Question about locations wanting a cut of sales

[Kerry67]

Hey Everyone, new guy here looking into getting started.  I am not looking to get rich, looking for (very) part time with about 10 locations I think I could do well with.  I intend to use the plain white candy boxes but going to give portion to local animal rescue and all my locations I have in mind are related to the animal.  My question is, do locations usually want a cut of the sales?  Thanks!

[flintflash]

1 hour ago, Kerry67 said:

Hey Everyone, new guy here looking into getting started.  I am not looking to get rich, looking for (very) part time with about 10 locations I think I could do well with.  I intend to use the plain white candy boxes but going to give portion to local animal rescue and all my locations I have in mind are related to the animal.  My question is, do locations usually want a cut of the sales?  Thanks!

Welcome to the forum and to the Honor Snack business!  As a 25 year veteran, I can tell that the majority of customers (like 99.9%)will NOT ask for a "cut" or commission.  The small portion that might, typically be small volume accounts (at least that is my experience).  If I may suggest, DO NOT OFFER COMMISSIONS!  You will have shortages to deal with and small volume accounts at times and commissions will KILL your profit margin.  Honor snacks are not a business to be handing out commissions.  Large vending companies may do it for HIGH VOLUME vending accounts, but our business does not warrant commissions.  Best of luck to you!!! 

 

[FlyGuy]

I agree on no commissions for snack or charity boxes... profit margin is too thin. It is a numbers game. 

If they want a cut, simply move along. Never be tempted to cave on this, because it makes for annoying extra accounting and could be detrimental to your business if some but not others got locating gift, commission, etc. You never want to create double standards.

I've only been asked "what's in it for the store" a couple times (seems to always be salons asking), but I just tell them that the profit margins are already very slim in snack boxes... so my product and service is the benefit they'd get. If they press, I simply explain to them that any commission paid would just be a tax on their employees, and I'd need to raise my pricing... and that's not how I run it. I've never been asked about charity, but the reply would be the same to that.

I do give a small gift bag of individually wrapped candy to my locations a few times per year (usually Hershey kisses around New Years, mints round StPat, Starburst for 4th, suckers near Halloween, etc) to say thanks for the business. That only cost about a buck per stop, and it builds goodwill.

Edited May 3, 2019 by FlyGuy