Goldstar Vending Service Posted July 13, 2014 Share Posted July 13, 2014 Hi guys and girls, just wanted to get a feel for peoples average GP% your achieving for drinks and snacks. Are you happy with it or trying to increase it. The reason for asking for GP% is its a universal metric. The difference of buying and selling price and currency difference is removed. That helps when you are vending in another country as I am. Thanks in advance. Link to comment Share on other sites More sharing options...
ANDERSONVENDING Posted July 13, 2014 Share Posted July 13, 2014 Mines 45%, my wife is a coupon competitor and the stuff she gets me drops my gp. John Link to comment Share on other sites More sharing options...
moondog Posted July 13, 2014 Share Posted July 13, 2014 Hi guys and girls, just wanted to get a feel for peoples average GP% your achieving for drinks and snacks. Are you happy with it or trying to increase it. The reason for asking for GP% is its a universal metric. The difference of buying and selling price and currency difference is removed. That helps when you are vending in another country as I am. Thanks in advance. 50% is the norm but this does not apply to each item. On the whole, mine averages 50% - for every item that's low I have another that's high. Candy bars are a good example, they typically sell for a dollar but cost 55 cents if bought in case lots. I offset this by buying the combo packs at 45 cents apiece. Link to comment Share on other sites More sharing options...
Goldstar Vending Service Posted July 13, 2014 Author Share Posted July 13, 2014 Yes I find can drinks to be better profit, chips lower, but average 57% in Australia but we do not get the turnover you can achieve in the states. Link to comment Share on other sites More sharing options...
allen watson Posted July 13, 2014 Share Posted July 13, 2014 I'm always striving for 50%. Last year I finished at 53.4% Link to comment Share on other sites More sharing options...
mission vending Posted July 13, 2014 Share Posted July 13, 2014 The industry average is around 50%. Link to comment Share on other sites More sharing options...
SchligVend Posted July 13, 2014 Share Posted July 13, 2014 I was over 55% after Gas till I bought this Box truck, I am getting killed on my gas costs but i am able to do more accounts in a day with the box truck and now I have another half day extra to find new accounts! Link to comment Share on other sites More sharing options...
CajunCandy Posted July 13, 2014 Share Posted July 13, 2014 That is the reason I parked the F150 and bought the Honda Odyssey! Eating up all the profits, what I was burning in gas with truck now pays the note on Honda. Pulling trailer today empty, I got 19 mpg round trip. Truck would have burnt 20+ gal. Now I go two weeks on a tank of gas! Link to comment Share on other sites More sharing options...
Golfdogs Posted July 14, 2014 Share Posted July 14, 2014 That is the reason I parked the F150 and bought the Honda Odyssey! Eating up all the profits, what I was burning in gas with truck now pays the note on Honda. Pulling trailer today empty, I got 19 mpg round trip. Truck would have burnt 20+ gal. Now I go two weeks on a tank of gas! I go two weeks on a tank in my box truck...but it takes 35 gallons! Link to comment Share on other sites More sharing options...
SchligVend Posted July 14, 2014 Share Posted July 14, 2014 I go two weeks on a tank in my box truck...but it takes 35 gallons!How many miles do u drive per day on average? Link to comment Share on other sites More sharing options...
Goldstar Vending Service Posted July 14, 2014 Author Share Posted July 14, 2014 Thanks for the replys so far. Dont forget GP= total sales less cost of goods only dont count fuel or any other costs just product cost otherwise we get more a operating profit. Link to comment Share on other sites More sharing options...
Golfdogs Posted July 14, 2014 Share Posted July 14, 2014 How many miles do u drive per day on average?I average about 375 miles every two weeks. Link to comment Share on other sites More sharing options...
allen watson Posted July 14, 2014 Share Posted July 14, 2014 400 miles per week or 100 miles a day average. Link to comment Share on other sites More sharing options...
SchligVend Posted July 14, 2014 Share Posted July 14, 2014 400 miles per week or 100 miles a day average. I am at the same 100 miles per day average! Link to comment Share on other sites More sharing options...
Goldstar Vending Service Posted July 14, 2014 Author Share Posted July 14, 2014 How many site a day do you see on ave when covering 100 miles. Link to comment Share on other sites More sharing options...
SchligVend Posted July 14, 2014 Share Posted July 14, 2014 How many site a day do you see on ave when covering 100 miles. I live out in the Arizona desert the closest city (other then where i live) to me is about 20 miles out in both directions so that is 40 miles there and back, But I still manage to service on average 15 to 20 locations a day. I have a few accounts that are bundled next to eachother so that helps alot. Link to comment Share on other sites More sharing options...
Paveitall Posted July 14, 2014 Share Posted July 14, 2014 You guys rock, I cant seem to break the 50% barrier. I typically run around 45-48%, I typically purchase all product from Sams/Walmart and my product mix is approx. 50/50 snacks/Drinks. Water 16.9OZ -$.75 - $1.00 Candy - $1.25 Chips (Sams) - $.75 Soda 16.9oz - $1.50 Soda 24oz - $2.00 Soda 12 oz can - $.75 Starbucks Frap - $2.50 Monster - $2.50 Redbull - $3.50 Big Tex - $1.50 Grandmas Cookies - $1.00 Chex Mix/Gardettos - $.75 - $1.00 I do have one location that I pay a 12.5% commission but I increased prices at the location to cover approx 75% of the commission. Maybe the difference is what is included in our GP #'s. I Include In GP: Product Cost Location Commission Sales tax (6% - 7%) CC Fees Delivery I Don't Include: Insurance Machine Costs (Including repairs/purchases) Link to comment Share on other sites More sharing options...
Goldstar Vending Service Posted July 14, 2014 Author Share Posted July 14, 2014 You are putting more than just product cost in and it is lowering your percentage . I think if you took out the other costs you would be at or above 50%. Link to comment Share on other sites More sharing options...
Paveitall Posted July 14, 2014 Share Posted July 14, 2014 You are putting more than just product cost in and it is lowering your percentage . I think if you took out the other costs you would be at or above 50%. Agree its all what you consider GP that's what I was trying to determine from the other GP quotes I was seeing. I consider sales tax, commissions and credit card fees a direct cost of selling product, that's why I factor it "above the line". If I remove all but the product costs yes I know I'm way over 50%. What do you guys factor in for costs in your GP calculation? Link to comment Share on other sites More sharing options...
Paveitall Posted July 14, 2014 Share Posted July 14, 2014 Here is a file I use to calculate GP, the variables I use are sales tax, product costs, sales price and commission if any. I couldn't upload the spreadsheet, if anyone wants the XL version PM me and I will send it to you. GP Calculation.pdf Link to comment Share on other sites More sharing options...
AngryChris Posted July 14, 2014 Share Posted July 14, 2014 GP uses an actual ratio for accounting purposes and it's [(gross revenue) minus (cost of goods sold)] divided by gross revenue. So 100 in revenue minus 45 in COGS (which equals 55 gross profit) divided by gross revenue equals 55%. COGS is the cost of the goods sold... sold to YOU. if you paid $1 for a candy bar before reselling it, your COGS is $1. If your TOTAL BILL included any other charges to obtain that product, that all counts as COGS, including delivery fees. If you pay your account a commission, that is not something you had to do to obtain the product so it doesn't count. In other words, if you drove to Sam's club to pick up your product for $100 , That's $100 in COGS. your fuel is not part of that $100 and is an ordinary operating expense. If you paid $110 to have the same order delivered, that $110, including the $10 delivery fee, is considered COGS. GP is not really a subjective ratio, so you are probably doing well over 50%. If you asked about our net income, our numbers would vary greatly by percentages. Link to comment Share on other sites More sharing options...
Paveitall Posted July 14, 2014 Share Posted July 14, 2014 Angry Chris = GAAP nerd:) GP is subjective when you have 30 vending nuts throwing down numbers. Good post/point Chris, so with that being said what are everyone's GP, the only variables in that equation are procurement costs & revenue. I would guess I'm in the 55-60% range using Angry Chris's definition. When I get home tonight I will pull my YTD financials and breakdown individual costs as a percentage of revenue. Maybe that would be a better comparison by operator, I'm very interested in this being fairly new to the vending world. I think a lot can be learned by sharing info like this. Link to comment Share on other sites More sharing options...
AngryChris Posted July 14, 2014 Share Posted July 14, 2014 I could be wrong on the formula btw. It's been 2 years since my lone accounting class. My lack of memory on the various formulas caused me to get a B in the class. I was at 47% GP but it looks like 32% lately because I have obtained a lot of accounts. That will skew your numbers. Link to comment Share on other sites More sharing options...
Goldstar Vending Service Posted July 15, 2014 Author Share Posted July 15, 2014 GP uses an actual ratio for accounting purposes and it's [(gross revenue) minus (cost of goods sold)] divided by gross revenue. So 100 in revenue minus 45 in COGS (which equals 55 gross profit) divided by gross revenue equals 55%. COGS is the cost of the goods sold... sold to YOU. if you paid $1 for a candy bar before reselling it, your COGS is $1. If your TOTAL BILL included any other charges to obtain that product, that all counts as COGS, including delivery fees. If you pay your account a commission, that is not something you had to do to obtain the product so it doesn't count. In other words, if you drove to Sam's club to pick up your product for $100 , That's $100 in COGS. your fuel is not part of that $100 and is an ordinary operating expense. If you paid $110 to have the same order delivered, that $110, including the $10 delivery fee, is considered COGS. GP is not really a subjective ratio, so you are probably doing well over 50%. If you asked about our net income, our numbers would vary greatly by percentages. Link to comment Share on other sites More sharing options...
Goldstar Vending Service Posted July 15, 2014 Author Share Posted July 15, 2014 Angry Chris is da man. Good post Gross revenue minus Cost of goods divided by Gross revenue TIMES 100 to get percent. Then we are comparing apples with apples. Link to comment Share on other sites More sharing options...
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