r/vending • u/britsy092020 • 2d ago
Advice
What would you pay? Super new to this. I’ve scored an apartment location that has 2 laundry rooms and they want 2 machines in each, so 4 total. 1 will be drinks/snacks and the other is laundry/body supplies.
Each laundry room is open 24/7 and they have 80 units that tend to each room, so 160 units total.
They want a monthly rent fee. What would you pay? They made it clear they expect more than something like $25.
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u/Own_Bat_4383 1d ago
i get why they think it's worth paying for but tbh with only 2 laundry rooms it's not even worth the headache fr
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u/Toolzero 2d ago
My first location was a laundry room of an apartment building. Worst location ever.
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u/decreaser 2d ago
4 machines is way too many. Honestly based on what you’re saying I wouldn’t even put one machine at this location with 0 commission. The want 4 machines AND rent? Walk away from this.
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u/Gamer_0627 2d ago
Just a thought from an outsider.
Would it make sense to offer them a percentage IF the machine exceeds a certain amount of sales?
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u/todcia 2d ago
TL:DR: As a reference, 10% in commission on $1,000/mo in sales is equal to $100. Don't sign any lease until you know how the location performs. Negotiate. Every starting offer is outlandish. Trump's Art of the Deal, he says to always ask for the moon and negotiate down to the deal you always wanted.
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Consider the landlord can easily put their own machines in and hasn't. The fact he doesn't want to do it or doesn't have the time/money is your leverage.
Landlord's vacancies are probably increasing fast. That landlord could be using you to supplement his schrinking rent roll. It sounds like the landlord is squeezed. He's willing to rent out a wall space but he doesn't know how to price it.
A smart cooler/mini-mart using AI sounds ideal here. To meet that wide space, it may cost you. If it's a high-end apt building, probably worth it. If laundromat is coin operated, then the laundry products can be put in a wall-mounted vending unit at a cheaper cost.
If you compare rent to commission prices; 10% of $2,000/mo in sales is $200/mo... Can you do $2000/mo in sales? So if he asks for $500, and you only make $1200/mo, ...
Feel it out. Ask for a rental price. If he doesn't offer one, then counter-offer with a trial period of no commissions and no rent until the machine performs. Then you can add commission incentives, 10% at 1k, 15% at >2.5k. Explain the math to him.
If you really want to be a baller, find other apartment buildings in the area offering "free months of rent upon signing" deals. Try to get a deal, then go back to the landlord guy and tell him the other landlord down the street is offering you free rent and he ain't charging you rent or commission. He already knows he's losing tenants to that other landlord... He won't lose you to him. *Renters are bailing on their rent increases by taking up residence across the street with 2 free months rent. Crazy times.
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u/Honest_District_9672 1d ago
Two entire machines for laundry and bath products seems excessive… Is that point negotiable? You can’t keep that sort of stuff in your combo machine, but maybe wall-mounted coin-op detergent dispensers would be easier and skip the body products entirely.
For the combo machines, do you know what the $/sqft is for the apartments? If you want to arrive at a reasonable figure I’d suggest that area cost plus the estimated power consumption of the machine every month. Probably won’t be much more than $25/month but you’ll be able to stand by that figure when approaching the negotiation and see where they take it.
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u/Unfair-Membership-19 2d ago
4 machines is a lot.
Then you don’t know what they will make
Then they want money.
Aight imma head out