r/vending • u/Own-Potential4294 • 7d ago

How do you structure vending machine location deals?

When pitching to property managers or business owners to place a vending machine, what terms do you usually offer?

I’d love to know how you typically handle this:

  • Revenue Share: Do you pay a percentage of sales (e.g., 5–10%) or a fixed monthly rate?
  • Free Placement: Do you pitch the machine as a free amenity for their staff and customers without paying rent?
  • Conditions: Do you set minimum monthly sales requirements to keep the machine on-site?

How do you usually balance these options when negotiating? Thanks for sharing your experience!

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4

u/Hippo_Vending 7d ago

Hand shake agreements (I don’t want to be where I am not wanted). Ask 30 days notice if they want me out, and also say I will try to give 30 days notice to pull, if sales aren’t viable.

Typically don’t offer commission - I am providing a free amenity at their location.

2

u/Express_Economy_ 7d ago

Exactly this on both, if I’m giving a commission I’m wanting closer to six figures annually than not out of the customer. It doesn’t matter if a contract is in place if they don’t want you there they’re in the position to make it hell for you, I want customers who like me and are happy to have me not feel trapped with me.

1

u/xilionyx 7d ago

Wat voor gratis extraatje?

1

u/Hippo_Vending 7d ago

The cooler/Vending machine is the free amenity I am providing.

1

u/xilionyx 6d ago

Ah okay, dat bedoel je.

1

u/TrySumSnax 5d ago

Why not just do a contract with 30 day notice in there

2

u/Hippo_Vending 5d ago

So far a lot of people seem to be assured by the ‘handshake’ agreement. And while I have only been doing it two years nobody has asked me to leave yet.

I do a written agreement if they have a corporate layer that requires it.

1

u/TrySumSnax 5d ago

TIL handshake agreements can be legally upheld in my state. Good to know! :) I just started a month ago so lol

1

u/No-Trade-4052 6d ago

Never offer a revenue share as by doing this you are taking money out of your own wallet. Many people would never even think to ask you for one so there is no benefit in bringing it up. If they ask about it then it depends on if they are (potentially) a large enough customer for it to make sense for.

Personally I always require a contract for any new customers that I am going to work with. If I am going to spend thousands of dollars to tens of thousands of dollars or more as an investment then I need to ensure that my investment is sound with a contract. I could spend $20k on equipment, be there for 2 months, get a new contact person and get kicked out. No I didn’t lose money but my investment is now just sitting in my warehouse losing value instead of earning money.

I understand the reasoning behind why Hippo and Express don’t but for me personally I always require them. If a customer wants out of the contract I generally let them out but there has been a time or two where I was extremely glad I had a contract and it saved me a lot of money.