Basic Question about $7 Averages

[Skaught]

I've been reading that $7 is about the average return a month on a machine. I am still trying to figure this out. Is this $7 collected from the machine? If so, wouldn't the net profit be much lower after taking out the price of COGs and the % Commission or $1 Charity Donation?

So for a $7 collection it would look something like:

$7.00

-1.75(25% COGs)

-1.40(20% Commission)

=

$3.85 Net Profit a month per machine.

Is this accurate? Also, does anyone else do commission based on the amount collected after COGs?

[G-man422]

Scott, yes, those #'s are correct.  The $7 is per head, so a triple should average $21 gross, a quad $28 gross and so on.  That is the national average and many people on this forum do not settle for $7 per head per month.  I am in the process of getting better locations for my slower locations.

Usually commission is not offered on single heads. It is used on many machines at one location or on racks, full line, and large redemption/strategy games.  Most charities that bulk vendors  deal with require a $1 per machine per month donation.

[Skaught]

Okay. I didn't think in terms of a triple putting up 3 times as much. That makes more sense and sounds much more profitable.

Somewhat off topic, but do most people that donate to charity put the charity's sticker on their machines?

[Beer980]

That is why we strive for above average results here. Always look to improve and keep costs down. Get a single placed and make sure it does real good to be woth the location. There is the more machines the more you make line of thinking but if you can place a triple in a real good spot it brings that profit up and keeps the cost down. You can service one good triple cheaper then 3 ok doubles.