How is this guy making money?

[havending]

I was servicing a location last week and in the same shopping centerthere is a pigley wigley super market.  There is a 5 way rack from the 80s with .25 two inch on top and gumballs and two one inch on the bottom all for a dime.  And one of those stupid chicken machines for a quarter.  Spoke to the manager and he said that hes happy with what he has.  He also said that hardly anyone uses that machine and it doesnt make much well DUH.  The company is in birmingham and i have never heard of it but i will call him and make and offer for the location.  if he wont sell i will offer the store owner 500 cash upfront  and 30% a month for a 5 year deal.  That has never failed!!!!!!!!!!!

[Big Mike]

Is the 500.00 the first 500.00 worth of commission up front or is it a placement fee with all commissions in addition?

Mike

[whaletail116]

I wonder what our planet would be like if everyone on it wasn't trying to golpher one another over...

[JPVendCo.]

havending  is successful at vending. I dont personally want to do some of the stuff he does, but i was once told, if I wanted something, to go get it. thats what he's doin'

[Smiley]

I wonder what our planet would be like if everyone on it wasn't trying to golpher one another over...

Probably something like the Soviet Union

[whaletail116]

Haha.  Have you ever been?  I must assume no.

[T BIRD]

Probably something like the Soviet Union

LOL!.........good one Brotha Smiley.

[s.weir]

Probably something like the Soviet Union

Hmm..I would say more like modern day Russia (Ukraine is actually a better example though) then the Soviet Union.  Soviet Union was less of screwing each other over, but was very corrupt, had you doing your job just well enough not to get noticed by the repressive arm of the state and a failed incentive system among SO many other things.

[s.weir]

Oh I also want to say something relevant to the post because it's interesting.  Personally while I PREFER to obtain my locations in other ways, as it becomes a better and better location, what I am willing to do to acquire it becomes greater and greater.  The most I would usually ever do though is offer commission, better machines or for it to be better taken care of.  80% of all locations in my location could be won over by this, but it seems there are alot of vendors that cannot even consider themselves vendors around here. 

[havending]

The thought behind this aproch is that this location will offer up about 1200.00 a year after cost over the 5 years thats 6000.00 in pure profit.  So offering up 500 up front is a no brainer for me.  I have done this several times and always works out well.  But it can only be done with locations worth getting.  And over the course of the 5 years its only about 2.5 to 3.0 % diff. in the comm. rate so im paying up to 33% instead of 30. 

[havending]

I wonder what our planet would be like if everyone on it wasn't trying to golpher one another over...

I use every honest way i can to get into a location.  This is the most competive business i have ever been involved in and its not for the weak.  Its great to think out side of the box.  Heck throw the box away and look out the window. 

[mainor5251]

I would be willing to do just about anything it takes to get a location as long as I'm not lying to the business owner or bad mouthing another vendor with the exception of beat dirty equipment and even then I don't speak poorly of the other guy just let them know I could provide a much higher standard of customer service.

[Rick Falcon]

Just wanted to know do you guys have any big vending companies in your area offering 50% commission, if you do how do you compete?

[Hillbilly]

I have one doing commissions at 40% in several locations.  Right now I can not compete with that.

[Rick Falcon]

Its a shame Hillbilly all we could do is just continue to deliver great service and hope those companies drop the ball and maybe we could benefit from their mistakes.

[Hillbilly]

I've had that happen in my full time gig. Someone won't give you the time of day.  When they find out what kind of service I give other accounts, they have called me asking to stop by.  But I've also seen competitors pass all the smaller guys to get to the big ones. That leaves the smaller ones open. A lot of times they will do just as much business as the big guys.

for example: I sell truck parts.  If a large fleet has 150 new trucks and the small fleet has 25 older trucks, the small fleet will buy just as much because his stuff will wear out. The newer trucks will too but not for a while.

Right now I only have 1 charity location and 0 commission locations. But it is because I know that I can not afford to do it yet.

[Hillbilly]

Hopefully my 1st commission location starts in a few weeks. And it is more than I wanted to pay.  But by starting this location I may get my foot in the door with the service;D at the others.

[Rick Falcon]

Thanks for the feedback I'll definitely take your advice,by the way good luck with your new location keep me in the loop on how it gos.

[antoniocinisi]

40% off the top??or after expenses?

[The Mage]

Competition is a good thing.  But if a vendor is not taking care of a location properly, not only should there be no guilt involved with replacing them, you should feel good that you removed a blight on the vending industry.