% to location?

[spdydre]

I am new to vending and I am starting out with a couple soda machines as well as a couple bulk machines.  I have been doing my own located for my fulline and I have a mobile phone business owner that would like a soda machine in his store. He is looking for commissions and asked me how much I would pay him.  What would be a reasonable amount to tell him?  He said he has about 1200 customers come through a week.  Should I make an agreement to start low for the first couple months then raise it if the location is good?  Or just stick with a set amount and see if he takes it

[mxer518]

What I do is start all places at 10% and make sure they know that I will always make it right if things change, and that I am not going to rob them of what they deserve. now sometimes you will be able to get a smart business owner that can appreciate the work we do. in that case I offer them a 2 year contract with a high commission rate (15%) with a non compete clause, and a provision where they need to notify you 6 months in advance for removal of machine. this will be worth a ton more if you ever decide to sell the route and its a nice piece of mind. a lot harder to make happen but good business minded people will be open to the idea. if there is a non compete clause you should also be able to throw a bulk machine in there and make some good money from it.

[EddieMac]

At our busier locations that insist on a commission (and all the schools), we give them 10% of the revenue on snacks and 15% on drinks.  This works out good for us.  At smaller locations  we tell them that we just cannot afford to pay them a commission.  We do tell them that if they surprise us and do a high volume that we'll pay them the standard 10% or 15%.

Although some of the schools do a lower volume and normally would not qualify for a commission, we have some larger accounts that don't care about commission.  We keep that money which more than offsets the commission on the lower volume school machines.  The reason we agreed to pay commission on all the school machines is because they are schools and need the money.  It's good PR for our company also.  We support our schools.  We also occassionally give boxes of snacks or sodas for special events.

Hope this info helps.

Have a great day.

[spdydre]

Are there any examples of maybe that type of contract I can take a look at to get an idea of writing one up?  I might try starting at 10% and go from there

[canuck]

http://www.vendline.com/contract.jsp

I like this one but would like to see others as well if possible.