The Truth About Vending Commissions

Majority of the vending machine operators acquire locations by offering proprietors the best deals in service and vending commissions. These commissions form a small part pf the vending machine profits and are given to the location owner for the exclusive right to place equipment in their premises.

On an average, vending operators earn 3.8% return on assets (ROA). This implies that the standard 7% commission tends to be a financial burden on them. As a Planet Antares vending operator, you can decide to get rid of the vending commissions all together.

Doing away with commissions will not ensure that the financial burdens of the vending machine operators will get resolved. The top 25% of all vending operators earn an average 22% ROA and pay higher commissions than the lower 75% vending machine operators. You must first make sure that your anticipated profit will cover your return on assets requirements. Any expected vending machine profit beyond the ROA can be given as commission.

Instead of commissions, a Planet Antares vending operators should focus on searching for ways to invest their money to retain their clients such as offering them incentives. By offering higher commissions, the vending market share can be increased.

Such an enhancement in commission rates can be covered by a unit price increase in vending products, increasing vending machine prices and commission rates usually satisfies the location owners who will eventually more than double their profits. Usually, you will witness a decline in your vending sales as you increase product prices. Gradually, they will come up again once the customers adjust to the new prices. Moreover, every machine serviced will have higher revenue and profits.

Commissions are not necessarily the foundation of successful vending. Instead, there are like a tool that can be used by Planet Antares vending operators to increase their market share. A deeper look into the overall management of your vending business is a good idea, especially for operators who are finding it difficult to pay commission rates due to low ROA.