vendman0729 Posted May 7, 2015 Share Posted May 7, 2015 I came across a guy through a friend who owns a small hotel. He also owns the drink and snack machines inside which he says does $400-500/month total. He said he's interested in me servicing it. I am wondering how much of a commission I should settle for? We barely got a chance to talk about it but I am assuming I will buy the products and service it. I am also assuming he will do any cost of repairs for the machines. Seems like a descent account but I feel like anything more then 20% might be too high. On the bright side, the profit margin should be higher and I don't have to buy any machines I will see if I can arrange a meeting with him this weekend. Any help is appreciated. Link to comment Share on other sites More sharing options...
orsd Posted May 7, 2015 Share Posted May 7, 2015 buy the machines oof of him Link to comment Share on other sites More sharing options...
AZVendor Posted May 7, 2015 Share Posted May 7, 2015 If you don't have to invest in any machines then you should be able to do better than 20% if the prices are above average, as hotels usually are. The higher the prices the higher the commission. If he covers the repairs (doubtful) then this just gets better for you. You should definitely not give much though if his prices are at street value or lower. Link to comment Share on other sites More sharing options...
vendman0729 Posted May 8, 2015 Author Share Posted May 8, 2015 Thanks for the tips AZ Vendor. Perhaps if I have to I can even do 25%. It also depends on how often I have to service the location. If I can service the location once every 2 weeks then that makes a big difference compared to servicing the location once a week. I forgot to mention, he said hotel guests and others have been asking for things like toothbrushes and toothpaste. He's interested in having a machine for these products. I would rather have him buy the machine though for something like this. Could be a total flop for all I know. Link to comment Share on other sites More sharing options...
AZVendor Posted May 8, 2015 Share Posted May 8, 2015 While this sounds like a great deal for you, don't be surprised when he sees you being successful with it, to yank it back from you thinking it's easier than he first thought. That or he gets greedy again and doesn't see why he should share any of those profits with you. These hotel owners are only looking out for themselves so this will only be good for you as long as it's convenient for him. Link to comment Share on other sites More sharing options...
moondog Posted May 8, 2015 Share Posted May 8, 2015 Thanks for the tips AZ Vendor. Perhaps if I have to I can even do 25%. It also depends on how often I have to service the location. If I can service the location once every 2 weeks then that makes a big difference compared to servicing the location once a week. I forgot to mention, he said hotel guests and others have been asking for things like toothbrushes and toothpaste. He's interested in having a machine for these products. I would rather have him buy the machine though for something like this. Could be a total flop for all I know. Most snack machines will have twenty columns for candy and nuts. That would be a good place to stick the toothpaste and brushes as most of us have a hard time filling all those selections with things that sell. Link to comment Share on other sites More sharing options...
vendman0729 Posted May 9, 2015 Author Share Posted May 9, 2015 Yeah thanks guys. I agree with you AZVendor. Hopefully this is convenient enough for him though that I can service the account for a while. He does seem like a nice guy which helps. When I meet with him, I will explain to him how if I do his vending, it will benefit him. 1. I can probably increase sales better since this is my specialty. 2. He will have more time to focus on his real business which is the hotel. Honestly if I owned something like a hotel, I wouldn't want to service vending machines either haha. Moondog, what kind of a percentage would you give in this type of situation? Link to comment Share on other sites More sharing options...
moondog Posted May 9, 2015 Share Posted May 9, 2015 Yeah thanks guys. I agree with you AZVendor. Hopefully this is convenient enough for him though that I can service the account for a while. He does seem like a nice guy which helps. When I meet with him, I will explain to him how if I do his vending, it will benefit him. 1. I can probably increase sales better since this is my specialty. 2. He will have more time to focus on his real business which is the hotel. Honestly if I owned something like a hotel, I wouldn't want to service vending machines either haha. Moondog, what kind of a percentage would you give in this type of situation? I doubt if I'd go past 10% of gross. You're doing all the work and those machines probably aren't worth more than $1,500 for the pair Link to comment Share on other sites More sharing options...
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