sterling Posted August 2, 2011 Share Posted August 2, 2011 I had two machines in a Mexican restaurant. One candy (3 heads) and a 1-800 with 2 heads of toys and one of gumballs. I stopped by a week after servicing to see if it would be all right to add a 2" machine. Instead my machines were missing and a brand new 7 way NW rack it their place. The guy who I always had dealt with was there, they were in the back. He said his aunt the owner got mad since my machines were not working. He quickly back peddled to get out of the lie. He fessed up and said that the other guy offered better commission. How did she know what she was getting with me? He told me she called him and he told her 20%. Well it was 25% of gross. The new guy offered them 40% of something. Gross or net this wasn't clear. So if it is 40% of net then my 25% of gross was the same or more than this guy. The aunt however hears 20% vs 40% so in the back my stuff goes and in goes the unethical vendor. The kid said this screws him up too since he was taking the commission and not giving any to the aunt. Since the aunt now knows there is money coming in from these machines, he was basically stealing from her. So actually she probably thought I was giving 0% and new guy was giving 40%. These machines would have been off location for an additional 3-4 weeks until I went to check on them since they had no intention of calling me. So who is more unethical the sneaky bump you out vendor, the stealing nephew or the aunt who simply "puts you out of business" without any consideration. Your thoughts and comments will be appreciated. Link to comment Share on other sites More sharing options...
dperry Posted August 2, 2011 Share Posted August 2, 2011 Sounds familiar. I had a Mexican restaurant with gumballs doing charity. Come in one time to find a big rack in it's place. They said I had no "credentials" for my charity and that they could not get a hold of me to ask me about it. What credentials? They made it sound like the new guy had a whole book of credentials. They could never be found when I tried to talk to them about upgrading to a commission rack. There's no point with arguing or making a fuss. Link to comment Share on other sites More sharing options...
dpvnc Posted August 2, 2011 Share Posted August 2, 2011 Sterling: I do commission if I get to the decision maker and I think the location is desirable for a rack. I will offer a commission that would be higher than the current person. If the information is volunteered by the location owner I do not feel ethics are are violated. Commission to me is nothing more than rent for the spot. I have bumped and been bumped just plain old competition. Some times you run what ya brung and hope you brung enough Link to comment Share on other sites More sharing options...
Pitstopped Posted August 2, 2011 Share Posted August 2, 2011 I had two machines in a Mexican restaurant. One candy (3 heads) and a 1-800 with 2 heads of toys and one of gumballs. I stopped by a week after servicing to see if it would be all right to add a 2" machine. Instead my machines were missing and a brand new 7 way NW rack it their place. The guy who I always had dealt with was there, they were in the back. He said his aunt the owner got mad since my machines were not working. He quickly back peddled to get out of the lie. He fessed up and said that the other guy offered better commission. How did she know what she was getting with me? He told me she called him and he told her 20%. Well it was 25% of gross. The new guy offered them 40% of something. Gross or net this wasn't clear. So if it is 40% of net then my 25% of gross was the same or more than this guy. The aunt however hears 20% vs 40% so in the back my stuff goes and in goes the unethical vendor. The kid said this screws him up too since he was taking the commission and not giving any to the aunt. Since the aunt now knows there is money coming in from these machines, he was basically stealing from her. So actually she probably thought I was giving 0% and new guy was giving 40%. These machines would have been off location for an additional 3-4 weeks until I went to check on them since they had no intention of calling me. So who is more unethical the sneaky bump you out vendor, the stealing nephew or the aunt who simply "puts you out of business" without any consideration. Your thoughts and comments will be appreciated. I have only been bulk vending for a short time, but have been in business for many years. You ask which of the three is more unethical. I think only one of the three is actually unethical. (and this is only my 2 cents) 1. The "bum" vendor taking the location is just business. This is why I spend a lot of effort getting to know the managers/owners of my locations and building personal relations while educating them about my business. (I do charity or no commission, I only have single and double head) So far I have had one charity double head restaurant tell another vendor they were not interested in having his rack no matter what the commission because they were so happy with my machines and service. 2. The Aunt choosing the other vendor is her trying to do what is best for her. If there was something being hidden from her while you were in there it wasn't your doing, but she can stop it by dealing with the vendor she knows what the deal is. 3. The nephew seems to have been the unethical one. Unfortunately you get punished for it. Link to comment Share on other sites More sharing options...
RGCV Posted August 2, 2011 Share Posted August 2, 2011 I had two machines in a Mexican restaurant. One candy (3 heads) and a 1-800 with 2 heads of toys and one of gumballs. I stopped by a week after servicing to see if it would be all right to add a 2" machine. Instead my machines were missing and a brand new 7 way NW rack it their place. The guy who I always had dealt with was there, they were in the back. He said his aunt the owner got mad since my machines were not working. He quickly back peddled to get out of the lie. He fessed up and said that the other guy offered better commission. How did she know what she was getting with me? He told me she called him and he told her 20%. Well it was 25% of gross. The new guy offered them 40% of something. Gross or net this wasn't clear. So if it is 40% of net then my 25% of gross was the same or more than this guy. The aunt however hears 20% vs 40% so in the back my stuff goes and in goes the unethical vendor. The kid said this screws him up too since he was taking the commission and not giving any to the aunt. Since the aunt now knows there is money coming in from these machines, he was basically stealing from her. So actually she probably thought I was giving 0% and new guy was giving 40%. These machines would have been off location for an additional 3-4 weeks until I went to check on them since they had no intention of calling me. So who is more unethical the sneaky bump you out vendor, the stealing nephew or the aunt who simply "puts you out of business" without any consideration. Your thoughts and comments will be appreciated. You were a casualty of a cultural issue. Who knows what else the nephew steals from his aunt. She can't fire him and save face with her family. She did the only the thing she could do. Link to comment Share on other sites More sharing options...
hutchdavidson Posted August 2, 2011 Share Posted August 2, 2011 Does any location's mind ever get changed on something like this? Move on its a waste of time. Link to comment Share on other sites More sharing options...
lurtsman Posted August 3, 2011 Share Posted August 3, 2011 Probably unethical for him to take the money. I really don't know why they are not allowed to pursue their own ends. There seems to be a cultural issue that if they make a business deal for their own profit even if it does not hurt the location there is a problem. If they approve a charity machine that also does not make money for the location it is not a problem. So be it, everyone has their own opinion. The guy not calling you stinks. When I talk to the decision maker, I ask them if they want to be paid off gross or net. I've not only had opposite decisions from owners, but both felt their decision was the only one that made sense. If they pick net, I make sure they understand it is net sales, not net profits. I won't be deducting my other expenses. I have a big account where I'm friends with the owner. His snack vendor paid a commission on 3 months of 9 dollars. He asked how it was possible that my gumball machine was easily out paying the full line snack machines. I told him my best guess is that he was making deductions from net sales to net profits, which can be tricky. My job was to find a way to pay him a large commission and then still be profitable. Link to comment Share on other sites More sharing options...
havending Posted August 3, 2011 Share Posted August 3, 2011 I confused on what makes the other vendor unethical. It seems to me that he may have the experience and resources to grow his business. I know that some times a location can be gotten for 20 or 25% but if it is a good location it can be lost quickly by some one offering 30 to 40% I get most of my locations by offering a little more. I think the guy at the Mexican place is a piece of you know what and a thrift. By the vendor is just a good business man Sent from my Desire HD using Tapatalk Link to comment Share on other sites More sharing options...
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