Jump to content

Close

Schale

Member Since 08 Oct 2010
Offline Last Active Feb 17 2011 09:46 AM
-----

Posts I've Made

In Topic: Revenue Potential Per Location

17 February 2011 - 09:48 AM

Putting a solid number on how much someone can make on a vending machine is next to impossible as every location is different with both demographic, regional and competitive influences. For instance sales can be negatively impacted if there are many fast food or convenient stores nearby. Also, your blue collar worker is more willing to spend money on vending products that white collar on average (about 2 to 1). The general rule is you can expect $2.00 per week per white collar employee and $4.00 per week per blue collar employee as an average. It is this reason alone not to immediately invest in a lot of machines right off the bat. Take a handful and every week or month depending on the use of the machine, track the numbers to see what the performance is. If you have a low performing unit, simply move to another. There is no sense, especially in the beginning when revenues are low to tie up a large investment for an account that can cover costs. Your time will be better off with fewer, higher income vending machines rather than more, lower performing ones.

The best locations will tend to be businesses that have lots of employees. Typically, blue collar workers eat more than white collar while women eat the least. At most businesses, blue collar workers often don't leave for lunch so their meal comes from the vending machines.

Many vending operators set a threshold of $100 per week per unit for their machine to generate, otherwise the machine gets moved to a new location. Others have a ratio and calculate their minimum required income. For example some will require 10% of their investment to be the monthly sales. So for every $1,000 on equipment they require $100 in monthly sales. This method removes the arbitrary minimum per week (this number really can only come from experience) and factors in the amount of investment in vending equipment so you know whether you are getting a positive return on investment. If you can make the same amount but spend $750 on a refurbished vending machine versus $3,500 on a new one, guess which one will be more profitable?

www.StartupInformant.com

In Topic: Information before I get into vending

08 October 2010 - 10:09 PM

Depending on your location commissions range from 0% to 40%. Many locations are happy to have someone dependable to provide snacks and drinks for employees at reasonable prices and reliable service. Others though want to be just reimbursed for the electrical cost or provide money for a staff fundraiser while others know they have a high-traffic location and they want a piece of the sales.

Never be the one to bring up commission when discussing your vending because then the account will expect it and is money out of your pocket. If the account brings up commission take the angle that by paying a commission raises your costs which impacts the ability to provide low prices, newer equipment and more frequent service. Commissions will not assist you in getting and keeping accounts, only great service at a reasonable price will. That being said, unless it is a really good location, I would recommend giving no more than 5%-10% and stipulate a sales threshold before paying the commission.