Vending machine commission is what you pay a site owner for hosting your machine. Get it right and you win good sites and keep them; get it wrong and you either lose the site or lose your profit.

There’s no official UK rate, so every vending machine commission is a negotiation. This guide explains the common structures, how to work out what you can afford, and 7 critical tips for a fair deal.

What is vending machine commission?

Vending machine commission is a payment from the machine owner to the business that hosts the machine. It rewards the site for the space, the power and the customers it provides.

It usually comes out of your sales, so it directly reduces your profit. That’s why the rate matters so much, especially on a site with modest footfall.

Not every site expects vending machine commission. Some are happy with a free, managed service for their staff, while busy sites often expect a share of the takings.

Commission also signals how you value the relationship. A clear, fair offer tells the site owner you’re a professional operator who plans to stay.

Common commission structures

There are four common ways to structure vending machine commission. Each suits a different kind of site.

Percentage of sales

The site receives an agreed percentage of the machine’s sales. It’s the most common vending machine commission structure, because it rises and falls with trade.

Flat monthly fee

The site receives the same amount every month, whatever the sales. It’s simple for the site owner, but you carry all the risk if sales drop.

Tiered commission

The percentage rises once sales pass a set level. It rewards busy sites without overpaying quiet ones.

No commission

The site gets a free, managed machine and no payment. This works well for smaller workplaces that mainly want a perk for staff.

How much vending machine commission should you offer?

The right vending machine commission depends on what the site can realistically earn, not on what a competitor offers. Start with your numbers, then decide what you can share.

Here’s a simple worked example. The figures are for illustration only, so replace them with your own.

• Monthly takings: £500 including VAT
• Net sales after 20% VAT: about £417
• Stock cost at 50% of net sales: about £208
• Gross profit before other costs: about £208
• 10% vending machine commission on net sales: about £42

In this example, a 10% vending machine commission takes about a fifth of your gross profit. You still need to cover card fees, fuel, servicing and your own time from what’s left.

If the site is busier or your products carry better margins, you can afford more. If it’s quieter, a lower rate, a flat fee or a service-only deal may be the only sustainable option.

7 critical tips for vending machine commission

Use these tips to set a vending machine commission that wins the site and still makes you money.

1. Know your margins first

Work out your stock cost, card fees and running costs before you name a figure. A generous rate on thin margins can make a busy site unprofitable.

2. Base it on net sales

Calculate vending machine commission on sales after VAT, not on the total the machine takes. Say so clearly in the agreement to avoid disputes later.

3. Start with a trial rate

Agree a rate for a three-month trial, then review it using real sales data. It’s far easier than guessing footfall on day one.

4. Consider a tiered deal

A tiered vending machine commission lets both sides share in success. The site earns more if sales grow, and you’re protected if they don’t.

5. Put everything in writing

Record the rate, how it’s calculated, when it’s paid and how long it lasts. A clear agreement protects the relationship as much as your income.

6. Offer value beyond money

Fast repairs, healthier options, card payment and a clean machine all matter to site owners. Good service can win a site even when a rival offers more commission.

7. Report sales openly

Send a short statement with every vending machine commission payment. Transparency builds trust and makes renewals much easier.

“The best commission deal isn’t the highest one. It’s the one both sides still feel good about a year later.”

Negotiating with site owners

Most site owners have no idea what a fair vending machine commission looks like. That gives you room to shape the conversation, as long as you stay honest.

Lead with the service, not the money. Explain what their staff or customers get, then introduce the vending machine commission as a bonus on top.

If they push for a higher rate, ask about footfall and opening hours. Real numbers help both sides see what the site can support.

Offer a review instead of a bigger number. A promise to revisit the vending machine commission after three or six months often closes the deal without overpaying.

Gross vs net sales and VAT

VAT is where many commission deals go wrong. If you’re VAT-registered, part of every sale belongs to HMRC, so paying commission on the gross figure means paying the site on money you never keep.

The VAT treatment of vending sales depends on what’s sold and where the machine stands. HMRC’s guidance on vending machines explains, for example, that food and drink from machines in canteen areas is normally standard-rated.

Because the rules are detailed, check your own position with an accountant. Then base your vending machine commission on the net figure and write that into the agreement.

Paying and reporting commission

Pick a schedule and stick to it. Monthly suits busy sites, while quarterly keeps admin down for smaller ones.

Card readers and telemetry make reporting much easier, because every sale is logged automatically. Our contactless vending machine guide explains how card-ready machines work.

Keep a copy of every statement and payment. If a site owner ever questions their vending machine commission, you’ll have the figures to hand.

Make payment easy too. A bank transfer on the same date each month, with a one-line summary of sales and the rate applied, is all most site owners need to feel confident in their vending machine commission.

When to renegotiate or walk away

Sales change over time. A new canteen, a change in shift patterns or a drop in staff numbers can all shrink the takings.

If a vending machine commission no longer works, raise it early and show the sales data. Most site owners prefer a lower rate to losing the machine altogether.

Sometimes the honest answer is to move the machine. If a site can’t support any vending machine commission and still cover your costs, a better site will earn you more.

Always follow the notice terms in your agreement. Leaving on good terms protects your reputation with other businesses nearby.

Commission and your choice of machine

The machine you place affects how much vending machine commission you can afford. Higher-margin products and bigger capacity give you more room to share.

Combo machines such as our black combo machine for snacks and drinks suit mixed sites, because one machine covers both categories. For health-conscious workplaces, our healthy vending combo offers a better-for-you range.

Hot drinks can carry strong margins on cold, busy sites, so a machine like our Nescafé hot drinks machine may support a higher rate. On gyms and physical workplaces, our Monster energy drinks machine is a popular choice.

Buying from Irelley

Browse all our vending machines for sale, and spread the cost with our vending machine payment plans. Contact our team if you’d like help choosing machines for a new route.

We deliver and install free anywhere in the UK. See how our vending machine delivery and installation works, and check our vending machine warranty.

You can also read our customer reviews, our contactless payment setup guide and the buying a vending machine FAQ, or learn more about Irelley on the vending machine blog.