loach33 Posted January 11, 2013 Share Posted January 11, 2013 Let's say you were vending part time and clearing $20,000 a year and had a full time job that was netting $30,000. If you wanted to plan on quitting your main job and move to vending full time how much would you have to gross from vending to make up that $30K net. My guess is about $100K gross. This is a mix of full line, honor boxes and bulk. For those doing it full time, would you say that's close to accurate? Link to comment Share on other sites More sharing options...
Rick Posted January 11, 2013 Share Posted January 11, 2013 If you had a full time job Let's say you were vending part time and clearing $20,000 a year and had a full time job that was netting $30,000, If you wanted to plan on quitting your main job and move to vending full time how much would you have to gross from vending to make up that $30K net how much would you need to gross in vending to replace that income? Is this what you're asking? Link to comment Share on other sites More sharing options...
TKK Posted January 11, 2013 Share Posted January 11, 2013 I usually make like $2500 gross and I'd say about $1900 net on my route. I'm expanding this month should be about $3000+ and about $2400 net or so. I pay almost no commissions Link to comment Share on other sites More sharing options...
havending Posted January 11, 2013 Share Posted January 11, 2013 We net about 47% Sent from my Desire HD using Tapatalk 2 Link to comment Share on other sites More sharing options...
Rick Posted January 11, 2013 Share Posted January 11, 2013 I usually make like $2500 gross and I'd say about $1900 net on my route. I'm expanding this month should be about $3000+ and about $2400 net or so. I pay almost no commissions Holy crap! You're netting 76% gross and plan to net 80% once you expand!?! You're factoring in COG, gas, taxes...everything? Link to comment Share on other sites More sharing options...
ruff84 Posted January 11, 2013 Share Posted January 11, 2013 Holy crap! You're netting 76% gross and plan to net 80% once you expand!?! You're factoring in COG, gas, taxes...everything? I was thinking something sounded off about that as well. Link to comment Share on other sites More sharing options...
loach33 Posted January 11, 2013 Author Share Posted January 11, 2013 Is this what you're asking? Well, yes. I guess numbers weren't needed actually. Percentages would work Link to comment Share on other sites More sharing options...
Rick Posted January 11, 2013 Share Posted January 11, 2013 Well, yes. I guess numbers weren't needed actually. Percentages would work No worries. Just wanted to make sure we're all answering the same question for ya loach. Link to comment Share on other sites More sharing options...
spdydre Posted January 11, 2013 Share Posted January 11, 2013 You also have to factor in if you can handle your fulltime job and working vending up to 100k. MOst likely you will have to either move to a pt job,quit or hire someone to run your route until you leave your job and can take over. I would assume 100k is about 10-15 hours a week maybe more. To answer your question I would say 100k to net 30 but it is different for everyone depending on cogs/pricing etc. But 100k to be on the safe side. Link to comment Share on other sites More sharing options...
TKK Posted January 12, 2013 Share Posted January 12, 2013 Oh no thats not including gas and does include taxes. Gas I'd say another $100 a month comission like $110 a month. Link to comment Share on other sites More sharing options...
moondog Posted January 12, 2013 Share Posted January 12, 2013 Your question's a little bit "open ended" as you haven't specified your ratio of Full Line vs Bulk. Bulk has a higher profit margin than Full Line but usually a much lower profit per location. Last year, doing 10 Full Line locations (23 machines), I grossed about 60k. This left me with a gross margin of 30K and an actual net of 25K. As of this writing, I have expanded to 35 machines but don't have any meaningful numbers on that expansion yet. If you were doing 100k per year in Full Line, you would expect to net 40K. If you mix in some Bulk your net should be incrementally higher. I don't want get too deep into accounting principles here but, keep in mind that as you grow your variable expenses will also grow proportionally while your fixed expenses will remain roughly the same. Link to comment Share on other sites More sharing options...
TKK Posted January 12, 2013 Share Posted January 12, 2013 Yes exactly the one I posted above is bulk and full line. For example bulk I'm making like $700 gross and pay like $130 ish in candy. Like a bag of skittles makes me $35 and its only $6.80. Also I do not use any high cog products. For example I do not sell chocolates. They are $.48-$.55 each and I can't sell em for $1.25 so I don't use em. I sell many chips and pastries. For example cupcakes are $.43 each I sell for $1.25. Japanese peanuts are .17 I sell for .75. Cookies are .27 I sell for $1. Etc. Also with cokes I usually pay $.20-.25 each sell all for .75 It's easier just buying all at sams but my cog would go up. If I was at like $100k a year I'd be netting about $50-60 but then I'd probably just buy everything at one place. Link to comment Share on other sites More sharing options...
loach33 Posted January 12, 2013 Author Share Posted January 12, 2013 Yeah, a lot of numbers getting thrown around here. I was thinking about 35% or so net to be safe after all is said and done and that seems to be the thought for most. I'm at about 38% right now. I'm just looking forward to see how much I have to increase to be able to do it. Right now about 5% is honor box, 2% is bulk and the rest full line. Honor boxes is where I'm looking to expand - though obviously that's not going to cover the entire amount needed. Thanks for the input - just wanted a few thoughts to see if I'm missing something with the numbers. One factor that has me thinking is that #1 I don't have the time to really see what I can do with this business, # 2 (ok 2 factors) - I figure that I make about $17/hour at the full time job after taxes. I make about $25/hour vending before taxes. Although I know there's some wasted hours each week vending because I have to make some short trips because I'm fitting it in between the real job. I would bet I could be much more efficient concentrating just on one thing and so that $25./hour could be $30 or so. Just a lot of thinking going on lately. Link to comment Share on other sites More sharing options...
TKK Posted January 12, 2013 Share Posted January 12, 2013 Be your own boss! It's great! Link to comment Share on other sites More sharing options...
Vendfun Posted January 14, 2013 Share Posted January 14, 2013 moondog: thanks for the overview. Can you expand a bit on what additional variable costs may involve ? I know COGS, travel, commissions but what others will grow. Fixed should also grow as you expand if you need additional storage, bigger vehicle, help etc. Link to comment Share on other sites More sharing options...
dogcow Posted January 14, 2013 Share Posted January 14, 2013 Yeah, a lot of numbers getting thrown around here. I was thinking about 35% or so net to be safe after all is said and done and that seems to be the thought for most. I'm at about 38% right now. I'm just looking forward to see how much I have to increase to be able to do it. Right now about 5% is honor box, 2% is bulk and the rest full line. Honor boxes is where I'm looking to expand - though obviously that's not going to cover the entire amount needed. Thanks for the input - just wanted a few thoughts to see if I'm missing something with the numbers. One factor that has me thinking is that #1 I don't have the time to really see what I can do with this business, # 2 (ok 2 factors) - I figure that I make about $17/hour at the full time job after taxes. I make about $25/hour vending before taxes. Although I know there's some wasted hours each week vending because I have to make some short trips because I'm fitting it in between the real job. I would bet I could be much more efficient concentrating just on one thing and so that $25./hour could be $30 or so. Just a lot of thinking going on lately. the main problem ive found with trying to transition is the hours, many vending accts are only open 9-5 hours OR they only want you to service during business hours. This is why ive transitioned to amusement vending since most of the best accts are open after hours and weekends. In food vending ive closed out all my accts and moved everything either into storage or into the following type of locaitons 1)hotel/motel 2) laundromat 3) section 8 apartments. these are not the best performing accounts obviously, and in the case of hotels and laundromats the commission is very high, but the upside is they generally do not care about anything except commission and service headaches, if you set up the machines with i-vend and pay on time you will never hear from them. i use very long dated and high margin products in these accounts and service them every 2-4wks. It also makes your gross look very good when you go to sell because the pricing is higher than average. Link to comment Share on other sites More sharing options...
moondog Posted January 15, 2013 Share Posted January 15, 2013 moondog: thanks for the overview. Can you expand a bit on what additional variable costs may involve ? I know COGS, travel, commissions but what others will grow. Fixed should also grow as you expand if you need additional storage, bigger vehicle, help etc. Well, The number one variable cost that every vendor deals with is gas. You can do more accounts with the same vehicle, same registration, same insurance but you'll need more gas. As you grow you'll also need more parts, stationary, taxes and more machine moves. Anything that fluctuates as you grow is a variable expense. Fixed expenses could grow but tend to remain the same month to month until you take on major expansions (bigger shop, newer vehicle etc) at which point they'll still be the same each month - just more than you were paying previously. Link to comment Share on other sites More sharing options...
mission vending Posted January 15, 2013 Share Posted January 15, 2013 Well, The number one variable cost that every vendor deals with is gas. You can do more accounts with the same vehicle, same registration, same insurance but you'll need more gas. As you grow you'll also need more parts, stationary, taxes and more machine moves. Anything that fluctuates as you grow is a variable expense. Fixed expenses could grow but tend to remain the same month to month until you take on major expansions (bigger shop, newer vehicle etc) at which point they'll still be the same each month - just more than you were paying previously. Fuel can be a biggie. Depending on the time of year and cost my fuel bill on the low end is $1,000.00 a month and over $1,500,00 on the high end Link to comment Share on other sites More sharing options...
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