grumpy Posted August 12, 2008 Author Share Posted August 12, 2008 These are only my opinions and this is the way I choose to run my business. Some will agree and some will disagree. You run your business the way you see fit for you and only you. You'll get advice here but that doesn't mean it will fit into your business scheme. Good luck with your future business venture, Kevin. Don't hesitate to ask questions. Bacho Well said. Now for the disagreeing part I'm pretty sure everybody has seen an increase in the last 9 months. Maybe not in product but there are other facets to this business. Volume sales with lower margins only works at busier locations. Beginners and small routes are easier to tweak to the point of volume over profitability. (I know it is worded badly) The more you sale the more you have to service each location, gas "ain't cheap", cleaning supplies and time. Pick a margin that you are comfortable with and go for it, but remember all the costs of vending. (there are posts that outline most if not all costs associated with vending) You will only stay in vending if there is a profit to be made, so make one. Link to comment Share on other sites More sharing options...
grumpy Posted August 12, 2008 Author Share Posted August 12, 2008 This is not exhaustive, but should give an idea of what happens when vend size is to generous. Now 1 Year Ago Product cost 30.0% 50.0% Charity 0.5% 1.0% Taxes (RST) 8.0% 8.0% Gas 10.0% 10.0% Repairs/Cleaning 1.0% 1.0% Insurance 0.5% 0.5% Professional Fees 0.5% 0.5% Debt P/I 50.0% 55.0% Total 100.5% 126.0% I have been growing the route slowly and changing service times. I have also adjusted about 75% of the heads to vend proper amounts. Link to comment Share on other sites More sharing options...
alyssamma Posted August 13, 2008 Share Posted August 13, 2008 All, thanks for the info and the great posts. I can tell I am going to enjoy this forum Kevin Link to comment Share on other sites More sharing options...
rjpapageorgio Posted August 13, 2008 Share Posted August 13, 2008 I have something I can add to this PMM dilemma. If you are purchasing from Sam's club, try to find one that is near a Costco or a BJ's. Sam's policy is to be cheaper than its competitors if they carry the same items. For Example: I have access to several Sam's where I live... The normal price for PMM is $7.88. At the one next to the Costco they are $7.18. I buy other items much cheaper too because of this situation. As far as paying tax... Because of my other business I conduct, I am tax exempt. I always by tax free. I hope this doesn't come back to haunt me. If you notice any item cheaper at another store and Sam's carries it. Make sure you tell them, and they will reduce the price on the spot. Not all Sam's Clubs are priced the same. RJ Link to comment Share on other sites More sharing options...
fvc Posted August 16, 2008 Share Posted August 16, 2008 what is a MMP Link to comment Share on other sites More sharing options...
alyssamma Posted August 16, 2008 Share Posted August 16, 2008 Peanut M&M Link to comment Share on other sites More sharing options...
caserri Posted August 16, 2008 Share Posted August 16, 2008 Q: what is a MMP A: Peanut M&M Also see our glossary for more. It is located in the "Welcome New Member" section... http://www.vendiscuss.com/forums/view_topic.php?id=547&forum_id=2 Steve Link to comment Share on other sites More sharing options...
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