Commission Poll

[royalforest]

20% of net(50% of gross, then take 20%) vs. 10% of gross?

[coinvestor]

I think that the best way to calculate a commission is to pay 10% of nothing

[snack dude]

Im with coinvester dont offer it at all.

[Sparta_Automation]

If you have an option.....

10% of Gross is VERY easy to calculate

20% of Net is much more involved.  You have to calculate:

    Gross Sales minues the cost of product, spoilage, fees, etc, repairs etc

I guess it depends on how much paperwork you want to do.....

Travis

[Poplady1]

From listening to the vending companies I represent they normally reduce the sales amount by cost of product and sales tax.  Most will pay 10% of that reduced amount. 

I am not saying this is the preferred way to do commission but it seems to be the way most large vendors handle commission.  I received a copy of a Coke commission statement to a hotel.  Coke stated to them that they were receiving 35% commission of sales.  They reduced the actual sales number by so many costs that I came to believe they were probably paying around 9% of gross sales based on a 1.00 can vend.  Our vendor installed a Alternative Beverage Machine selling everything but Coke products priced at 1.00 and paid 25% commission.  It only took two months for the account to remove theCoke bottler machine and give my vendor all of the business. 

We all try to convince the account to for go commission.  I have found the larger the account the less you ever hear about commission unless it is a hotel.

So commission like beauty is in the eye or mind of the beholder.

Blue Moose