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school wanting a percentage of revenue


ef0012

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We have snack machines in 3 local elementary school teachers' lounges. (Just became owners in April 2018). One of the schools recently approached me claiming that the previous vendor had a signed contract with them so that they would get annual commission/percentage of sales to use for their teacher fund. This agreement apparently goes 2 or 3 owners back and there has been no way for me track them down. The school would like to sign an agreement retroactive for this school year (2018-2019) and get a percentage. They don't know what the previous percentage was (principal claims they would just get a check from the owner every June) and I have no idea what is reasonable. Thoughts? Should I pursue a "contract" or yank the machine? (Or something else?) Feedback appreciated, thanks.

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Schools are greedy and think their business is worth more than it really is.  You can decline and just let them know you will be sad to remove you machines but will do so whenever they request, if they find a new vendor or just want them gone.  I do tell my schools that I will give them 5% commission if their machines can average $50 a week in sales during school weeks each quarter.  If they balk I tell them that the cost to service them below that sales level is too high to justify any commission because there is so little profit.  It is rare for me to cut a check but they are happy.  On occasion one of them will cross the line, which makes us both a little happier....  and BTW, saying no to a bad deal does NOT make you or anyone else a golpher!

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We have 15-20 schools (teacher's lounges).  We used to have a number of them on a commission (5-10%).  Over the last couple of years we have just realized that our time and efforts are too valuable to be cutting a check to all of these schools.  A $100 check doesn't put a dent in their books at all, but a $100 check (times 5-10 schools) puts a big dent in my profit margin.  We didn't lose a single account.  We had a couple that didn't enjoy the conversation, but after we explained that no one around our town would ever service a school like theirs.  

You do what you want to do, but I wouldn't cut a check to a small account.  Think about the competition level.  It's not like they have 5 vending companies that would love to be servicing a teacher's lounge that isn't even occupied 4 months out of the year.

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