Hotels and soda machines

[TeamS]

Hi!

We are currently looking at a route that includes two brand new hotels, a La Quinta Inn and an Holiday Inn Express.

There are 16 months left of an 18 month contract on both places.  Because the hotels just opened about a two months ago, there are no accurate records to analyze yet.  Does anyone have any insight for us on having soda machines in hotels?

The machines are vending 20 oz. bottles.  One hotel is selling them for $1.50 each, the other hotel for $2.00 each. 

I would love to hear from someone who has machines in hotels.  Are they one of your more profitable locations?

If you have a machine placed in a hotel, would you mind sharing an average of what your machine is grossing each week?

Are there any unique things to take into consideration when thinking about placing machines in hotels?

Thank you for your time and insights.  Have a blessed day!

Mrs. Team S

[midtenn]

From past experience, most hotels are fair profitability wise, unless you are required to maintain equipment on several different floors but most time the managers insist on excessively high commission. You must adjust your pricing to reflect their commission rates.

[TeamS]

Thank you for the infomation.  I appreciate your input and help.

-Mrs. Team S

[pdavid]

What is "excessively high commission?" 30%?

[antoniocinisi]

What is "excessively high commission?" 30%?

30% certainly is at least "very high".

I think 10% is pretty standard for soda machines.

try doing a search,there is more info on this.

 

[mbicfl]

I have two hotels like those. They average 135.00 a week gross sales, and due to the economy they should hopefully increase in the future. I do not pay a commision, but If I did I would pay 10% on net sales only.