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Dwayne

.7 Vends vs 1.2 Vends?

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Hi folks, I am very new to vending. So, new, that aside from a whole lot of bookmarks and an idea, I don't own any machines. I am currently doing up a business plan to buy a property. My goal really is to have a fully automated convenience store that is open 24/7. In doing my business plan, I came across the following quote " Micro markets tend to attract 18 percent more visits per day with an average of 1.2 sales per day per visit, as compared with 0.7 sales in a vending area. Does this mean that my machine in here will only likely get 1.2 sales a day per machine? I am having difficulty figuring out how to project sales when there is nothing like it in my town. Say I am selling a chocolate bar at 1.25$. Does this mean that I sell 1.2 chocolate bars per machine? Lets say I go with 10 machines that means I make 1.25$x1.2x10=15$ gross?

Is anyone able to show me how to project numbers for sales? I am most definitely no math genius, just a regular guy who works and wants to make a better life for my family.Much appreciated on any input that can be provided.

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There is no good, reliable way of projecting sales.

We have rules of thumb, but they are for locations with employees that stay 9-5.

Even then, we sometimes get surprises, locations that should be on fire do jack golpher, while locations we think will duds do really well.

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Hi Basic, that is what I was thinking for trying to ascertain projected sales. The average employ makes min wage at the convenience store. I would estimate that they open at 7AM and in our town would be closed at 9PM. That means potentially, a store operator would be paying a person in BC here 11.35$ an hour x 14= 158$ a day in wages. I may just use a figure like that to do a projection for the bank.

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I can not help you with projections but that is exactly the way I started my vending business. I wanted to get in to vending so I bought a few machines and was having trouble placing them and I also have a full time job so I started looking for a building to rent to create a vending machine convenience store 24/7. In my town there are several 24/7 convenience stores but they are all up on the highway not within close range of the neighborhoods or bars so I rented a building away from the highway and within walking distance to the neighborhoods and bar. Also, after I decided to rent a building and put all my machines in one place I did not have to drive to stock machines or pay commission BUT there is more overhead because of electricity, heat, and rent. I am very glad I decided to do this because the number one compliment about my place is that it is 24/7. Since then I have added arcade, bulk, and redemption machines and now I own an arcade. I do not have any employees (except my son who has learned how to repair machines when problems arise) I do not have it open 24/7 anymore because it was not cost effective but business is good and growing. So, I encourage you to give your idea a try but I also suggest you add some bulk machines and maybe a couple games. I also have a ice cream machine that I vend frozen hot pockets and white castle burgers and I have a microwave on a timer you can use for .25 cents. I believe the info you quoted about micro markets making more money than vending areas is based on micro markets offering more products or more variety then the typical vending area that is why you should think about frozen food, microwave, games, bulk, in other words more variety. If you pursue this idea and make it a reality I hope you will share your experience with us on this forum.

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