1 reply to this topic

[johncp73]

Hi My name is John. I am strongly considering the business and according to my math sounds too good to be true. 1-800 vending Machines cost a lot but if 4 quarters a day were dropped in, the macines would have paid for themselves in 1 year and you own them forever. What can be expected return on investment? Is $30 a month per stand realistic? Low? High? What is the worst return you have had from a location? How reliable are the location locater services? Is it realistic to think if I bought 100 machines, they could get them located for me in a month so? 1 last question for tax reasons, can you write off the whole cost of machines you buy initially or do you do it over time? Any advice would be greatly appreciated. I dont want to make a huge mistake.
Thanks,
John

[CoolHand]

Hi My name is John. I am strongly considering the business and according to my math sounds too good to be true. 1-800 vending Machines cost a lot but if  4 quarters a day were dropped in, the macines would have paid for themselves in 1 year and you own them forever. What can be expected return on investment? Is $30 a month per stand realistic? Low? High? What is the worst return you have had from a location? How reliable are the location locater services? Is it realistic to think if I bought 100 machines, they could get them located for me in a month so? 1 last question for tax reasons, can you write off the whole cost of machines you buy initially or do you do it over time? Any advice would be greatly appreciated. I dont want to make a huge mistake.
Thanks,
John

<{POST_SNAPBACK}>

Hi John,

Expect $20 per machine per month average first month. The $1 per day figure is absolutley reasonable for month 2-3 (30 a month). Work them hard and the average can be much higher than that. The more machines you have the longer it will take for your average to go up, it's just more work!

Here's my question, if your machine will pay for itself in 12 months how much are you planning on paying per machine? 30*12 is $360! Great machines for sure and worth paying for, but that's high. Dont get me wrong, pay for those machines, but try to pay less.

Worst location ever paid for by me... $3.62 for first month (an AC parts supply house)
Best first month... $94.51 ( A Barber shop called "Braids and Fades")

Big range for sure!

Locators range from crap over the phone scumbags, to people who will let you ride with them and share their experience. 100 machines in a month is not even close to a problem for a decent locator.

Tax Questions!! What are we Accountants?

Anyway to answer your question... The provisions of Internal Revenue Code Section 179 allow a sole proprietor, partnership or corporation to fully expense tangible property in the year it is purchased. Tax-law changes have made this option much more appealing by dramatically increasing the amount that can be written off immediately. The inflation-adjusted amount for 2004 taxes was $102,000. Property that may be written off in the tax year of purchase, rather than depreciated over the asset's useful life, includes:

* Machinery and equipment
* Furniture and fixtures
* Most storage facilities
* Single-purpose agricultural or horticultural structures

Also, the definition of eligible section 179 property was expanded to include off-the-shelf computer software. Previously, it had to be written off over three years.

The IRS says ineligible property includes:

* Buildings and their structural components
* Income-producing property (investment or rental property)
* Property held by an estate or trust
* Property acquired by gift or inheritance
* Property used in a passive activity
* Property purchased from related parties
* Property used outside of the United States

You take your deduction on Form 4562.

Any more than that I charge $65 an hour

Regards,

Luke