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Figuring Your Cost-per-Vend for Higher Bulk Vending Profits
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.
See Also:
Candies In Bulk for Your Vending Business
Candy Machine Vending
Power of the Gumball for Bulk Vending
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