The first step is to remind yourself that the building owner wants to have vending machines in his or her building! Building owners want to have a convenient and enjoyable workplace for their tenants, and part of that means delicious, affordable, and convenient snacking. If you find yourself negotiating with a business owner who is already working with another vendor for the same space, you need to do a little more prep work before negotiating. Here are some tips from All4U on different ways to approach your negotiations:
Highlight Your OffersWhile your proposal should be choc-ful of the benefits of working with you and your vending machines, it’s important to re-emphasize this while negotiating. Be sure to highlight what sets you apart: modern, high-tech machines. Support and maintenance on those machines, as well as frequent stocking and cleaning. Taking time to note that you plan to do all of the work in maintaining the machines once they are in this location will go a long way towards alleviating the stress of the person with whom you are meeting.
Consider the Owner’s ConcernsThe building owner may have had a bad experience with vending in the past. They may be working with poor vending vendors right now. The point is, you don’t necessarily know what’s on their mind! Take this time to ask the building owner about his or her expectations when it comes to vending. You might also want to add in an amount for electricity so that the building owner will not feel taken advantage of. Place yourself in the position to be a supportive partner to the building owner and the negotiations will run very smooth!
Negotiate the Percentage
Many locations see vending machines as providing a service to their employees or businesses at their location, so they will not expect or ask for a percentage of your sales. However, if after all of your negotiating, it still boils down to percentages, begin by offering a low-to-mid-range percentage that you can afford to pay and see how the building owner reacts. He might counter with a higher figure for what he wants as well as what another vendor is offering.
The most important thing you can do is do the math beforehand. You need to know what your bottom line is as far as what you are willing to offer if he balks at your initially proposed figure. You still need to make a profit, so make sure you are still making a percentage even if you have to give up something in the process.
These helpful tips just scrape the tip of the iceberg of what All4U can help you accomplish as a small business owner. Give us a call today!