How much money will we get?
That's often one of the first questions we receive from prospective customers. But we understand -- generating extra revenue from commissions is a main benefit of utilizing a national vending program. It makes sense that customers would seek maximum value immediately. After all, getting the most out of the products and services you procure for your company determines which ones you choose. So, then, how much can you make?
As you can imagine, however, a definitive answer to the question doesn't really exist. A series of factors impact how much revenue a vending management program can generate. Whether or not your company can earn $10k, $25k, $100k, or more in commissions depends on the following circumstances.
1. Your Industry
Businesses that have a substantial amount of people onsite daily with not much of a choice for beverages and snacks are the highest generators of vending revenue. That means hotels and companies that have waiting rooms, such as car service businesses, typically yield some good returns. Their customers or guests are sort of stranded with no place to go, so when they want a drink or something to eat to hold them over, vending machines are a perfect fit.
2. Vending Machine Location
One of the most important factors that contributes to a successful vending program is where the vending machines are placed at your properties. We've written about this before, but to get the most out of your vending program the equipment needs to be highly visible so that people, customers and employees alike, actually use it. A hidden vending machine will not generate sales.
3. Suppliers Used
The suppliers used for your program impacts vending revenue. The big bottlers, such as Coca-Cola and Pepsi, typically pay higher commission rates compared to local vending operators. This is why relationships are important. At Vending Group, we've built strong relationships with over 1,500 suppliers across the country, including Coke and Pepsi.
4. Keeping Your Portfolio Up-To-Date
Property portfolios change all the time. Some companies sell properties and acquire new ones on a regular basis. Keeping your portfolio current with your vending management company prevents any revenue from slipping through the cracks. In other words, if we don't know about the seven new properties acquired in the last six months, that's extra income you're missing.
So, in short, the answer to how much your program will earn is it depends. Following these best practices will certainly help maximize the value of using a vending management service.