Jump to content

NEPA VENDING - FINANCIAL REPORTS


nepavend

Recommended Posts

It has been some time since I last posted regularly on Vendiscuss. Since the last time I posted pretty regularly (June 2009) I have been through quite a lot. This would include:

-Lost my full-time job (July 5, 2009)

-Gone into vending full-time with a partner

-More than doubled the business in 2009 and nearly doubled again in 2010 (2008 Sales - $16,500, 2009 Sales - $41,000, 2010 Sales - $75,700)

-After 26 months in a partnership and 18 months of full-time work, I bought out my partner on December 17. There were many reasons for it but the #1 reason was there just was not enough for two people to make a living and not enough capital available to grow the business to support two people. I have learned a whole lot about this business and business in general by being in certain situations not to my advantage, which I hope does not continue in the future. Some education is very expensive and this is a prime example.

-Sales for 2010 were another huge jump over last year. I am setting a goal of $90,000 for 2011, with the hope that with some planning and work which I will detail below that this will rise to $100,000.

2010 Financial Outlook

(see attachment)

These are stats that I follow carefully on at least a monthly basis, in addition to revenue numbers by route.

Locations/Heads

Locations dropped slightly this year, and the average was about 305 locations. This is not a major concern right now for a few reasons. I had a number of bad locations and locations that went out of business this year which were pulled, and this reflects a lot of pulling taking place at the end of year, being that a lot of closures tend to happen at the end of the year. There are more heads and heads per location than last year. This reflects one of my major strategies, that being to put as many heads as possible in my better locations to increase revenue and be more efficient with my time. I am expecting this to continue into 2011 as I put more racks, sticker machines, and Tomy Gacha machines out on my top locations.

Average Revenue

Average revenue figures were wonderful this year, being up nearly 40% per location and 25% per head. These are looking like they will continue to grow in 2011 by upgrading good accounts and eliminating poor performers. I am also expecting to maintain 50% above the national average per head in 2011.

Revenue by State

This is where the real results are. Revenue in Pennsylvania improved 35% over last year. A lot of this improvement has to do with two new accounts which have been hugely successful. One is a new Chinese Buffet that opened in August and is averaging over $1200/service, and another is a bar/nightclub with a spiral doing over $120/service. New Jersey is up 80% over last year due to a new route put in closer to the New York City metro area, right on the Hudson River. Early results here have been promising. New York was relatively flat this year, but January 2011 this will start changing (see next section). Overall, total revenue per service is up 40% over last year.

2011 Goals/Plans

1. Upgrade existing accounts – This is something that I was unable to pursue until buying out my partner. I now can get access to the capital and save more of the business money towards new equipment. After focusing on growing the New Jersey market most of last year, I will be focusing more on Pennsylvania and New York this year. I have already secured upgrades that will require 27 new and bigger machines than what is in the prospective locations.

2. Reducing Cost of Goods – This will be accomplished through bulk volume purchases of gum, toys, balls, and capsules. Nearly all 1” toys and some 2” toys will be capped at home by me primarily, with some support from some family and friends. Also, I am evaluating sticker and tattoo suppliers for taking better advantage of sales and volume purchases to save there as well.

3. New Products – I will be introducing 2” superballs in at least one account next year, as well as several other new products that will vend for 1.00 (Tomy Gacha machines).

4. Price Points – My strategy of upgrading better accounts will result in more 2” toy heads with products vending for 50 cents in 2011. In addition, my successful testing of 1.00 vends in higher-end accounts will be expanded from one account this year to five next year. These will be accomplished through the purchase of Tomy Gacha machines, 5-way and 7-way racks, Bounce-a-Roos, and sticker machines with two or more columns.

5. Warehouse expansion – I am expecting to be moving from a one car garage bay I am using now with no heat to a newer 1,500 square foot warehouse in the next month or two. This has heat, features a nice office room, and will allow me more space to store the product and equipment I need to move my business forward. I will also be able to paint in all weather thanks to the heat, which gives me more opportunity to refurbish machines faster. Formerly an auto shop, this place also offers the possibility of truck deliveries of pallets of goods rather than driving to and loading at the terminal and unloading at the warehouse. This would be a huge change from using the garage bay and my house as storage facility!

6. New Equipment – In 2011 I will be focusing more on securing locations for racks and sticker machines as opposed to spreading singles and doubles all over creation. This will try to keep servicing as efficient as possible and help keep travel expenses under control. To do this I will need to buy racks and sticker machines as cost effectively as I can.

vendiscuss.doc

Link to comment
Share on other sites

  • 3 weeks later...
  • 1 year later...

I work with Beaver machines in Brazil and was reading all your posts. Thank you so much for the information. i have 2 questions regarding your financial statements, the first is that when you multiply the average revenue per head x the numbers of head you dont find the total numbers in each column. can you help me out? And the second question is regarding the total value is net profit per month correct? thank you

Link to comment
Share on other sites

  • 2 weeks later...

Michael, the total heads and locations are at the top. I started with the totals on that sheet to generate the stats.

Your second question, there is no net profit per month on that sheet.

Link to comment
Share on other sites

  • 2 months later...
  • 1 month later...

2012 Sales were off.  $77500.  I had the worst summer I have had in the 7 years I have been in business.

 

I sold my route in New Jersey and traded another in upstate NY for equipment because the route became too far away after I moved last May.  I did an enormous project that put out 160+ new locations from Sept 2012 to Dec 2012 and 30 more this month in an effort to replace income generated by sold routes.  Overall numbers have been lower than expected, the economy in my areas stunk it up apparently.

 

The last 12 months have been frustrating to say the least, but I am still working at it and hopefully things will get better this summer and into next year.

Link to comment
Share on other sites

  • 2 years later...
  • 7 months later...

So if typical bulk profits are around 50% of revenue after cog and cost to service...youre vending full time and sales are in the $70-80k area with numbers above the national average...net is somewhere in the $35-40k range before taxes (I'm assuming based on sales and typical costs)? How many days a week does this take?

As impressive as the sales may be, I'm a bit leery of the scalability of this.

Link to comment
Share on other sites

On a well planned and operated route, a day a week, if you are spread out to the point you are over night on some routes maybe 6 days a month. But that is route time. You still have all the back at home stuff, ordering, banking, organizing returned stock, equipment repairs delivery rtc

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...