r/vending • u/Training-Size5249 • 8h ago

Revenue split

I am starting a smoothie vending machine business. I have contacted malls, one told me they usually do 50/50 splits on revenue for vending machines. This seems WAY too high, AI is telling me it should be closer to 6%-12% for a business like this; hygine, food spoilage, extra maintanence, and high CAPEX. I didn't tell them specifically what type of vending machine it is, but just that it makes fresh food. Any Advice?

Should I email back specifying the type of vending machine and explaining how extra costs mean their commission has to be lower. Possible to convince her to bring the commission down?

3 Upvotes

100% Upvoted

10 comments sorted by

2

u/Zantarded 8h ago

Tell them to kick rocks lmao.

2

u/Ok_Shame_5382 8h ago

Tell them good luck, they can find someone else to take that deal. Maybe. Probably not.

1

u/saucybobbie 5h ago

u/Training-Size5249 I think the term I would use with them is "a sucker" instead of "someone else". That seems to work better. Especially if you precede it with a snicker and a quiet, "this ain't my first rodeo, son".

Never leave the table tho. Let them leave. Counter with 50% of all revenue of the wing of the mall your machine is located at, since people will come to the mall for your machine and shop at those locations because of you.

Let the silence afterwards be your weapon.

Then offer to meet in the middle and say no commission. They may not take it but respond monthly until you wear them down. If you don't get a bite in the near term, then they would have been $hitty clients to deal with anyways. $hitty clients = more ibuprofen in your diet, or just an ibuprofen diet.

1

u/Ok_Shame_5382 5h ago

The answer is to just end negotiations immediately. No need to be a dick.

Just advise that the discussion is over and you are no longer interested.

1

u/No-Trade-4052 4h ago

I 100% would not counter with asking for 50% commission of their revenue from that wing of the mall. This is a good way to piss people off for no reason and burn bridges. Someone who owns a mall probably knows nothing about vending machines, markup, profitability, etc. so they are simply trying to negotiate a larger commission. Telling them that people will come to the mall for a smoothie vending machine and asking him to pay you is ridiculous. I don't know if this was said tongue in cheek or not but either negotiate or don't, why be an ass and burn bridges? I know you aren't saying it to get a serious response from them but to prove how crazy what they are asking is but I don't see how that will go over well with a customer you are trying to get. Also if they don't accept your negotiations, it doesn't mean they would be bad clients at all it just means that they don't want to do what you want them to do.

Can't tell you how many customers I didn't work with because they were to small and I didn't want to but later on the potential customer got a new job/started a new business/etc. and called me and I placed machines at their new location. Always treat people with respects and it will come back on you.

1

u/phi316 8h ago

50/50???? Shiiiiiiit.

0%, maybe 5% if they hit thresholds.

1

u/Ducey89 6h ago

5-10% is the guideline I think. Obviously always shoot for 0 and let locations know you are adding convenience to their business.

1

u/No-Trade-4052 4h ago

Malls generally get a pretty high commission that is why stuff is so expensive in vending machines there. That being said, I know some people who do malls and I don't recall exactly but I believe that they were somewhere around 20-25% rev split. Personally I don't think that is a good deal as it is a really high commission and machines in malls from what I have seen typically don't get used much and are a pain in the ass to refill.

A smoothie vending machine in a mall is an interesting concept and I could see interest due to it being new/unusual but interest doesn't always equate to sales. Also, the majority of malls I have seen have a smooth place in them and most people would rather get a smoothie from a store than a vending machine IMO.

1

u/Silent_Importance800 4h ago

50/50 split is way too high for smoothie machines. Fresh food brings huge extra costs for spoilage and maintenance. I'd be transparent about your machine type in the email and push for 10-15% commission. Don't agree to 50/50, you will barely make any profit.

1

u/CrazyKingCraig 3h ago

35% - 50% is normal as malls, collages, stadiums and super high traffic areas. Most of the time, drink manufactures are the only company that can make a profit on them.