kai1836 Posted February 15, 2009 Share Posted February 15, 2009 Have any of you ever come to terms about locating inside a store within a mall only to have the mall not allow it? In other words could there be a possibility that even though the store wants you the mall could claim that you were violating its lease? Thanks Link to comment Share on other sites More sharing options...
g_r_vending Posted February 15, 2009 Share Posted February 15, 2009 I have 4 different store break room inside of one mall and have yet to have any problems, most had to go through corporate so I would think they know the lease rules, wouldn't think its any different than having a full line vendor for there employes, now if the machine was placed outside of the store the mall whould have a say. Link to comment Share on other sites More sharing options...
nam Posted February 15, 2009 Share Posted February 15, 2009 kai, A store located in a mall is like a home owner located in an HOA. The HOA keeps the neighbor hood looking nice, etc. but they tell you what you can and can't do. The mall is like an HOA on steriods. I bought a Wizard spiral neon gumball machine on wheels so the store owner could roll it out in front of his store in the mall. Some malls will allow a store to set a machine like this right in front of their store as long as it is inside the store and not out the door. Other malls this would not be allowed in the lease. Although alot of malls may be owned by the same corporations you have to go into the mall offices and find out from each one what the rules are. What one does't allow another will. Malls have alot of traffic but are usually very strict and very greedy. Even with alot of volume you may end up giving so much to the mall you'd be better off in a neighborhood diner. nam Link to comment Share on other sites More sharing options...
Honda man Posted February 15, 2009 Share Posted February 15, 2009 I met a local guy who just had to remove his machines that were located inside of stores in a mall. He had them in a comic book store, a glamour shots and a couple other places. Anyhow, the mall management decided to start enforcing a rule that food items could only be sold in the food court. I heard that the comic book shop had to stop selling candy bars, energy drinks, etc. He had his machines there for over a year with no problems and still has machines at other malls so I guess each mall is different and depends on how strictly the rules are enforced. Ernie Link to comment Share on other sites More sharing options...
creativecandy Posted February 16, 2009 Share Posted February 16, 2009 i have a outside mall close to me ....tanger outlet and they are very strict on there vending...im still workin on them Link to comment Share on other sites More sharing options...
nepavend Posted February 16, 2009 Share Posted February 16, 2009 I have one mall location inside a storefront and as long as I am in there and not in the common areas I am OK. There is a big vendor that has the common areas on lockdown with all kinds of setups and I don't want to cause flak. Besides I think my double head NW pound for pound can beat him in where I am, a karate school, it kicked some butt with all candy, then I switched one candy to toys and its getting pounded, next I will goto a 4-way. Link to comment Share on other sites More sharing options...
nepavend Posted February 16, 2009 Share Posted February 16, 2009 Switch to toy capsules and bouncy balls, they are not food items. Link to comment Share on other sites More sharing options...
kai1836 Posted February 16, 2009 Author Share Posted February 16, 2009 Thnx for the advice Joe......initially I am going in with 2 2" toys, 1" glow sticks, 1" blockheadz, and a gumball.....if the gumball is an issue I can switch to bouncy balls..... we'll see how it does. Link to comment Share on other sites More sharing options...
nepavend Posted February 16, 2009 Share Posted February 16, 2009 Good call, trying to sneak the gumballs, you might get away with it, and its your lowest COG item. Keep the bouncy balls on standby there just in case. Link to comment Share on other sites More sharing options...
lurtsman Posted February 16, 2009 Share Posted February 16, 2009 I spoke with the AM in charge of vending at a local mall today. They said for 2 3ft by 3ft locations (a little large for your standard five way rack, but it is rough estimates), they would want $850 per month. I was shocked and tried not to show it. They said there was also a minimum of 20% of grosse as a commission, incase my two J stands exceeded $4250 in a month. Fail. The system seems to be that the price scales down as you take on more square footage, because there's no way the vendors in there currently are paying those rates. Really, if you consider this as 25 cent vends, I'd only need 17000 vends across ten machines, or 1700 vends per month per unit. After all, who doesn't average 56.67 vends per day on each head? (Edit: This is assuming that I am vending air and not having to pay for it, or pay for repairs/parts/gas/ having any profit) I'm all for the mall making a profit, but I won't be losing money to have the honor of having a machine in there. Link to comment Share on other sites More sharing options...
nepavend Posted February 16, 2009 Share Posted February 16, 2009 Yikes! I can't imagine how you could make money in there short of getting an exclusive contract, paying a big chunk up front and then a commission on the gross sales. At those rents its impossible to make money. Link to comment Share on other sites More sharing options...
lurtsman Posted February 17, 2009 Share Posted February 17, 2009 That's how I felt also. I don't anticipate calling them again for quite a while, but I sure wouldn't do the deal the way they had it laid out. Link to comment Share on other sites More sharing options...
nam Posted February 17, 2009 Share Posted February 17, 2009 You can actually do alot less business outside a mall and be able to keep a higher percentage of it. Also the mall is usually the only place you could actually lose money if they're wanting paid regardless of your volume. All are not the same though so if you keep checking, especially at smaller malls you may find one that would work on a percentage only basis. Maybe but probably not. He didn't quote you a higher rate for the Christmas Season? nam Link to comment Share on other sites More sharing options...
dperry Posted February 17, 2009 Share Posted February 17, 2009 There is another thing you might try with placing machines within stores inside a mall. You could take a 4' spiral and put a sign on it that says "For Sale $600". That way they can say that it is an item for sale, and not just using it to sell bouncy-balls. This also has the ability to inform the public that the cost of a 4' spiral is soooo verryyy high that they wouldn't want to buy one for themselves so that they can get into the business and be your competition. Link to comment Share on other sites More sharing options...
kai1836 Posted February 17, 2009 Author Share Posted February 17, 2009 I walked into the leasing office of a mall today and walked out with a lease contract for 20% commission split and a 15$/mo maint fee. I figure its a decent deal considering I'm going in with 2" toys, 1" toys bouncy balls and tattoos........ High mark up items that will most likely sell well in a mall like this. If my racks only bring in 100 per month......20% would be 20 bucks plus the 15 maint fee I'm still at 35% and the percentage will decrease as my sales increase I can live with 35%........I will go in with a 12 head rack with a 6 col sticker on top and at the other end of the mall I'll set a 5 head with a free standing 2 col sticker. We'll see how it goes. Link to comment Share on other sites More sharing options...
nam Posted February 18, 2009 Share Posted February 18, 2009 kai, You have a fantastic deal in that mall! How many stores does the mall have? You can't beat that deal and should put all you got in there. nam Link to comment Share on other sites More sharing options...
kai1836 Posted February 18, 2009 Author Share Posted February 18, 2009 Honestly not sure how many stores....there's only one level though. There's probably around 30 stores and a large indoor playground. Am looking forward to getting set up. Link to comment Share on other sites More sharing options...
nepavend Posted February 18, 2009 Share Posted February 18, 2009 That is fantastic! Give it a shot and see how it goes! I think you got a nice deal there... best of luck to you. Link to comment Share on other sites More sharing options...
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