Opportunity Knocks

[Faith Vending]

Hi everyone, I need some advise particularly from full line vendors. I was asked by a manager of an upscale chain hotel if i did full line. I have a bulk machine there and was servicing it. He explained he was tired of the current vendor with machines not working, no service and product mis-labeled. The vendor owes the hotel $34 and they rarely see the guy. Bottom line; 6 soda machines are needed and he wants an offer from me to what I could do.

Are all these commission deals? What is a fair commission to pay? Should you propose an legal offer that is signed by all parties. Should I look into used machines or new?

$ signs are dancing in my head so I want to do this the right way:) Thanks in advance for giving your expertise.

Jim

[davidsurvz]

Sounds like a good opportunity. I would recommend you post this in the full line section also.

David

[Summit Vending]

Jim,

I left you a message tonight on your voicemail regarding the 1800's. I can send you my full line contracts if you would like to take a look at them. In regards to what commission you should pay I would leave this up in the air until you meet with the individual who will be approving the deal and ask what he would like to see and try to come to terms. Since the accounts issue revolves around service make sure you stress this point on how you will be different and show it to him in writing (contract).. I would start with 10% and not go over 30% net. In my opinion volume is key especially if your dealing with a high traffic account. When first meeting with the accounts I have now I explained it like this, higher commission= higher price and lower volume. Lower commission=lower price,more volume and more money in the quarterly check I pay to the account. Some might not agree with me on this and have a different opinion but this has worked for me. In regards to machinery I would see what types of machines are currently on site and contact your local distributor(Coke or Pepsi) and see if they would be willing to place machines on location for this account while you service them. You will have to buy the product from them but it might save you the cost of buying and placing these machines in this account.  Please give me a call and we can discuss further as there are pros and cons when doing this.

Brian