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Expectations on volume


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Hello Everyone,

Since it is the new year, I am ready to take on new ways to make money. The Coca Cola company will provide machines. I can use 2 non Coke products. Here is the thing, they expect me to buy 200 cases per year, per machine. This is 16.6 cases per month. Is this a realistic expectation? It would make me about $180.00 profit per month, per machine. I like the numbers, but I wonder if I am kidding myself thinking I can really do that amount. I thought I'd do $25.00 -$30.00 per month with candy machines and that's not really happening, more like $15.00 or so. I'd just like to have my expectations in line before I take the plunge. Is 15 to 17 cases per month realistic for a drink machine?

Thanks,

Dan

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Really just depends on location. I'm sure there a ton of people in here doing that much volume. But there is really no way to know what volume you will go through.

Do you already have a location for the machines?

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Dan,

I've got one machine that does that much by itself but it's my best account. If you had just three average locations, using their machine and two of your own, you would easily use that much per month. Two hundred cases a year is going to cost you an extra $350 over what you'd pay at Costco but they'll deliver it so it's easy - so easy they're hoping you'll buy enough to stock all of your machines. That's their angle, they're in business to sell Coke, not hand out free machines.

It's good that they're willing to let you use two non coke products, but that still means you've got to run eight coke products - the first five are easy, after that it gets tricky.

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Dont make it more difficult than it is. For every coke machine you use buy one you own then split the case amount this is what I do but now they made it easier for me and I must now only grow 2% a quarter to get machines. Then its down to 8 cases a month per machine something that you should be able to handle without sweating. If thats still too high then just go one coke for every two you buy and you are down to 5 cases per machine per month.

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Thanks for the replies. I think I need to jump in and get into the drink business. I want to diversify and move beyond bulk candy. I also want to sell some toys. This deal with Coke allows me to get some machines to start without having to buy them. I know that product will cost more, but it saves me the upfront expense and I don't need a truck with a lift. That's why this deal is attractive to me right now.

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Thanks for the replies. I think I need to jump in and get into the drink business. I want to diversify and move beyond bulk candy. I also want to sell some toys. This deal with Coke allows me to get some machines to start without having to buy them. I know that product will cost more, but it saves me the upfront expense and I don't need a truck with a lift. That's why this deal is attractive to me right now.

Sounds like a plan Dan. Just be ready to add one of your own machines to the mix or you may end up with more Cokes than you can sell.

As a side note: Regular sodas are good for about 8 months while the diet sodas are only good for maybe 3 months so order accordingly

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The purchase requirement is about right. Here in my area its 240 cases per year. After the first year you will also have to show growth year after year to remain eligible for additional machines. For many accounts the 16 per month will be more than your sales, more so during the cool weather months.

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