Vending Commission

Many locations will ask for a vending commission. When it comes to a commission the final consumer is always the person who ends up paying it. You should always let your accounts know this when giving the presentation. If you can you will want to sell them on the idea of keeping the cost down and being able to provide them with better service due to lower or no commissions.

What’s In It For Me?

Many times you will be talking with the Human Resources manager and they will have the what’s in it for me attitude. What they are normally thinking about is what they will be able to do for their employees with a vending commission.

Many times they want to be able to have an employee appreciation dinner. This is always a hard thing to over come because everyone likes to give other peoples money away when it makes them look generous.

Convenience Of The Machines

If your prospective new account is new to the vending business you can sell them on the idea of the convenience. You will also want to educate them on the positives of their employees not leaving the business during their breaks and lunchtime. Many of these types of customers have watched their employees leave to go after a snack and return a few minutes late in doing so.

Energy Cost

There are many new energy efficient vending machines on the market today. If you are selling a new account let them know of the energy savings they will enjoy with your new equipment. Later, if they ask about a commission you will be able to come back with the added expense you will have in buying the energy efficient equipment.

This may not completely get you out of paying a commission but it will give you a bargaining chip for lower commissions. The lower commissions will pay big dividends for you in the long haul.

Quality Products

This is another area that vendors will cut on when they are paying the location too much commission. When you make your proposal if you have seen that the customers’ present vendor is using this tactic let them know without mentioning the present vendors name that you will be carrying name brand products.

Many vendors will carry Butterfinger Crisp instead of Butterfinger bars and your prospective customer will notice this even if they do not mention it. Of course everyone knows the crisp bar cost less and it will help you justify a lower commission.

Charitable Donations

Charitable donations are a common thing in the bulk vending business to avoid paying a commission. This has not taken hold in the full line vending arena. This may be something you want to try as you can always take it away if the location demands a cut of your sales.

I would like to hear from anyone that has been able to sell a large full line vending customer on this idea. It would be great to be able to share this with other venders and eliminate giving commissions to the account. It would be a win-win deal for the charity, vendor and location.

Metering To Resolve Trust Problems

If you have detected a trust issue that an account has with their current vendor offer to show them a monthly report of each machines meter reading. Only very old machines do not have this capability.

There are some vending companies that will offer unrealistic commissions because they have no intentions of showing the customers the meter readings. Most companies are honest but there are a few that will do what ever it takes to win an account.

A Vending Commission Can Help Win The Larger And Longer Contracts

An account with 300 employees or more will expect a vending commission. These accounts are being solicited by vending companies continually. When you are bidding on this type of an account, especially when it is a blue collar account, you can expect to bid with a commission in your proposal.

The time a vending company saves when servicing a larger account will help off set the commission. There is not as much dead time in a day when you are servicing larger accounts.

When you are offering a vending commission to an account try to stretch the contract time out to 2 or more years. The account will at times be more inclined to give longer contracts with larger commissions especially if they have been dealing with you for a period of time.

You will want to allow for more administrative time when you are paying commissions and making metering reports available.

Rates Of Vending Commissions

The rate of commission you are willing to pay should be established before you ever give a proposal. Depending on your relationship with the account you may want to go in with a lower rate in order to be able to negotiate if they ask for more. If you are the new company it may be advisable to give them your best shot at the beginning because you may not get a 2nd chance to negotiate.

The best commission rate is, of course, 0% but you may have to go as high as 20% to get a new account. Just make sure your prices are in line to be able to give the larger rates. As for me, I'm willing to walk away from an account that wants too much of a commission.

Some vending companies are willing to pay what ever it takes to get the account as long as they are able to charge enough on the retail side. I enjoy hearing from each of you and read all comments that are sent.

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