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flintflash last won the day on May 17

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About flintflash

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  • Vending Type
    Full Line
  • Vending Since
    1994

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  1. At this stage of the game, I'd pull them. You have no problem placing your boxes, so finding a couple replacement accounts should be easy enough. I would not offer a gumball machine to the "break even" account. Should things get worse (and they will), you will have no "negotiating recourse" because if you choose to pull the box, they will tell you to take the gumball machine as well. I agree with Chris, I would avoid the bulk vending. You seem to be doing well with the Charity boxes and can easily grow that business. It is a Low Overhead business that is not as labor-intensive as bulk vending. Why have money wrapped up in equipment? I would continue to grow your Charity Box routes. Just my 2 cents.
  2. I don't think Bryan uses the Pink Ribbon boxes anymore. There is a nice rebound! Looks like your volume is coming back up. GREAT shortages!
  3. I get what you are saying about the "per dollar" values and determining if you can be profitable, but it really won't help you. NOW...your monthly information will. But let me help you with a few things because your loss is not as big as you think it is. FIRST: COGS (Cost of Goods Sold) is NOT an expense. Inventory has value and you are missing that. COGS is determined by taking inventory each month. To determine your COGS, take your BEGINNING inventory (value), ADD your monthly PURCHASES (inventory purchases) and SUBTRACT your ENDING Inventory (value). THIS gives you the COGS ( Cost of goods SOLD). Your figure is just your total purchases. SECOND: Take TOTAL SALES (all money collected for month) - COGS = GROSS PROFIT. This is the money you make BEFORE any expenses are paid. This is IMPORTANT, because it relates to the health of your business. It answers the questions: Am I priced correctly and Is my inventory costs correct? Your GROSS PROFIT should be around 50% of your Total Sales (GP/Total Sales), give or take a percentage. If it is too low, you are either priced too low OR you are spending way too much on inventory. THIRD: Expenses are totaled and then are subtracted from the GROSS PROFIT. This is to help you see what you are doing with the money you are generating. Some of your expenses are ANNUAL expenses and could be broken up through out the year. Also, expenses like gas/fuel should be listed as the exact figure your purchased and not estimated by mileage. Look at the state of your business monthly so that you can make any adjustments needed. Looking at annual numbers is too late to fix anything. You are on the right track and hopefully will be SUCCESSFUL! By the way, are you running Charity Mint/Lollipop/Bulk Candy honor boxes or Honor Snack trays with Chips, candy bars, cookies, etc. ? Hope this helps! Best of luck to you!
  4. I have to agree with Mehehe! I've responded to 2 of your posts and have not seen any response. Not sure if you are looking for different answers, but my information is based on 25 years experience. If you are that unsure of getting into this business, I would suggest you DON'T. There is NO guarantee that any one will be successful in the Honor Snack or Charity Mint/Lollipop business. It is just like any other business, you will only be as successful as the work you put into it. It is not an easy "get rich quick" scheme. Look at it like that, and you are doomed to fail.
  5. Chris is EXACTLY RIGHT! You can not look at "per dollar" averages OR really even "per account" averages. In the Honor Snack world, the name of the game is 'Service as many boxes as you can and collect as much money as you can!" You will have lower volume accounts that have ZERO shortage (helps with overall shortage total for entire route) and you will have some HIGH volume accounts that run a little higher shortage than you like (helps with overall dollars collected for entire route). The idea is to look at what the ENTIRE route does collectively. If you try to fit every account into some "perfect" configuration, you will have very few accounts and waste your time. If you are not planning on doing this full-time, it may work out for you for a little while, but you will eventually lose interest and lose money as you try to analyze "per dollar" statistics for each account. Just my 2 cents!
  6. A little dip in volume, but I think that is normal for this time. We typically see a slight dip in September, and then a nice rebound in October. Numbers are still looking great!
  7. The "worth" of the Honor Snack Business all depends on what YOU put into it. If you are looking for easy money, then I would avoid it. Honor Snacks are like any other business and will require A LOT of hard work, time and commitment. Without that, it will be a failure. As I stated before, I have made a career out of it and as everyone else has pointed out, Bryan Humphrey (bhumphrey829) has a thread "Weekly Snack Box Update" that he posts his weekly progress. Bryan is a "one man" operation, while I have employees. Both operations are providing good livings for the owners. Bryan is a GREAT example of a SUCCESSFUL operation for anyone starting out.
  8. I replied on your other post, but to sum up: You would need about double that to make a decent living. Check out Bhumphrey's posts. You DO NOT look at per box earnings. That is pointless! There are WAY TOO MANY variables. Also, Sales (total money collected) and Net Profit (what's left AFTER you subtract ALL expenses) are two entirely different things. Success in this business is predicated on bringing in $$$. The more accounts you have and the more money you collect will increase the money you potentially can make. I have made a living in the Honor Snack industry for 25 years. It can be done, but it is A LOT of hard work, time, and dedication. If you run it as a side gig, that is all it will ever be. If you look at it as quick easy money, you are DOOMED TO FAIL. Run it like any other business. Just my 2 cents.
  9. Two Rivers is right on the mark! You would need to have about DOUBLE that amount to make a decent living, and even at that, you would need to have a large amount of High Volume/Low Shortage accounts. Check out Bhumphrey's posts. He is doing pretty well and is working with about 350 accounts. 200 accounts is exactly as Two Rivers put it: "A side gig."
  10. Ok...let's simplify this a bit. FIRST: you CAN NOT look at your costs and expenses based on individual items. That is LUDICROUS! You need to establish your route and then look at the average of the entire route. You said you had placed 48 boxes and serviced them all after 10 days. So look at what the TOTAL sales amounts collected and divide by 48 to get your average box sales. You then do the same with the COGS (cost of goods sold), which is the COST of inventory sold. This is based on your BOX COST (what it cost to fill your box) times the % used. I have all the formulas if anyone needs them. Your EXPENSES are ALSO based on the MONTH, NOT per item. You are NOT going to burn more gas in your car selling more items. Your insurance is NOT going to increase based on selling more items. Your vehicle payment is NOT going to increase based on selling more items. See the pattern here? Your expenses are FIXED meaning your gas bill will be that amount regardless of whether your customers buy only 1 item or a 100 items. Same with every other expense. Sales tax will be dictated by total GROSS sales and income/corporate taxes based on your profits. Do not waste your time trying to figure "per item" costs, because it serves no purpose and is meaningless. ONLY businesses that bid out individual jobs or products can ever really calculate the cost of individual expenses in their product. LARGE corporations may be able ESTIMATE it based on YEARS of data and averages, but even McDonald's will have the same electric bill and rent payment whether they sell 100 Big Macs or 1000 Big Macs. SECOND: you need to know WHAT information you are looking at and HOW it is applied to run your business. Box Averages let you know HOW your route is running overall, and HOW your inventory selection is working. SHORTAGE % let's you know how an account is doing individually AND in comparison to other accounts. Both of these relate to accounts performance AND sales. Expenses are monthly and relate to the performance of your business overall. NEVER break it down by account OR ITEM. Example: you could have 10 accounts that produce $100/month each or 100 accounts that produce $10/month each, but you will STILL have the same $300 vehicle payment coming out of the $1000/month you collected. Based on your calculations, one vendor can plan on snack trays costing $30/month in vehicle expenses and the other vendor's snack trays costing only $3/month in vehicle expenses. Have your accountant give you MONTHLY Balance Sheets and Profit and Loss Statements. This is the correct way to track your business, NOT by per item figures. Just my 2 cents!
  11. I have a similar location and we do not have any vandalism. Ours is located behind a Bob Evans restaurant and within walking distance of several other restaurants. We average about $100/week out of the snack machine. We have an AP112 and have had it there for 8 years. If it is near the front desk vicinity, vandalism should hopefully be prevented. If it is on a different floor or hidden in a room, then yeah, you might have some issues.
  12. I pay them 10% of the Total Cash collected (minus credit card fees). My Full Line Vending drivers average $1900 - $2000 daily. Their goal is to service as many accounts as possible and collect as much money as they can, while maintaining high levels of service. They take care of the customers well because they don't want to lose a customer, and as they get faster on their route, they look to add another account or two. They are very much vested into their routes because they can impact their wages. Employees that can see the immediate impact of their performance, especially in regards to their earnings, will give you a much stronger effort. It's worked for me for 25 years. Many of my competitors still pay hourly, and that is what they get: an employee who looks at their hours, not their work. Their goal is to make the least amount of work last the most amount of time. MY drivers think the opposite. It's funny, but they actually talk to each other to let one another know of traffic accidents on the highways or construction slowdowns to help each other avoid them and reroute themselves. I want them to think of "THEIR TIME IS MONEY".
  13. Yes sir! By putting them on commission, they are now in control of their earnings as well as their work day. If your pricing is done correctly and you manage your expenses, it should work. A route driver has the incentive to do more and work more efficiently. When they feel as if THEY have some "skin in the game", they treat the route as if it were their own business. This works for BOTH my Honor Snack routes AND my Full Line Vending. Route drivers are my LOWEST turnover positions.
  14. TKK, get your drivers earning commission. My route drivers earn 10% commission on their routes and trust me, it is worth it! They are CONSTANTLY begging for more accounts, because they find the means and the time to do MORE. My drivers on average are earning between $40,000 - $45,000/year. On commission, you don't have to track overtime, and most of my drivers see maybe only 2-3 overtime hours/week at best. AND to top it all off, my drivers are running HONOR SNACK routes! My Full Line vend driver is earning over $50,000/year doing what your drivers are doing. Listen to everyone and INVEST in GOOD PEOPLE! The average years of my employees are 9 years with me (that includes my office staff, packers, sales reps and route drivers). Most of my route drivers have been here 10+ years. If you are the leading wage-setter in your market compared to your competition, believe me, you will have the best people working for you. I've had Canteen drivers apply for work with us.
  15. HI Jesse! All good questions. Let's try to tackle them one at a time: #1 - where to get snack trays. Most on the site get them from Cameron or Sheridan Systems. If you Google their names, you should find their websites. I would avoid making your own; usually that looks cheap OR not cost-effective if you make them look really nice. Stick to ordering them from one of those providers. #2 Distributors for product. Again, MOST on the site, particularly those just starting out, will get all their product from a Club store; ie. Sam's Club or Costco. Starting out, you really aren't large enough to order from Vistar or another distributor and your cost would be much higher. Sam's Club is really geared for someone starting out. #3 Which charity? PERSONALLY (and this is just me speaking), I don't believe in using a charity for your Honor snack business. I DO believe in giving back to my community and to charitable organizations, and I do that on my own. But I do not believe in "hitching your wagon" to a charity. In my opinion, I think it actually "cheapens" your business and makes you look "flight-by-night". HOWEVER, some here DO use charities and I believe Sheridan Systems can help you out with that when you purchase boxes from them. #4 Is shortage (or shrinkage) taxable? DO NOT FIGURE SHORTAGE INTO YOUR SALES (Total Money Collected)! The money you collect at each site IS the money you sold your snacks for. Example: Your price is $1.25 and you service and account that purchased TEN pieces. You SHOULD collect $12.50, but let's say you only collected $10, leaving the box $2.50 short. You then, in effect, sold your items for $1.00 each. SHORTAGE is ONLY used to tell you how the account is paying you. NEVER is it used in your sales figures OR as an expense. The money you collect IS your SALES. It is NOT a tax deduction either. Your donations to charity come out of your sales. I hope this helped! Just my 2 cents!
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