MoMunch Posted September 3, 2007 Share Posted September 3, 2007 ok I have looked and may have missed it but I am wondering about insuring our buisness liability and theft so lets have it what is working for you or not working for you Link to comment Share on other sites More sharing options...
pusherman Posted September 4, 2007 Share Posted September 4, 2007 theft is just a part of the vending business. why would you insure a $60 machine? liability is a must unless you are looking to lose everything you have. Link to comment Share on other sites More sharing options...
MoMunch Posted September 4, 2007 Author Share Posted September 4, 2007 well I figure the machines are worth about 200 with candy and cash I do have liability but no theft just does not seem to be worth it but I wanted to see what others were doing how much liability is enough and what is a fair cost for liability? Link to comment Share on other sites More sharing options...
KPower Posted September 4, 2007 Share Posted September 4, 2007 I was quoted 180 dollars a year for 300k in coverage from State Farm and was told that a million was not much more but not given a firm quote on that yet. I assume that it is around 200 a year. I hear that Hartford offers 1 million for 500 a year. I have not checked on it myself though. Link to comment Share on other sites More sharing options...
MoMunch Posted September 5, 2007 Author Share Posted September 5, 2007 I have 2 million for 350 a yr through hartford just liability Link to comment Share on other sites More sharing options...
davidsurvz Posted September 6, 2007 Share Posted September 6, 2007 I am definitely going to get liability insurance when we get things going. I think it is definitely worth protecting your assets!!!! Good info! Link to comment Share on other sites More sharing options...
Alan Sampson Posted September 10, 2007 Share Posted September 10, 2007 Hi I just got off the telephone with State Farm. They quoted me $597 a year for 300K worth of liability insurance. This is far too much. Can anyone direct me some place else? Alan Link to comment Share on other sites More sharing options...
KPower Posted September 11, 2007 Share Posted September 11, 2007 I might have been quoted a better rate since I have my house and two cars insured with them. Sounds like hartford might be the way to go then. Link to comment Share on other sites More sharing options...
ToddMiller Posted September 11, 2007 Share Posted September 11, 2007 Alan, Steve will disagree with me, however, this very part of the business is one of the reasons that "I" cannot make bulk vending a worthwhile business venture. Now hear me out. I've said all this in the past. If you are running your businees "above board" meaning having insurance and taking in "ALL" related expenses in to account. Such as paying for insurance, incorporating, vehicle expenses, fuel, product cost and procurement, locators, buying machines, and the biggest of all your TIME. Most of which I don't think most people take in to account. This being said with all of the above taken in to account I and I mean I come up with a very minimal if not negative profit margin. If you work for a couple bucks an hour then it may be for you. I need more than that to make it worth my time. Good Luck with your business!! Todd Link to comment Share on other sites More sharing options...
Alan Sampson Posted September 11, 2007 Share Posted September 11, 2007 Hi Todd Success means different things to different people at different times. I am a 51 year old retired ( 22 years ) Army Sergeant. Ten years ago my wife fell ill and never recovered. The kids at the time were 2...4...6..9. In the last 10 years I have had several jobs in order to provide for them. Most of them being low paying positions. Most of the people I worked for would not have made a pimple on my butt when I was a baby buck sergeant. I want to be able to control my own time and efforts. My only goal is to make enough money to supplement my military retirement of $2,000 a month plus the medical benefits. From all my reading and research I have come to believe that an average of $15 a month per location is obtainable. 100 to 150 locations would give me everything that I want or need for the next ten years. If I was not already retired I would agree with you. It is my understanding that just medical health insurence can cost the average American $600 to $800 a month. Thanks for listening Alan Link to comment Share on other sites More sharing options...
KPower Posted September 11, 2007 Share Posted September 11, 2007 I could be wrong in this as I have not gotten this far in my planning but I was under the assumption that you could write off a portion of your mortgage,utilities, car payment or mileage depending on which is higher, insurance, charitable donations and machine costs etc etc etc. If you take all of that off the top then pay yourself a salary then your corporation is only taxed on the difference. You will have to pay taxes on your salary but when you are first starting there won't be much left after deductions so your salary will not be a factor really. Basically at first you show a loss which would help me right now anyway. Estimates I have done show a total overhead of approximately 40%. That means that basically if you have 1000 machines then 400 of them pay costs while 600 machines pay your salary. If all of your machines average 7 dollars thats 50k a year. Thats after your business pays for a portion of your house and car and whatever else. Any of you bigger guys want to share what your overhead percentage is so I can make a more accurate prediction? Also please tell me if I am off base on my assumptions here. If I am I need to readjust my plans. Link to comment Share on other sites More sharing options...
ToddMiller Posted September 11, 2007 Share Posted September 11, 2007 Alan, Good Luck with your venture, I'm sure you will make it work. I was going to set up a route and use the proceeds for my 15 and 17 yr old daughters college fund. Believe me, I sharpened my pencil as sharp as I could. But I came to the conclusion that my time and $ were better spent on ventures with a better return. Kudos to those who can make it work running a legitamate bulk vending route. Todd Link to comment Share on other sites More sharing options...
ToddMiller Posted September 11, 2007 Share Posted September 11, 2007 K power, Yes you can deduct the business use of your home and vehicle on your taxes. A CPA can tell you the exact percentages on the home use, I believe vehicle use was 48.5 cents a mile last year. And yes you will most likley run at a loss the first few years. However, the IRS isn't going to let you run at a loss forever. You do have to show a profit a t some point. On your other point of running 1000 machines and making 50K a year. Is any one on this or any other board running 1000 machines? My guess if you run that many machines you will need a full time employee to service your route. So I would take that 50 grand down to about 20 grand or less by the time you add payroll taxes and Work Comp. Not worth it in my opinion to make 20K or less. Todd Link to comment Share on other sites More sharing options...
KPower Posted September 11, 2007 Share Posted September 11, 2007 I have also heard that you can set up health insurance for yourself through the corporation and write it off as an expense. I am not sure if you have to claim this as income on a personal level though. This is all just hearsay on my part and I am not sure about this. Maybe someone on here knows. Link to comment Share on other sites More sharing options...
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