Vending Commissions – Part 2
This is my site Written by The Vending Guy on January 30, 2008 – 2:25 pm

Vending CommissionsThis post is the second part of a series, if you have not read it yet please read “Vending Commission – Part 1“.

If you are involved in snack / soda vending then usually, 10% of the gross income of the machine per month is acceptable and still is profitable for you. Any higher and you simply won’t make any money; the margin for snack/soda are pretty slim. Quite frankly I do not pay a single penny of commission to any of my snack/soda locations. If I pay a commission I am giving them my profit. My service is just that, a service. I keeps the employees in the building and not doing “snack runs”. Most managers/employers understand this and don’t even expect a commission. With that said locations sometimes do ask for a commission. I simply explain to them that there isn’t enough profit, if they persist then I offer to rent them the machine. They have to stock it and get to keep all the profit. One person tried that once and gave up after one month. They realized that stocking a machine is work and happily gave it back to me. It is now one of my best locations.

Now as far as Bulk Candy, Video Games, or other Amusement Games it isn’t unusual for anything from 25% – 50%. It is not uncommon for a high volume location to ask for 50% of the revenue. While it is sometimes profitable for you do this with very high volume it still makes your profit margin slim. A good alternative would be to take out your cost of product (usually about 15% – 20%) and then split the remaining profit 50/50. When you work out the numbers you are each getting about 40% of the gross income. While 40% is still a high commission; if the location has enough volume it may be well worth your efforts.

Final thoughts: If you know your numbers you can avoid the “losing deals” while still being flexible enough to design a commission payment system that will insure you secure locations and a long profitable vending business.

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