Pie in the Sky Posted November 16, 2013 Posted November 16, 2013 Today I got a phone call from a company called easy123 location services. They wanted to locate my machines for $50.00 each plus 10% Gross Revenue of each machine they place. They said they got my number from one of my already placed machines. I inquired about their success rate and claim to have placed over 2000 machines this year with a 92% retention rate (Their term not mine). I've turned them down because I self locate my own machines, but it got me thinking about it and now I have a few questions. Is the fee they asked for fair compared to the other locator services? Is the 10% an industry standard or is something unheard of? How successful have you been with locators, are they worth it or better to stick with self locating?
GagesVending Posted November 16, 2013 Posted November 16, 2013 $50 per location is pretty high. I'm happy with LRU at $25 each. If you push them, they will find you good locations. I would NEVER pay a percent of sales fee to a locator! I've never heard of that request, but I would never agree to it even if it was what all of the locators were doing.
Rick Posted November 16, 2013 Posted November 16, 2013 Hell no!!!!! $50 is a very fair price for in-person bulk locating, but what concerns me is that 10%. How do they know what you're paying them is 10% and what happens if they get it in their head that you're not? I can see a positive in it, it would certainly motivate them to get after high quality locations so I like that aspect of it. But 10% indefinitely is too much for their role (which ends immediately after the machine is placed). I'd counter with paying them $50 + 100% of the month one gross. After that though, time for us to part ways. If I'm paying you a cut every month you best grab that 2 wheel cart and get your golpher in the truck.
cashman Posted November 16, 2013 Posted November 16, 2013 They got your number off one of your machines ? Are you in a small town or a city ? If a city, where abouts ? Just curious as they said they have located 2000 machine hard to believe they're doing that good but still need more work ?
Pie in the Sky Posted November 17, 2013 Author Posted November 17, 2013 They got your number off one of your machines ? Are you in a small town or a city ? If a city, where abouts ? Just curious as they said they have located 2000 machine hard to believe they're doing that good but still need more work ? I'm Winnipeg, Manitoba Canada, Population 750000
musser Posted November 17, 2013 Posted November 17, 2013 Could be they were locating for your competition. A real issue with in person locators is when you hire them they will try to line up other clients in the area they are working.
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