How To Decide The Rate Of Vending Commissions?
Starting a vending business will require you to take many decisions. The primary decisions involve selection of the vending machine supplier, machine models, pricing, products and vending machine locations. As a new business owner, you may not be sure what rate of vending commission to offer to the location owners.
The best thing would be to offer no commission at all. This is possible when you have associated with a charity and business owner allows the amount to be paid as commission to go to the charity. If you aren’t linked with a charity, you can try to convince the business owners regarding the benefits of keeping a vending machine in their premises.
However, these arrangements may be possible in the short-term only. Eventually, you will have to pay commission to location owners to keep your machines. What will be your strategy to arrive at a certain rate? You can’t get into a bidding war or heated negotiation deal with a prospective location owner. So, it is important to plan the vending commission to be offered beforehand.
It is always better to explain the computation of commission to the prospect. This will help them in understanding the costs deducted from projected revenue on which the commission will be paid. You should also offer a comparative analysis of the rate offered by you and other vending operators.
Another option is to place your Planet Antares vending machines for free at the potential location for the first month. Observe the machine sales during this time period and then fix a monthly commission on that basis. This approach establishes two things:
Vending commissions may seem to be a financial burden but when fixed correctly, they can boost your vending machine operator business too. A reasonable rate will help you establish good relationship with premises owners and go a long way in enhancing future contracts and reputation.
The best thing would be to offer no commission at all. This is possible when you have associated with a charity and business owner allows the amount to be paid as commission to go to the charity. If you aren’t linked with a charity, you can try to convince the business owners regarding the benefits of keeping a vending machine in their premises.
However, these arrangements may be possible in the short-term only. Eventually, you will have to pay commission to location owners to keep your machines. What will be your strategy to arrive at a certain rate? You can’t get into a bidding war or heated negotiation deal with a prospective location owner. So, it is important to plan the vending commission to be offered beforehand.
It is always better to explain the computation of commission to the prospect. This will help them in understanding the costs deducted from projected revenue on which the commission will be paid. You should also offer a comparative analysis of the rate offered by you and other vending operators.
Another option is to place your Planet Antares vending machines for free at the potential location for the first month. Observe the machine sales during this time period and then fix a monthly commission on that basis. This approach establishes two things:
- The location owner is assured that the operator is genuine.
- The vending operator can use a logical basis of computing commission rather than depending on rough estimates and industry standards alone.
Vending commissions may seem to be a financial burden but when fixed correctly, they can boost your vending machine operator business too. A reasonable rate will help you establish good relationship with premises owners and go a long way in enhancing future contracts and reputation.
posted by Jane Dickens at 6:02 AM
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