Gourmet Posted February 1, 2008 Share Posted February 1, 2008 I operate U-turn Terminator machines. Each vend is for $1 (Loonie). At the end of the month, I had 13 machines, 11 of which were located. In February, I am taking over 16 more located machines. I do not service all of my machines each month. My business started in December, and the numbers below are for all machines that were serviced (3 are yet to be serviced). In future, I will post both my moving average and monthly earnings due to how I service my machines. For January: Average revenue per machine was $29.62. Average revenue per day per machine: $0.78 Link to comment Share on other sites More sharing options...
Gourmet Posted March 3, 2008 Author Share Posted March 3, 2008 February numbers are in! Average revenue per machine: $31.57 Anticipated annual revenue: $13, 273 Currently operating at 40% profit margins when you subtract cost of product, cost of machines, cost of repairs, and cost of mileage (commonly missed in other people's calculations). That 40% goes towards my time. Can I live off $5309/year? Nope - but, it certainly helps! Although I operate two types of machines (U-turn Terminators vending for $1 each) and Excel gum machines, I have only included the bulk vending in my above numbers. As usual, lot's more info posted on my site, if you are really interested in what I do right (and wrong!). Link to comment Share on other sites More sharing options...
caserri Posted March 5, 2008 Share Posted March 5, 2008 Great info Gourmet, Thanks! Steve Link to comment Share on other sites More sharing options...
kulza Posted March 26, 2008 Share Posted March 26, 2008 Hi Gourmet, How have the excel gum machines been working out for you? I know someone who is selling some of the Beaver ones. I'm just trying to work out a charity agreement with the Humane Society before I make any big deals. Thanks, Michael Link to comment Share on other sites More sharing options...
Gourmet Posted March 26, 2008 Author Share Posted March 26, 2008 It really depends where they are located. I have on location that is doing $2 per month (ie, one vend), and one location that does $8 per day (4 vends per day). My average across all of my machines (9 on location) right now is $50/machine per month. I inherited these machines, and as such, of the $50, $12.50 goes to the location (25% is high, yes, but that is what was set up), $14 goes to product cost, and the remaining $23.50 is for me (47% profit). I have all of the machines located within a 1 km radius, so they can be serviced by foot, which is a nice plus. I intend to locate the remaining 5 machines I have in storage, and then focus on some of the low vend locations. I may try some sort of promo, or relocation. My strategy is to be in the entertainment district, and I hope to eventually have a monopoly on machines in this area, which means that I will have to be ok with some slower locations in exchange for having some high turnover locations. The beaver mechs work well. There are lots of these machines for sale all over the country right now, you can pick them up for $350-400/machine, which is still a little high. I paid $425, but that included the locations (as discussed above), which saved me a lot of time. Hope this helps! Link to comment Share on other sites More sharing options...
kulza Posted March 26, 2008 Share Posted March 26, 2008 Hey, Thanks a lot, very informative! Wow, 1 km radius - nicely done. You said you pay $14 for the product. Is that per case of gum (12 packs)? Or just the monthly expense? Thanks again, Michael Link to comment Share on other sites More sharing options...
Gourmet Posted March 26, 2008 Author Share Posted March 26, 2008 $14 is for $50 of sales. Gum is about 56 cents per pack. Sometimes you can find it cheaper, and I'm looking to source it consistently below 50 cents, but for now, I calculate based on 56 cents, because that is very realistic. Link to comment Share on other sites More sharing options...
kulza Posted March 27, 2008 Share Posted March 27, 2008 Gum is about 56 cents per pack.Where do you buy from? I know that at Costco it's $8.29 per case of 12, so $0.69 per pack.Also, is there PST and GST on gum? Thanks, Michael Link to comment Share on other sites More sharing options...
Gourmet Posted March 27, 2008 Author Share Posted March 27, 2008 Costco is $12.79 for 24 packs of Excel gum. That is the same at Superstore. However, for the 4 pack, they charge $1.97, which is cheaper.... I just noticed that the other day, so I'm going to be buying the 4 packs, which is terrible due to the extra packaging, but for the cost, I have to do it. Link to comment Share on other sites More sharing options...
grumpy Posted March 27, 2008 Share Posted March 27, 2008 Your Canadian and your asking if thier is GST, there is not much that is exempt if anything (each step is taxed but allowed to deduct). If you file for a GST number wich is required with over $30,000 in sales(today or in the future per year, talk to an accountant). You will be able to deduct GST from your remitance. If you have no other business and your not vending over .25 then GST submition is not required. As for RST I'm not from Manitoba but in Ontario it is required on all vending products that are not healthy. Which includes any healthy food you can think of that has salt or sugar added. PST is a required submition on any vending sale over .22 so you can get a RST exemption form and purchase your product PST exempt. But when you sale the product you have to submit the pst. Which is not all bad because the provincial government will give you a portion for being thier tax man, but not the federal government. Grumpy Link to comment Share on other sites More sharing options...
Gourmet Posted March 27, 2008 Author Share Posted March 27, 2008 Sorry, didn't fully answer... Gum is GST and PST applicable, unfortunately, in BC. GST is not such a large issue due to the flow through nature (see grumpy's response), PST you need to collect and remit, I remit once per year, so it's not all bad - you keep a small percentage, and you keep the money for the whole year. Link to comment Share on other sites More sharing options...
Gourmet Posted March 28, 2008 Author Share Posted March 28, 2008 Ahh - I made a mistake, food producst in British Columbia are PST exempt, so PST does not apply to my sales. Link to comment Share on other sites More sharing options...
Gourmet Posted April 4, 2008 Author Share Posted April 4, 2008 March numbers are in (a little late this month!!) For those of you new to my information, I post way more info on my website at http://candy.500words.ca/march-income-report. Average revenue per bulk candy machine: $15.63 Anticipated annual revenue: $13, 466 Average revenue per Excel gum machine: $15.73 Anticipated annual revenue: $8443 March was a 25% profit month, although cumulatively, I'm operating at 30.97% profit margins when you subtract cost of product, cost of machines, cost of repairs, and cost of mileage (commonly missed in other people's calculations). That 30.97% goes towards my time. Link to comment Share on other sites More sharing options...
caserri Posted April 7, 2008 Share Posted April 7, 2008 Thanks Gourmet. I love your "to the point" reporting style! Keep them coming. Steve Link to comment Share on other sites More sharing options...
Gourmet Posted April 7, 2008 Author Share Posted April 7, 2008 No worries - I love learning from other people, so others might find my insights useful for their own learning too! Link to comment Share on other sites More sharing options...
T BIRD Posted April 7, 2008 Share Posted April 7, 2008 No worries - I love learning from other people, so others might find my insights useful for their own learning too! Gourmet........I am still setting up and learning. I appreciate how you laid out your thinking and figuring. Thanks! Link to comment Share on other sites More sharing options...
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