vending0818 Posted October 25, 2013 Share Posted October 25, 2013 Hi, I have been in the vending business for quite some time. Mostly in the retail stores. I have been giving the oppurtunity to place my vending machines in a hotel in Times square NYC. the hotel has 800 rooms and is 94% occupied at all times. On a average there are about 1000 guest staying in hotel a night. i just signed the contract and am placing 40 machines 20 snacks 20 beverage next week. Every other floor will have vending machines. my question is how do i figure what my gross revenue from this account will be Thanks in advance. Link to comment Share on other sites More sharing options...
AZVendor Posted October 25, 2013 Share Posted October 25, 2013 Well you can start with asking the hotel for the revenue or commission reports from the previous vendor so you can get a ballpark figure. Based on what that vendors prices were and the commission rate difference, if any, you will have a good idea of the sales. If you plan on paying an honest commission and you know what the old vendor's rate was, you should be able to determine if he was paying honestly or not. You may find that your honest commission to the hotel is higher than his "honest" commission making you look good. I'll tell you though, with a 94% occupancy rate and 1000 guests per night, you should have strong sales. Plan on it taking you a couple of months to understand the idiosyncracies of this account - you will probably always have some floors with stronger sales than others. You also need to know in advance of busy times where the hotel is fully booked and other times of low bookings so you can adjust your service accordingly. I do hope you plan on appropriate security measures on each machine. Hotels are notorious for vandalism and break-ins. Link to comment Share on other sites More sharing options...
vending0818 Posted October 26, 2013 Author Share Posted October 26, 2013 Better question would be. Is there a formula that we should go by to figure out approx sales of each machine Link to comment Share on other sites More sharing options...
mission vending Posted October 26, 2013 Share Posted October 26, 2013 I have had only one multi story hotel and I found that for whatever reason the higher you went the lower the sales and the higher the vandalism. Look at putting some sundry items in the snack machine, no expiration date problems and very good margins. Link to comment Share on other sites More sharing options...
AZVendor Posted October 26, 2013 Share Posted October 26, 2013 Better question would be. Is there a formula that we should go by to figure out approx sales of each machine No, there is no formula. As always every account is different and can't be compared to others. You're speaking of a hotel that is almost full all the time, so it's unlikely that any operators have had such a hotel account. You're results will, most assuredly, be better than the average hotel. Most hotels have low occupancy rates until some big event comes along. You definitely need to share with us the success you have. The reason Mission saw fewer sales and more vandalism the higher up the machines were in the hotel was because most hotels put the majority of their guests on lower floors during low occupancy periods to make it more cost effective to clean the rooms. They will scatter guests among the upper floors, but those upper floors generally don't get a lot of guests unless there is a large event that fills the hotel. Therefore, fewer guests equals fewer sales and more opportunity for vandalism. Link to comment Share on other sites More sharing options...
vending0818 Posted October 26, 2013 Author Share Posted October 26, 2013 Thank you both. Very informative advice. I will definitely keep you guys posted on this account. Once again I really appreciate all the feedback I can get. Thank you. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.