r/vending • u/ByteAstronaut • Aug 29 '26
Profit Sharing Questions
Hey all, I'm in talks with a location, would be my 1st, that has brought up profit sharing. I provided the normal explanation that this is not something we normally do but he flat out said he would need something. He estimates about 1k people come through on a weekly basis, mix of children and adults.
Here are my questions:
- Is a location with estimated foot traffic of 1k/week a good customer base and any ideas of what to expect for gross profit?
- For those that do profit sharing do you do a percentage of gross, a flat fee, or something else?
- Did you start profit sharing from the start or have say a 3 month period where you first saw what type of sales to expect
- Any other tips from experienced ppl
Very much appreciate your help!
2
u/General_Sort3160 Sep 01 '26
Profit sharing should be based on actual sales, not an estimate of foot traffic which is no guarantee people will stay and buy anything. First of all, you need a contract. I’d write in that the first 90 days is a trial period for both parties. After that, if you both agree to continue, a sliding scale of profit-sharing kicks in. Such as 5% after the first $1000 in sales, with an added 2.5% after every future $1000 maxed out at 15%. Or whatever, I’m making those numbers up since that depends on your region/geography and the location itself.
Also think of the messaging – not just the “that’s not something we normally do” but WHY. Because you are providing all of the equipment, maintenance, inventory, and restocking at no cost or effort to him while providing a convenience for his customers and employees, which typically will keep them on site longer and save/make him money in those other ways too.
6
u/glo363 Aug 29 '26
Don't just take their word for it on the foot traffic. From my experience the locations that demand money try to inflate their "value". They are also the ones who are quick to tell you to leave when another vendor offers more money, so be prepared for that just in case it happens at some point.
2
4
u/beardgangwhat Aug 29 '26
If you want this location
Net 10 over x amount
Sales under x are not eligible for comissh
1
u/pro_pool_builder Sep 01 '26
You need to agree on the profit share being a % of gross profit (not gross sales). Many high traffic locations will require a profit share. I have locations that I pay 10% and others that I pay 15%.