People again and again ask me should I pay a commission to a company who wants my vending service and if so “How much am I supposed to pay?” Some people think that when they call up a vending company that you are just going to give them free cash.
We are in business to earn cash. We are not in the business to just give
cash out. You have to look at it like this. We are in business to build and profit! Not to just toss our cash away at locations just because they want a commission.
This is how the process works. We purchase a machine, set it up, find out that the sales are garbage and then pay them a commission? No. Absolutely not!
This is what I say to people. Commissions are totally fine and you can have any percentage you want. Then I say, “This is what I need to run my businessaverage. I need that I set up my machines at you location.
My prices are $1.00 for chips or $1.25 for chocolate. “This is what I need to actually run my business average.” At the same time there has to be some satisfactory sales running through a location for me to keep my machines here, because the machines are pricey and I am running a business.
We can test out the location and see how much the sales are like. You can earn any percentage you want; it is just a matter of how much people are willing to pay for the products sold in through the machines here and how much traffic you have coming in through your company.
We can increase the price by 25 cents per unit? You keep a quarter for eachproduct sold through the machines. You can decide any number that you want, at the end of the day. I rarely make a promise to somebody; I am just straight out with them. “I am running a business; we can try this out and see how it goes.
I will discuss with you how things are going.” There have been a few times when I have proposed a commission and only then later found that the sales were not very strong, it wasn’t worth it for me to keep the machine there, so I would simply talk to the manager. It is part of the relationship building of the location. Keeping close communication with the person that you are setting the account up with, and keeping a good rapport with them.
You communicate better. I just simply said, “You know, it is not working out with the commissions. The sales are X amount of dollars. In order for me to keep the machines in this facility, I need it to go up more. I think that we should lower the price and keep the products at a good price for the people so they feel that they are receiving good value.”
After you explain it to them like this they understand that you are just running your business and that if you are providing a good service then they are happy. Just remember that you are in charge of your business and if the locations sales are not strong enough to pay a commission then don’t.
Chris Robertson is a successful vending operator for over 10 years running out of Toronto Ontario Canada. For more information on how you can start your very own vending business in your area and learn about finding new locations for vending machines check out my website my vending secret.com today.
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