MVS Posted August 8, 2017 Share Posted August 8, 2017 Hi Guys- So just starting out, I would like to stick as much as possible in the first 12 months to pop can only machines (e.g., DN 501T's etc), because based on the general consensus of good advice on this forum, this is the easiest way to get exposed to the ins/outs of the vending industry. Doing some math, presuming I found good locations grossing $200/month each... I would need 10 pop machines to gross $2k/month, and 40 machines to gross $8k/month (i.e., which equals the income from my day job, more or less). Question: Is it possible for one man (not including movers, repair techs, etc) to service 40 machines (or, 8 machines/day, M-F)? On the surface it seems this is feasible. What is the limit one man can handle? Anyone here doing 40+ themselves? Link to comment Share on other sites More sharing options...
Dwall Posted August 8, 2017 Share Posted August 8, 2017 That is more than doable. We have route men working 30-40 machines per day with routes averaging 10-15 k per week. The problem will be finding locations that will all do $200 a month with just one can machine. Link to comment Share on other sites More sharing options...
lacanteen Posted August 8, 2017 Share Posted August 8, 2017 4 minutes ago, Dwall said: That is more than doable. We have route men working 30-40 machines per day with routes averaging 10-15 k per week. The problem will be finding locations that will all do $200 a month with just one can machine. Ditto, it's all about sales volume, not the number of machines. Our routes vary from 120 machines to 230 machines but all gross the same window. Link to comment Share on other sites More sharing options...
Southeast Treats Posted August 9, 2017 Share Posted August 9, 2017 Check your math, gross is not net.... if a machine does $200 per month in sales, that is only $50 a week, so not a really big account... but you have cost of good sold (about 50%, maybe a little better doing cans only) and sales tax; then your overhead (insurance, gas, vehicle, etc)... so IF you clear 25% on your $200 per month sales that is $ 50 per machine. To replace your 8K monthly income you would need 160 machines doing that. For you to take home $200 per month from a machine it needs to sell about $800.... anyone have any different numbers?? Link to comment Share on other sites More sharing options...
AngryChris Posted August 9, 2017 Share Posted August 9, 2017 10-15k is insane unless every location is over $400/week. Link to comment Share on other sites More sharing options...
AngryChris Posted August 9, 2017 Share Posted August 9, 2017 8k/month from can machines only is easy. Question is, can you get 40 can-only locations doing 200/month each. Link to comment Share on other sites More sharing options...
AZVendor Posted August 9, 2017 Share Posted August 9, 2017 MVS, you are a fool to leave a job paying you that much unless it's simply killing you with hours or travel. I don't think you realize what it would take to achieve that same net income from vending. We're talking 300-400 machines at least, all paid for. The problem is you yourself can't do enough business alone to make that much net profit. You need route drivers, trucks, office personnel, a warehouse, an accountant, insurance, etc that will all eat up profit as you grow in an attempt to reach that goal. This is attainable only with an outright purchase of a good sized vending company or only after years of extensive growth. I grew exponentially in the 90s but all the profits were eaten up by machine payments, wages, rent, truck payments, commissions, taxes and on and on and on. The profit mountain is very steep to climb. Link to comment Share on other sites More sharing options...
lacanteen Posted August 9, 2017 Share Posted August 9, 2017 11 hours ago, AngryChris said: 10-15k is insane unless every location is over $400/week. Not really. It's about setting your vend visits at the sweet spot where the machine is 70% depleted, and the average cash pick up is $125. So where some machines get worked 3 times a week, most get worked once a week or every other week. And, yes, we have a few sacred cows that get worked once a month, and we have a few killers that get serviced every day. It's all about making the most of your time and having the equipment sized correctly to match the volume. Link to comment Share on other sites More sharing options...
AngryChris Posted August 9, 2017 Share Posted August 9, 2017 Around here, it's insane!! There simply isn't enough density to get that many good accounts that close together. Too much driving time. Link to comment Share on other sites More sharing options...
lacanteen Posted August 9, 2017 Share Posted August 9, 2017 17 minutes ago, AngryChris said: Around here, it's insane!! There simply isn't enough density to get that many good accounts that close together. Too much driving time. That explains why you're angry Draw a 35 mile circle around your base, then look for potential locations: schools, hospitals, manufacturing, service companies, retail, hotel/motel, nursing homes, auto dealers, government, office complex. Link to comment Share on other sites More sharing options...
MVS Posted August 9, 2017 Author Share Posted August 9, 2017 Hi Guys- I guess I should have specified the $8k/month income I mentioned in my day job was GROSS income. My net is about $5.5k. For those who thought $8k was unattainable for a noob, does equaling $5.5k/month in net income for a one man band seem more realistic? Link to comment Share on other sites More sharing options...
AngryChris Posted August 9, 2017 Share Posted August 9, 2017 9 minutes ago, MVS said: Hi Guys- I guess I should have specified the $8k/month income I mentioned in my day job was GROSS income. My net is about $5.5k. For those who thought $8k was unattainable for a noob, does equaling $5.5k/month in net income for a one man band seem more realistic? You have to pay income taxes on all sources of income. Your 's net income is your personal gross income. So if the business makes $8k/month after expenses, then you'll be taxed based off of $8k/month in gross income. So you need to do that. By the way, I don't think I personally know any one-man shows that have ever produced more than 60k. It's definitely possible, but very very unlikely with your numbers. With soda and snacks and good equipment, you should be able to gross over 50k but it will take years and years. As mentioned already, you're probably not going to replace the full income from your job. You'd need a large operation. It's possible to do in the first few years, but very very unlikely. I'd hate to see you walk away from such a job only to be disappointed with vending. Link to comment Share on other sites More sharing options...
Southeast Treats Posted August 9, 2017 Share Posted August 9, 2017 Vending can be a great business, but you have to be realistic about the numbers and how to get there. I know people who worked 140+ machines by themselves; but a lot of small accounts in there that were 2 week or 3 week cycles. Link to comment Share on other sites More sharing options...
nvb Posted August 10, 2017 Share Posted August 10, 2017 I've been mulling the same question myself. I work full time in a job I have no plan on leaving, so vending is a side gig. For me, I settled on 10 machines (4 locations, snack + drink) as a good number to start with. All of these machines are in busy manufacturing accounts and need servicing weekly. My real time commitment here is probably 8-10 hours per week after shopping, driving and stocking. Luckily all the accounts are very close, within a square mile. I am however using all glassfront machines which take longer to stock than a can stacker. Actual gross earnings is around 60k/ year.. but then the cost of goods, gas, taxes, CC fees... Link to comment Share on other sites More sharing options...
AZVendor Posted August 10, 2017 Share Posted August 10, 2017 That's good sales out of 10 machines and it sounds like it fits into your schedule. The only problem you'll have is how to take more than a 2 or 3 day vacation. Link to comment Share on other sites More sharing options...
nvb Posted August 11, 2017 Share Posted August 11, 2017 You've got that right AZvendor. I guess there is no one size fits all answer to the question in main topic. Any more machines for me and I would burn out over the long haul. I'd say 40 machines per week is totally doable for one person, but exactly how many hours that adds up to will depend on a lot of variables like traffic, proximity to one another etc. Again doing all can machines would go a lot faster than what I am doing (5 wide snack and bevmax glassfronts) as far as servicing goes. Link to comment Share on other sites More sharing options...
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