huynhhh Posted September 26, 2014 Share Posted September 26, 2014 I've been doing some readying and it seems like the average commission is 10-20% so I was wondering if this was 10-20% of the net income, or is it before I calculate COGS? (And same question applies to charity commission) Link to comment Share on other sites More sharing options...
havending Posted September 26, 2014 Share Posted September 26, 2014 Where's this 10 to 20% you speak of ? I'm moving there Link to comment Share on other sites More sharing options...
rodney69 Posted September 26, 2014 Share Posted September 26, 2014 Uhhhhhh...... I don't know many that low on commission. If it's a good spot then competition will swoop in and take it. Rarely have I ever gotten that low. I don't even start below 25% any more. If it's a good spot, 30-40! When to figure the commission is debatable among vendors some before, some after. I personally just pay off gross, but I also set the price accordingly, or amount of product. Where's this 10 to 20% you speak of ? I'm moving there Lol! Me too! I do have one that is 25, well, 2, but I'm offering to up the equipment and pay more. Link to comment Share on other sites More sharing options...
Nick505 Posted September 26, 2014 Share Posted September 26, 2014 What type of business do you get away with 25% ? Are you the only one in there at that rate? Link to comment Share on other sites More sharing options...
rodney69 Posted September 26, 2014 Share Posted September 26, 2014 What type of business do you get away with 25% ? Are you the only one in there at that rate? Been in one for 10 years and the other for 7. One it's nothing but candy, so I won't pay any higher. It's a paintball place. I want to try toys again, but awhile back they didn't sell asset all! Weird. The other one is my busiest spot and they kicked everyone else out! Just upgraded and will be paying 30. Been blessed! Link to comment Share on other sites More sharing options...
Nick505 Posted September 26, 2014 Share Posted September 26, 2014 Wow cool. I wish I could get away with 25 percent. It seems 35 is the going rate here. That's an interesting type of place. I would imagine all the young customers in the paintball store would use your machine. Link to comment Share on other sites More sharing options...
rodney69 Posted September 26, 2014 Share Posted September 26, 2014 It's not just a store! It's an indoor paintball field and store! I would love to figure out what tours I could sell there. I'm replacing the 8 select with a 6 way rack here soon. Primarily, around here is 30 min, closer to 40 Link to comment Share on other sites More sharing options...
bhfisher Posted September 26, 2014 Share Posted September 26, 2014 some of your answers should be clarified. 1. Are doing only candy or toys/stickers? 2. What is your vend price? 3. Are you paying commissions on gross collected or net? Paying up to 20% of gross on candy only is fair for me and the location. I would not pay more unless it's an exceptional location (over $75.00 a month) I'll admit I mostly do charity, so not an issues. I've converted about 4 stops to commissions because they requested it and the location had a good gross. 20% is max. In fact, there is not much difference between paying 20% of gross vs 30% of net. I can show this on a spread sheet. But some operators come into my location and say will give the location 30% - but they don't say if that's paid on gross or net. Who knows what is net. It confuses locations. Bart Link to comment Share on other sites More sharing options...
Makes Cents Posted September 26, 2014 Share Posted September 26, 2014 Commission should be based on the location size, traffic volume and amount of equipment placed. Paid off gross sale. medium size - volume businessdoubles w/ toys 10-20% medium size - volume business4 way racks 25%interactive machineslarge size - high volume business6 way racks 30%interactive machineslarge size - super high volume businessmultiple machinesas many as can fit 35% - 40% Link to comment Share on other sites More sharing options...
bhfisher Posted September 26, 2014 Share Posted September 26, 2014 What you pay in commissions is a business decision only you can make after you do the math. Locations will hear all levels of % from operators but only to sign a locations. In the end most lie. Do you really want to work for free? I don't. Anything more than 20% would need to be highly justified. Again, I do only candy at 25 cents so I'm going to firm at no more than 20% Bart Link to comment Share on other sites More sharing options...
Makes Cents Posted September 26, 2014 Share Posted September 26, 2014 If you have 1 commission location that does 2 times the total daily collections of an average charity route, its worth paying for imo. If you pay commission, it should be enough that it keeps the location owner happy and other vendors away. Link to comment Share on other sites More sharing options...
rodney69 Posted September 26, 2014 Share Posted September 26, 2014 Commission should be based on the location size, traffic volume and amount of equipment placed. Paid off gross sale. medium size - volume business doubles w/ toys 10-20% medium size - volume business 4 way racks 25% interactive machines large size - high volume business 6 way racks 30% interactive machines large size - super high volume business multiple machines as many as can fit 35% - 40% Personally even on a 4 way I would pay 30+ currently. I would just adjust the price point. Only because there is so much competition here. BUT, I WOULD HAVE 20% PRODUCT COST or less on everything. Unless there is competition, then I adjust accordingly. Link to comment Share on other sites More sharing options...
BouncyBalls Posted September 27, 2014 Share Posted September 27, 2014 I only have 3 @ 35% and most are at 25 with 1/4 @ 30% Link to comment Share on other sites More sharing options...
dkochan Posted September 28, 2014 Share Posted September 28, 2014 I have a clown in my area that promises 50% commission. Link to comment Share on other sites More sharing options...
Action Vending Posted September 28, 2014 Share Posted September 28, 2014 I have a guy that does that too. He is a big operator. Very dissonest too. I have a guy that does that too. He is a big operator. Very dishonest too. Link to comment Share on other sites More sharing options...
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