Friday, November 28, 2008

How To Fix Vending Route Commission

Route commission systems are most suitable for vending businesses wherein the employee has a lot of control over the rate of production. Of course, it depends on his ability to work harder, smarter, longer and faster.

In industries where the employee doesn’t have total control over the rate of production, such commission system will hardly be effective. A vending route environment would be one of those industries. For example, a route person who is paid on a commission basis knows that he will earn more if he collects more money on his route.

Planet Antares Inc ensures that route drivers learn how to fill and clean Planet Antares vending machines as quickly as possible. He must also reduce the amount of time spent at each location, with the hope that he will have more time to service machines and collect cash each day.

Till now, a commission system appears to be a win-win situation for the Planet Antares operation and the route person. Along with higher amount of commission for the employees, it ensures more profits for the company.

A survey conducted recently revealed that most operators pay drivers some type of incentive. Fewer pay drivers a fixed salary. Some of the vendors pay only commission and other pay a combination of commission and salary.

Actually, several issues of concern are involved in the vending route commission systems. As the route driver would want to service more Planet Antares vending machines, he may:

1. Drive too fast
2. Perform less than 100 percent of the machine sanitaiton requirements
3. Ignore simple mechanical procedures
4. Fail to take the time to coin test a machine after filling it

Such circumstances may result in serious problems than the problem the commission system was originally designed to solve.

By itself, a commission system will not teach you how to schedule a route. The trick is to service the Planet Antares vending machines only after the machine has made enough sales to profitably justify the cost of service.

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