AngryChris Posted February 8, 2014 Share Posted February 8, 2014 I just bought an existing honor box route. While the number of accounts wasn't very close to what was "estimated" when I purchased the company, the gross figures seem pretty accurate. So far, I have roughly 70 accounts with around an additional 100 boxes in storage. This business is grossing roughly $1600 per month. The theft rate is close to 20% and the COGS seems to be around 40%. With that said, I think I can expect to net around 40% every month, or about $600+ each month. This seems like a good deal as it shouldn't take me any more than 4 months to break even but this business is my saving grace to get me into full-time business. I can now focus not only on my full-line vending but I also have the time to deal with family matters and other personal ventures. I am an entrepreneur at heart with a business-oriented mind. A lawyer once told me that I am surely going to sell off my vending business in the future and look for bigger things because of how I am but we will see how that goes. In the mean time, I have been reading much of the information on this section of TVF in order to get a better feel for the business. If you guys have any tips, please fill me in! I am very seasoned with full-line vending so it has been relatively easy to transition into honor boxes as well but the difficult part is getting better ideas. Currently, I try not to go much over 40 cents for COGS (and sell for $1.00) but I have had to "punish" some accounts for high theft (say over 30%) by providing only 1 ounce chips and things such as crackers, trail mix, and other items that are close to 25 cents or less. This offsets my theft but I am afraid that the shrinkage will go up because people feel "ripped off" by the smaller bags. Most of my customers get the larger size bags and some of the good customers (that are close to 5% shrinkage or less) get candy bars and other "premium" snacks. Link to comment Share on other sites More sharing options...
sherlock Posted February 8, 2014 Share Posted February 8, 2014 Congrats on your purchase. Link to comment Share on other sites More sharing options...
AngryChris Posted February 8, 2014 Author Share Posted February 8, 2014 Thanks Link to comment Share on other sites More sharing options...
AngryChris Posted February 8, 2014 Author Share Posted February 8, 2014 I thought I posted thid in the honor box section Link to comment Share on other sites More sharing options...
caserri Posted February 8, 2014 Share Posted February 8, 2014 I thought I posted thid in the honor box section Its okay, I moved it for you. Congrats on the purchase and good luck! Link to comment Share on other sites More sharing options...
AngryChris Posted February 8, 2014 Author Share Posted February 8, 2014 Thanks! Link to comment Share on other sites More sharing options...
loach33 Posted February 10, 2014 Share Posted February 10, 2014 Chris - I too have honor boxes but only 8 locations so far that I opened myself. I have a friend of mine that was needing something to do run them. He goes every 3 weeks. It takes 2 hours. My numbers are almost the same as yours in terms of sales, theft, costs. My offer is still there. I would love to pick your brain and hopefully help you out as well. Link to comment Share on other sites More sharing options...
mission vending Posted February 10, 2014 Share Posted February 10, 2014 I just bought an existing honor box route. While the number of accounts wasn't very close to what was "estimated" when I purchased the company, the gross figures seem pretty accurate. So far, I have roughly 70 accounts with around an additional 100 boxes in storage. This business is grossing roughly $1600 per month. The theft rate is close to 20% and the COGS seems to be around 40%. With that said, I think I can expect to net around 40% every month, or about $600+ each month. This seems like a good deal as it shouldn't take me any more than 4 months to break even but this business is my saving grace to get me into full-time business. I can now focus not only on my full-line vending but I also have the time to deal with family matters and other personal ventures. I am an entrepreneur at heart with a business-oriented mind. A lawyer once told me that I am surely going to sell off my vending business in the future and look for bigger things because of how I am but we will see how that goes. In the mean time, I have been reading much of the information on this section of TVF in order to get a better feel for the business. If you guys have any tips, please fill me in! I am very seasoned with full-line vending so it has been relatively easy to transition into honor boxes as well but the difficult part is getting better ideas. Currently, I try not to go much over 40 cents for COGS (and sell for $1.00) but I have had to "punish" some accounts for high theft (say over 30%) by providing only 1 ounce chips and things such as crackers, trail mix, and other items that are close to 25 cents or less. This offsets my theft but I am afraid that the shrinkage will go up because people feel "ripped off" by the smaller bags. Most of my customers get the larger size bags and some of the good customers (that are close to 5% shrinkage or less) get candy bars and other "premium" snacks. Please keep us posted about your experiences, we certainly could use more posting of good information in this section. Link to comment Share on other sites More sharing options...
bhumphrey829 Posted March 3, 2014 Share Posted March 3, 2014 Just curious as to why it would take 2 hours to run 8 locations? I have 10 locations and it takes about an hour. Unless they are spread far apart Link to comment Share on other sites More sharing options...
AngryChris Posted March 20, 2014 Author Share Posted March 20, 2014 I typically do 2-3 an hour when you factor in all of the traveling, lunch, and fooling around on facebook. Some places go by much faster because they are closer together. I don't know how it would be possible to average 10 boxes in an hour unless it was only a few different types of products and it was in an area where the boxes were literally next door to each other. I don't do any kind of pre-kitting because it would probably waste my time. Link to comment Share on other sites More sharing options...
treadmill Posted March 24, 2014 Share Posted March 24, 2014 Chris congrats on your purchase. Was just thinking about your OP. I would send Dennis23 a PM and pick his brain about honor boxes. He could probably blow your mind away with the knowledge he has about honor boxes. Link to comment Share on other sites More sharing options...
AngryChris Posted March 24, 2014 Author Share Posted March 24, 2014 Thanks for that info Link to comment Share on other sites More sharing options...
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