Vending Machine Term
Location commission
Definition
The share of machine sales paid back to the host site for the right to sit there.
Why It Matters
A commission is set location by location, so two machines with the same sales can earn very different margins, and the gap comes straight off the operator's profit. A route sold on gross sales hides it completely. Ask for the commission rate on every location rather than an average, because the two or three best-selling sites are usually the ones paying the most back out.