The Mage Posted October 29, 2009 Share Posted October 29, 2009 I now have my first lost location under my belt. I have to admit I am not too surprised though. I have 3 locations that are 30% commission. I was going to keep these locations, and not argue about the high commission, but I would never agree to placing a bulk candy machine at 30%. Anyway I decided to run the route 6 days after I purchased it to get an idea of how things were going. (And my plan was 2 weeks, then 3, and finally 4.) Well the next day I received a call telling me it wasn't 30% commission, but 50%, and if I wasn't going to pay 50%, to just take the machine out. Well I called the previous owner of the route, and he informed me that no, he only paid 30%. I was thinking this guy might just be trying to push around the new guy, but I called back, and he decided to let it stay, for now. I was hoping things would blow over, but Tuesday night he called, letting me know that he was unhappy about my reduction of how much candy was being dispensed, and how this was supposed to be a "service for his customers". I informed him that the reason I reduced the candy was because it was set at 50-60% COG. I informed him that I could bring it up a little, but he told me he already bought a machine himself, and will be putting it in place of mine. I said ok, and that I will pick it up the next time I do the route, which was going to be a week from Monday. And now I am hoping he understands that I meant November 9, and not 2. This keeps to my schedule, not making an extra trip, and allowing me to still get an extra week of sales there. But it looks like I lost a $50 location. Except I paid $15 this month in commission, so it is a $35 location. Except I expect the candy I would have sold there to cost me ~$15 a month, so it was a $20 location. Although had I left the candy at the same level, I would have been paying him to keep that machine there, and have been working for free. Now I am wondering what he paid for the machine, if he knows where to get candy from, and if he wants to dispense high amounts, is it really going to benefit him? (Did he buy a new machine?) Anyway, this does leave me with a future problem. I am planning on purchasing the sticker machine route from the same person I purchased this candy route from. And 2 of the 9 machines are located at this place. When that occurs, do I just start servicing the machines there, or once I buy the route, do I just walk in, and take them out? Having them located is of tremendous benefit, but is this the person I want to be dealing with? From his conversations with me, I am not sure he wants to deal with me. Or is it worth the time and effort of relocating these machines elsewhere? (Regardless, I will always be cordial, and act professional.) At least I have a few months to decide. Link to comment Share on other sites More sharing options...
Mercury Posted October 29, 2009 Share Posted October 29, 2009 He sounds like a greedy jerk. I'd take 30% over 50% of NOTHING. Screw him, take the machines out when you buy the route. Locations aren't that hard to find, and I refuse to deal with jerks. Merc Link to comment Share on other sites More sharing options...
antoniocinisi Posted October 29, 2009 Share Posted October 29, 2009 MAKE THE OTHER VENDOR Aware of the issue u are haveing at the location.buy this new part of the route for less money since you can expect to get kicked out of there soon after u buy that location.if he isn`t bluffing and really did buy his own candy machine it wont be too long before he buys more. Link to comment Share on other sites More sharing options...
Jax Snacks Posted October 29, 2009 Share Posted October 29, 2009 I had a similar incident when I took over a route. The problem in my case is that the location had another amusement machine giving 50% and the current owner just assumed that the gumball machine did too. I also called the original vendor and she told me it was absolutely 30% (and I believe her). This is why I NEVER write down the commission percentage on the receipt any more. I simply state "Commission Due - $XX" and leave it at that. The vast majority of locations do not request the gross or the percentage on the receipt and it only opens a potential can of worms if you provide that information. I only have one location that requests the gross plus a breakdown of each rack shelf and that lady is, well, a complete b*tch! I am ready to yank that rack if she gives me any more grief. You can only do so much for a jerk who thinks they are the center of the universe and the world revolves around them. Jax Link to comment Share on other sites More sharing options...
tedk Posted October 29, 2009 Share Posted October 29, 2009 Mage: When you buy the sticker machines can you have someone else service them, Wife, girlfriend, sister, bother .... anyone but you initially? Might help you keep it. Ted Link to comment Share on other sites More sharing options...
antoniocinisi Posted October 29, 2009 Share Posted October 29, 2009 Mage: When you buy the sticker machines can you have someone else service them, Wife, girlfriend, sister, bother .... anyone but you initially? Might help you keep it. Ted this will only push back when he gets the boot imo.eventually he will have to go.if the owner bought 1 machine it wont be long before he buys more. Link to comment Share on other sites More sharing options...
The Mage Posted October 30, 2009 Author Share Posted October 30, 2009 My thought was when I start to purchase these machines, before I close, I will really push and try to get locations for them so I can just walk in, take them out, and just drive them over to the new location(s). Now regardless, I am going to always act professional, and not be rude to this guy. This is annoying of course, but it is just a location. Effectively I have lost 7% of my locations, so I still have ~93% left. (Once I get over 100, then it will just be 1%.) Link to comment Share on other sites More sharing options...
sterling Posted November 1, 2009 Share Posted November 1, 2009 The main issue here is that you have a small route, so kick outs and other problems are a bigger deal than they actually are. Wait until you do have that 100 machine route. A guy wanting 50% will be such a miniscule problem you won't even think about it for 2 seconds. Link to comment Share on other sites More sharing options...
havending Posted November 6, 2009 Share Posted November 6, 2009 Learning the hard way is just a part of the business. To the guy that was too cheap to pay 30%. 30 is a fine place to be. Why do you guys expect locations to let you use there space for free or next to free? Its not free to the business owner. The trick to this business is volume when you get up there you wont feel the 30% and 40% as bad. Link to comment Share on other sites More sharing options...
JPVendCo. Posted November 7, 2009 Share Posted November 7, 2009 Learning the hard way is just a part of the business. To the guy that was too cheap to pay 30%. 30 is a fine place to be. Why do you guys expect locations to let you use there space for free or next to free? Its not free to the business owner. The trick to this business is volume when you get up there you wont feel the 30% and 40% as bad. I have one 30% commission account, and plan to keep it that way. 30% is too much for candy. I would do it for toys, bounce balls, non perishables. Link to comment Share on other sites More sharing options...
The Mage Posted November 7, 2009 Author Share Posted November 7, 2009 I only accepted 30% because they were already negotiated. More then I want, but I think I can live with it. BUT I will not negotiate over 25% of gross if I was doing it. This was a decision I had made before I ever owned a machine. I may be using their space, but I am doing all the work, paying for the machine, and everything in it. I do believe they have a right to part of the profits, and 25% of the gross is not bad when all they are doing is letting that machine sit there. Link to comment Share on other sites More sharing options...
The Mage Posted November 7, 2009 Author Share Posted November 7, 2009 Anyway, here is an update: I must have been psychic, because he did in fact call today and complain that I was supposed to pick it up on Monday. Had to inform him I said a "week from Monday". And the reason was that was the day I was going to be in town to do the route. But I did go up, and take out the machine, and paid his 30%. I do think it may have been sitting in the back room for a while though. I also think he was more interested in making sure I got it before the weekend because it would be more obvious that it wasn't out producing over the weekend. I decided that since I was going up there anyway, I went ahead and replaced one of my triples with a U-Turn. The trip was more worth it after that. Although I do believe that the U-Turn would have worked great in the location I just lost. I was going to put 4 different types of candy in at the Pizza place, but since it went to a rec center, I decided that gumballs was a better option. Plus the fact that I still have a triple there. (Thinking of trading that one out too.) Link to comment Share on other sites More sharing options...
JPVendCo. Posted November 7, 2009 Share Posted November 7, 2009 so you did get that u-turn? thought it might have had a story....... Link to comment Share on other sites More sharing options...
The Mage Posted November 7, 2009 Author Share Posted November 7, 2009 so you did get that u-turn? thought it might have had a story....... No, I purchased one from another member here. Actually before you told me about that other one. I looked at it, but it was busy at the time so I didn't think that was a great time to talk to anyone. Haven't made the time to get out there again... yet. Thanks again for the heads up, and I'll let you know what happens. Link to comment Share on other sites More sharing options...
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