Honor Boxes: A Few Questions

[Denis]

Hey Everyone,

I have been lurking for a while but decided to finally register. I am trying to decide whether to purse the honor box business. I like the lack of maintenance, low start up costs, ease of removal and just the general concept of selling snacks on the honor system.

If I pursue the business I plan to do it part-time. I am new to the business world and feel like this would be a good learning opportunity regardless if I succeed.

I have a few questions for those with experience in the business.

1. What legally should you register for to get started? I know I require a sales license and I plan to make a named business so I would need a business license. Do you need a LLC for honor boxes? In vending you can be held liable if a machine falls for example but is this relevant for honor boxes?

2. What would you suggest the snack breakdown be (good profit vs bad profit) on 80-100 count snack boxes? I was doing the math to get the minimum cost of goods but at the same time I want to keep the customers happy. The best profit I've seen comes from Chips, Crackers, Slim Jims, Quaker Granola Bars, Welch's Fruit Snacks and Planters Peanuts. What is your split on money makers vs expensive items and do you have any items that make you a good profit but still sell a lot?

3. What do you wear when locating? I figured dress pants with a dress shirt and no tie would be suitable to look professional but not trying to hard.

Thanks for all the help

[RJT]

A member by the name dogcow or another guy by the name of Dennis will be able to help you out. Dennis has many years experience at honor boxes and even sells the boxes.

[dogcow]

1. What legally should you register for to get started? I know I require a sales license and I plan to make a named business so I would need a business license. Do you need a LLC for honor boxes? In vending you can be held liable if a machine falls for example but is this relevant for honor boxes?

LLC will offer you some protection from liability that is to say from a person suing you and going after your personal assets (home, etc..)

2. What would you suggest the snack breakdown be (good profit vs bad profit) on 80-100 count snack boxes? I was doing the math to get the minimum cost of goods but at the same time I want to keep the customers happy. The best profit I've seen comes from Chips, Crackers, Slim Jims, Quaker Granola Bars, Welch's Fruit Snacks and Planters Peanuts. What is your split on money makers vs expensive items and do you have any items that make you a good profit but still sell a lot?

i put about 20% premium items ( pastry/candy) really i try to keep candy to a minimum, pastries sell better anyway.

3. What do you wear when locating? I figured dress pants with a dress shirt and no tie would be suitable to look professional but not trying to hard.

Thanks for all the help

khaki pants polo with my company name on it.

[Denis]

Would you need a LLC for just honor boxes? My common sense says no since you are selling a prepackaged product and I see no risk of injury from the box. I have not however studied law so I could be missing something.

What pastries do you use? I am struggling to find one I can make a good profit on. Any scuccess with Rice Krispy Treats?

Thanks for the help so far here and through PM.

[BobTHJ]

I operate as a sole proprietor. dogcow is right, LLC provides some protections but you can get a liability insurance policy for $500 or less per year that will give you $1million protection for your vending company. I also agree with dogcow on the 20% figure as an average - though some accounts may require more to keep them happy (and others you may be able to get away with none!).

I wear blue jeans and a collared shirt to service accounts - though most business is done in very informal wear in the area which I reside - more so than other parts of the country.