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Route pruchase and future growth.


BigRedvender

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Well I just bought another route last week added 11 stops to my route got a pretty good deal for 12 locations and also 5 extra machines parts and a nice electric coin counter. I gave the guy a lowball offer he countered and met in the middle way lower then he wanted for the route. I told him you only have documentation for a pull every 2-4 months and if you put that average out you not making much. Unless you have deposit records This is the amont I will pay see you later. Must of needed cash bad because he called me back and took the deal. Grabbed the cash and made the deal. It pays to keep a cash reserve set aside.

Now that I have gotten the route to cash flow I plan to split up the profits from it a little better. Keep .50% in the bank for candy gas and I 25% for locating and 25% for building up a cash reserve of about 3 months income. That will be for more route expansion or equipment purchases. I am in good shape for equipment other then some 2” machines and a few sticker tattoo machines.

It is all about a plan for growth and I want to keep growing larger and larger until I hit my goal on stops and then it is start working the dead weight out and move up on quality of stops.

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I am new to this business so I have a couple questions. What exactly do you mean when you say "you got the route to cash flow?" And do you always break down your profits to 50%, 25%, 25% like you did in your post? It seems interesting. I am trying to figure out how to know what percentage of my revenue I spend on candy. I still haven't figured out how to pay for gas yet. That is coming out of my pocket right now. Any advice will help. Thanks.
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Hold your overall product cost below 30%. The more you buy the lower you can get your product cost. Gum, bounce balls and tats are extremely low on product cost. Filled caps product cost is higher. Just keep overall product cost below 30%. I currently have overall 20-30% product cost.
I pay 30% product, 30% commission, 20% for Hoochie Mama, 10% for gas, 5% for beer and 5% for hookers. Works real good for me. I could be wrong Tbuford
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