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Vending machine placement fees

used vending machine

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Vending machine placement feesvending machine location

The vending machine investment has brought significant benefits to various organizations, but the availability of machines, procedure, and cost known as space, can generate rapidly generated costs. 

A vending machine contract can be placed to obtain information on the sector and, with a specialized methodology, to guarantee the earnings of all the meetings involved. The vending machine placement fees can be categorized into two areas namely; Rental or Commission Based.

Rental Based Locations

rental contract

In some areas, particularly in medical clinics and workplaces, managers or offices that support the establishment of vending machines, monthly or quarterly fees are charged for the “rental” of the machine area. 

This fee varies depending on the machine used, but typically costs about $ 5 per month for basic standalone machines, for example up to $ 50 per month for espresso and snack vending machines that require hydro and water.

According to my long-time experience in this vending machine placements, I normally pay the location basing on the sales.  Let’s say if I’m collecting around $100 per month then I should allocate around 10% to the location which is around $10 per month.

Commission Based Locations

sales commission payment computation

Although a fixed monthly payment which some locations require, most locations normally accept a predefined part of the returns collected by the machines. 

Depending on the location and the type of company, the desired rate is generally between 15 and 25% of the gross salary of the machine. 

In exceptional cases, a site owner may accept a rate as low as 10% of the gross salary of the machine, but most site owners expect a payment of 15% in all cases.

I have some locations that are always being approached by other vendors who wanted to steal my location and at times I have no choice even thou my earnings is super small just to keep the location.  The make sure that you keep the desired location then I have no choice but the shell out 20% on my gross collections every month.

empty wallet

Sometimes I really wanted to give up and sell these kinds of locations but if you are just having one avenue of income just doing vending business then I just have to stick it out.

The idea of ?? paying the vending machine placement fees for a good location in the vending machine business can be grouped under two categories: Rental costs and commission fees.

Rental Fix Cost

It is important that you understand one type of each. 

The automatic candy and non-alcoholic beverage account requires promotional and negotiating efforts to define the appropriate regulatory areas. 

Taking advantage of a vendor account finder manager to find may seem like a simple way to reach areas for your machines, but when you close that arrangement with a property, you realize you have to pay the fixed rental fee to the location with machines placed. 

These fees are usually only paid on a monthly basis but they can sometimes the managers can be considerate on late payments, depending on the season of the year.

These kinds of locations just wanted to justify the space that accommodates your vending machines and have no idea how hard in making money with chips, chocolate bars and pop cans.  These locations just come up with a fixed rental fee and absolutely no clue on the vending business.

The reasoning will be that if you cannot pay up let’s say $75 per month then someone else can.

kicked out of location

These kinds of locations are also not desirable since most of the earnings just go to the pockets of the establishment without knowing how difficult running a vending machine business.

But as I mentioned before, as a full-time vendor you just have to keep your pride to yourself and just pay up. Some months you will be making and some months especially if the machine is jammed or out of order then it will be a negative loss.

Commissions are part of vending machines. 

Not all vending locations require or guarantee commission, but in order to maintain a good connection with the manager or the owner, there should be a vending monthly commission. 

The above categories are very useful when determining the placement fee for a vending machine which should be put into considerations before placing a bid.

Most of my locations do not require me monthly commissions or rental fees.

Conclusion

Location placement fees from a locator vary from: $200 to $2,000 depending on how much traffic or people working in the location which normally is a one-time payment from a vendor.

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