caserri Posted October 10, 2011 Share Posted October 10, 2011 Do you guys pay commissions on gross or net? 4q, you just lit a very short fuse my friend! Popcorn anyone? :) Sent using Tapatalk from a phone that's smarter than me. Link to comment Share on other sites More sharing options...
dogcow Posted October 10, 2011 Share Posted October 10, 2011 Interesting, I didn't know that. No, it's not a rehab facility - haha. It's in a asian marketplace area where domos and hello kitty fly out of the machine like hot cakes. I might lose the location because they are asking for more commission on gross, the COGs will not make it worth it. We'll see. Do you guys pay commissions on gross or net? isnt all commission off the gross? i mean its just how you want to look at it Link to comment Share on other sites More sharing options...
caserri Posted October 10, 2011 Author Share Posted October 10, 2011 isnt all commission off the gross? i mean its just how you want to look at it Hehe. And so it begins... Sent using Tapatalk from a phone that's smarter than me. Link to comment Share on other sites More sharing options...
fourquarters Posted October 10, 2011 Share Posted October 10, 2011 I guess this is where I use the search feature. I was mostly asking the tomy gacha guys as our COG's on $1.00 vends will vary depending on the actual goods (hello kitty, for example). Link to comment Share on other sites More sharing options...
timberframe50 Posted October 10, 2011 Share Posted October 10, 2011 I'm confused gross or net you're still paying. I only pay off gross, because it is easier for me. I have this conversation with the location prior to installing. All of my locations understand my cost is 40%. If they get gready I remind them of my cost and the fact that I do all the work. (Have never lost one yet) I start every location at 20% and go up, depending on sales. This is also cover before installation. I think this should help the popcorn section. Link to comment Share on other sites More sharing options...
caserri Posted October 10, 2011 Author Share Posted October 10, 2011 I think this should help the popcorn section. Munch, munch, munch. Sent using Tapatalk from a phone that's smarter than me. Link to comment Share on other sites More sharing options...
West Coast Vend LLC Posted October 11, 2011 Share Posted October 11, 2011 Steve, do want extra butter on the popcorn? Sent from my iPad using Tapatalk Link to comment Share on other sites More sharing options...
West Coast Vend LLC Posted October 11, 2011 Share Posted October 11, 2011 Always pay on gross collection but always take off your cost before paying commission to a customer. If you tell the account that you will pay them 25% commission, you are paying them 25% of your profit not 25% of the gross collection. It would be more like 17% of the take, (collection) would be 25% commission. Gary Sent from my iPad using Tapatalk Link to comment Share on other sites More sharing options...
fourquarters Posted October 11, 2011 Share Posted October 11, 2011 Thank you for the straight answer. You guys rock. Link to comment Share on other sites More sharing options...
dogcow Posted October 11, 2011 Share Posted October 11, 2011 Always pay on gross collection but always take off your cost before paying commission to a customer. If you tell the account that you will pay them 25% commission, you are paying them 25% of your profit not 25% of the gross collection. It would be more like 17% of the take, (collection) would be 25% commission. Gary Sent from my iPad using Tapatalk gary, with all due respect isn't that a little misleading Link to comment Share on other sites More sharing options...
Jax Snacks Posted October 11, 2011 Share Posted October 11, 2011 Hehe. And so it begins... Sent using Tapatalk from a phone that's smarter than me. LOL And let's not forget about sales taxes!! Off Gross or Net? Before or After Commissions? Link to comment Share on other sites More sharing options...
fourquarters Posted October 11, 2011 Share Posted October 11, 2011 sounds like you can offer either, but most people offer commission on net. I find it easier to offer a lower commission on gross so you don't have to get into COGs and all the detailed books. it comes out to almost the same depending on what structure you're offering....but I would never tell a location I'm paying off gross and pay them off net. Link to comment Share on other sites More sharing options...
Big Mike Posted October 11, 2011 Share Posted October 11, 2011 If you count the money in your machine and give them 35% you are paying GROSS. If you deduct ANYTHING you are not. Is this really debatable? "Gross" is a word with a meaning not an opinion. I can deduct. Tax, License fees, Product cost, Fuel surcharge, Van payment, My Lunch............... Net can be defined in different ways. Gross cant. Mike Link to comment Share on other sites More sharing options...
caserri Posted October 11, 2011 Author Share Posted October 11, 2011 See 4q? Short fuse. Once you've been here a while, you'll see that there are a handful of topics that really get the guys going. Paying commission off of gross or net is one of them. It's good to get the blood flowing every now and then. It reminds you that you're alive! Sent using Tapatalk from a phone that's smarter than me. Link to comment Share on other sites More sharing options...
timberframe50 Posted October 11, 2011 Share Posted October 11, 2011 Earlier I posted I pay 20% of gross and a 40% cost struture. So I collect $100 gross @ 20% I pay $20.Simple, if I pay off net it would be 33 1/3 times $60 which would result in $19.98 same $20 in my book. So for thick headed owners that wasn't more I'll tell them I'll pay 33% of the profits. Link to comment Share on other sites More sharing options...
Big Mike Posted October 11, 2011 Share Posted October 11, 2011 From the Dictionary - Copied and pasted. Gross: 1. without deductions; total, as the amount of sales, salary, profit, etc., before taking deductions for expenses, taxes, or the like ( opposed to net): gross earnings; gross sales. 2. unqualified; complete; rank: a gross scoundrel. Sorry couldnt help myself. Im sure this has been covered. Hello Kitty(Tomy) is only available through Ford Gum and I think only shipped from the CA warehouse. Mike Link to comment Share on other sites More sharing options...
dperry Posted October 12, 2011 Share Posted October 12, 2011 Earlier I posted I pay 20% of gross and a 40% cost struture. So I collect $100 gross @ 20% I pay $20.Simple, if I pay off net it would be 33 1/3 times $60 which would result in $19.98 same $20 in my book. So for thick headed owners that wasn't more I'll tell them I'll pay 33% of the profits. The way I figure it, 40% costs leaves $60 net, so 20% of $60 is $12, not $20. Am I figuring it right? Unless you have a different pay structure for gross and net? Link to comment Share on other sites More sharing options...
havending Posted October 12, 2011 Share Posted October 12, 2011 sounds like you can offer either, but most people offer commission on net. I find it easier to offer a lower commission on gross so you don't have to get into COGs and all the detailed books. it comes out to almost the same depending on what structure you're offering....but I would never tell a location I'm paying off gross and pay them off net. Most people offer a pay out on gross not net. So your wrong there. I don't see an issue either way and I only know of a hand full of companies who pay off net. But the problem comes in when companies pay off net but lead the store to believe its off gross. There are two operators In areas where I operate that miss lead the store owner and I use this to my advantage when taking locations. My 30 to 40% sounds better than the % less cost that the other companies pay. The Only reason people use that crazy less cost pay out is to make the % to the store sound better. If you want to pay 30 than pay it don't mislead with oh I will pay 40 then take out my 20%. Sent from my Desire HD using Tapatalk Link to comment Share on other sites More sharing options...
timberframe50 Posted October 12, 2011 Share Posted October 12, 2011 Dperry, I pay off gross so it would be $20. 20% of gross is the sane as 33% of net with a 40% COGS. Ha, I also use this to my avantage, my biggest competitor has some crazy way of paying and I got my last 2 location because of the simple easy to understand commisson.. Who is the new kid (BouncyBalls) Dperry, I pay off gross so it would be $20. 20% of gross is the sane as 33% of net with a 40% COGS. Ha, I also use this to my avantage, my biggest competitor has some crazy way of paying and I got my last 2 location because of the simple easy to understand commisson.. Who is the new kid (BouncyBalls) Link to comment Share on other sites More sharing options...
timberframe50 Posted October 12, 2011 Share Posted October 12, 2011 Dperry, I pay off gross so it would be $20. 20% of gross is the sane as 33% of net with a 40% COGS. Ha, I also use this to my avantage, my biggest competitor has some crazy way of paying and I got my last 2 location because of the simple easy to understand commisson.. Who is the new kid (BouncyBalls) Link to comment Share on other sites More sharing options...
dperry Posted October 12, 2011 Share Posted October 12, 2011 Who is the new kid (BouncyBalls) I think it may be Jax. Obviously not new with over 2000 posts. Dperry, I pay off gross so it would be $20. 20% of gross is the sane as 33% of net with a 40% COGS. Ha, I also use this to my avantage, my biggest competitor has some crazy way of paying and I got my last 2 location because of the simple easy to understand commisson.. So if you throw 33% off net at them, they think that's more than the 20% off gross. The likely only hear the numbers, and not the reference to what it is a percentage of, so they think the 33% is more than 20%. I generally give 25%. So if I said 25% of gross, or 41% off of net. I imagine that would sound awesome to a prospective location. Link to comment Share on other sites More sharing options...
Rick Falcon Posted October 12, 2011 Share Posted October 12, 2011 This all sounds too familar. LOL Link to comment Share on other sites More sharing options...
caserri Posted October 12, 2011 Author Share Posted October 12, 2011 My vote is that the ball buster previously known as Kelly is now Bouncy Balls. DING DING DING! WE HAVE A WINNER! Link to comment Share on other sites More sharing options...
Hillbilly Posted October 12, 2011 Share Posted October 12, 2011 I get into this argument in my FTJ as well. The only difference is people confuse margin with markup, and as you know there is one heck of a difference. The majority of people don't understand net and gross, even some business managers and owners. And it gets worse with the younger generation of people. A lot of them can not even give the correct change back at a register if you give them a few coins along with your bills. BTW, I pay off the gross for simplicity. I do fudge a little and round down to the nearest dollar though. Also all pennys, nickels, and dimes, I don't count. Jax, if you read this here is some trivia for you. Jimmy Buffett has a song called "Math Sucks". It would be appropriate here. Link to comment Share on other sites More sharing options...
timberframe50 Posted October 14, 2011 Share Posted October 14, 2011 Yep I had a feeling Steve split this up just to kill it. Not a single reply in 24 hours. Link to comment Share on other sites More sharing options...
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