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How much of your profits do you put back into the business?


PnutGallery Co.

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My goal is/was to put all of my profits into expanding my route and buying more and more machines with the profits as I go. I have been involved in other businesses and it has usually turned out to be the wrong choice. I can keep getting bigger and bigger and get more and more machines, but just what if there is no cash in the sysyem in 5-10 years and the machines as we know it are all obsolete? Obviously something will come along to take their place, but all of our work/savings will be in machines that are no longer usable??

So from a logical standpoint it seems we should be taking a portion of our profits and saving or investing in something else. How do you guys run things? Am I crazy in thinking this could happen?

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So from a logical standpoint it seems we should be taking a portion of our profits and saving or investing in something else. How do you guys run things? Am I crazy in thinking this could happen?

Right now I put 100% back into the business but I figure that by doing that and building the business that at some point (hopefully not 5 years) there will be a nice profit. Remember that as you buy new machines they will be newer models and should last longer then the first machines you started with. It takes me 2-3 months on average to start making a profit off a single machine (I buy used). I service and take care of my machines so I hope I get more then 5 years out of them. I paid $500 for my 30 1-800 triples, that's about $17 each. If they average $20 per month that's about $1200 in 5 years. My candy is about 15% and I don't pay commissions so that leaves about $1000 per machine in 5 years. After gas and other expenses I hope some of that will be profit.

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Start with quality machines so you dont need to replace them down the line if your in it for the long haul.

As far as your machines being obsolete there has not been a major change in bulk vending machines in decades. just cheaper knock offs, The tried and true machines that have been out there for what seems to be forever are still going strong, A&A, Northwestern, Oak etc.

If you can afford to put 100% back to the biz your payoff will come much sooner.

Thanks

Frank

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My goal is/was to put all of my profits into expanding my route and buying more and more machines with the profits as I go. I have been involved in other businesses and it has usually turned out to be the wrong choice. I can keep getting bigger and bigger and get more and more machines, but just what if there is no cash in the sysyem in 5-10 years and the machines as we know it are all obsolete? Obviously something will come along to take their place, but all of our work/savings will be in machines that are no longer usable??

So from a logical standpoint it seems we should be taking a portion of our profits and saving or investing in something else. How do you guys run things? Am I crazy in thinking this could happen?

The only major change you may see is higher price points. And cross your fingers that the gov. will stop making the dollar bill and only do a coin. If so major machines AA NW etc. should adapt fine. I used to put all of it back but now its a full time living. So after my Pay and SEP. it all stays in.

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Thanks for your ideas. I have gone with all Beaver machines and know they will go the distance if the industry as a whole does. But what if we all end up with 500 good quality machines down the road and the way money changes hands goes to all credit and debit cards. All of the machines as we know it will be obsolete. I know the major makers will adapt and make a machine to accept whatever form of payment is being used, but what about the 5-10 years fo hard work to get those 500 machines. We would have to start over from scratch and the reason I am thinking it may be better to put some cash on the side as we grow rather than all machines.

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We would have to start over from scratch and the reason I am thinking it may be better to put some cash on the side as we grow rather than all machines.

That's something to think about but I think that's a long ways off. We still make pennies so I think quarters are here to stay.

Thanks for your ideas. I have gone with all Beaver machines and know they will go the distance if the industry as a whole does.

BTW... I don't know much about this business yet but I do know that Beaver machines are some of the best made. They will just be getting broke in at 5 years old. LOL

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