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Subsidized Rates for Locations - How to Profit and Keep Track


Vender Rookie

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Hello fellow Vendors,

 

This is my first discussion as I have only just got into the vending business three weeks ago.

 

After much hard work (I've called into about 200 places and only have one machine in operation at present) I have another location that is interested in allowing me to place a "combi" snack/beverage machine at their office. However, they want to subsidize the snacks and beverages for their employees. In other words, they want me to sell the merchandise for cost price for their staff. They have absolutely no problem in paying me a fee for supplying the machine and keeping it stocked and maintained regularly. The question I have is, how do I charge for this service and keep track? If I charge them a flat rate of let's say $200 per month, I could end up losing money if the merchandise costs exceeds that flat rate.

 

Has anybody any experience in this scenario? Any help would be greatly appreciated. This location seems like a good one and I don't want to miss a great opportunity at providing a good service while also making an honest profit. I'm desperate for locations!

 

Much thanks in advance,

The Vender Rookie

 

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Do not do a flat rate. Instead price everything say at 50c and charge the company the dif of what regular pricing would be...no monthly fees etc. Trust me you will sell alot ofcourse depending on location, because everything will be so cheap

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I have 2 accounts like this. I'm in Canada where things are a but more pricey but basically we price everything at $1 and charge a .50 subsidy to the company for every item sold. We take meter readings and every quarter we invoice them

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Welcome to the forum, Rookie Vendor!  Don't wait too long to invoice them; I'd do it every time you service the machine and charge the subsidy for every item you stock in the machine that day.  I had some of these accounts in my vending days and got burned when they would go belly up leaving my subsidy payments unpaid, not to mention my machines locked up in their building.  This sounds like a good idea to them until you start giving them bills for the products and then they tend to pay slow.  Get your money from them quickly and avoid having to try to collect it later.

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