Jump to content

Commission fees - can you renegotiate?


AZquickvend

Recommended Posts

So a friend of mine purchased his first route from someone else and one of the locations makes him pay $75 a month. When I found this out I nearly lost it. It's a decent location. 1 water machine and 1 Gatorade/monster machine and 2 combos that he services weekly. Do you think he should try to renegotiate with the locations or keep his mouth shut? They make him pay faithfully.

Link to comment
Share on other sites

Depends what his priorities are.  This is a very personal decision.  Judging from the language of your post, "...purchased his first route", I'm venturing a guess that the experience of having these machines on location is more important than an extra $25-$35 a month (or whatever he could get it down to).  I vote he keeps the status quo until he able to negotiate from a position of experience rather than - my friend who's an experienced vendor says I'm paying you too much.  

Link to comment
Share on other sites

Commission is a very subjective topic and is dependent on many variables, not the least of which are gross sales, pricing, and what is the effective percent he's paying.  Do the math and determine if the location is worth the commission paid.

Link to comment
Share on other sites

So a friend of mine purchased his first route from someone else and one of the locations makes him pay $75 a month. When I found this out I nearly lost it. It's a decent location. 1 water machine and 1 Gatorade/monster machine and 2 combos that he services weekly. Do you think he should try to renegotiate with the locations or keep his mouth shut? They make him pay faithfully.

The bottom line here is how much is this account grossing - if it's north of a grand a month then he should just go with it, anything less would be too much.

Link to comment
Share on other sites

Yes, it should depend entirely on how much the account makes... but also on how much it nets.  I wouldn't pay more than $0 if the account barely yielded any profit, even if the revenue was high.  But I think we all know that it would be silly to have an account with prices so low that you didn't make any profit.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...