How to Price Vending Machine Locations and Commissions
Vending commissions typically run 5–20% of gross sales depending on foot traffic, and the account only works if the machine clears enough monthly gross to cover product cost, the service visit, and the commission. Target 40–55% gross product margin and walk away from locations under roughly $200 a month. ShowTheReceipts keeps each location's rate saved and issues the monthly statement automatically.
The account has to clear three costs
Before a location is worth having, its gross has to cover:
- Product cost — at 45–60% of gross
- Route cost — the visit, fuel, and your time
- Commission — 5–20% paid to the host
A location grossing under ~$200 a month rarely clears all three. That’s not a negotiation, it’s arithmetic.
Commission rate by location type
| Location | Typical rate |
|---|---|
| Small office, low traffic | 5–10% |
| Manufacturing, warehouse | 10–15% |
| High-traffic, large headcount | 15–20% |
| Full-service / subsidized | No commission — monthly service fee |
Open low, let the volume earn the raise
Offer the bottom of the range and tie increases to actual sales. A rate conceded during the pitch is nearly impossible to reduce afterwards, and it prices every account you win after it.
The location isn’t paying you. You’re paying them for floor space — price it like rent, not like a favour.
Watch product margin when costs move
Target 40–55% gross product margin and re-check it whenever wholesale prices move. Operators routinely absorb months of cost increases before adjusting the machine.
What not to do
- Don’t open at the top of the commission range
- Don’t keep a location under $200 a month out of loyalty
- Don’t let wholesale increases sit unpassed for a season
- Don’t treat a subsidized account like a commission account
Frequently asked questions
What commission rate should I offer a vending location?
5–10% for a small or unproven location, 10–20% for high-traffic accounts with real volume. Lead with the low end and let the location's actual numbers earn the increase — a rate given away at the pitch is nearly impossible to claw back later.
What is the minimum a vending location should earn?
Roughly $200 a month in gross sales for a standard snack or drink machine. Below that, the service visit, fuel, product spoilage, and commission consume the margin — a machine that grosses $80 a month is a route stop you're paying to keep.
What product margin should I target?
40–55% gross on product, before commission and route cost. Price to that margin and recheck it every time wholesale costs move — vending operators are unusually exposed to product cost increases they forget to pass through for months at a time.
Is a full-service or subsidized account better than commission?
Often, yes. An employer paying a monthly service fee or subsidizing product gives you predictable revenue that doesn't depend on foot traffic, which is exactly the risk a commission account leaves you carrying. Price those as monthly service invoices instead.