry more weight than yours. I will add that it has been quite a experience to learn how to service this account, it takes 22-25 hours a week just being on the property and servicing the machines. During the summer it was 20-25 cases of water, A DAY, then add sodas, snacks and keeping 2 frozen machines going. well lets just say I've learned how to scale up the logistics supply chain. Link to comment Share on other sites More sharing options...
TKK Posted October 23, 2013 Share Posted October 23, 2013 Damn thats a crazy account. How many machines do u have there? And what kind of location? Im sure it makes atleast 10k a month Link to comment Share on other sites More sharing options...
mission vending Posted October 24, 2013 Share Posted October 24, 2013 10 machines, tourism industry related, busy season does 10K+ a week. 7X a week service, best single day ever 1632.00 Link to comment Share on other sites More sharing options...
AngryChris Posted October 24, 2013 Share Posted October 24, 2013 When I was just a route driver, I was responsible for an account that did over $2,000/week during the busy season. My employer got upset because it took me about 4 hours to restock over $2,000 in revenue. Wait.. you are upset about what? Link to comment Share on other sites More sharing options...
CajunCandy Posted October 24, 2013 Author Share Posted October 24, 2013 10 machines, tourism industry related, busy season does 10K+ a week. 7X a week service, best single day ever 1632.00 WoW! is all I can say! Link to comment Share on other sites More sharing options...
AngryChris Posted October 24, 2013 Share Posted October 24, 2013 Oops, I meant this account did $2,000 in a DAY during the busy season, and my employer got upset that it took 4 hoursto restock that $2,000 in revenue. Link to comment Share on other sites More sharing options...
TKK Posted October 24, 2013 Share Posted October 24, 2013 Thats crazy im guessing a theme park like Disney or six flaggs etc. Ive seen their cans at $3.50!! Mission so you can never have a day off hu? I like working only twice a week Link to comment Share on other sites More sharing options...
mission vending Posted October 24, 2013 Share Posted October 24, 2013 Thats crazy im guessing a theme park like Disney or six flaggs etc. Ive seen their cans at $3.50!! Mission so you can never have a day off hu? I like working only twice a week I guess you missed it, I mentioned a few months back that I merged/sold my business to some friends that I helped get started over 10 years ago and am staying on to run it. With 4 full-time guys I now get more time off than I have had in years. Enough time to seriously look at a run for city council next year. Link to comment Share on other sites More sharing options...
CajunCandy Posted October 24, 2013 Author Share Posted October 24, 2013 I guess you missed it, I mentioned a few months back that I merged/sold my business to some friends that I helped get started over 10 years ago and am staying on to run it. With 4 full-time guys I now get more time off than I have had in years. Enough time to seriously look at a run for city council next year. Mission for President! Link to comment Share on other sites More sharing options...
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