Gym wants commission

[TurboMathieu]

Hi! So I recently stated looking in buying a vending machine. I have found a client in a relatively small gym (about 200 members), but with pretty consistent members (bodybuilders) and in a relatively wealthy neighborhood. It’s also the most expensive gym in my city and is open 24/7. He asked me for a commission, I offered 5% and he said he’ll talk to other gym owners and see what they charge for commission. He told me one of those gym (a way bigger gym then his tho) charges 25% and with 5% he doesn’t want to go through with it. We still haven’t decided on the %, but what do you guys think about it? How much % is too much and is it even worth it for that small a gym. 

[allen watson]

10% tops but I would pass on it. You’ll be pulling it out in 6 months anyways. 

[AZVendor]

Tell them to buy their own machine.  I too would only offer 10% and only at my highest prices for a so so account.  Plus they will only want "healthy" crap.

[TurboMathieu]

Alright thanks a lot! 

[AngryChris]

36 minutes ago, TurboMathieu said:

Alright thanks a lot! 

I did warn you about this on another topic you had posted.  Gyms tend to be very greedy.

[TurboMathieu]

Yes you did 😅😅

[Vendo Mike]

I'd be interested to know who is actually paying a 25% commission or if there are any machines at that location.  You can ASK for $5000 for a beat up 1992 Corolla. Doesn't mean anyone is going to pay it.  

[Fermo Vending]

I don't have a gym account, and never have, but they don't seem like good accounts to me- especially for a high commission. I frequent the gym and I don't see anyone buying any of the food they offer (protein bars, cookies etc). The energy drinks are more popular, but even then gym goers seem to be health focused and will stick to what they brought. 

[AZVendor]

Anyone claiming they will pay 25% is lying and cheating on the commission, unless it might be a bottler doing a sliding scale commission.

[Vendo Mike]

I've heard of a national gym account that uses their machine for monthly dues for "off hours patrons".  They have membership cards with a pin number or something that ties to their account.  They can pay their dues and buy some Muscle Milk at the same time.

Then they can go get everything all sweaty. 

[AZVendor]

USI has made proprietary machines with card readers just for this purpose.  They are just basic BC6 soda machines but the card reader and the way it's incorporated into the door makes the machine useless for anyone else.

[QuickVends]

On 9/26/2023 at 9:54 PM, AngryChris said:

I did warn you about this on another topic you had posted.  Gyms tend to be very greedy.

Is it at all common for some locations to let you place a machine for Zero Charity and Zero Commision? 

 

Basically just on the idea that it benefits their operation. 

 

Like in an office setting, it keeps their employees fed and at work instead of leaving the site.

 

Just curious if you've ever had any placements that were without "rent".

 

Also, have you ever placed somewhere and the location denied you access to your machines? Essentially stole them from you? Or have you ever had a location remove your machine or sell your machine? 

 

Just curious if this is common or ever happened. 

 

Thanks 

[AZVendor]

Yes to both. Never mention commission at all. Only if they bring it up and you can't steer them away from it do you discuss commission. It's rare to get locked out of a building but it can happen.

[AngryChris]

I rarely pay commission.  The customers are paying a fair price for whatever I sell so I can afford to give them good service.  If they want commission, my pricing will reflect that.  Most employers want happy employees so they will usually be happy to get no commission if it means fair prices.  Gyms want profits and they don't care if their own customers pay high prices for your products or not.  They don't care if the members see any benefits to going there or not.  They just sell the customer access to their gyms.  And you placing a machine in their square footage means it needs to generate sales or it needs to go.  

The reason why the commission they often mention may be high is because the bottlers offered it for years and years, this normalizing it.  But prices have changed and you aren't the bottler.  And people want specific things and they can bring it themselves.  That's why I don't bother with gyms.

[QuickVends]

11 hours ago, AngryChris said:

I rarely pay commission.  The customers are paying a fair price for whatever I sell so I can afford to give them good service.  If they want commission, my pricing will reflect that.  Most employers want happy employees so they will usually be happy to get no commission if it means fair prices.  Gyms want profits and they don't care if their own customers pay high prices for your products or not.  They don't care if the members see any benefits to going there or not.  They just sell the customer access to their gyms.  And you placing a machine in their square footage means it needs to generate sales or it needs to go.  

The reason why the commission they often mention may be high is because the bottlers offered it for years and years, this normalizing it.  But prices have changed and you aren't the bottler.  And people want specific things and they can bring it themselves.  That's why I don't bother with gyms.

Makes total sense. Thank You!

[divot]

On 9/30/2023 at 8:39 PM, QuickVends said:

Makes total sense. Thank You!

Definitely agree

Edited October 9, 2023 by divot