Vending Commissions – Part 1
This is my site Written by The Vending Guy on January 21, 2008 – 11:10 pm

Vending CommissionsHow much should I pay a vending location in commission? Is their an industry standard?

Everyone seems so afraid of this issue that they allow themselves to get frozen with inaction. Many vendors are so afraid to pay a commission that they forgo some VERY profitable locations. Before we begin to discuss commission I first want top stress that you must track your business and know the numbers. What is each machine’s average gross sales and profit. What are your fixed costs and what are your variable costs. Remember that equation from school? y=mx+b OK, we really don’t need to get that deep but you do need to have an understanding of how much money you make for each machine.

The next item that needs to be established before I can give you any kind of “standard percentage” is to determine what kind of vending to which you are referring. I have several locations that I pay commissions to (some as high as 50%) and they are worth every penny of it. However MANY of my locations get ZERO commission, and never will. Vending is a business, if you are able to give up a percentage of your profit to gain huge increase in volume wouldn’t that be worth it? The answer is that of course it is worth it, you just have to understand your numbers.

I will wrap this subject up next week in “Vending Commissions – Part 2

Posted in 

Leave a Reply

*