BluePlate Posted January 29, 2017 Share Posted January 29, 2017 Hey all, I was presented with a snack/soda route. This is new to me, they have no records or anything. What % should I expect for cost of goods. We are looking at cans and a variety of snacks. Sorry about the newbie question..... Link to comment Share on other sites More sharing options...
lacanteen Posted January 29, 2017 Share Posted January 29, 2017 It needs to be 50% or less of gross sales to be profitable. Link to comment Share on other sites More sharing options...
Southeast Treats Posted January 30, 2017 Share Posted January 30, 2017 What he said, but it's hard to do, I run about 53 -54% average most years Link to comment Share on other sites More sharing options...
AngryChris Posted January 30, 2017 Share Posted January 30, 2017 I'm at about 57℅ COGS but it would be below 50℅ if not for 20oz bottles. Link to comment Share on other sites More sharing options...
BluePlate Posted January 30, 2017 Author Share Posted January 30, 2017 Wow, thought is would be closer to 40%, so the fact some of the accounts he is paying 30% of gross seems crazy..... I might stick to ATMs, LOL Link to comment Share on other sites More sharing options...
AZVendor Posted January 30, 2017 Share Posted January 30, 2017 You might be mixing apples and oranges. When you say "some of the accounts he's paying 30% of gross" do you mean commission or cost of goods? Cost of goods is generally calculated for an entire category of sales or for an account of several machines or across the entire route. It's unlikely that they are calculating this for each machine as that would be mind-numbingly tedious. That percentage could only be correct if that machine has a very high price set on it. Link to comment Share on other sites More sharing options...
BluePlate Posted January 30, 2017 Author Share Posted January 30, 2017 Sorry, They just gave me gross sales numbers and commission numbers - no net numbers. Some of the commission were 30% I was trying to get a rough estimate on net Link to comment Share on other sites More sharing options...
AZVendor Posted January 30, 2017 Share Posted January 30, 2017 I would say that anyone claiming they pay 30% commission on any full line vending account is lying to you or the account. You can't pay that unless that account has outrageous pricing or the vendor is planning on going out of business soon. Link to comment Share on other sites More sharing options...
TKK Posted January 30, 2017 Share Posted January 30, 2017 Your pricing would have to be outragous. Your cogs would have to be 10% to get u at that 40% cogs were at. Link to comment Share on other sites More sharing options...
CapitalCityVendingLLC Posted January 30, 2017 Share Posted January 30, 2017 Normally we try and keep our COGS right at 50%. Last two years we hit 47.3% and 48.5%. Link to comment Share on other sites More sharing options...
MidStateVending Posted January 31, 2017 Share Posted January 31, 2017 %50 Buy produce (Subtract 50%) Pay state sales tax (10% of gross) Gas, insurance, repairs (10%) Federal taxes (10% of net) Profit of 20% if you're lucky. I am sure I am missing something. Link to comment Share on other sites More sharing options...
Southeast Treats Posted January 31, 2017 Share Posted January 31, 2017 MidState is on track, 20% net IF you have no employees is the target. Labor costs will cut into that deeply (and debt service will eat up your cash flow). 30% commission is a false number somehow, but some vendors seem willing to throw out big numbers to impress a location, without explaining how they really intend to "figure" the commission.... Link to comment Share on other sites More sharing options...
AngryChris Posted January 31, 2017 Share Posted January 31, 2017 2 hours ago, MidStateVending said: %50 Buy produce (Subtract 50%) Pay state sales tax (10% of gross) Gas, insurance, repairs (10%) Federal taxes (10% of net) Profit of 20% if you're lucky. I am sure I am missing something. Just saying.. but 10% of net would mean that, after deducted 70% for the other two, you end up with 30% before 10% federal (which depends entirely on your level of income. 10% of 30% is 3%.. so you'd be at 27% with your numbers, not 20%. Regardless of the math there, the last few years I have been around 20% operating profit in my bookkeeping (which doesn't show depreciation the way tax returns do). I am expecting to be over 25% this year. Link to comment Share on other sites More sharing options...
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