Many locations will ask for a vending commission. When it comes to a commission the final consumer is all the time the someone who ends up paying it. You should all the time let your accounts know this when giving the presentation. If you can you will want to sell them on the idea of retention the cost down and being able to provide them with best service due to lower or no commissions.
What's In It For Me?
Charitable Donations
Many times you will be talking with the Human Resources owner and they will have the what's in it for me attitude. What they are commonly reasoning 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 worker appreciation dinner. This is all the time 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 inventory is new to the vending enterprise 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 enterprise while 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 power sufficient vending machines on the market today. If you are selling a new inventory let them know of the power 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 charge you will have in buying the power sufficient 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 seller 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 observation this even if they do not mention it. Of policy everyone knows the crisp bar costs less and it will help you explain a lower commission.
Charitable Donations
Charitable donations are a tasteless thing in the bulk vending enterprise 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 all the time take it away if the location demands a cut of your sales.
I would like to hear from whatever 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, seller and location.
Metering To conclude Trust Problems
If you have detected a trust issue that an inventory has with their current seller offer to show them a monthly narrative 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 inventory 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 enterprise saves when servicing a larger inventory 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 contribution a vending commission to an inventory try to stretch the contract time out to 2 or more years. The inventory 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 executive time when you are paying commissions and development 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 connection with the inventory 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 enterprise it may be advisable to give them your best shot at the beginning because you may not get a 2nd opening 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 inventory that wants too much of a commission.
Some vending companies are willing to pay what ever it takes to get the inventory as long as they are able to payment sufficient on the sell side. I enjoy hearing from each of you and read all comments that are sent.
Vending Commission - What You Can Expect To Pay
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