Paying commission

[AMD Snacks]

Ok, I feel pretty dumb asking this, but...how do you pay commission? Do you count out your quarters and then break them off their cut? Can you use a scale and they'll trust your math? Do you have to pay while they're there or do most people trust you to  be honest?

 

I ask because if I have to make sure I only collect when the owner or manager is around, that might screw with my schedule. And I'm trying to figure out what the norm is? 

 

I found this thread: http://vendiscuss.net/index.php?/topic/3278-how-do-you-pay-commission-cash-with-receipt-no-receipt-or-check/

 

But i'm more interested in the actual procedure. Also I use a cheap $10 scale off ebay to count my money it's pretty accurate, and i'm not sure if the location will trust that i'm not cheating them.

[PerformaVending]

I expect everyone's procedure varies a bit, but here's mine.

 

I have three different ways I pay commission, and it varies entirely on how the location wants it done. The method I always push is the one that's easiest for me, but some insist on a more involved process, so you roll with what you have to in order to get/keep locs. Don't be afraid of some oddballs who might be less flexible.

 

My go-to method is to collect, take it home, calculate it out, and then pay the loc in cash at a predetermined date- usually when I run the machines again the next month for most of my rack accounts. Most locs I have are fine with this arrangement, and are very happy to get an envelope of bills. I have a report I print out- I have a copy, they have a copy. It denotes when I serviced the machine, and what their percentage of the earnings was. They sign the copy I take with me, and they keep the other one for their records. This way I have a paper trail of who I paid, and how they were paid for my records. Most of my commission locs are this way.

 

I have one loc that is a little more picky. This one will usually let me collect, but then they want me to verify the count before I take it with me. As it's a small setup that's on a 45 day cycle, it's not too big a deal to count the quarters out right there. Some times they are very diligent, other times they're busy and they just let me go without any real scrutiny. They will insist on knowing how much they'll be getting the next time I come in to service, which I'm happy to calculate out and provide for them. Otherwise it operates very much like the former arrangement.

 

Finally, I have a few locs left that insist on setting all the quarters down on the counter, and counting them all out right there to get their take. I have considered getting a scale, but haven't done it yet. These are the most tedious locs, and truthfully the only reason I keep them at this point is that moving the equipment would be a chore- moreso than counting the quarters if you can believe it.

 

Figure out how you want to do it, and roll with it. When I locate, I usually dictate that "this is how you will be paid" in my pitch so as to leave as little wiggle room as possible. I expect a lot of guys practices will differ from mine, and it really comes down to how you want to run your business. I would advise you to avoid checks, as that's another hassle and expense to deal with.

 

Whatever you choose to do, good luck!

[AMD Snacks]

Thanks so much. I'm glad to hear there are people willing to trust you will pay them later honestly. I love counting quarters out, but i'm not sure I'd like doing it in front of a bunch of people lol. Especially in some seedier locations.

 

But yea, just like you said I want to have this figured out before I locate so I don't look like a noob lol.

[Bravo Duck]

All of our commission locations are counted onsite at time of servicing using an Acucount AC 603 scale.

Corporate locations want a check mailed to them for multiple locations, these we count and leave a receipt with the manager.

At all other locations the money is counted and commission is paid.

Locations will want their money one of 3 ways:

1. Commission paid in bills

2. Commission paid in quarters

3. Customer buys all quarters that were in the machines, this is a method some customers use to audit us and make sure we are honest.

4. Edited to add a 4th way, a very few locations want a check left.

[AMD Snacks]

1. Commission paid in bills

 

So does that mean you keep cash money on hand to pay them in bills right then and there? I don't figure i'll be dealing much with corporate locations as i'm going to mainly target laundry mats, small grocery stores (if I can find any) and family restaurants, does that mean you have to make sure you go when they're ready? Or do you go and if they're not there, too bad for them?

[Bravo Duck]

So does that mean you keep cash money on hand to pay them in bills right then and there?

Yes, we keep money available to pay commissions. If the owner is not there then a manager signs for the money.

[Johnny shades]

I have 2 grocery stores that I have 2heads in and the w owner and I have a 75 - 25% f deal..we count out the quarters together!

[AMD Snacks]

I have 2 grocery stores that I have 2heads in and the w owner and I have a 75 - 25% f deal..we count out the quarters together!

You have a what kinda deal?

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[PerformaVending]

I have 2 grocery stores that I have 2heads in and the w owner and I have a 75 - 25% f deal..we count out the quarters together!

 

Hoping you're taking the 75% on that one.

[twopawsup]

Thanks so much. I'm glad to hear there are people willing to trust you will pay them later honestly. I love counting quarters out, but i'm not sure I'd like doing it in front of a bunch of people lol. Especially in some seedier locations.

 

But yea, just like you said I want to have this figured out before I locate so I don't look like a noob lol.

I set my commission customers up on next visit pay. I don't give them the option of any other way. And the customer sometimes will tell you "that's not what the last person did"! This is your business , not there's! I tell them to stop and count each location doesn't allow me to complete my route due to slow counting process. If they cant rust you you will not be there long anyway

[havending]

I set my commission customers up on next visit pay. I don't give them the option of any other way. And the customer sometimes will tell you "that's not what the last person did"! This is your business , not there's! I tell them to stop and count each location doesn't allow me to complete my route due to slow counting process. If they cant rust you you will not be there long anyway[/quote

Don't forget that it's not your building that your doing business in. It's theirs and with out that YOU have no business. It's fine to make suggestions on where to place machines etc. but to tell them that they have to wait to be paid until next visit or else. Well that's arrogant and rude. Takes 3 seconds to count quarters and less than a minute to fill out the ticket and pay.

[Rick Falcon]

I agree I rather pay commission on the spot it only takes two minutes with the acucount scale

[Bravo Duck]

All relationships are based on trust. Starting out, the location doesn't know you from Adam, so a level of trust has to be built. We build that trust by counting the money at their location where they can look over and see us doing it. And human nature being what it is, instant gratification works for us.

[brendio]

I pay commissions for my amusement and bouncy ball machines on the spot (drink and snack are paid quarterly).

 

 

All relationships are based on trust. Starting out, the location doesn't know you from Adam, so a level of trust has to be built. We build that trust by counting the money at their location where they can look over and see us doing it. And human nature being what it is, instant gratification works for us.

 

One jukebox location I had I got because the owner didn't really trust the previous guy saying he looked shady and sat in the far corner to count the money before paying commissions. So that location I made sure to count at the side bar. Sometimes the owner would watch what I was doing, but would also do other things at the same time. I have a carbon copy book in which I write the taking and their commission on and get them to sign. The owner liked this and said she didn't get it with the previous operator.