2 replies to this topic

[Three Kids]

RJT or any other experienced business owners, any comments, questions, suggestions, etc. to my reply to your questions?

Thanks

[jblvending]

RJT or any other experienced business owners, any comments, questions, suggestions, etc. to my reply to your questions?

Thanks

I recommend you not buy the route.Reason is the average per machine is too low, meaning that this person has 1 or 2 good stops, and the rest are worthless.People get caught up in yearly gross amounts collection, so when they see a $50,000 to $100,000 a year figure, they get sucked into the fact that they will be collecting this amount, this is not so.If you have to work $31 avg per machine a week, your profit after expenses amount to 7% per machine,,so you will clear $2.17 per machine.Now I'm sure I'm going to get called out on this, so what I would like for you to consider is this.When you collect $31 for each machines, your gross profit should be about $16.10, thats your gross profit( hopefully).ok, you have your gross profit, now lets find your net profit, cause thats the figure that counts.The expenses: Gas, Insurance, maint on machines and truck, taxes,paycheck,truck note,business phone,rent,utilites,workmens comp,health insurance, etc. As you can see, most folks leave out all of these things when considering purchasing a vending Company.

[Three Kids]

I recommend you not buy the route.Reason is the average per machine is too low, meaning that this person has 1 or 2 good stops, and the rest are worthless.People get caught up in yearly gross amounts collection, so when they see a $50,000 to $100,000 a year figure, they get sucked into the fact that they will be collecting this amount, this is not so.If you have to work $31 avg per machine a week, your profit after expenses amount to 7% per machine,,so you will clear $2.17 per machine.Now I'm sure I'm going to get called out on this, so what I would like for you to consider is this.When you collect $31 for each machines, your gross profit should be about $16.10, thats your gross profit( hopefully).ok, you have your gross profit, now lets find your net profit, cause thats the figure that counts.The expenses: Gas, Insurance, maint on machines and truck, taxes,paycheck,truck note,business phone,rent,utilites,workmens comp,health insurance, etc. As you can see, most folks leave out all of these things when considering purchasing a vending Company.