Joe101us Posted May 20, 2017 Share Posted May 20, 2017 Is 38$ bad for first week profits from soda machine selling 16.9 oz at 1.00$ each it's located at a hotel but the owner wants 15% and don't want me to charge over 1.00$ Link to comment Share on other sites More sharing options...
CajunCandy Posted May 20, 2017 Share Posted May 20, 2017 Take your machine out fast! The place is a waste of time! Link to comment Share on other sites More sharing options...
QuikVend Posted May 20, 2017 Share Posted May 20, 2017 No way am I paying 15% let alone letting the location dictate my pricing. I agree, you probably should start looking for a new home for that machine. Link to comment Share on other sites More sharing options...
Joe101us Posted May 20, 2017 Author Share Posted May 20, 2017 That's what I'm doing tomorrow I'm removing it Link to comment Share on other sites More sharing options...
Joe101us Posted May 20, 2017 Author Share Posted May 20, 2017 I've found a car dealer ship but they want 3 soda and 3 snacks don't think it will support that many machines Link to comment Share on other sites More sharing options...
Corvus Corax Posted May 20, 2017 Share Posted May 20, 2017 Tell them you will put one snack and one soda, and let volume dictate adding more.Sent from my SAMSUNG-SM-G900A using Tapatalk Link to comment Share on other sites More sharing options...
Magiccity726 Posted May 21, 2017 Share Posted May 21, 2017 You should be selling cans for a dollar based on the 15%. Link to comment Share on other sites More sharing options...
Randymire Posted May 21, 2017 Share Posted May 21, 2017 I sell cans for $1.00 without any commission but with a commission I adjust my price accordingly. Never let a location dictate your price, this will only lead to problems if and when you have to increase your price because your cost has gone up . I know that some vendors want or need a location bad enough to let this happen but it always leads to issues. There are always extra cost in operating and if our margins aren't large enough then there will be problems in the future that may lead to our going out of business. You have to work with the customer but your main goal is to succeed. Does your customer let his customer dictate price ? I'd think not ! Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
Poplady1 Posted May 21, 2017 Share Posted May 21, 2017 On 5/19/2017 at 9:39 PM, Joe101us said: I've found a car dealer ship but they want 3 soda and 3 snacks don't think it will support that many machines Sounds like a large dealership. How many employees. Do they want a pair in the service area, one in the showroom and another at the used car building? New car dealerships are some of the most sought after accounts by large companies. Don't be too quick to turn it down. You can get custom fronts too. They will want Credit Cards now as well. They do not normally want a commission. On these large accounts don't blink an eye at their requests. Just write it down. Use your phone to take photos of the existing machines so you know what you are up against. Check the pricing on the current products. Never say anything negative about the current vendor no matter how bad the machines look or setup. On car dealership accounts you want to always offer some cheap cheese crackers or cookies for kids. Put an off brand of cola in the beverage machines for kids too. Only do this on the showroom machine. They hold people hostage for hours and they use those machines. If you offer things like that, the manager might take a risk on you because they think you understand their business. Normally those large accounts will not go with an independent vendor because they do not want to hear the boss say, what were you thinking? Good job on even getting the chance to talk to them Link to comment Share on other sites More sharing options...
Poplady1 Posted May 21, 2017 Share Posted May 21, 2017 On 5/19/2017 at 8:05 PM, Joe101us said: Is 38$ bad for first week profits from soda machine selling 16.9 oz at 1.00$ each it's located at a hotel but the owner wants 15% and don't want me to charge over 1.00$ $38 would not be terrible if the pricing was correct. You need $50 a week. Just change the product mix. Add cans at 1.00_20% bottles 1.50 and water 1.00. Pay the commission on the costs of goods example Example (38.00 less cost of goods 50%) would leave approx 2.56 Don't ask if you can change the product mix, if he asks just tell him nothing is selling not even enough to pay commission. if he wants to make any money you need to change the product mix and both of you will be fine. Bottom line, if he wants to sell items at 1.00 you are happy to lease the machine to him for $200 a month. or you will move it. Sounds like Mr. Patel Link to comment Share on other sites More sharing options...
Joe101us Posted May 21, 2017 Author Share Posted May 21, 2017 58 minutes ago, Poplady1 said: Sounds like a large dealership. How many employees. Do they want a pair in the service area, one in the showroom and another at the used car building? New car dealerships are some of the most sought after accounts by large companies. Don't be too quick to turn it down. You can get custom fronts too. They will want Credit Cards now as well. They do not normally want a commission. On these large accounts don't blink an eye at their requests. Just write it down. Use your phone to take photos of the existing machines so you know what you are up against. Check the pricing on the current products. Never say anything negative about the current vendor no matter how bad the machines look or setup. On car dealership accounts you want to always offer some cheap cheese crackers or cookies for kids. Put an off brand of cola in the beverage machines for kids too. Only do this on the showroom machine. They hold people hostage for hours and they use those machines. If you offer things like that, the manager might take a risk on you because they think you understand their business. Normally those large accounts will not go with an independent vendor because they do not want to hear the boss say, what were you thinking? Good job on even getting the chance to talk to them They want a set in the show room a set in service and a set for employees I took the account they did not have a vendor there already they had one coke machine that they filled but The thermostat went out Link to comment Share on other sites More sharing options...
Joe101us Posted May 21, 2017 Author Share Posted May 21, 2017 2 hours ago, Randymire said: I sell cans for $1.00 without any commission but with a commission I adjust my price accordingly. Never let a location dictate your price, this will only lead to problems if and when you have to increase your price because your cost has gone up . I know that some vendors want or need a location bad enough to let this happen but it always leads to issues. There are always extra cost in operating and if our margins aren't large enough then there will be problems in the future that may lead to our going out of business. You have to work with the customer but your main goal is to succeed. Does your customer let his customer dictate price ? I'd think not ! Sent from my iPhone using Tapatalk I told him that same thing Link to comment Share on other sites More sharing options...
Joe101us Posted May 21, 2017 Author Share Posted May 21, 2017 44 minutes ago, Poplady1 said: $38 would not be terrible if the pricing was correct. You need $50 a week. Just change the product mix. Add cans at 1.00_20% bottles 1.50 and water 1.00. Pay the commission on the costs of goods example Example (38.00 less cost of goods 50%) would leave approx 2.56 Don't ask if you can change the product mix, if he asks just tell him nothing is selling not even enough to pay commission. if he wants to make any money you need to change the product mix and both of you will be fine. Bottom line, if he wants to sell items at 1.00 you are happy to lease the machine to him for $200 a month. or you will move it. Sounds like Mr. Patel His last name is Patel Link to comment Share on other sites More sharing options...
AngryChris Posted May 21, 2017 Share Posted May 21, 2017 That's like the most common Indian last name so it doesn't mean much lol. Link to comment Share on other sites More sharing options...
Southeast Treats Posted May 22, 2017 Share Posted May 22, 2017 I had a car lot call me, started out wanting 9 machines! I finally did agree to give them 4; 2 did OK for a while but the business was new and didn't even make a year before they went out of business. Selling cars is their business, vending is yours. You have to consider as much info as possible to decide which risks to take... Link to comment Share on other sites More sharing options...
Joe101us Posted May 22, 2017 Author Share Posted May 22, 2017 11 minutes ago, Southeast Treats said: I had a car lot call me, started out wanting 9 machines! I finally did agree to give them 4; 2 did OK for a while but the business was new and didn't even make a year before they went out of business. Selling cars is their business, vending is yours. You have to consider as much info as possible to decide which risks to take... I only put two sets cause I don't feel the employees need there own machines Link to comment Share on other sites More sharing options...
AngryChris Posted May 22, 2017 Share Posted May 22, 2017 I have a large dealership. It currently has 5 machines over 3 different buildings, including 3 soda machines, 1 3-wide snack, and 1 cs-12 snack. I expect the 4th building to do 5k by itself. These locations aren't great individually but I collect about $200 in 1 hour pretty easily. Link to comment Share on other sites More sharing options...
arkhusker Posted May 22, 2017 Share Posted May 22, 2017 Our new car dealerships are pretty good but their customers and sales people need easy access and I would definitely put card readers on. Sales people will frequently buy drinks for customers. Link to comment Share on other sites More sharing options...
Joe101us Posted May 23, 2017 Author Share Posted May 23, 2017 Thinks for all the info guys Link to comment Share on other sites More sharing options...
SCOTT1963 Posted May 23, 2017 Share Posted May 23, 2017 Does Mr. Patel also have coin operated microwaves in the room? One light instead of 2 in every flourescent fixture? ; ) Link to comment Share on other sites More sharing options...
Joe101us Posted May 23, 2017 Author Share Posted May 23, 2017 Now he's wanting a set 50$ a month to cover electricity pulse 15% I'm pulling the machine Link to comment Share on other sites More sharing options...
arkhusker Posted May 24, 2017 Share Posted May 24, 2017 Tell that guy absolutely not! Even if it were a great account worth the 15%, an DN 501 outdoors in Arknsas uses less than $20/mo in electricity. Link to comment Share on other sites More sharing options...
AngryChris Posted May 25, 2017 Share Posted May 25, 2017 So he wants to please his residents with low pricing AND get commission + rent but YOU pay for machines. Bad deal. I wouldn't. Let's do the math. $38 in 4 weeks is $152. 15% is about $22.5. Add $50 to that and you're at $72.50. Assuming cost of goods is half, he's getting ALL of the profits. Just pull it. He wants YOU to make HIM money. I dealt with people like this for 7 years in convenience stores. He'll try to convince you that his idea is the best way and you should do it. He will lie and cheat to get YOUR money or anyone else who is stupid enough. Guaranteed, he'll claim that he "knows" that electric costs so much money from vending and you should be making hundreds of dollars every week and you only pay so little and you should mop his floors and do everything else he wants because he thinks you are an idiot. I had a small hair salon for about a year when I first started. It did about $35 every two weeks which was good out of an anteres machine. The ladies at the salon told me one day "the owner says you need to pay him $20/month for electric." I told them that was all of my profit and it did not cost that much. Plus, everything was cheap. This guy didn't care though. I pulled the machine out and sold it for $300. Link to comment Share on other sites More sharing options...
Sgolembiewski0903 Posted May 25, 2017 Share Posted May 25, 2017 Our new car dealerships are pretty good but their customers and sales people need easy access and I would definitely put card readers on. Sales people will frequently buy drinks for customers. As an ex manager I'll admit that happens all the time!Sent from my XT1254 using Tapatalk Link to comment Share on other sites More sharing options...
Magiccity726 Posted May 25, 2017 Share Posted May 25, 2017 19 minutes ago, AngryChris said: So he wants to please his residents with low pricing AND get commission + rent but YOU pay for machines. Bad deal. I wouldn't. Let's do the math. $38 in 4 weeks is $152. 15% is about $22.5. Add $50 to that and you're at $72.50. Assuming cost of goods is half, he's getting ALL of the profits. Just pull it. He wants YOU to make HIM money. I dealt with people like this for 7 years in convenience stores. He'll try to convince you that his idea is the best way and you should do it. He will lie and cheat to get YOUR money or anyone else who is stupid enough. Guaranteed, he'll claim that he "knows" that electric costs so much money from vending and you should be making hundreds of dollars every week and you only pay so little and you should mop his floors and do everything else he wants because he thinks you are an idiot. I had a small hair salon for about a year when I first started. It did about $35 every two weeks which was good out of an anteres machine. The ladies at the salon told me one day "the owner says you need to pay him $20/month for electric." I told them that was all of my profit and it did not cost that much. Plus, everything was cheap. This guy didn't care though. I pulled the machine out and sold it for $300. How would you compare vending to convenience stores? I recently had the opportunity to take over a gas station/convenience store. I declined as it was too far from where I live. Is Vending more profitable typically? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.