Help! Going after a car wash location!

[NinnJinn]

I have a meeting with a local car wash on Monday. During the winter, anytime it is above 40 degrees someone is washing their car, in the summer time they have 2 attendants on duty from 8a-8p and there is usually people waiting to wash their car.  They have 7 manual bays and 3 Touchless Automatic bays.  Unless they are fake,  I counted 12 security cameras on the premises

I have finally secured a monster machine and the car wash is interested!  I know they want commission, because over the phone they asked how often I pay, Not having any commission accounts, I said "It is up to the location owner, However, I prefer not to pay more than once a week" 

They also asked how often I would service the machine.  I told them " usually 2-3 times a week until I get a feel for how often it needs serviced.  Except once a year when I go on vacation, I never go more than 10 days without servicing."

Then they said to come in Monday and see what we could come up with.

Vendiscuss,  I am putting my next possible location into your hands.  Nurture and guide me on what to say and do to get this location.  Commission suggestions based on gross?  Please vendiscuss give me a sign.

[coinvestor]

I know they want commission, because over the phone they asked how often I pay, Not having any commission accounts, I said "It is up to the location owner, However, I prefer not to pay more than once a week" 

You made me about snarff my coffee all over:) They probably don't expect you to come out weekly nevermind pay weekly. I always pay commissions quarterly unless the monthly commission amount exceeds $100 then I pay monthly and I tell them this up front. You will spend more time paying commissions in the winter then you actually spend filling the machine.

What do you mean by monster machine? Is this a big machine, or a monster energy drink machine?

JD

[NinnJinn]

Sorry,  Monster energy drink machine. 

I know for sure that I will have Monster (green), Monster low carb (blue) and really thinking about Monster assault (red)  all in the 16oz cans.

Thought about possibly Vitaminwater but not sure yet.  They don't have a coke machine on the property so I also thought about putting some soft drinks in also.

[bostonvendor27]

I don't operate full line but I would say this will be a good location. Every car wash in my area has a soda machine.

[dogcow]

ive met a few bigger full line vendors in my area they all pay quarterly

based off the meter

if ur putting ur own assets on this location i would buy a cage, ive never seen a car wash where the soda machine isnt caged.

[mission vending]

I pay most of my locations commissions on a monthly or quarterly basis. Tell them that the commission you usually pay is 10% after you back out the sales taxes.

[KenP]

So how did your meeting go?

[NinnJinn]

Now what do I do!

On Monday we settled on 10% of gross all was good, Confirmed the placement of the Monster energy drink for December 23rd from Coke.

Today I get a call from the owner of the car wash stating that their contract with Pepsi is up on Dec. 31st.  Pepsi has offered them a 30% commission with a $250 bonus per year if they sign a 3yr exclusive contract with them.  Without the exclusive they would still pay them 15%

So the owner wants a $100 fee/yr AND wants 15%commission.  And wants all the carbonated drinks and vitamin water no more than 1.50 and the Monster energy drinks at no more than $2.00

Based on the commission and cost of product and pricing them at the max the location will allow me to,  I would make 57cents on Carbonated drinks, 27cents on Vitamin water, and 29cents on each Monster drink sold. those figures do NOT include tax, labor, or fuel.

Is this deal plausible? Should I try to renegotiate or should I pass and frantically find another location that is suitable for a Monster energy drink machine?

[dogcow]

Now what do I do!

On Monday we settled on 10% of gross all was good, Confirmed the placement of the Monster energy drink for December 23rd from Coke.

Today I get a call from the owner of the car wash stating that their contract with Pepsi is up on Dec. 31st.  Pepsi has offered them a 30% commission with a $250 bonus per year if they sign a 3yr exclusive contract with them.  Without the exclusive they would still pay them 15%

So the owner wants a $100 fee/yr AND wants 15%commission.  And wants all the carbonated drinks and vitamin water no more than 1.50 and the Monster energy drinks at no more than $2.00

Based on the commission and cost of product and pricing them at the max the location will allow me to,  I would make 57cents on Carbonated drinks, 27cents on Vitamin water, and 29cents on each Monster drink sold. those figures do NOT include tax, labor, or fuel.

Is this deal plausible? Should I try to renegotiate or should I pass and frantically find another location that is suitable for a Monster energy drink machine?

NJ,

other more experienced people will prob chime on this and i dont mean to beat you over the head for it but why didnt you have them sign an agreement when you hammered out terms.

can u just cancel the order with coke? i would do that if its possible.

[NinnJinn]

NJ,

i dont mean to beat you over the head for it but why didnt you have them sign an agreement when you hammered out terms.

can u just cancel the order with coke? i would do that if its possible.

I guess I am an idiot, not sure. lol

As for the Machine, yes.  I am pretty sure I can cancel the order,  Its just I have been trying for a long while now to reserve one.

[RJT]

First off carwash locations are hit or miss at best when it comes to revenue. They have a high potential of break-ins, etc. I would walk away from this deal all together. I wont even get into the whole issue of getting a contract signed when you struck the deal.

Pepsi and Coke both like these type locations because they are high profile for visible advertising from a street. You can not compete against them for these locations like this that they want. Just like you are not going to compete against them for schools, colleges, etc.

The profit margins are not strong enough to worry with it compared to the hassle of it all. (not to me anyway) Walk away from the deal and move on to something that makes money. Always remember my motto, If it dosent make dollars it dosent make sense.

I am also wondering why you are trying to place Monster Energy machines? While Monster is somewhat popular it does not sell like standard carb drinks.

[mission vending]

First off carwash locations are hit or miss at best when it comes to revenue. They have a high potential of break-ins, etc. I would walk away from this deal all together. I wont even get into the whole issue of getting a contract signed when you struck the deal.

Pepsi and Coke both like these type locations because they are high profile for visible advertising from a street. You can not compete against them for these locations like this that they want. Just like you are not going to compete against them for schools, colleges, etc.

The profit margins are not strong enough to worry with it compared to the hassle of it all. (not to me anyway) Walk away from the deal and move on to something that makes money. Always remember my motto, If it dosent make dollars it dosent make sense.

I am also wondering why you are trying to place Monster Energy machines? While Monster is somewhat popular it does not sell like standard carb drinks.

Agreed, we cannot compete where the bottlers is willing to "buy" the business. They like to do this type of nonsense in locations where the machine is highly visible. If it was me I would also walk away from it.

As for you Mike, If I was in your shoes I would consider it, I remember  when I was getting started up and I would put a machine anywhere that I could. I did this for several reasons:

1. Experience in negotiating agreements

2. Experience in operating and troubleshooting equipment

3. Experience in route organization and management of time, resources and product

Many of my early locations were not locations that I kept, or even wanted to keep as I grew and learned the business. On the other hand I would not trade the experience I gained in the first couple of years doing this for anything. Again, if I was in your shoes, I'd do it, with no equipment investment there is little at risk. So far in this potential location you have learned to get agreements in writing when you get the deal, who knows what else you might learn?

[NinnJinn]

You know mission,

I like your way of thinking!  Yes, my profits off the location would be low after commission etc but once I sell my initial start up stock, I wouldn't have to worry about losing money off the location!  But as you stated, experience is priceless, and something you keep with you your whole life.

Thanks a million Mission! I will give them a call in about an hour or so to see what we can hammer out.

[NinnJinn]

Oh, boy.  The things you want to do to get a location.

Got off the phone with the car wash location owner.  Things were going good, until he remembered that I had inquired about retail space about 3 months ago. 

Now the deal is, 10% commission if I rent his retail space.  like he put it, "you scratch my back, and I will scratch yours"

It would be nice to have a small warehouse type setting like Mission has,  but this is actually a office type building.  no loading dock, the floors are carpeted.  Not really a place for storing machines etc.  Plus, I can't justify spending $750/month when there is no dock, and to have it as a storage for machines, it would be the same as placing a machine inside a business!  the largest door (in the back) is only 42in wide.  plus there is a 4inch step up from the ground and the back area isn't paved, it is gravel.

So I guess I will scratch the car wash location off my list.  And get in touch with the local gym here to see what they say.

[KenP]

That deal sounds like it got all twisted around like a pretzel!

I appreciate this thread because now I know to never forget an agreement when going to a location meeting!

[mission vending]

Oh, boy.  The things you want to do to get a location.

Got off the phone with the car wash location owner.  Things were going good, until he remembered that I had inquired about retail space about 3 months ago. 

Now the deal is, 10% commission if I rent his retail space.  like he put it, "you scratch my back, and I will scratch yours"

It would be nice to have a small warehouse type setting like Mission has,  but this is actually a office type building.  no loading dock, the floors are carpeted.  Not really a place for storing machines etc.  Plus, I can't justify spending $750/month when there is no dock, and to have it as a storage for machines, it would be the same as placing a machine inside a business!  the largest door (in the back) is only 42in wide.  plus there is a 4inch step up from the ground and the back area isn't paved, it is gravel.

So I guess I will scratch the car wash location off my list.  And get in touch with the local gym here to see what they say.

I'd at least make the effort to call him back and tell him the retail space inquiry was for another business venture that you were going to do with an investor and he bailed on you and then tell him that your vending operation can't use a space like that and see what happens.