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CaRose

How much is the average pay out on commission on a rack?

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I would like to know what is the average pay out on a rack? How much commission ? How do people pay out and still make money?

 

Thanks

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That's a good question, i'm curious as well. I pay anywhere from 20% sales to 35% sales depending on the location and price point of my product. Some people like to play games with numbers and calculate commission after taxes and product cost..but I count the money right there, multiply my percentage and give them that in quarters. 99% of my locations prefer the extra quarters.  Though nothing says i'm doing it right, that's just whats worked for me so far. 

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Posted (edited)

I've got one vendor around me that offers 50% commission... he mixes in a very high percentage of small tattoos/plastic rings/crap into all of his 2" mixes... O and all his 2" heads are .50 mechs.  Its tough explaining to location owners how he can do that while trying to stay professional about it.

When I say a very high percentage of crap generally I see 2 or 3 of whats on the display in the whole globe.

Whatever number you settle on... make sure you can live with it and don't have to sacrifice the integrity of your business to make a profit.

Edited by Mehehe

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Typically in vending,  tax comesout before any commission is paid.  I don't typically pay any less than 30%. Los of competition here. 

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On 6/12/2018 at 9:41 PM, AMD Snacks said:

That's a good question, i'm curious as well. I pay anywhere from 20% sales to 35% sales depending on the location and price point of my product. Some people like to play games with numbers and calculate commission after taxes and product cost..but I count the money right there, multiply my percentage and give them that in quarters. 99% of my locations prefer the extra quarters.  Though nothing says i'm doing it right, that's just whats worked for me so far. 

I operate pretty much the same as AMD.   My commissions average out to 35% with less than a handful of my locations being over 40%

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