loach33 Posted July 18, 2012 Share Posted July 18, 2012 http://tippecanoe.craigslist.org/bfs/3115423538.html With big dreams in my head on how big a route could be I messed around on Craigslist and saw this route for sale. Actually this guy seems to be selling a few different routes as I found three of them in Indiana. I'm not looking to buy it, I'm just curious about the sales figures he quotes. For those of you out there with bigger routes, would you say these sales figures are pretty close to what you find? He quotes the sales per week, but if you just do the math it works out to about $21 per box per month in gross sales. I would figure that's about $8 - $10 profit per month on these boxes. In my dreams I'm looking for $15 profit per box per month. What do you think....are his numbers more of what I will probably be looking at? Link to comment Share on other sites More sharing options...
BobTHJ Posted July 19, 2012 Share Posted July 19, 2012 My average monthly gross per box is $30.16. My average monthly net (after COGS, tax, and theft) is $10.58. However, I keep slow sales accounts and put them on long service cycles which drag down my averages. Looking at only my top 30 accounts the averages are much higher: $60.62 gross and $22.41 net. Link to comment Share on other sites More sharing options...
loach33 Posted July 19, 2012 Author Share Posted July 19, 2012 Ok, so about 35% for you. Would you agree with poplady in the other thread about losing accounts? It looks like you have about 130 snack boxes. Do most only last less than 6 months or have you been able to keep them? Link to comment Share on other sites More sharing options...
BobTHJ Posted July 19, 2012 Share Posted July 19, 2012 Most of my accounts have been around for years (as I bought a 30 year old business), but since those were stable accounts that's not a very representative sample. Of the new accounts I've placed since buying the business I'd say 20-30% have problems with theft (>20%). Of these I've been able to salvage most (by leaving shortage notes, speaking with management about the problem, removing high-COGS items from the box, or in the last-case replacing the snack box with a bulk candy or snack machine). Most accounts will pay well for the first few service cycles and reach peak theft at about 60-90 days. So long as they peak under 40% theft I can usually make them profitable. Closure has been the biggest cause for me to lose accounts - business owners just can't keep the doors open. I'm guessing I lose about ~30% of the new accounts I place in the first six months, but half of that has been to closure. In my experience one in five new accounts turns out to be a "good account" (low theft, high rate of sales, box stays in place longer than six months) but that doesn't mean you can't profit off the less-than-stellar accounts if you extend time between services and find creative methods to reduce shrinkage. I have a box in a pizza place that has 40-50% theft - but every time I service the account they give me a free lunch, which saves me $8-$10 and makes the account worth keeping Link to comment Share on other sites More sharing options...
dogcow Posted July 20, 2012 Share Posted July 20, 2012 Most of my accounts have been around for years (as I bought a 30 year old business), but since those were stable accounts that's not a very representative sample. Of the new accounts I've placed since buying the business I'd say 20-30% have problems with theft (>20%). Of these I've been able to salvage most (by leaving shortage notes, speaking with management about the problem, removing high-COGS items from the box, or in the last-case replacing the snack box with a bulk candy or snack machine). Most accounts will pay well for the first few service cycles and reach peak theft at about 60-90 days. So long as they peak under 40% theft I can usually make them profitable. Closure has been the biggest cause for me to lose accounts - business owners just can't keep the doors open. I'm guessing I lose about ~30% of the new accounts I place in the first six months, but half of that has been to closure. In my experience one in five new accounts turns out to be a "good account" (low theft, high rate of sales, box stays in place longer than six months) but that doesn't mean you can't profit off the less-than-stellar accounts if you extend time between services and find creative methods to reduce shrinkage. I have a box in a pizza place that has 40-50% theft - but every time I service the account they give me a free lunch, which saves me $8-$10 and makes the account worth keeping its the pareto 80/20 rule. 80% of your revenue will come from 20% of the accts that are strong payers low theft, eventually you might be able to build a whole route of these like bob has but dont expect it right away i am very lucky that my honor box accts, most of them i have had for about 2yrs without any problems because i cut bad ones very early on. like anything ymmv. the revenue in the OP is about right on about $15/mo per box is very doable if you do a $1.00 price point and you merchandise the box correctly. As for the ad, he is asking way too much, almost $200 for a snack box acct, forget it. you have no assets for a revenue price, its not bad ... about half of total gross revenue but without any assets its just way too risky when u can hire a locator for $10-30 a location Link to comment Share on other sites More sharing options...
Southwestvendor Posted July 28, 2012 Share Posted July 28, 2012 I have beening running around 900 accounts and my numbers mirror BobTHJ. Its just a good business if worked correctly. Bob and dogcow have a lot of great ideas. Link to comment Share on other sites More sharing options...
decaturjack Posted July 28, 2012 Share Posted July 28, 2012 I have beening running around 900 accounts and my numbers mirror BobTHJ. Its just a good business if worked correctly. Bob and dogcow have a lot of great ideas. 900 honor box accts?!? Link to comment Share on other sites More sharing options...
Southwestvendor Posted July 28, 2012 Share Posted July 28, 2012 Yeah sorry about lack of details. Well my company is running 900 HB accounts, and 450 full size vending machines (roughly 250 vending accounts) Link to comment Share on other sites More sharing options...
decaturjack Posted July 29, 2012 Share Posted July 29, 2012 Yeah sorry about lack of details. Well my company is running 900 HB accounts, and 450 full size vending machines (roughly 250 vending accounts) Wow. That's impressive. I take it you are in major metropolitan area to get that qty. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.