How much is a stop worth?

[dedhead63]

To the experts: How much would should i pay for a stop that is found by a location service?

The company wants $20 per person for a high volume location.

Thanks,

Paul

I know that most would say do it yourself, I just want to grow a little faster.

[tedk]

So a 100 person location is $2000.00? Way too much money in my opinion. For a guideline talk to Blue Moose to see what they charge. 

[mission vending]

FWIW, I have not used a locator in a loooong time. In the past I've paid as little as $100 per machine for a location to as much as 1,000 per machine.

The $1000 per machine location came with a very strong long term contract (7 years) and revenue guarantees from the locator. So depending on the services you are provided the price range will have a great variance.

[dedhead63]

Thanks for the fast feedback. I'm in the process of locating 6 combo's in the NJ area. I will keep you posted.

Paul

[Poplady1]

Locating fees are all over the place these days.  On that 100 employee stop if it is blue collar then the fee would probably be $400 per machine (no one charges for food machines).  On the per employee charge most locators don't do that until the employee count goes over 150 blue collar workers and the rate is $10 per head.

On larger accounts it is normal for a management company to work on flat fees for the vendor.  We recently closed a very nice private school with a big bank of machines.  Our flat fee for a 3 year contract on that school was $5K.  The vendor was happy to pay it.  After 4 months he has already made his fee back (according to him)...on the other hand we had a large mfg that we closed last year for one of our larger vending companies in California.  The account had 450 employees.  We settled with our vendor for $7500 because we were able to get a 5 year contract.  That same account today is down to 140 employees.  Our vendor only got to service the account for 13 months.  You would think he would be upset but he isn't complaining.  He is hoping they will slowly hire everyone back...my point in telling everyone this would be explaining that business is a risk.  No guarantees. 

I noticed you are locating combo's?  The going combo rate runs from $250 to $300 a spot.  Not sure how that would work out at $20 per head but I would think you would want atleast 25 employees min. for a combo or 20 min. blue collar mfg workers.  New Jersey is a tough area to locate any type of machine.

Blue Moose

 

[dedhead63]

Thanks Blue Moose. The combo's are in the $250-$300 range and I actually have a few location I got on my own. I find that the 2 story medical/professional buildings with 30-40 EE's and decent customer traffic is still ripe for the picking, even in NJ.

The larger stops are the ones I have received very high locating quotes on. I just want to keep those options open in the future.

Thanks again,

VendittFast