4 replies to this topic

[towelie]

Hi Everyone

I'm doing some research into starting a full line vending company and I have about a billion questions.

The first one is does anyone have an idea of what their Net Profit percentage runs. I know everyone uses 50% but I am assuming that is for the Cost of Goods Sold. Does anyone know what their actual profit is running their route without employees - taking into consideration gas, insurance, machine financing etc. - I am trying to get an idea of exactly how much is left over as profit or revenue for reinvestment.

Another question is when you service an average soda/snack location has anyone broken down what they average per visit as far as revenue assuming the machines are only about a third full and using standard full size machines.


This is a great site and I have learned a lot already - But I am a numbers king of guy and I was hoping to put together some projections for the total number of machines/locations I would need to get to my goal of quitting my day job. I would like to be able to take out 6-7k per month eventually with another 3-4k left for reinvestment.

Thanks in advance for any help

[midtenn]

EBITDA will vary according to size of business but 35% is a good number to look for. As I said, this could be reduced according to your size and expenses.
No less that $100 per service to make it worth you while. This could also vary accordingly.

[towelie]

Thanks for the reply

So at 35% I would need sales of about 17k per month gross without really leaving any cash as reserves or to further grow the route.

If I'm dealing with mostly blue collar employees could I expect to do this (depending on the locations) with 30-40 machines?

Thanks again

[midtenn]

Are these machines paid for or a portion of them belong to a bottler that they are loaning you free of charge? Your CapX for these sales will play into the equation quite a bit. If these sales are from several smaller locations with low sales, your EBITDA will be lower as expenses will be higher. Another factor to consider is don't over equipt the accounts if unnecessary. Use loaner soda machines when possible. Also factor in any condiments, utensils or napkins that you may furnish free of charge.

[TGL Vending]

WE figure out net on a 1/3. we financed a large route and will have it paid off in 7 months, been in the business 9 months. The last couple of accounts we bought we paid cash, to see the cash flow faster, but it depends on your situation as far as accessibility to cash goes.To make the 17k a month you have to take into account that the larger accounts will need multiple stops in a week, so the capacity question will come into play. If you are going to operate it alone.

Hi Everyone

I'm doing some research into starting a full line vending company and I have about a billion questions.

The first one is does anyone have an idea of what their Net Profit percentage runs. I know everyone uses 50% but I am assuming that is for the Cost of Goods Sold. Does anyone know what their actual profit is running their route without employees - taking into consideration gas, insurance, machine financing etc. - I am trying to get an idea of exactly how much is left over as profit or revenue for reinvestment.

Another question is when you service an average soda/snack location has anyone broken down what they average per visit as far as revenue assuming the machines are only about a third full and using standard full size machines.
This is a great site and I have learned a lot already - But I am a numbers king of guy and I was hoping to put together some projections for the total number of machines/locations I would need to get to my goal of quitting my day job. I would like to be able to take out 6-7k per month eventually with another 3-4k left for reinvestment.

Thanks in advance for any help