full time guys

[gundog]

OK, since I spoke of in my other thread about possibly going full time vending at some point down the road, I would like the opinion of some of the full time guys.

What type(volume) of accounts should I be targeting to make up the bulk of my route to make it full time- $2K?, $4K?, $6K/ year? more? 

What is a realistic # of gross sales one man can do working normal hours?  I know this could vary tons but what would be a realistic and obtainable goal for me to be at within a year or so of going full time?

Thanks

[NinnJinn]

IMO  Different strokes for different folks.

Some will say get the factory breakrooms etc,  less locations to get the income you want.

With me, I'm just chugging along.  Although, I only have one machine/one location.  If I can get some 3rd party machines, I already have 2 locations.  And around my surrounding area there aren't too many if any high traffic areas that don't have their own machines. 

So I am just concentrating on something similar to Antonio's Island that he built once I have some pretty good cash flow coming in.  But I'm just going rather slowly and learning all I can.

[Poplady1]

I started with two drink machines years ago.  It only took me 3 years to build my route to $75K (28 years ago that would have been a lot) and I never looked back after I decided to just go for it. Back then I really didn't have the money for equipment but I had the ability to find good locations.  I would find locations and trade them to existing vending companies for machines.  As I worked and became known as the poplady that could get you kicked out of good spots other vending companies contacted me to set up the same deal (mostly to keep me from calling on their accounts)  Then I found Vending World in California.  I would buy Multi price Dixie Narco used can machines by the railroad car load and with Randy's help (Vending World) convert them to bottle machines (everyone thought I was crazy).  My machines had 4 can selections and 5 bottle selections.  When I called on accounts I had something different to offer.  I couldn't keep up with the new business. Unfortunately it didn't take more then a couple of years for my local competition to catch up with me but by that time I had a wonderful core group of major accounts.  I had also moved on to other things like Custom Fronts, the ability to take 1,5,10 and 20 bills.

A lot depends on how quickly you can afford to get your equipment.  Be on the lookout for equipment on ebay or craigs list.  A rule of thumb in vending is don't buy equipment until you have the location.  That is a great rule but when you are putting your first route together you take equipment any way you can get it.  Refurbish it yourself with some paint and new labels.  Turn your garage into your workshop and if you don't have a garage rent a storage space with electric. Once you get your first location that generates $100 plus a week you will be on your way.

Hope this helps.

Blue (poplady)

[NinnJinn]

Thanks for the info!

[vending018]

wow poplady! very helpful... hopefully one day i'll be as successful as you

[mission vending]

Like poplady I started small and worked my way to bigger accounts as I learned the business and developed a reputation. Only thing I did differently is that I did it borrowing money like crazy and nearly went bankrupt doing it. Nothing has been harder for me in this business than the time and effort spent retiring the debt I racked up in my first two years.

I you build a nice tight route where you are not driving more than 20-30 minutes max between stops, have a good mix of accounts with different volumes a good route guy can run about 250K a year gross on a 40 hour week. That does not include loading the vehicle, counting money, paperwork etc., just strictly working the machines. By different volume accounts I mean some that require service every couple of days to other that only need service every other week. You focus on the important accounts first so if you are having a bad day (breakdown, or whatever) you can at least get those done and the others can be postponed a day or two until you can get caught up without you having to worry about them complaining about running out of stuff.

If you do the work, have no debt and keep your costs in line with the industry averages you should be able to pay yourself 60 - 70 K out of the 250 gross.

If you want more info let me know.

[mizugori]

If you do the work, have no debt and keep your costs in line with the industry averages you should be able to pay yourself 60 - 70 K out of the 250 gross.

and what does one do with the remaining balance of the 250? take it as a dividend (assuming you have a corp) ?

[JPVendCo.]

and what does one do with the remaining balance of the 250? take it as a dividend (assuming you have a corp) ?

pay for product, machines, vehicles, other cost.

[Beach Bum Vending]

Heard of a gentleman in my area that.  put together 50 machine route.  ten a day  worked 5 days a week.  Gross  300k yr  and took home 90 to 100k 

one man operation working around 50 60 hr a week.  Not a bad living

[mission vending]

Heard of a gentleman in my area that.  put together 50 machine route.  ten a day  worked 5 days a week.  Gross  300k yr  and took home 90 to 100k 

one man operation working around 50 60 hr a week.  Not a bad living

I would agree that it is possible to pull that kind of money out of a 300k route.......but........ you will choke it to death. The only way you can do that is to not invest in new equipment and upgrades which leaves important (high volume) accounts vulnerable to other vendors. IMO 75 - 80 K out of that number would work if you have and keep your costs in line with industry averages.

[NinnJinn]

What is the national average? 50-55% COG?

[coinvestor]

I would agree that it is possible to pull that kind of money out of a 300k route.......but........ you will choke it to death.

This is very important to get right. Pulling even just alittle too much out will catch up with you over time and take forever to catch the cashflow back up. I don't pay myself more than 25% of gross, or I start getting out of whack.

JD

[gundog]

great info everyone- thanks that was exactly what I am looking for. 

I learned some important information.  Before reading this I figured if I had 200K in sales that I would be paying myself somewhere near 100K- I was off by quite a bit

I have a question about the 60-70K on 250K gross.  I am used to getting a paycheck from an employer so what I make is not what I get paid.  There are deductions for taxes, health care, retirement, and such.  My question is is the 60-70 before or after taxes, health care, retirement costs?

Thanks

[mission vending]

great info everyone- thanks that was exactly what I am looking for. 

I learned some important information.  Before reading this I figured if I had 200K in sales that I would be paying myself somewhere near 100K- I was off by quite a bit

I have a question about the 60-70K on 250K gross.  I am used to getting a paycheck from an employer so what I make is not what I get paid.  There are deductions for taxes, health care, retirement, and such.  My question is is the 60-70 before or after taxes, health care, retirement costs?

Thanks

That can vary, some things you can do won't show as income such has paying for cell phone as a business expense, deducting mileage driven, home office deductions. You can set up several different types of retirement plans, a Roth or Simple for example. A discussion with your tax preparer would probably be best as he knows your situation and you can spend some time with him to develop a plan of how to get where you want to go.

[spdydre]

I guess it all depends on many factors.  There is a guy here doing 330k (absentee owner )with one FT employee and bringing in 120k take home per year.  How i dont know

[mission vending]

I guess it all depends on many factors.  There is a guy here doing 330k (absentee owner )with one FT employee and bringing in 120k take home per year.  How i dont know

I wouldn't believe that without seeing the tax returns. That's 36% net profit. If that's an accurate number then he is in the wrong business. He could easily double or triple that working as a consultant showing other vendors how to do it. 

[Poplady1]

Mission I have seen it happen.  They sell 16oz water and drinks at 1.25 to 1.50.  They also avoid commission.  Of course when someone like me calls to discuss the vending program they often lose the account but sometimes they provide excellent service and pricing doesn't matter to the account.  So it happens normally in under served accounts. (Under served meaning accounts other vendors pass such as mfg 30 to 40 employee accounts). No one is marketing to that group. These companies put in older equipment and those accounts are happy.

Blue Moose