lurtsman Posted January 27, 2009 Share Posted January 27, 2009 This is a fairly large local pizza place. They've got some buffet items as well. I was done with my morning of asking of people if I could place a machine, and figured "I'll just go try to learn something". I went in and looked at the two machines near the door (stickers/huge gumball wizard) I walked in to the counter and said, "I see you've got some machines in the entry way. I'm a local vendor, and what would I need to do to get in next to them?" She told me to come back at 2pm so we could talk. I came back just before two, and the place was empty. (For lunch it had been at about 30%) I spoke to Sophia (writing her name here so I can check the forums to remember it ^^), and as I got there someone called. "No she doesn't work here anymore. Are you trying to sell something? No we have enough machines already, good bye". Ouch, stinks to be the guy on the phone. Then she walks me around the building, shows the space in the front and says she is thinking about taking out the table to make more space. She says that the operators there are paying her 50% off the gross. I clarified with her the difference between paying off gross and net, and she confirmed that she was receiving 1 of every 2 quarters to go into the machine. She asked what kind of machine I wanted to put in, and I told her I thought it would be prudent to speak to her first and figure out what would be best for the location. Then she walked me farther back into the restaurant to show me the rack. Two super 80s over three super 60s. They were doing capsules. Next to it was an arcade type game that she said the pizza shop owned. She said she wants me to offer her near what she claims to get from the other vendors to get into the location. As we walked back she pointed to a huge open spot on the wall with an outlet and said, "I don't know if you do these, but I was thinking about getting a...crane.." I told her I'd look into it and see what I could come up with. I was struck by the drastic difference between the way she treated me (all smiles) and the person who had called. So, for all the people who know vastly more than I do about vending -- what would you do? Link to comment Share on other sites More sharing options...
antoniocinisi Posted January 27, 2009 Share Posted January 27, 2009 I guess if someone wants a location bad enough they would give half the money.if it`s only gumballs she is getting half from you would still be ahead anyways.unless its a video game though I woouldn`t do half on anything else but gumballs and most likely not even then. turning down a location imo is as bad as a location saying but unless u are desperate you should walk away.even crane operators give 30%-35% max Link to comment Share on other sites More sharing options...
nepavend Posted January 27, 2009 Share Posted January 27, 2009 I would take the spot if you can get a machine in there for now, and you will have to decide if going into cranes and amusements is something you want to do. I have friends in the business and my father was a business owner at one time, getting 50% offered to him all the time when Space Invaders first came out! LOL Amusements are a whole different ballgame where 50% gross commissions are the norm. The normal commission for a rack is probably 30-35% of gross depending on the market. She may be just one of the 1% types that insist on half of everything, you might be able to get away with 35-40% if she doesn't make you count quarters in front of her, but I am not a huge advocate of skimming or anything but you certainly wont make money on that spot if you are vending candy (I covered that in a few of my other posts). In the end, its a decision you have to make as a member of the vending business. Link to comment Share on other sites More sharing options...
BluePlate Posted January 28, 2009 Share Posted January 28, 2009 I would go in with bouncy balls. But a large machine in, so you need to service it every 2 or 3 months. Service it only when it is almost empty. You will be handing her over $100 in quarters. After 3 services tell her it's not worth the 50% (with you best poker face) and tell her you will be pulling the machines. At that point she will either call your bluff and say goodbye or she will negotiate with you. (OR) she could go buy her own bouncy ball machine. I would go for it, you never know the other doors it will open. Link to comment Share on other sites More sharing options...
antoniocinisi Posted January 28, 2009 Share Posted January 28, 2009 just make sure she wants the bouncy balls if you do that because not every1 likes them Link to comment Share on other sites More sharing options...
lurtsman Posted January 28, 2009 Author Share Posted January 28, 2009 I would go in with bouncy balls. But a large machine in, so you need to service it every 2 or 3 months. Service it only when it is almost empty. You will be handing her over $100 in quarters. After 3 services tell her it's not worth the 50% (with you best poker face) and tell her you will be pulling the machines. At that point she will either call your bluff and say goodbye or she will negotiate with you. (OR) she could go buy her own bouncy ball machine. I would go for it, you never know the other doors it will open. Where would you order bouncy balls, and what price would I charge for them? It would seem strange to have just one massive machine w/ them. (Super 80?) Maybe as part of a small J-Rack? I thought I might put my own gumballs in there because the gumball wizard is out at the front entrance and would not be convenient for several families. Particularly if the children have been drawn to the rack area. I had been thinking about bouncy balls while I was at work. When I was there she had said clearly she wanted me to be able to offer something "near" what the other people were paying, so I may well be able to negotiate 40% going in. I do like the bouncy ball idea because it would let me be different.I'd also like to find out what's going on with the machines outside that she didn't know the arrangement. She sure seemed like she was the one in charge, so it struck me as odd for her to not know. There's clearly enough vendors there that noone appears to have a non-compete agreement. I like the idea simply because it would let me place so many machines -- and if the RoI is steady from high sales, it would be much better than trying to find that many different locations. I am however concerned about making a deal with a 50% commission. If I did any candy other than gumballs I'd have to cut the vend back significantly. (I had considered doing gumballs/skittles on the bottom with a super 80 doing bouncy balls or the dwayne teeth capsules. Someone on here sure had success with them) I really appreciate the conversation, as it helps me grasp a concept that I don't know nearly enough about. Link to comment Share on other sites More sharing options...
lurtsman Posted January 28, 2009 Author Share Posted January 28, 2009 Another idea -- if I spoke to them and got them down to a 35% commission, could I contact crane operators and try to sell the location? (Figuring by going to the malls I could check which people owned the cranes there) Link to comment Share on other sites More sharing options...
nepavend Posted January 28, 2009 Share Posted January 28, 2009 Dentures by Dwayne are like manna from heaven... you dont know why they are here or why they do soooo well, but they do! Definitely get them in if the rack doesnt have them, on a single stand with a NW80 or part of a J-Stand. Whatever lets it fit better. Plus they are about .12 per vend and vend for .50, so at 40% commission it is still possible to make some money. When negogiating start at 35% and then move to 40%. She might let you get away with 35%, you never know, since you seemed to get a decent rapport going with her. Make sure you also eat lunch there before you talk to her too... She will probably deal with paying customers a little nicer than people coming in cold or calling like you saw... Make sure she sees you buying lunch and eating there... that is a big key! Link to comment Share on other sites More sharing options...
AmuseStar Vending Co Posted January 28, 2009 Share Posted January 28, 2009 Funny you would mention Dwayne Dentures. I can not get that product to move! Link to comment Share on other sites More sharing options...
pdavid Posted January 28, 2009 Share Posted January 28, 2009 hmm, dentures good or bad? Where do you buy them cheapest? Link to comment Share on other sites More sharing options...
nepavend Posted January 28, 2009 Share Posted January 28, 2009 Actionmatic www.actionmatic.com they are called Hillbilly teeth You can get the display from A&A - ask for the Blister display, not the card, it is much nicer. Link to comment Share on other sites More sharing options...
nepavend Posted January 28, 2009 Share Posted January 28, 2009 1" (27MM) Superballs are cheaper than toy capsules. You can get them from Actionmatic or A&A. They vend for a quarter. You can get 2" superballs but I have not used them as of yet so I don't know too much about them. Link to comment Share on other sites More sharing options...
lurtsman Posted January 29, 2009 Author Share Posted January 29, 2009 Neither Actionmatic or A&A will post their prices online will they? I'll check our forums resources as they may have some posted. Link to comment Share on other sites More sharing options...
nepavend Posted January 29, 2009 Share Posted January 29, 2009 A&A will not. Actionmatic does post a lot of their unit prices on the site, calling them will get all their other prices. Link to comment Share on other sites More sharing options...
dperry Posted January 29, 2009 Share Posted January 29, 2009 Funny you would mention Dwayne Dentures. I can not get that product to move! Prolly cuz u r in tennicee. all the peeps there prolly think those are a step up from what already in their mouth. Lol! Just funnin' ya. Link to comment Share on other sites More sharing options...
antoniocinisi Posted January 29, 2009 Share Posted January 29, 2009 Funny you would mention Dwayne Dentures. I can not get that product to move! Prolly cuz u r in tennicee. all the peeps there prolly think those are a step up from what already in their mouth. Lol! Just funnin' ya. I was waiting for this type of reply! Link to comment Share on other sites More sharing options...
cnavendingofnepa Posted February 1, 2009 Share Posted February 1, 2009 We used a product called "Hillbilly Teeth" basically the same thing as Dwane's ...., the thing is it did not do well at all. Mediocre at best Link to comment Share on other sites More sharing options...
cnavendingofnepa Posted February 1, 2009 Share Posted February 1, 2009 2 distributors that do post their prices online are "Big Apple vending" and "Cardinal". ALso, Beckers Toy n Joy Link to comment Share on other sites More sharing options...
timberframe50 Posted February 1, 2009 Share Posted February 1, 2009 50% how can you make any profit? I've was doing some locating and went into a chinese resturant and saw no machines, I thought I had it. I presented my speil and the women said " every dollar you get I get 50 cents". I repleied I cant make any money doing this, her reply I can buy my onw machine and keep the dollar. I thank her an ran from this location. I understan why there we no machines. Jim Link to comment Share on other sites More sharing options...
Beer980 Posted February 1, 2009 Share Posted February 1, 2009 I think I would have tried to see why she don't do just that. "So is there a reason why you have not invested $700 for the machines and $200 to fill them? If I put the machines in & gave you 25% then it would not take you a year to recover the cost. Plus you would start making money right away without all the headaches of ordering product, fixing the machine and rolling all those quarters." Link to comment Share on other sites More sharing options...
Outlander Posted February 1, 2009 Share Posted February 1, 2009 I would never pay more than 50% of net allowing 30% for product cost. If they won't do that I walk, well sometime run. I have to make a living. Keep in mid that amusements that don't offer products, just entertainment can work on a 50-50 split and be profitable. Link to comment Share on other sites More sharing options...
nepavend Posted February 2, 2009 Share Posted February 2, 2009 I love this reply and if I run across any more 1% asinine owners, I will use it. It sums everything up perfectly. Link to comment Share on other sites More sharing options...
dperry Posted February 2, 2009 Share Posted February 2, 2009 I think I would have tried to see why she don't do just that. "So is there a reason why you have not invested $700 for the machines and $200 to fill them? If I put the machines in & gave you 25% then it would not take you a year to recover the cost. Plus you would start making money right away without all the headaches of ordering product, fixing the machine and rolling all those quarters.""I can get a pound of rice at the grocery store for fifty cents. Why should I pay $2.00 for a cup of rice here?" Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now