4 replies to this topic

[nvb]

So I have been operating a vending machine out of my place of work for the past 3 years and am now considering a move or a career change.

-This location grosses upwards of $3000 per MONTH out of a single combo machine. ($1500 profit)
-It is a seasonal food processing plant, approx 250+ employees, but only open 6 months per year.
-The machine itself is an AP ultraflex purchased 2009 for $5500 CDN

I realize there are some simple metrics for evaluating routes.. But given the minimal time commitment required (2 hrs/ week) in relation to profitability, it doesn't really seem comparable to most of the routes discussed in these forums.

So.. what's it worth folks?

[cvending]

I am not familiar with the AP ultraflex machine. You say it is a combo machine. What do you sell from it? Snack/drinks or snack/food? 3K/month is hard to imagine out of a single machine. It must be completely wiped out when you go to refill. With that being said, my guess would be that the account is worth around $14k if there is some type of agreement that would insure the new owner would be able continue on as vendor.

[nvb]

Thanks for the reply..

It's a bottle/snack/food combo. I don't sell any 'soda' and only a few select food items. There is already an older Coke can machine in place operated by another employee.
Automatic Products (Crane) http://www.automatic...bos_frames.html

You're right. At times it can be picked clean right down to the last spiral in 3 days. Usually a couple of months in summer will push 4k gross sales. There is probably a little room to improve my bottom line with some added capacity and more selections, but i've never really gotten around to buying a second machine or satellite. Law of diminishing returns..

[Cttomasso]

Just my two cents.

If you have a second machine or satellite then couldn't you extend the time by double? Then you're only filling a machine once a week instead of twice. Sure it may not increase overall profit, but it would drastically cut down on your time/gas.

14k sounds good to me (with a contract) since it's only open six months a year. I might go a little higher since your ROI would still be met at one business year at approx 18,000 but only if you really want the account.

[cvending]

My thoughts would be to add a second machine to increase volume more than decrease service. If a machine is completely empty when you go to service, you are losing out on sales. My experience is an account doing that volume in one machine wiould do 40-50% more with the second machine if you keep the service the same. That would mean the 3K-4K/month sales could go to 4k-5.5k/mo. I believe that is well worth the additional investment. It would also then raise the value of the account should you decide to sell.