Paying Commissions

[golpher]

I have a question for the expierenced full line vendors.

Do you pay commissions on all your locations? I was thinking that setting up a pop and candy machine in a business would be a service to the employees and not require a commission be paid to the business owner. Thanks.

[Big Mike]

Most dont. I only pay one of my locations. 3%.

[ageevending]

Commissions are part of the business you should learn how to work with them... or the next guy will give them and you'll be out. I start at 10% provided I can do the pricing. If the pricing is dictated to me... some large locations will say hey... I was soda to be .65 a can... and we want 10%... so you have to make a decision at that point.

Right now... I'd just about take anything for a good location. If its high volume now... when this recession is over... volumes will double.

I have locations that go from 10% up to 40% on some high end hotels. I'm charging 2.50 for a 20oz bottle

[Big Mike]

Commissions are part of the business you should learn how to work with them... or the next guy will give them and you'll be out. I start at 10% provided I can do the pricing. If the pricing is dictated to me... some large locations will say hey... I was soda to be .65 a can... and we want 10%... so you have to make a decision at that point.

Right now... I'd just about take anything for a good location. If its high volume now... when this recession is over... volumes will double.

I have locations that go from 10% up to 40% on some high end hotels. I'm charging 2.50 for a 20oz bottle

Are you talking gross or net?

[raaenterprises]

You are chargeing $2.50 for a 20oz. How do you get them to aprove that price.

[ageevending]

Big Mike: I pay commissions off what I call Adjusted Gross, which is gross after taxes are paid... so on a $1 sale, if taxes are 8%, I pay commissions on .92.

RA: Its hi-end palm springs hotels... They sell a soda via room service for 3.50... We had them at 1.75 until they wanted custom bubble fronts on all the coke machines and credit card processors... then I was able to justify the cost. I would have still paid the 40% on 2.00, but the credit card fees are going to kill me.