Poplady1 Posted October 20, 2011 Share Posted October 20, 2011 Often some of you have asked what certain accounts make each week. One of my vendors sent me this income report on a Holiday Inn-Express (can't give the city) with a drink/snack set up near the front desk. Hope this helps some of you when you are out looking for some new business. Hey, Wanted to let you know I picked up 215 the first week, 273 the next and yesterday 301. Been a great account so far. Thanks again Bev! -Dustin Sent via BlackBerry by AT&T Link to comment Share on other sites More sharing options...
dogcow Posted October 20, 2011 Share Posted October 20, 2011 what kind of commission do they pay ? ive had some appts with hotels...100wk with 20% commission ..snack only..told them no thanks... Link to comment Share on other sites More sharing options...
RJT Posted October 20, 2011 Share Posted October 20, 2011 what kind of commission do they pay ? ive had some appts with hotels...100wk with 20% commission ..snack only..told them no thanks... Hotel accounts can be all over the board with some doing great numbers and some not worth doing. I have seen one account do large numbers and another not do worth a crap and they were beside one another. I do find that the more run down and rough the hotel the better the numbers. If you dont mind doing those and "watching your back" they tend to do better numbers. I think that is because they have residents that stay for extended times and dont go out to grocery stores and such if you know what I mean. 20% is about standard in my area with some offering as much as 20 to 30% but I know they are not being honest with those promises or they are doing the old "net" commission trick. Link to comment Share on other sites More sharing options...
Poplady1 Posted October 20, 2011 Author Share Posted October 20, 2011 what kind of commission do they pay ? ive had some appts with hotels...100wk with 20% commission ..snack only..told them no thanks... Yes, hotels do have higher commission requests but you just adjust the product pricing to cover commission? Any account that does $100 a week per machine is a keeper in my world and in the world of the vending companies I work with "they will take them all week long". Hotels expect you to increase your product price to cover their commission. So if you increase the price of your product what is the difference if you pay 10 or 20% commission. If you pay 10% on a .85 can or 20% on a 1.00. You just have to use hotel pricing. Poplady Link to comment Share on other sites More sharing options...
dogcow Posted October 21, 2011 Share Posted October 21, 2011 Yes, hotels do have higher commission requests but you just adjust the product pricing to cover commission? Any account that does $100 a week per machine is a keeper in my world and in the world of the vending companies I work with "they will take them all week long". Hotels expect you to increase your product price to cover their commission. So if you increase the price of your product what is the difference if you pay 10 or 20% commission. If you pay 10% on a .85 can or 20% on a 1.00. You just have to use hotel pricing. Poplady yeah i understand about the pricing ... but the way i figure $400/mo gross really means ~$300 a month gross after accounting for commissions. A number of factors contributed to my decision Theres very little chance of getting the drink business there because they got the machines direct from the bottlers so they get a high commission. the hotel was kind of far away and the existing equipment was bigger than what I had to put there. So I'd either have to buy a new snack machine or service it every week. Based on the cost and aggravation of driving all the way there to service it every week it just didnt make sense for me to do it. If i could have got the drink business there would have been no question...or maybe if it was across the lake so i would be paying a $2 toll both ways Link to comment Share on other sites More sharing options...
Poplady1 Posted October 21, 2011 Author Share Posted October 21, 2011 yeah i understand about the pricing ... but the way i figure $400/mo gross really means ~$300 a month gross after accounting for commissions. A number of factors contributed to my decision Theres very little chance of getting the drink business there because they got the machines direct from the bottlers so they get a high commission. the hotel was kind of far away and the existing equipment was bigger than what I had to put there. So I'd either have to buy a new snack machine or service it every week. Based on the cost and aggravation of driving all the way there to service it every week it just didnt make sense for me to do it. If i could have got the drink business there would have been no question...or maybe if it was across the lake so i would be paying a $2 toll both ways I am not big on putting in just a snack anywhere either. You really need to use the snack as a way to get that drink business from them. My come back to them when they say they have a Coke/Pepsi for drinks and they want a snack, I ask them if they have called Coke or Pepsi to have them put in a snack. When they tell me Coke/Pepsi do not do snacks I go into thats why you want to work with an independent vendor. I explain that 65% of the income will come from the drink machine and 35% from the snack. Independent vendors use the snack machine as a hook to get the drink business. I ask what commission they are getting from Coke/Pepsi. If it is a can vendor and they are getting 25% on a 1.00 vend I offer a machine that does bottles and cans at 25% commission but I only put in 2 or 3 cans with the rest in bottles including energy drinks. Bottles priced at 1.75 with the other selections based on your daily rate plus 25%. The you increase your snack prices to cover the commission and offer Sundries along that bottom row. If the hotel has a laundry area, I would also sell laundry items too. Turn that snack machine into a convenient store. I always recommend that any snack going into a public place should have a plexiglass front instead of glass. You really don't want a child putting their arm through the glass and getting hurt. Avoid glass in public. Plexiglass is cheap and easy to install. Also on apartments, resorts, golf courses or hotel machines I suggest 2 hasps. One across the front lock and the other at the top corner. If you want this account, I will give them a call for you. See if I can work it out. My charge would be "0". You would need to have a drink and snack available. Do you have a 3rd party agreement with any bottler yet? If you have one with Coke you can just take the account over from them if you are placing a snack. Believe me they are fine with that if you put in a snack. You have my number give me a call if you want this account. Poplady Link to comment Share on other sites More sharing options...
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