Hi Steve,

I finally got into the business! I’m very excited to get started.

I am going to negotiate a great location this weekend with a property owner. This spot has everything I could want, busy road, big parking lot, highly visible, and there is no other food establishment nearby.

This is an empty lot with no other businesses. Now, after reading your book I’m not quite sure how to respond if the property owner asks what would be in it for him if he lets me use the land. I can’t offer more traffic, or advertising in lieu of paying rent. If he does ask me, my plan is to ask him how much he was thinking to see where he is at.

Should I counter offer with a percentage of my total monthly sales? If so how much? Or a flat monthly rate? If so how much? Or do you have any other ideas for this situation?

I appreciate your feedback. Thank you for the motivation to get my business up and running!

Brian Galella

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Hi Brian,

STOP!!! Don’t go offering to pay rent just yet.

Odds are that the property owner is a local business man who owns more than just the lot you want to set up on. Perhaps he owns one or more businesses in town that could use your promotional services.

If he doesn’t own any other businesses, ask if he is involved with any civic, charity, or youth activities. Offer to host a free hot dog day or fundraising event for his organization a couple times a year. It will make him look good in the eyes of the organization – and that carries a lot of weight.

In the unlikely event that he doesn’t own any other businesses or belong to any organizations, start the negotiation by simply offering him a free lunch whenever he wants. Use the following tactic for best results…

Set up your meeting for 11:30 am if possible. You may be surprised by how far free meals go in a negotiation when the other side is starving. I’m totally serious about this. If you’ve ever gone grocery shopping on an empty stomach then you know what a powerful force hunger can be on the decision making process.

You may find yourself with permission to set up for the cost of a couple of hot dogs a week.

If all else fails and you do end up talking about rent, don’t pay a percentage of sales. I never want the landlord knowing how much I make. Go for a flat rate.

How ’bout it slingers? What would you do? Chime in!

-Steve