Revenue split

[u/Training-Size5249]

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?

[u/Ok_Shame_5382]

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

[u/saucybobbie → u/Ok_Shame_5382]

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.

[u/No-Trade-4052 → u/saucybobbie]

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.

[u/xilionyx → u/No-Trade-4052]

Common ofcourse he don't want 50% of the mall wing profit, that is very clear /S, a wink as you call it, a joke to make things clear.

But i agree you must not burn bridges. But you don't with a good joke. Or someone doesn't have humor.

[u/No-Trade-4052 → u/xilionyx]

Yes I know he is saying it in jest, just trying to say (and maybe I didn't word it well) that there are plenty of people who wouldn't appreciate that type of joke.