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Charity versus Commission when Locating

If you’re new to bulk vending, then you might not know but, there are two accepted ways, in-person and telemarketing, to find and get permission to place your machines in a location. This is often referred to as locating and locating takes patience, skill and a positive attitude.

Now there are a few ways to do this, you can self-locate or you can use a locator, a service based business that does the locating for you. The most common and preferred method for professional vendors is self-locating. There are a lot of reasons why and I will write more on this later, but for now you just need to know the two main ways of locating.

Your next step, and the purpose of this article, is to decide if you want to use Charity or Commission as your hook in getting a location to say YES to your machine.

This can be a very complex decision when just getting into the bulk vending business. Starting out I read everything I could find on the pros and cons of both. So let me save you a little time;

PROS CHARITY

  • Lower operating costs per vending machine (Normally $1-$1.50 a month per machine)
  • Easy management when accounting for operating costs
  • Can use national or local charities
  • You are helping a good cause

CONS CHARITY

  • On average harder to locate than a commission vending machine
  • Easily replaced by a commission machine kicking you from the location
  • Locations will ask you to remove your vending machine more often

PROS COMMISSION

  • On average easier to locate than a charity machine
  • No set operating cost so you only pay for what your vending machines take in
  • Most larger setups, like a rack, almost always require a commission agreement
  • Generally most locations keep your vending machine longer

CONS COMMISSION

  • On average higher operating costs per vending machine
  • Harder management when accounting for operating costs due to variable commission on accounts

Once you see all of the pros and cons to charity vending versus commission vending, it really boils down to your situation and personal preferences. For example if you are only interested in running a vending route with only gumballs and candy, then charity might work best for you. On the flip side, if you only want to do toys and novelty items, then commission would probably get you into more locations.

As for me, and a lot of other professional vendors I have spoken with, a combination of both gives you a lot more flexibility and an extra tool in your sales toolbox when out locating. Like my business plan there have been some changes in my decision on which fits me best. I was dead set on only doing charity vending but as time goes on, I have decided to move more into toys and novelties, charity would work best for my singles and doubles and commission for my racks. But I am also willing to remain flexible should the need arise.  Good luck locating and I hope my experience can help you decide which would work best for you.

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