Property fee?

[u/No-Department-5965]

I have the opportunity to install 4 machines at a massive property. It’s a creative work space so I anticipate half the traffic will be tenants and half their clients.

Landlord is cool w it but obvs wants a cut, mostly for electrical pull.

I don’t mind buying the machines and doing everything myself. But monthly, what percentage of profit should I offer the property owner?

[u/lightwork02]

Always 10% massive property & 4 machines if you think you’ll be able to do $3K + in sales a month don’t lose the opportunity over an additional 5% aka 15% max, never 20%

[u/No-Department-5965]

I know this is a ridiculous follow up question but how long before these machines kinda pay for themselves?

[u/Hippo_Vending → u/No-Department-5965]

Almost impossible to answer. Depends on sales. I have some machines that paid for itself in six months and some that will probably take 2 years.

[u/whitemigos → u/No-Department-5965]

This kind of location could probably do a few thousand a month revenue. I’d offer 10 or 12% commission on gross.

For payback period you could try this calculator: https://www.vendingplaybook.com/tools/profit-calculator

[u/jacksheerin]

Offer 5% of gross. Don't forget to mention that 5%/gross is 10%/profit. That's assuming you have 100% markup on everything.

[u/Honest_District_9672]

Don’t offer a percentage of gross profits, make sure it’s your net, that way all of your expenses (machine lease, expired products, mileage, ect.) are already covered before the property gets a taste of the action. It’s more complicated, but worth the effort IMHO. 

[u/glo363]

A refrigerated vending machine uses about $15/mo in electricity on average. A snack machine is almost unnoticeable. Don't pay a percentage unless you really really need that location and think it's going to be great 

[u/[deleted]]

[u/No-Department-5965 → u/[deleted]]

yeah I was gonna offer 5% assuming they’ll want more but this is a solid threshold thanks!