The concept of paying for a location in the vending business can be categorized under one of three headings:
1.Placement Fees
2.Commissions
3.Locating Fees
It's important that you understand the unique nature of each of these items. Snack and soda vending account placement require a bit of effort in marketing and sales to make the right placement locations. Using a vending account locator service to find accounts for you might seem like a simple way to land locations for your machines but understand that when you use such a service you will have to pay a Locating Fee to the service when you close the deal with the property that your machines will be placed at. These fees are generally only one time expenses but can be very large in some cases based upon the perceived value of the account to your business, meaning the amount of money that you are expected to make from the account over the course of the first year.
Placement Fees are in a word BAD in another word STUPID and in a final word REDICULOUS. Never agree to pay a placement fee. If the property owner asks you to pay a placement fee it means that you are not important to them, they do not value your relationship to them and they will replace you as soon as your competitor comes along willing to pay a higher fee than you are.
Comments
Post a Comment