What Commission Should You Offer a Location Owner?
At some point a location owner is going to ask the question: "So what do I get out of this?" If your answer is a blank stare, the deal stalls. If your answer is a confident number, you look like a pro on your very first machine. This post gives you that number, and a simple one-page agreement so the handshake actually holds up.
Here is the short version: most vending commissions run 5 to 15% of gross sales, or a flat monthly fee in that same ballpark. Strong venues sometimes push to 20%. And for your first machine, the right answer is often zero, because many small venues take the machine as a free amenity and never ask for a cut at all.
Start at zero, and mean it
Before you offer anybody a percentage, remember what you learned when you pitched the location: you are providing a free, fully serviced amenity. The host does nothing, pays nothing, and their customers or tenants get snacks on site. For small offices, apartment buildings, auto shops, and laundromats, that is the whole deal, and it is a good one.
So do not open with a commission. Open with the turnkey pitch, and let the venue bring up money. Plenty never will. If you have not read our guide on how to find locations for your vending machine, start there, because the pitch in that post is designed to close without a commission.
When a venue does ask for a cut, that is not bad news. It usually means they are interested and just want the deal to feel fair. Now you negotiate.
The standard ranges, and when to use each
5 to 10% of gross sales is the everyday deal. Offer this to solid venues that asked for something: a busy shop, a mid-size office, an independent gym. At 8%, a machine doing $600 a month in sales pays the host $48. Small money for them, easy math for you.
10 to 15% of gross sales is for genuinely strong locations: high foot traffic, captive audience, long dwell times. You give up more per sale, but a great location earns so much more that your dollars still come out ahead. A weaker location at 0% can easily pay you less than a great one at 15%.
Up to 20% shows up at premium venues that know their value, like a large gym chain or a busy waiting room that gets pitched by operators all the time. Only go here when the traffic clearly supports it, and run the numbers first. Product typically costs about half of your sales price, so a 20% commission on gross is a serious bite out of your profit.
A flat monthly fee, usually $20 to $75 for a first machine, is the alternative when a host wants guaranteed money or you want dead-simple bookkeeping. You pay the same amount whether the machine has a great month or a slow one.
Percentage or flat fee?
A percentage protects you when sales are slow, because a bad month costs you less. A flat fee protects you when sales are great, because the host's cut stops growing. For a brand new location where you have no sales history, a percentage is usually the safer offer. Once you have a few months of data and the machine is clearly a winner, a flat fee can quietly become the better deal for you.
One rule either way: commissions come from gross sales, and you should always know your numbers before you agree to anything. Our post on how much an AI vending machine makes walks through the revenue math, and an AI machine makes commission time painless because the sales reports come straight off your phone, no coin counting in front of a skeptical host.
Put it on one page
You do not need a lawyer or a 12-page contract for a first location. You do need one page in writing, because "we agreed on 10%, right?" is a conversation you never want to have from memory. A simple signed agreement protects both sides and makes you look like exactly the kind of operator a venue wants to work with.
Here is what that page should cover:
The parties. Your name or business name, and the venue's.
The location. The address and the specific spot the machine sits in, near an outlet.
The commission. The exact percentage of gross sales or flat monthly amount, and what it is calculated on.
Payment schedule. When and how the host gets paid, usually monthly, by check or electronic payment, with a simple sales summary.
Who does what. You own the machine and handle stocking, service, and repairs. The host provides the space and the electricity.
Access. You can enter during business hours to restock and service the machine.
The exit. Either side can end the agreement with 30 days notice, and you remove the machine at no cost to them.
That last line matters more than any other. A no-strings exit is what turns a hesitant "let me think about it" into a signature, because the host risks nothing.
By the way, if you happen to be reading this from the other side of the table, as a property owner wondering what hosting a machine pays, we wrote a post just for you on AI vending machines as landlord side income.
Get the machine part right, and the deal takes care of itself
A commission agreement only pays off if the machine on the other end of it works every day. Every machine Monclus sells leaves our Queens warehouse tested and guaranteed fully functional, delivery is quoted by distance upfront, and our repair team is available seven days a week. Traditional machines run $2,000 to $5,000, and you can browse the store or visit the warehouse in person before you buy.
Negotiating with a venue right now and not sure what to offer? Call us at (718) 744-6018 or reach out through our contact page. We talk deals like this with operators every week and we are happy to help you land yours.
FAQ SECTION
Frequently Asked Questions
What is a normal commission for a vending machine location?
Most agreements run 5 to 15% of gross sales, or a comparable flat monthly fee. Strong, high-traffic venues sometimes negotiate up to 20%. Many small venues, like offices and apartment buildings, charge nothing at all and host the machine as a free amenity.
Should I offer a percentage or a flat monthly fee?
A percentage of gross sales is usually safer for a new location because your cost drops if sales are slow. A flat fee, often $20 to $75 a month for a first machine, works better once you have sales history showing the machine is a consistent earner.
Do I need a contract with the location owner?
You need a simple one-page agreement, not a formal contract. It should name both parties, the location, the commission amount, the payment schedule, who handles stocking and repairs, access hours, and a 30-day exit for either side with free machine removal.
Is commission paid on gross sales or profit?
Commission is almost always calculated on gross sales, meaning total money the machine takes in, because it is simple and verifiable. Keep that in mind when setting the rate, since product costs come out of your share, not the host's.