Good location revenue

[gumhead]

Hello,

 

Newbie question: say I land a good location - busy family restaurant.

 

I place a rack like the one here - gum, capsules, etc.

 

How much revenue/profit per year can I expect?

 

I know there are a lot of variables.

 

Just a ballpark figure will help me out.

 

Thanks

 

[GagesVending]

That's tough!  A major variable is the commission rate.  You're probably not going to get a rack placement for free.  Expect 20-30% gross.  Another variable is the product.  Capsules are not a good choice if you're just going to have the one location.  You have to buy minimum quantities of each kind and after so long they don't sell well anymore in the same location.  You have to rotate product.

 

If you keep the product rotated, clean machines, a seven way rack like above may do $50+.  $50 is not a good pull, but it could do $200, you just never know!  Realize that you have product costs not accounted for in those numbers or the commission paid.

[musser]

Are you the restaurant owner or a new operator with no stops yet? I ask this because if you can not rotate your product your sales will suck. They will start out with a bang and then will taper off after all the customers have seen the things in the machines. And continue tapering off until new product shows up.

[shepherdsflock]

I have racks like that which do anywhere from $75-$300 per month. It just depends on the location, and even the locations can vary from month to month. But I think Gage's conservative estimate of $50 per month is a pretty safe starting point. Unless the place is a real dud, it shouldn't have any problem doing $50 per month. If it's a busy place with lots of birthday parties and stuff like that, I'd say $100 per month might be realistic.

 

One thing I'd recommend, though: 2" product doesn't sell as well as 1" product and can be a pain to haul around with you and store because it's so much bigger. I'm replacing some 2" heads with flat product heads. Tattoos sell a lot better than 2" capsuled toys and the product is super easy to store and haul around with you on your route. Just something to think about when you build that rack.

 

Musser's comment about product rotation is very important! Let your products run for 90 days at most, then store them for a few months before re-introducing them. This is especially important with 2" products that take a long time to sell out of! If you have plenty of locations, then shifting them around between locations is also a good way to keep product moving. I also run some 25 cent mystery mix heads to move old product.

[gumhead]

I will be the operator - not the location owner.

 

I plan on rotating products often.

 

Thanks for your responses.

[gumhead]

Say if the location does $100 per month gross, what would be an estimate on the cost of goods sold?

 

Thanks

[GagesVending]

Say if the location does $100 per month gross, what would be an estimate on the cost of goods sold?

 

Thanks

 

It depends on what you're selling and how much you're selling them at.  If 1" at 50 cents and 2" at 75 cents, then approximately $20-30.  The goal is to be at 20% cost, but realistically, it varies.