As a vending machine operator, one of the biggest threats to your bottom line is the commission you pay to the location owner. While it’s standard to offer a percentage of your sales as an incentive for businesses to host your machines, many operators overpay without realizing they have room to negotiate.
Whether you’re just getting started or looking to improve margins on your current routes, this guide will walk you through strategies and scripts to help you confidently negotiate lower commissions and keep more of your profits.
Understanding the Role of Commission in Vending
Commission is typically a percentage of your monthly or quarterly gross sales paid to the location owner in exchange for allowing your vending machine on-site. While 10-20% is common, it’s not a fixed rule. Some locations demand higher rates—30% or more—especially if they’ve dealt with large vendors or believe they have strong bargaining power.
But here’s the truth: Most small-to-medium business owners are flexible when approached the right way.
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When and Why to Negotiate
You should always negotiate commission when:
- You’re placing a brand-new machine.
- You’re renewing a verbal or written agreement.
- The machine isn’t performing well and commission is eating your margins.
- You’re upgrading or adding new equipment.
- The location has low foot traffic or high service demands.
Why negotiate?
Because lowering commission from 20% to 10% can instantly give you a 10% raise—without increasing sales.
3 Commission-Cutting Strategies That Work
1. Offer Value Beyond Commission
Sometimes a business is more interested in perks than percentages. Offer alternatives like:
- Free vending for staff (e.g., a few monthly snack credits).
- Better equipment (touch screens, credit card readers).
- Branded wraps that match their business image.
- Reliability & service—emphasize how quick you are to fix issues and refill machines.
Pro tip: Position yourself as a partner, not just a vendor.
2. Use Performance-Based Commission
If a location wants 25%, consider offering it only after certain sales thresholds are met. For example:
“Let’s start with no commission for the first 90 days while we gather data. If sales go above $1,000/month, I’ll gladly share 15-20%.”
This gives you room to test viability without committing to high costs up front.
3. Leverage Data and Honesty
Be transparent about your operating costs. Most business owners don’t realize what goes into servicing a machine.
“Between product costs, fuel, time, spoilage, and card processing fees, I’m usually running on tight margins. A 15% commission puts me in the red here. But I really want to keep the machine here—I just need to get closer to 10% for this to make sense long-term.”
Being open builds trust. Many will meet you halfway.
Commission Negotiation Scripts
Here are a few scripts you can tailor to your situation:
Initial Placement Script (Low Commission Pitch)
“We usually don’t pay commission on our machines unless they’re doing extremely high volume. Instead, we provide a fully stocked, no-maintenance machine that gives your staff and customers convenient access to snacks and drinks. Would that work for you?”
Script for Reducing Commission on Existing Machine
“Hey [Business Owner Name], I really appreciate having the machine at your location. I’ve reviewed the numbers over the past few months, and I’m actually operating at a very tight margin due to the current commission. Would you be open to reducing it to 10% so I can continue servicing this location at a high level?”
Script for Offering Incentives Instead of Commission
“Rather than a percentage cut, I’d like to offer you a few perks like $20 in free credit each month for your staff. This keeps things simple for both of us, and it’s a guaranteed benefit regardless of machine performance.”
Script for Negotiating Based on Sales Volume
“Let’s do this: For the first three months, I’ll collect data. If the machine starts generating over $800 a month, I’ll happily share 10-15%. Until then, I’d prefer to reinvest in keeping it stocked with great products and handling any service issues quickly.”
Final Tips for Successful Negotiations
- Be confident but respectful. You’re offering a service, not asking for a favor.
- Negotiate in person when possible. Body language and tone help build trust.
- Have your numbers ready. Showing data (sales volume, machine costs) makes your case stronger.
- Be ready to walk away. If a location insists on 30%+ commission, and the volume is low, it may not be worth the effort.
Conclusion
Lower commissions = higher profits. Don’t leave money on the table by accepting standard rates without discussion. With the right approach, most business owners are open to fair and flexible terms—especially when they see the value you bring.
Start negotiating smarter today, and take control of your vending profits.
💡 Want more scripts, templates, or help finding locations? Visit www.bigcityvends.com/blog for vending business tools and resources.
