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NEW! Is Now the Right Time to Buy Gumball/Candy Machines for Passive Income?
Vending Millionaire? How Much Can I Make?
8 Ways to Pay For Your Vending Machines
Power Tips I Used to Locate 100 Machines in the last Year
Will I Need
Business Insurance?
Use your Home as a
Bank to Pay for Machines
How
Much Time will it take?
Optimum Route
Size
Figuring Your Cost Per Vend for Higher Profits
Quick Ways to Increase Sales, 1
Quick Ways to Increase Sales, 2
What Can I Sell in My Machines?
Hard to Vend Items
5 Things to think about Before Buying Machines
What Type Machines are Best?
What about Vending Locator Services?
Investing Your Tax Refund
Talking to Bankers
The Real Costs of Running a Vending Business
Grow the Person, Grow the Business
Great Business Reading
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Figuring Your Cost-per-Vend for
Higher Profits
If you're going to be serious about vending, you HAVE
to know your COST-PER-VEND. I can always tell those who have
machines for a "hobby" or for extra pocket change by how much product they
give. This is a business and if you want to stay in business in this
day and time, you will think about this key metric of your vending
business.
How do you figure your cost per vend? It is the
following:
COST OF
PRODUCT
divided by NUMBER OF
VENDS
For instance, if you have to pay 7.88 for a bag
of M&M Peanuts at Sams, with tax that bag costs approximately
$8.60. If you get 110 vends, your cost per vend is 7.8 cents before
you take out any other expenses. In my opinion, this is too
high. I cut back my amounts quite a while back to get 127 vends for
a cost-per-vend of 6.8 cents. Still high, but I can sell a lot of these in
some of my accounts so at present it is profitable enough. I'll
probably sell around 600 large bags of MM Peanuts this year,
so making a small adjustment makes a lot of difference in your bottom
line.
If you need to increase your margins, you can cut back on
product. Do this - take a full bag of candy and put into an empty
machine. Feed quarters into the machine until the product is gone
counting each time you put in a quarter. When the candy is gone,
you'll know how many vends per bag you get according to how the CANDY
WHEEL in your machine is set. You can adjust your candy wheel to a
different setting and repeat this process to see how many more vends you
get with the adjusted setting. Refigure your cost per vend and see
if you get enough product out.
This is one of the processes I used
to increase my profit and hedge against higher gas prices.
Hope
this helps you achieve success.
DISCLAIMER: I am not an
accountant or financial professional. Always use professional help
in your business. Use this article at your own risk.
Mark Evants
(C) Christmark Enterprises,
LLC.
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