full time

[bhumphrey829]

Okay guys, i'm just throwing this out there and see what kind of feedback I get.  My plan is to quit my full time job at the end of 2016.  At that time after penalties and taxes and everything, I will have $18,00.00 to invest to doing vending full time.  My question is will that be enough to go full time in bulk, full line, both or neither?

[ronsidney]

I don't think eighteen hundred dollars is enough to buy enough machines!!!

 

Just figure whatever you invest you will net in about 12 months if you work it good..probably average is about 18 months for net ROI.

 

bulk is best done part time and really only becomes full time when you have a awful lot of machines.. You can make "full time money" but only work a few days a month with bulk ..(This of course only if you have common sense and service your machines when they need it and not every couple weeks  like alot of newbies do).

 

You just need to get your finances in order where you can stand to not have a dime for a few months at a time.. because when you first place a new machine you don't need to rob it in bulk but at least every 3 months or so..When you get say 350 machines out then you just rob 100 of them every month and 50 will  need to robbed every single month (cherry stops you'll get in that figure).. this will take you about 4-5 days a month of servicing and about 4-5 days  of locating and picking up.. This to most  is full time in bulk  and should make you net about 30K a year if i had to guess.

 

everybody will have their own figures on bulk, thiis is just good average on a route of single gumball and doubles with gumball/toy..

 

ron

[VendingExperts]

I think the figure was $18k if the comma is in the right spot, and just missed a 0. $18,000 would be a different story.

That would be an excellent start in bulk!

[bhumphrey829]

I think the figure was $18k if the comma is in the right spot, and just missed a 0. $18,000 would be a different story.

That would be an excellent start in bulk!

yes, it's supposed to be 18,000 dollars

[shepherdsflock]

If you're going to try to make a full time living at it, you should probably focus on racks. Doubles and triples will kill you in labor and won't make you nearly as much as you'll need to survive. 8 way and bigger racks would be my focus if I were you. You'll have some tough competition and a harder time placing them, but dollars per hour they're going to be your best bet.

[mjacks]

What kind of penalties and taxes are you talking about?  Are you thinking of cashing out a 401k to get the $18k?  I seriously wouldn't touch retirement accounts of any kind to get cash.  IRA's, 401k, 403b, etc all come with too high a penalty not to mention missing out on the compound interest over the years.

[bhumphrey829]

What kind of penalties and taxes are you talking about?  Are you thinking of cashing out a 401k to get the $18k?  I seriously wouldn't touch retirement accounts of any kind to get cash.  IRA's, 401k, 403b, etc all come with too high a penalty not to mention missing out on the compound interest over the years.

Yes, the 18,000 will be after all taxes and penalties deducted.  I figure when it's time to retire I will sell my route and that will be my retirement.  I am 50 now and am ready to do what I love instead of this full time job I hate.  Like I said I still have 3 years left that's my plan

[VendingExperts]

I'm not a financial expert, and know nothing about 401K. However from my experience I earn 10%+ monthly from my vending. Not many places that you can get those type of gains. If you roll your profits into more equipment, you are then earning the compound interest that you would earn elsewhere.

[havending]

I would be very careful jumping all out at once. Bulk is a business that you build not one you just go all out at once. It takes years to build a profitable route

[VendingExperts]

I would be very careful jumping all out at once. Bulk is a business that you build not one you just go all out at once. It takes years to build a profitable route

I agree to an extent, however it doesn't take forever to build a route. I started with 1 machine and now have a handful of locations. I have another business that pays the bills and I am a college student. Therefore all money/profit from my machines is rolled back into another double head. Picking up locations 1 at a time. My intent is to have a decent route by the end of 2 years when I finish my school.

[BorderJerry]

Okay guys, i'm just throwing this out there and see what kind of feedback I get.  My plan is to quit my full time job at the end of 2016.  At that time after penalties and taxes and everything, I will have $18,00.00 to invest to doing vending full time.  My question is will that be enough to go full time in bulk, full line, both or neither?

Why penalties and taxes? I think you can roll your 401K into your own privately held corporation without penalty...

 

https://www.guidantfinancial.com/products/small-business-financing/how.aspx

 

I don't know anything about this particular company, nor do I have any idea about the cost. But it may be worth checking out, after you have bought a few machines, located and operated them for a few months to see if you like this business.

[F J Vending]

You have three years, start building it now and not touch your 401k.

[Rick]

 

Yes, the 18,000 will be after all taxes and penalties deducted.  I figure when it's time to retire I will sell my route and that will be my retirement.  I am 50 now and am ready to do what I love instead of this full time job I hate.  Like I said I still have 3 years left that's my plan

 

You're 50 years old and you're on pace to reach $18k retirement savings in 3 years!?!  I'm not sure you realize how screwed you really are right now. Normally my advice would be don't DARE touch your retirement funds but - 15 years to retirement and only 18 grand on line?  I say shoot the moon my man.  Just make sure when the time comes you invest that money VERY wisely.    

 

If you were 30 my advice would be completely different.  

[LandJGroup]

I would buy used racks/machines with my capital. There is a lot out there for about half off or more compared to new.

[Tbuford]

You have three years, start building it now and not touch your 401k.

That way you can see if u like it enough and getting locations is tough.  It does take time to build a route.

[will.vend]

You have three years, start building it now and not touch your 401k.

I agree leave the 401k alone and roll it into another plan when you retire.

Put/save every dime you have for the next 3 years and go from there. You need to be absolutely certain vending is for you before you make that kind of commitment.

[ronsidney]

I personally way back when cashed out my 401K when i got laid off from my job.. They shut the plant down and laid us all off, i took my vacation and sick days i had stored up and got unemployment for 6 months..I only had about 15K after i paid penalties and i invested it in my bulk biz.. ONE difference though, i was only about 27 or so at the time.. 

 

I did do the math and think why do i want to get 5-6% on my money when i can get 150% or more on my money in bulk vending?? but i was experienced and had a route already .

 

but it is always  best  to use money on hand and grow at steady pace than in lumps of equipment at once..with ebay and craigslist these days it makes that all too easier.. At the time i did it i was on that suppliers sales pitch of "If you buy 50 you can get a better deal" etc.. now you can just cruise for used stuff if you know what to get and build a great route over time and incur no debt.

 

ron

[dkochan]

I would be very careful jumping all out at once. Bulk is a business that you build not one you just go all out at once. It takes years to build a profitable route

I totally agree. It took me five years to build a route that is profitable enough for me to earn a comfortable living.

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[VendingExperts]

I totally agree. It took me five years to build a route that is profitable enough for me to earn a comfortable living.

It may take some longer or shorter than others. However, you have to start somewhere.

Also just for example...

$18,000 could buy 90 machines at the cost of $200 each(double head filled)

90 machines x avg $25/month.

Equal $2,250.00/month gross.

Not a bad start if you ask me!

[adog]

It may take some longer or shorter than others. However, you have to start somewhere.

Also just for example...

$18,000 could buy 90 machines at the cost of $200 each(double head filled)

90 machines x avg $25/month.

Equal $2,250.00/month gross.

Not a bad start if you ask me!

That is a relatively high average for a double however!!! 15 to 20 bucks for a double is good to me. I run mostly triples though. I think as long as you have reasonable expectations in the end you should be fine! This happens with all to many business's where they think they will make X amount and take out loans, buy a bunch of fancy equipment, and on top of that have rent and they find out there X amount does not cover the actual expenses (Y) amount and then there screwed! Personally I'd go with what some other people said and incorporate a lot of racks. Racks make major money and they can go two months without servicing and then you have a 150-400 dollar stop. I'd still incorporate some doubles and triples as well. Cranes never hurt making some extra money either