royalforest Posted November 4, 2010 Share Posted November 4, 2010 The locations are in multiple states. The owner says he will be nationwide in the future. He wants only one company handling all his locations because he wants me to send him a breakdown of sales and commissions. He wants 10% of gross or 20% of net. I told him soda machines only. The pick up is around $110.00 per visit once a month. I have the machines, just not sure about how to service the accounts. I figure the net profit is $50.00, pay someone $25.00 and I net $25.00 per visit times 14 locations can bring in $350.00 a month. Does anyone have an opinion to help? Link to comment Share on other sites More sharing options...
mission vending Posted November 4, 2010 Share Posted November 4, 2010 Around these parts another state is a whole day of driving. So instead of telling us how many states, how about the miles from your base to service these locations, approximately at least? I think you would be better served finding a few other operators near the other locations and "subcontract" the locations. Even if your guy has the time, the wear and tear on your truck could be excessive and take him away from keeping up with your other local accounts where you are making the most of his time and your money. My initial reaction is that the logistics of this is going to be difficult. Link to comment Share on other sites More sharing options...
royalforest Posted November 4, 2010 Author Share Posted November 4, 2010 Thanks. I know I will not service the accounts because I will lose in gas and time. Not sure the locations yet but I know they are in at least 7 states. I would have to find a way like you said to subcontract or sell the locations. Link to comment Share on other sites More sharing options...
mission vending Posted November 4, 2010 Share Posted November 4, 2010 Thanks. I know I will not service the accounts because I will lose in gas and time. Not sure the locations yet but I know they are in at least 7 states. I would have to find a way like you said to subcontract or sell the locations. You might want to PM Bev for some tips on how to handle this arrangement. Link to comment Share on other sites More sharing options...
dogcow Posted November 5, 2010 Share Posted November 5, 2010 The locations are in multiple states. The owner says he will be nationwide in the future. He wants only one company handling all his locations because he wants me to send him a breakdown of sales and commissions. He wants 10% of gross or 20% of net. I told him soda machines only. The pick up is around $110.00 per visit once a month. I have the machines, just not sure about how to service the accounts. I figure the net profit is $50.00, pay someone $25.00 and I net $25.00 per visit times 14 locations can bring in $350.00 a month. Does anyone have an opinion to help? i'm a little confused so, in total your gross would be 350 a month across fourteen locations? or 350 a month each Link to comment Share on other sites More sharing options...
royalforest Posted November 5, 2010 Author Share Posted November 5, 2010 I figure the gross would be $1540.00($110.00 x 14). Net would be $770.00 for all 14 locations per visit. 1 visit per month. If I hired people, payroll would cost me about $350.00, which should net net net me $385.00. Not sure if worth all the trouble. Link to comment Share on other sites More sharing options...
dogcow Posted November 5, 2010 Share Posted November 5, 2010 how are you ever gonna pay off your investment in the equipment at that margin even assuming you are getting cheap machines for 350-400 a piece it would take almost a year and a half to pay it back and not sure if your net figure includes all expenses or just product, Link to comment Share on other sites More sharing options...
Poplady1 Posted November 5, 2010 Share Posted November 5, 2010 This has come up before with several other vendors on this site and we have never been able to figure out a way to get this done. Best Vendors or one of those channels has Nationwide agreements with vendors and bottlers so they get the locations set up and then they receive the paperwork each month. They keep alittle for their company and forward a monthly check back to the chain. Lots of paperwork, it wears me out just thinking about it. We just stumbled across one of these deals in California. Fortunately they are all in one county and one vendor can handle the shebang. Poplady Link to comment Share on other sites More sharing options...
mission vending Posted November 5, 2010 Share Posted November 5, 2010 I figure the gross would be $1540.00($110.00 x 14). Net would be $770.00 for all 14 locations per visit. 1 visit per month. If I hired people, payroll would cost me about $350.00, which should net net net me $385.00. Not sure if worth all the trouble. So you think hiring people to service 1 or 2 locations 1X a month with their personal vehicles is going to work, much less be worth the hassle? Not me. Go the Best Vendors route, sell the loctions or take a couple of % for doing the paperwork. Link to comment Share on other sites More sharing options...
royalforest Posted November 6, 2010 Author Share Posted November 6, 2010 OK Thanks! Link to comment Share on other sites More sharing options...
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