Planet Antares Scam Warnings For Vending Trade

Information on Vending Commissions

Most vending machine operators acquire locations by offering proprietors the best deal in terms of service and commissions. Commissions are a small portion of vending machine profits that are given to the proprietor for the exclusive right to place a vending machine in the location. You can either pay a percentage of your profits as commission or you can pay a monthly rent to the location owner. Most vending operators earn 3.8% return on assets (ROA). This means that the standard 7% commission tends to be a financial drain. As a Planet Antares vending machine operator you can decide to do away with the commissions in your vending business.

If you decide to do away with commissions it will not mean that your financial burdens would be solved. The top 25% of all vending machine operators earn an average 22% ROA and usually pay higher commissions than the lower 75% of vending machine operators. The first thing that you would need to do is to ensure that your anticipated profit will cover your return on assets requirements in your Planet Antares vending business. If there is any expected vending machine profit beyond the ROA, it can be offered as commission.

If your ROA is at 22%, it would mean that in 10 years an invested $1 million would have a return of over $6 million! Returns this high would not last in a free economy. Instead of offering a location owner a commission, a Planet Antares vending machine operator should find ways to invest their money to retain their clients, like maybe offering other incentives.

If you want to increase your share of the vending machine market, you can do so by offering higher commissions to the location owners. An increase in commission rates can be covered by a unit price increase in vending products. When you increase the prices of your products, the sales would drop at first, since the customers would not be willing to pay more for the same products. The customers will slowly adjust to the change in pricing and it will reach a point where they won’t mind paying more for the products. An increase in unit prices also means that each machine serviced will have higher revenues and profits.

Commissions are not necessarily bad for a vending business. Instead, they are a tool that can be used by savvy Planet Antares vending operators to increase their market share. Vending operators who are finding it hard to pay commission rates because of low ROA, should look at their overall management.

posted by Karola Marx @ 8:42 PM