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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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Optimum
Route Size
An important thing to consider in running a vending
business is your route size. Route sizing directly affects your cash
flow. The further you go away from your home base, the greater your
service and time costs. It can be very profitable to go far away
from your home base, but you must carefully consider extending your route
areas.
Here are some considerations on Route Size:
1. When
enlarging route size, try to go in a direction which will add another area
in your loop. For instance, you generally don't want an area 100
miles away all by itself. It would make more sense to add another
county / city next to a place you already have machines.
2. Figure
your fuel mileage for servicing. If it costs an extra $50 to service
the area and you only have 5 low-producing machines, it does not make
financial sense to keep that route.
3. Survey areas where you are
interested in getting new accounts. Does the area seem like it will
support more machines or is it already overloaded with
competitors?
4. What are my time limitations? Do I
have time to service this extra area farther away? Do I have time to
adequately invest to bring the area to profitability?
5. Before
extending your service area, consider pulling the lowest 10-20% of your
machines and replace them in your current service area. If you are happy
with your current averages, follow the above steps.
Covering
large areas can be very profitable, but it can best be done by taking
small jumps from town A to B to C to D, etc., until you can reasonably
justify driving distances and service costs. Every area need to be
evaluated from time to time in this era of rising gas prices. You
might be more profitable to sell the route or accounts to a competitor or
better yet trade accounts from two different areas.
Mark Evants
(C) Christmark Enterprises,
LLC.
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