Vendors giving 50/50 split on claw and bulk vend

[John the vending guy]

So I have been working in the amusement street business for over 20 years and on average vendors take 20-35% off the top for product. 
I have come across 2 companies lately that have been established saying they don’t take anything off the top a straight 50/50 split.

One of these companies has moved into my location and although I still have a claw there they put one right next to mine, yes it is upsetting, the way they were able to do this was from this 50/50 split.

Now a few things can be happening.

1 they take the percentage off the top but don’t report it.

2. They don’t let customers win( however they are doing this with bulk vending as well)

3  They are not making a profit.

 

another company is running the chicken egg machine at .50 cents a play. Best egg price is .15 cents an egg.

Now .50 cents /2 =.25 cent -.15 cent cost  would any vendor make a .10cent profit? 
has anyone else seen this type of split? 
Even saw the company proclaim 50/50 on an internet jukebox. I said 20% comes directly off the top standard for licensing.  
My experience is they are not reporting it on the ticket. Which gives us all a bad name. 

[RoadDogAmusements]

Are you sure they're not saying we split the profits 50-50? not the gross? seems like they won't be able to be in business long making that kind of margin?

[John the vending guy]

I said the same thing to the locations. 
it has to be 50/50 on the profit.

They assured me, “No, it’s 50/50 gross.” 
I agree if it is true, then they won’t be able to survive, This particular vendor is 2 1/2 hours away from this location, which also is not good for service. 
 

[RoadDogAmusements]

if he's 2.5 hours away that's roughly 150 miles? what 10ish gallons at almost 4/gallon. so $40 to go there once to collect. $40 for a trouble call... at 50/50 split with no product COG, I highly doubt they can make enough to justify the full day of work to collect/service/restock stuff... if they have one trouble call they're now paying to put games on the floor. How many games can you operate at a loss before you die?

One thing though... is you might want to tactfully just tell the owner that you don't like to share locations with other operators/vendors. If he says that the other guy is giving him more money... just point out to him that the other guy has less experience, probably financed his equipment, isn't going to make any money, won't come to maintain the equipment, etc. The owner is seeing a larger percentage and getting greedy... but obviously don't frame it like that. He's basically "buttering up" the deal to get in the spot and try to kick you out... so you should be trying to kick him out too. Don't do it by sabotaging his equipment or anything like that... just operate your business better. And if the owner doesn't see what you're talking about... tell him to give it a few months and then decide who is actually making more money and running a better service... and who is just big talk and big numbers.

[John the vending guy]

I said the same thing to the locations. 
it has to be 50/50 on the profit.

They assured me, “No, it’s 50/50 gross.” 
I agree if it is true, then they won’t be able to survive, This particular vendor is 2 1/2 hours away from this location, which also is not good for service. 
 

[John the vending guy]

You are 100% correct, that is perfect !!