mgirtman78 Posted August 12, 2015 Share Posted August 12, 2015 First of all, let me thank everyone for all of the great advice I have read and received! I have been doing part-time bulk vending for about 6 months now. I have about 10 locations currently. I add a new one every 2-3 weeks as I continue to work full-time at another job. So far, I have reinvested everything that I have made back into the business. Now I have a small surplus of extra machines, stands, and products. So, my question is what percentage do you recommend to pay yourself? I know that I am not going to get rich off so few machines, but I would like to put the profits I pay myself into a savings account. Please let me know. Thank you! Link to comment Share on other sites More sharing options...
rodney69 Posted August 12, 2015 Share Posted August 12, 2015 That all depends on how your set up. There are different theory's on this. If you want growth, then pay back into expansion more than you pay yourself. In the beginning there isn't much to pay yourself if you figure gas and everything that you do for the business. When it's a hobby your doing it for enjoyment. If you figure percent of profit you can pay yourself 30% of the profit or even 50%, but you'll see that realistically there isn't much in your hand. If your following someone like Dave Ramsey and trying to pay yourself, you have to figure in ALL costs and put that aside, then figure where you want to put the rest. Totally up to you. Some pay themselves hourly, percentage, just depends on how your set up. LLC or DBA? Link to comment Share on other sites More sharing options...
BouncyBalls Posted August 12, 2015 Share Posted August 12, 2015 After you get close to where you want to be and not reinvesting 100% profit you should be able to pocket 35-45% depending on COG's and commissions you negotiated. Link to comment Share on other sites More sharing options...
SyTheCandyGuy Posted August 13, 2015 Share Posted August 13, 2015 Excellent question. I'm still at the reinvesting/paying off machines stage. I'd be keen to know what %age / dollars the long timers/big shots go with? Link to comment Share on other sites More sharing options...
mainor5251 Posted August 28, 2015 Share Posted August 28, 2015 Excellent question. I'm still at the reinvesting/paying off machines stage. I'd be keen to know what %age / dollars the long timers/big shots go with? I'm more of a short timer and little shot but now that I do this full time I pay myself a $1000 salary every 2 weeks plus a $200 distribution check every week. Link to comment Share on other sites More sharing options...
The Mage Posted August 28, 2015 Share Posted August 28, 2015 I never really got into vending for the income, but to stockpile cash, and use that to move into real estate. So my goal was never to go full time, or create an income from vending for myself, but to stockpile cash. That being said, what I would do would be to set up a bank account, and decide on a minimum amount you would like to maintain to cover your expenses, and various emergencies. it's good to have extra on hand just in case. At least enough to cover 2 to 3 months of product, and other expenses. This is the amount for your fixed minimum balance. Then decide on an amount you would like to set aside for expansion each month, or service cycle. Keep track of this amount, as it will grow and shrink as you save, and spend. This will be your variable, investment balance. You may want a separate account for taxes, or you can keep track of that amount too. Once a month, add those numbers together, and anything above that, you pay yourself. Obviously every time you expand, you will need to adjust that minimum balance up. And once you have chosen those numbers, it could take some time to build those accounts to where they need to be before you start taking an income. Link to comment Share on other sites More sharing options...
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