Designing A Route Commission Program
A well designed and implemented commission plan is essential for making your vending business more efficient and profitable. During the conceiving stage, you need to be realistic and approach the different aspects of a route commission program with caution.
Your Planet Antares vending business should have a vending commission program that can have a positive impact on the attitude of employees. If you are paying a straight hourly rate of commission to them, they will not have a good attitude towards work and performance efficiency.
Naturally, the motivation level in such a case will be much lower as the employees will know that they have no gains in the success or increased productivity of the company. It will be taken as an undesirable change in the work process because more work without higher pay is a disincentive for any employee.
This makes an appropriate incentive program important. If an employee knows that he will participate in the benefits of the enhanced profitability of your company, he will willingly cooperate for changes in work. Automatically, the work environment turns less hostile and more conducive for new activities such as setting up of dedicated product routes, rescheduling and restructuring of vending routes, price changes or category management.
A good vending route commission program also helps the management in quantifying the route labor cost while bidding for new business.
However, it is important to consider the fact that fixed percentage of commission on sales may cause inequalities in vending commissions and driver compensation. While certain vending machines, products and locations yield high profits, others may not have the same level of performance or popularity.
As a Planet Antares vending operator, most of your vending locations will generate high returns. This is due to the high demand for snacks and beverages among people in different workplaces, age groups, etc. For such vending machines, you will earn lots of dollars as income and hence, be able to pay high commissions to route drivers.
So, you must create a commission program after due consideration of the different turnover of diverse products so that there is minimum amount of disparity among the vending commissions paid to route drivers and other employees. For best results, evaluate the structure of the route before making and executing a commission plan for it.
Your Planet Antares vending business should have a vending commission program that can have a positive impact on the attitude of employees. If you are paying a straight hourly rate of commission to them, they will not have a good attitude towards work and performance efficiency.
Naturally, the motivation level in such a case will be much lower as the employees will know that they have no gains in the success or increased productivity of the company. It will be taken as an undesirable change in the work process because more work without higher pay is a disincentive for any employee.
This makes an appropriate incentive program important. If an employee knows that he will participate in the benefits of the enhanced profitability of your company, he will willingly cooperate for changes in work. Automatically, the work environment turns less hostile and more conducive for new activities such as setting up of dedicated product routes, rescheduling and restructuring of vending routes, price changes or category management.
A good vending route commission program also helps the management in quantifying the route labor cost while bidding for new business.
However, it is important to consider the fact that fixed percentage of commission on sales may cause inequalities in vending commissions and driver compensation. While certain vending machines, products and locations yield high profits, others may not have the same level of performance or popularity.
As a Planet Antares vending operator, most of your vending locations will generate high returns. This is due to the high demand for snacks and beverages among people in different workplaces, age groups, etc. For such vending machines, you will earn lots of dollars as income and hence, be able to pay high commissions to route drivers.
So, you must create a commission program after due consideration of the different turnover of diverse products so that there is minimum amount of disparity among the vending commissions paid to route drivers and other employees. For best results, evaluate the structure of the route before making and executing a commission plan for it.
posted by Chris Wick | 4:38 AM
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