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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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The Real Costs of Running a
Vending Business
When people start a new business such as vending, they
often fail to consider "the cost of doing business." If you think
you actually get to KEEP every quarter that flows through your machine,
you're in for a rude awakening!!! Vending can be very profitable,
but it is like anything else: You have to W-O-R-K to run a
profitable business.
Here are some important considerations
about your cost in running a vending business:
Cost
of Machines (your initial capital outlay). How much
will it cost you to begin your business? Consider the cost of
replacing stolen machines (yes, this will happen if you have more than 10
machines!).
Cost of Servicing. This
includes your time, gasoline, vehicle costs, etc. When
you start driving 25,000 miles a year like I do, vehicle costs
really add up.
Cost of Product. How
much will those gumballs, candies, and toys cost? Do your
homework here. Most likely, it will be cheaper to buy from a Sam's
Club or Costco Warehouse than to order online. The
exception to this may be if you order in bulk (85 cases of
gumballs or more).
Administrative
Costs. This can
really fool you if you don't track
these expenses. You'll wonder where your profit is
going! These costs include computers, printers, software,
paper, laminating, etc. You can also include here attorney
and accountant fees as ongoing administrative costs.
Maintenance Costs. This includes
replacement parts for your machines, cleaners, tools,
etc.
Taxes. Remember Uncle Sam's part. Check
with your accountant for details here. Thankfully you get great
deductions with this business that will help you keep more of what you
earn. Always use professional help!
In my opinion, if you are
able to net 50% of your sales before debt servicing (loans), you're doing
good. Remember, this is after you figure in all those big and little
costs of doing business.
Understand every business will have costs
to run. I am not trying to discourage you here but help you
understand some of the costs (this is not an all-inclusive list).
The good news is that if you control costs your company can be profitable
and you'll enjoy the fruits of your labor.
Mark Evants
(C) Christmark Enterprises,
LLC.
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