So I am considering starting a business in bulk candy vending, like alot of the visitors to this forum. For my investment, I'm looking at the "EZ Pro Triple Vends" from XYZ vending. I want to start small, so I am thinking of purchasing 5 machines and locating them myself.
I've been doing alot of research online and visited the National Bulk Vendors association as a starting point. I am writing a business plan as well to help me off on the right foot. However, I do have some questions and the answers seem scarce, maybe you guys can help?
1) Has anyone had experience with the "EZ Pro Triple Vends" from XYZ vending? If so, please do tell!
2) I've read in several locations that a typical machine will only generate between $15-$25 per month. Is this the case with "triple-head" machines, or is it $15-$25 per head?
3) How much candy, in terms of count is typically held in each head of a 3-headed machine?
Now after these questions come some assumptions. I honestly do not know if these are correct assuptions or incorrect. So let me tell you they are and you guys can set me right.
Assumption 1: Each head on a "3headed" machine will generate $100 from full to empty.
Assumption 2: It will take approximately 3-6 months for each head to completely empty.
Assumption 3: Each head will generate between $25 and $33 per month.
Assumption 4: Each canister holds approximately 15lbs (4000 ct) of candy.
Assumption 5: Average Cost of Candy is $28 for 8000 ct.
Assumption 6: Each vend will distribute 10 peice of candy to the customer.
Assumption 7: Must replace candy every 3 months.
Assumption 8: Must re-fill candy machines every month.
Assumption 9: Fuel Cost at $100 per month
Based on these two assumptions, my business financial plan looks something like this:
Best Case: (3 months till machines empty with 5 3-headed machines.)
Candy Cost over 3 months: $350
Fuel Cost over 3 months: $300
Total Candy Vends over 3 months: (4000 ct per head * 15 heads) = 60000 / 10 = 6000
Avg vends per day(All Machines): 66
Avg earnings per day(All Machines): $16.50
Total money made: $1500
Gross Profit: $1500-$650 = $850
Net Profit = 637 (after tax profit)
Worst Case: (6 months till machines empty with 5 3-headed machines.)
Candy Cost over 6 months: $700
Fuel Cost over 6 months: $600
Total Candy vends over 6 months: 6000
Avg vends per day(All Machines): 33
Avg earnings per day (All Machines): $8.25
Avg earnings per day: $16.50
Total money made: $1500
Gross Profit $1500 - $1300 = $200
Gross Profit : $150
Can you guys tell me if this is a realistic look at the business? Let me also know if my assumptions are near the target or way off. I would appreciate any feedback.
Thanks,
Newbie2Vending
newbie2Vending
Member Since 17 May 2008Offline Last Active May 24 2008 07:14 AM


Find content
Not Telling

