allen watson Posted August 2, 2014 Share Posted August 2, 2014 How many of you are working 6 and 7 days a week? When do you think it's a good time to add and employee? If you have an employee, what is the pay structure like? I'm about ready to hire my first employee and have been thinking about how to pay him/her. I'm thinking a small base salary with a commission structure. I have 180 machines to service each week and with this desert heat haven't been getting enough done. I'm off to work. I've got 22 machines to service and 2 to repair. Link to comment Share on other sites More sharing options...
jasonkw Posted August 2, 2014 Share Posted August 2, 2014 Sounds like it's time to bring on some additional help. How many machines do you typically service a day and how many hours do you work daily? If you're doing 180 machines / 6 days = 30 machines a day that's a lot! Link to comment Share on other sites More sharing options...
AZVendor Posted August 2, 2014 Share Posted August 2, 2014 As the next paragraphs might be overwhelming to you, you should first analyze your accounts and see if you can extend the service schedule on a significant number of locations by increasing the inventory, doubling or tripling up on best sellers, etc. If you can put off the employee hire just a bit longer then you can prepare for it using the following paragraphs. Before you hire any employee you must ensure that you have route accountability of some kind in place. This means that your driver must record inventory adds, stales, pulls and ending counts by category. That he must read the non-resettable cash meter at every collection and that for every service (opening of the door) the cash is collected and the meter read - doing "adds" in the middle of the week muddies the water. There must be individual collection bags for each machine, no money from more than one machine can be aggregated into one collection bag. The driver must have a change fund of a known amount with him for refilling changers. The coin he adds to the machine must be recorded so the collection will still balance to the meter and the change bag can be balanced at the end of the week. Your single price machines must have can counters on them so there is a meter to read. The can counts are then balanced to the cash collected. Inventory counts are very important in single price machines. You must record all of this information in such a way that allows you to analyze the over/shorts and look for problems or potential theft. You must also spot check the machines on the route to verify that the meter readings are being recorded accurately. This allows you to verify that the prices posted are correctly programmed for every selection as sometimes that causes an over or short. You must be prepared to set traps, such as marked bills, when you suspect an employee is stealing from you, or go out ahead of the driver and count down the machine and the cash in it just before he arrives. Beware of the massive shortage one week and the massive overage the next week, especially on stand alone bill changers. This could be evidence of a "loan" the driver makes to himself. Be aware that it will be unlikely that any machine cash will balance to the meter reading on any single collection, but you should always be within $2 or $3 of balance - the fluctuation is mostly from changer coin float. Know that your meters will never not record a cash vend, that test vends through the logic board will not be recorded as cash vends, while test vends with cash will be recorded as cash sales. Therefore, any cash test vends performed must be recorded. If you go repair a machine on your driver's route and you do some cash test vends, you must leave a note with the test vend total in the coin box that will be collected with the next service. Over time you will see an unmolested machine average out to a virtual balance. Be aware of machines on the route that take 5's or larger bills, as those are easy to pilfer. If you suddenly have no 5's in a bag whose machine takes 5's, that's a warning sign. Protect your keys. The driver must trade his car keys for the route keys every day, this ensures your keys come back each day to be locked up. Each route must be keyed differently so no driver can sneak into another driver's locations. There is so much more to this that you can implement to protect your cash, but this is the bare minimum that you must do or you are leaving yourself open to theft regardless of how trustworthy this person is. Link to comment Share on other sites More sharing options...
AZVendor Posted August 2, 2014 Share Posted August 2, 2014 I forgot to touch on how to pay a driver. There are laws that govern the use of salaried positions, so you need to look into that. Basically, if you dictate what work your driver will do, how they do it and what order they do it in, that should not be a salaried employee. Salaried employees don't have finite work hours (they may start at the same time each day but the end of their day is open-ended) and are generally given a job to do, but left to their own direction in performing that job. Commissioned employees will do their work in the way that pays them the most money. So if you pay commission for gross sales, they will cram every nook and cranny of your machines with product because they think that will ensure maximum sales. If you peg part of their commission on stales %, then they might not put enough product in some machines so that they don't have to bring back stales, and you have empty spirals, pop tarts where you really want honey buns, or a 1/2 empty food machine after they fill it. If you pay hourly, then they will do their work in a way that ensures the largest paycheck. They can eat you alive in overtime because they will dog it on their route and try to tell you about all the problems they had that made them take so long on the route. I paid my drivers a salary and once trained, presented them with a batch of route tickets each day, and let them determine the order they did the locations in. I might have given them specific directions once in a while, but it was primarily their call on the order they did their stops. The drawback to salary, is that they don't tend to spend much time cleaning their machines, unless you train them to do so and then inspect their locations to ensure they are following through. They have to know that you will be checking up on them. Link to comment Share on other sites More sharing options...
moondog Posted August 2, 2014 Share Posted August 2, 2014 You'd be wiser to realign your service schedule if possible - with all those machines, there must be many that could be serviced every other week rather than once a week. If you do hire someone use a payroll service. They become the actual employer and are responsible for all reporting (which is a real killer with only one employee). Of course they do charge a fee but I found that it wasn't too bad as they get a big break on Workman's Comp compared to what you'll pay (for me it was almost break even). And of course everything AZ said was true regarding accountability and security. Your biggest problem in Barstow will be finding someone that actually wants to work rather than just collecting welfare and food stamps Link to comment Share on other sites More sharing options...
CajunCandy Posted August 2, 2014 Share Posted August 2, 2014 You'd be wiser to realign your service schedule if possible - with all those machines, there must be many that could be serviced every other week rather than once a week. If you do hire someone use a payroll service. They become the actual employer and are responsible for all reporting (which is a real killer with only one employee). Of course they do charge a fee but I found that it wasn't too bad as they get a big break on Workman's Comp compared to what you'll pay (for me it was almost break even). And of course everything AZ said was true regarding accountability and security. Your biggest problem in Barstow will be finding someone that actually wants to work rather than just collecting welfare and food stamps Your stepping on egg's moondog! Calling people lazy! I have the same bad habit! LOL! Link to comment Share on other sites More sharing options...
RikaKazak Posted August 2, 2014 Share Posted August 2, 2014 I work 7 days a week (past 3 months have taken 1 day off). I'm even working while typing this It wears on a person for sure...but if you have a clear goal of what you want, and "WHY" you're doing it. It'll keep you going. You could hire a person...even maybe sell part of your route off. Depends on what you want, why you're working, how much money you want, and how much money you need. Maybe drop the slower accounts? Maybe sell a third, use that money to pay down debt (if you have any) so your monthly nut is lower. Link to comment Share on other sites More sharing options...
moondog Posted August 2, 2014 Share Posted August 2, 2014 Your stepping on egg's moondog! Calling people lazy! I have the same bad habit! LOL! Barstow has a radically high welfare rate - it's like 25% of the population. Allen would have a tough time finding a good worker around there. Link to comment Share on other sites More sharing options...
Golfdogs Posted August 3, 2014 Share Posted August 3, 2014 As the next paragraphs might be overwhelming to you, you should first analyze your accounts and see if you can extend the service schedule on a significant number of locations by increasing the inventory, doubling or tripling up on best sellers, etc. If you can put off the employee hire just a bit longer then you can prepare for it using the following paragraphs. Before you hire any employee you must ensure that you have route accountability of some kind in place. This means that your driver must record inventory adds, stales, pulls and ending counts by category. That he must read the non-resettable cash meter at every collection and that for every service (opening of the door) the cash is collected and the meter read - doing "adds" in the middle of the week muddies the water. There must be individual collection bags for each machine, no money from more than one machine can be aggregated into one collection bag. The driver must have a change fund of a known amount with him for refilling changers. The coin he adds to the machine must be recorded so the collection will still balance to the meter and the change bag can be balanced at the end of the week. Your single price machines must have can counters on them so there is a meter to read. The can counts are then balanced to the cash collected. Inventory counts are very important in single price machines. You must record all of this information in such a way that allows you to analyze the over/shorts and look for problems or potential theft. You must also spot check the machines on the route to verify that the meter readings are being recorded accurately. This allows you to verify that the prices posted are correctly programmed for every selection as sometimes that causes an over or short. You must be prepared to set traps, such as marked bills, when you suspect an employee is stealing from you, or go out ahead of the driver and count down the machine and the cash in it just before he arrives. Beware of the massive shortage one week and the massive overage the next week, especially on stand alone bill changers. This could be evidence of a "loan" the driver makes to himself. Be aware that it will be unlikely that any machine cash will balance to the meter reading on any single collection, but you should always be within $2 or $3 of balance - the fluctuation is mostly from changer coin float. Know that your meters will never not record a cash vend, that test vends through the logic board will not be recorded as cash vends, while test vends with cash will be recorded as cash sales. Therefore, any cash test vends performed must be recorded. If you go repair a machine on your driver's route and you do some cash test vends, you must leave a note with the test vend total in the coin box that will be collected with the next service. Over time you will see an unmolested machine average out to a virtual balance. Be aware of machines on the route that take 5's or larger bills, as those are easy to pilfer. If you suddenly have no 5's in a bag whose machine takes 5's, that's a warning sign. Protect your keys. The driver must trade his car keys for the route keys every day, this ensures your keys come back each day to be locked up. Each route must be keyed differently so no driver can sneak into another driver's locations. There is so much more to this that you can implement to protect your cash, but this is the bare minimum that you must do or you are leaving yourself open to theft regardless of how trustworthy this person is. Any way to sticky this post? Link to comment Share on other sites More sharing options...
rmorris1953 Posted August 3, 2014 Share Posted August 3, 2014 How many of you are working 6 and 7 days a week? When do you think it's a good time to add and employee? If you have an employee, what is the pay structure like? I'm about ready to hire my first employee and have been thinking about how to pay him/her. I'm thinking a small base salary with a commission structure. I have 180 machines to service each week and with this desert heat haven't been getting enough done. I'm off to work. I've got 22 machines to service and 2 to repair. You might consider using a helper on your truck. I know some that will take a helper and have them do pop or snacks. You do the collections before he fills the vendor. You go in and inventory and while he goes back to truck to load up you collect the money. That way he never touches the CASH. Then you and him fill. This will also allow you to do some PM's on your equipment and keep this person in check. After some time they may turn out to be good help... During this time they will see your OCD about cash collections and you might also make up stories about how you catch thieves, Something like the bill validators will record the S/N's on all the bills and then check them on the cash counter when collected. This way only you have keys to vendors, only you can fill changers, collect cash, Someone here mentioned about a service that will take care of the workman comp etc. That would be a good place to start. Do a few stops and if they don't seem to be up for the job call it a day and call the service and tell them to send someone different the next day. If you decide not to go that route then adhere to AZ's suggestions. Link to comment Share on other sites More sharing options...
moondog Posted August 3, 2014 Share Posted August 3, 2014 You might consider using a helper on your truck. I know some that will take a helper and have them do pop or snacks. You do the collections before he fills the vendor. You go in and inventory and while he goes back to truck to load up you collect the money. That way he never touches the CASH. Then you and him fill. This will also allow you to do some PM's on your equipment and keep this person in check. After some time they may turn out to be good help... During this time they will see your OCD about cash collections and you might also make up stories about how you catch thieves, Something like the bill validators will record the S/N's on all the bills and then check them on the cash counter when collected. This way only you have keys to vendors, only you can fill changers, collect cash, Someone here mentioned about a service that will take care of the workman comp etc. That would be a good place to start. Do a few stops and if they don't seem to be up for the job call it a day and call the service and tell them to send someone different the next day. If you decide not to go that route then adhere to AZ's suggestions. The first thing I would do is take him by the tree where we hanged the last guy caught stealing The payroll service I mentioned will not find you an employee - they just cut the checks and do the paperwork. Temp services will send out someone but their rates tend to be very steep and I wouldn't recommend that route. Link to comment Share on other sites More sharing options...
allen watson Posted August 3, 2014 Author Share Posted August 3, 2014 Barstow is actually closer to 50% welfare. Ugh! Link to comment Share on other sites More sharing options...
allen watson Posted August 3, 2014 Author Share Posted August 3, 2014 Thanks everyone! I have no debt. I paid off the last of my 2 loans 2 weeks ago! Woop Woop!!! Does anyone have a template of a route ticket or a source to purchase them from? I have a dozen single price drink machines without meters. Link to comment Share on other sites More sharing options...
allen watson Posted August 3, 2014 Author Share Posted August 3, 2014 Friday's route has 40 machines on it and it was so hot I could only get 11 of them serviced. So Saturday my 15 yr old son rode with me and we knocked out 30 machines in 7 hours with 2 repairs and a service call for a snack machine. We started work at 11am and finished at 6pm. So here is how I test paid my son: He got $1.00 per machine filled, combos count as 2 machines. At $500 in sales he gets a $10 bonus. At $800 in sales another $10 bonus. At $1000 in sales another $10 bonus. At $1200 in sales another $10 bonus. At $1500 in sales is "the magic" number and he gets a $60 bonus on top of the other bonuses. Repairs pay $5 So we ran over $1500, 30 machines and 3 repairs. $30 for machines $15 for repairs $100 for "magic" number _________________ $145.00 payday $145 / 7 hours = $20.71 per hour. He was very motivated to get the route done without skipping any stops or "short-stopping" them by collecting just the money and shuffling around product to make it look full. I'm going to set-up my route in the next few weeks and act like I'm the employee with full accountability and pay myself. One issue I have is I work out of my home and according to city regulations, cannot have employees on the premises. Down the street are some storage/shop units that have a roll-up door and a office door, about 1000 sq. ft. that I can operate out of. Might even have to buy another mini-van. Thanks again for every ones help. Link to comment Share on other sites More sharing options...
rmorris1953 Posted August 3, 2014 Share Posted August 3, 2014 That is pretty good Allen... Link to comment Share on other sites More sharing options...
moondog Posted August 3, 2014 Share Posted August 3, 2014 Friday's route has 40 machines on it and it was so hot I could only get 11 of them serviced. So Saturday my 15 yr old son rode with me and we knocked out 30 machines in 7 hours with 2 repairs and a service call for a snack machine. We started work at 11am and finished at 6pm. So here is how I test paid my son: He got $1.00 per machine filled, combos count as 2 machines. At $500 in sales he gets a $10 bonus. At $800 in sales another $10 bonus. At $1000 in sales another $10 bonus. At $1200 in sales another $10 bonus. At $1500 in sales is "the magic" number and he gets a $60 bonus on top of the other bonuses. Repairs pay $5 So we ran over $1500, 30 machines and 3 repairs. $30 for machines $15 for repairs $100 for "magic" number _________________ $145.00 payday $145 / 7 hours = $20.71 per hour. He was very motivated to get the route done without skipping any stops or "short-stopping" them by collecting just the money and shuffling around product to make it look full. I'm going to set-up my route in the next few weeks and act like I'm the employee with full accountability and pay myself. One issue I have is I work out of my home and according to city regulations, cannot have employees on the premises. Down the street are some storage/shop units that have a roll-up door and a office door, about 1000 sq. ft. that I can operate out of. Might even have to buy another mini-van. Thanks again for every ones help. You should start earlier and miss the heat - that's why the Mexicans invented the Siesta Link to comment Share on other sites More sharing options...
moondog Posted August 3, 2014 Share Posted August 3, 2014 Friday's route has 40 machines on it and it was so hot I could only get 11 of them serviced. So Saturday my 15 yr old son rode with me and we knocked out 30 machines in 7 hours with 2 repairs and a service call for a snack machine. We started work at 11am and finished at 6pm. So here is how I test paid my son: He got $1.00 per machine filled, combos count as 2 machines. At $500 in sales he gets a $10 bonus. At $800 in sales another $10 bonus. At $1000 in sales another $10 bonus. At $1200 in sales another $10 bonus. At $1500 in sales is "the magic" number and he gets a $60 bonus on top of the other bonuses. Repairs pay $5 So we ran over $1500, 30 machines and 3 repairs. $30 for machines $15 for repairs $100 for "magic" number _________________ $145.00 payday $145 / 7 hours = $20.71 per hour. He was very motivated to get the route done without skipping any stops or "short-stopping" them by collecting just the money and shuffling around product to make it look full. I'm going to set-up my route in the next few weeks and act like I'm the employee with full accountability and pay myself. One issue I have is I work out of my home and according to city regulations, cannot have employees on the premises. Down the street are some storage/shop units that have a roll-up door and a office door, about 1000 sq. ft. that I can operate out of. Might even have to buy another mini-van. Thanks again for every ones help. That's $50 per machine - some of those could easily go to an every other week schedule. $100 per machine is my golden number although that's a little steep on some of my snack machines. I doubt you'd have a problem with an employee that just parks and picks up the van in the morning. Heck, from what you're telling us, I doubt that anyone around there would even know what an employee looks like Link to comment Share on other sites More sharing options...
allen watson Posted August 3, 2014 Author Share Posted August 3, 2014 Hahaha Moondog. I have a little secret for the heat that took like 8 years to figure out. It is nice and cool in the morning up till about 10am. At 11am it starts getting hot. That's when I get in my car and start working. The A/C gets turned on and stays on most of the day keeping the car nice and cool. In the evening when its the hottest, instead of my van sitting in the driveway getting super heated, it's out on the route keeping nice and cool. I get home after the sun goes down when the temp starts dropping down under 100. Then, it's for sure "Beer-Thirty". If I get home too early due to starting early, my wife gives me golpher for drinking beer "too soon". What the heck "too soon" is I have yet to figure out. lol Link to comment Share on other sites More sharing options...
allen watson Posted August 3, 2014 Author Share Posted August 3, 2014 I just noticed that the word sh*t gets replaced with the word golpher. Hahahaha. I never could figure out why you guys kept saying golpher. Link to comment Share on other sites More sharing options...
jasonkw Posted August 3, 2014 Share Posted August 3, 2014 How many items per machine are you filling? My general rule is, for it to be worth the labor and gas, I try to aim to fill at least 100 items in that machine. If I have to fill 100 items in the machine, there should be a fair bit in the cash box for me to collect. I always try to balance between not underservicing and not overservicing. I agree, some of your machines can be every other week... Link to comment Share on other sites More sharing options...
FrCorey Posted August 3, 2014 Share Posted August 3, 2014 and wait until they eat all your candy. Link to comment Share on other sites More sharing options...
allen watson Posted August 3, 2014 Author Share Posted August 3, 2014 I need to hire a diabetic. lol Link to comment Share on other sites More sharing options...
AngryChris Posted August 3, 2014 Share Posted August 3, 2014 I need to hire a diabetic. lol Terrible idea lol. Link to comment Share on other sites More sharing options...
SchligVend Posted August 3, 2014 Share Posted August 3, 2014 I agree about u starting to late I get on the rode before 5am usually done by 1 or 2ish so I can hide from that phoenix sun!! Link to comment Share on other sites More sharing options...
SchligVend Posted August 3, 2014 Share Posted August 3, 2014 I bring a helper with me every once in a while, When i do bring them with me, We both walk into location together I pull money and write meter numbers.... by the time I am done with soda and snack machine my helper usually is already walking back to the truck with an idea of what is needed for the machines, a minute or so later I will follow to the truck to drop money in safe and make sure he grabs the same things that I have wrote on my list of things I think the machine will need.... within a few trips to that same location my helper knows pretty much what is needed and is on the same page as me (sometimes) ... but by the time I get back to the truck he already has a box full of snacks that he pulled and I grab the box he grabs the heavy soda and we walk back in..... I figure I can cut my day by a few hours or most of the time just get ahead if i know I need to do a move in the next couple days or have a meeting for a new location... My helper is definitely ready to go on his own but I still haven't figured out the whole accountability part of everything and I am way to OCD with everything so I know I will go crazy with the fact that something wasnt done correctly or the way i like it done, I know I will have to get past that soon if I want to grow any bigger!! Link to comment Share on other sites More sharing options...
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