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Commission amount?


caserri
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Hey all,

I just lost a potential beverage account due to a commission negotiation gone bad. The owner of a location was willing to allow me to place a coke machine in his establishment. He never mentioned a commission so naturally I didn't bring it up either.

The night before I was to install the machine he called me and wanted to know what was in it for him. I told him that my machines are not intended as a source of revenue for his business. It is meant as a service and convenience to his staff and customers. (My standard opening line when a commission is brought up.) That was promptly shot down. He then responded with "I want a cut." With that, I gave him my next standard line. "Well we can negotiate a commission. What number do you have in mind?" His response --- "I want 100% of the net profit." Yeah right.

After I re-gained my composure I countered with my standard 10% which he then re-countered with the same 100%. I gave him my thanks and politely told him that the conversation was over.

What are the rest of you giving for beverage commissions? I usually don't give commissions but if its requested I usually ask what they want first, then counter with 10% but ask them if they will meet me in the middle if the two are way off.

Steve

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Sure, no problem he wants net, product cost is now 95% of gross. I cant believe this guy even said that, wtf, just be glad he brought it up before you moved the machine rather than after.

Its been awhile since I ran full line but when I did, if it was a smaller to midsize place, no commission, if it was larger like a school or good size business 10-15% or subsidize product cost and if it was smoken, and I only had one, 20% or subsidize product cost. For 20% you better be there every other day...

Jimbo

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  • 2 weeks later...

I will never go beyond 10% on a snack or drink machine.  Unless I have other amusement machines placed.  I have a Laundromat with a skill crane, touch screen, and a full sized API snack and a full sized Vendo 720.  Skill Crane 30%(standard), Touch screen 50%(standard), And I gave in at 20% for the snack and drink.

Generally my commissions are as follows...

Snack and drink machines 0% to 10%

Skill cranes 30%

Video Games, touchscreens,pinballs,pool tables ect ect  50%

Merchandisers(Stackers) 30%

Hope this helps.

Zeke

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Casseri....

That story was HILARIOUS...i cant believe he had the balls to even SAY that.!!....Really not too smart and I have only to add that I enjoyed a Great Good Laugh and obviously he was a greedy fool that cared nothing for his employees.

UGH -....I wonder how the folks at the company are fairing:(

SHEN

 

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  • 4 weeks later...
  • 2 months later...
  • 4 weeks later...
That is a great story. I never go over 10% unless it is a really go site with over $18,000 in sales a year which I only have two of and they get 12%. I have a few small office sites and they get 15% of profit. Yes of profit which ends up being like 1% of gross. The mangers are just happy to see check ones every 4 months.
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  • 2 weeks later...

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