Location commission

Definition

The share of machine sales paid back to the host site for the right to sit there.

Why It Matters

Commissions run from nothing at a small office to a fifth of sales at a large plant or a school, and that difference is most of the profit on a machine. 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.