carogan Posted October 22, 2011 Share Posted October 22, 2011 Hello to all of you who contribute to this site!! I think that this site is a great idea and I can't tell you how much it has helped as a newb to be able to educate myself by taking in the information on this site! One question that I have is regarding everyone's "rule of thumb" revenue estimates. I'm aware that there are a great many factors that come into play that are unique to a given location, however it seems that many of you prescribe to a rule of thumb of $2 revenue per week per person for white collar locations, and $4 revenue per week per person for blue collar locations. Of course this reference is just a starting point, but everyone needs at least one point of reference when beginning their market research. My question is - are these rule of thumb estimates that everybody seems to reference assuming that the location serves a complete full product line that is optimizing its revenues for its product mix (beverages/snacks/coffee etc), or is this estimate conservative enough if a vendor is simply looking to just put a soda machine on the site? Is $2/week/person - white collar appropriate for just a soda vending machine, or is the number lower? Is $4/week/person - blue collar appropriate for just a soda vending machine, or is the number lower? If the number is lower - then what is the "rule of thumb" one should use? Thank you so much for all your help everyone!! Rob Link to comment Share on other sites More sharing options...
dogcow Posted October 22, 2011 Share Posted October 22, 2011 Rob...can't speak for everyone but drinks are about 65-70% of my revenue here in FL Link to comment Share on other sites More sharing options...
carogan Posted October 22, 2011 Author Share Posted October 22, 2011 Rob...can't speak for everyone but drinks are about 65-70% of my revenue here in FL Thanks Dogcow. Is this based on locations where you have both food and snack machines together? Is it prudent to take the $4/week/person blue collar estimate, and use a multiplier of 0.65 x $4 = $2.60 for bevies, and 0.30 x $4 = $1.20 for snacks (low side of range used in both instances) Working this out is important to me because most of the locations I'm targeting will have only bevy vending available only. Link to comment Share on other sites More sharing options...
dogcow Posted October 23, 2011 Share Posted October 23, 2011 Thanks Dogcow. Is this based on locations where you have both food and snack machines together? Is it prudent to take the $4/week/person blue collar estimate, and use a multiplier of 0.65 x $4 = $2.60 for bevies, and 0.30 x $4 = $1.20 for snacks (low side of range used in both instances) Working this out is important to me because most of the locations I'm targeting will have only bevy vending available only. Around here locations with drink only do 50-60/wk on the high side any more uwould have to have snacks because otherwise sooner Or later someone will come along and offer it and u will get the ol heave-ho Link to comment Share on other sites More sharing options...
mission vending Posted October 23, 2011 Share Posted October 23, 2011 For me drinks are about 60-65% of my business. I also do food and ice cream. Dogcow got it right with the drink only accounts. Anything more than 50-60 a week and guys like me are gonna be all over it like bees on Big Red. Lol Link to comment Share on other sites More sharing options...
Poplady1 Posted October 28, 2011 Share Posted October 28, 2011 Hello to all of you who contribute to this site!! I think that this site is a great idea and I can't tell you how much it has helped as a newb to be able to educate myself by taking in the information on this site! One question that I have is regarding everyone's "rule of thumb" revenue estimates. I'm aware that there are a great many factors that come into play that are unique to a given location, however it seems that many of you prescribe to a rule of thumb of $2 revenue per week per person for white collar locations, and $4 revenue per week per person for blue collar locations. Of course this reference is just a starting point, but everyone needs at least one point of reference when beginning their market research. My question is - are these rule of thumb estimates that everybody seems to reference assuming that the location serves a complete full product line that is optimizing its revenues for its product mix (beverages/snacks/coffee etc), or is this estimate conservative enough if a vendor is simply looking to just put a soda machine on the site? Is $2/week/person - white collar appropriate for just a soda vending machine, or is the number lower? Is $4/week/person - blue collar appropriate for just a soda vending machine, or is the number lower? If the number is lower - then what is the "rule of thumb" one should use? Thank you so much for all your help everyone!! Rob My experience is $50 on a drink only each week is a keeper. Offices just don't produce like blue collar. If you are looking at an office you really need to have approx. 75 on site office workers (mostly men are good for drink sales) but on blue collar you can pull $50 a week (drink only) out of lower number accounts such as larger collision centers, tire stores and some quick lube places. If you have drinks and snacks try to work with accounts having 50 employees and up you should be OK (unless it is an office)...If you should run across a telemarketing operation or collection agency these are very good accounts. Unless they are small give them a shot. They do produce. Since I no longer run a route, I have to learn from my clients. Most of my Canteen Franchise owners will take Goodyear stores, larger tire chains and well maintained collision centers. They also like hotels such as Comfort Inns, Super 8, Best Westerns or Motel 6. They stay away from multi story hotels unless it is very large and they can get the employee area only. They love the employee area of large hotels. But every ones favorite by far is the industrial account with 50 plus. So if it works for them, it will work for you too. Poplady Link to comment Share on other sites More sharing options...
antoniocinisi Posted October 29, 2011 Share Posted October 29, 2011 good information!!!thanks all. Link to comment Share on other sites More sharing options...
WillisNYC Posted October 30, 2011 Share Posted October 30, 2011 Hello to all of you who contribute to this site!! I think that this site is a great idea and I can't tell you how much it has helped as a newb to be able to educate myself by taking in the information on this site! One question that I have is regarding everyone's "rule of thumb" revenue estimates. I'm aware that there are a great many factors that come into play that are unique to a given location, however it seems that many of you prescribe to a rule of thumb of $2 revenue per week per person for white collar locations, and $4 revenue per week per person for blue collar locations. Of course this reference is just a starting point, but everyone needs at least one point of reference when beginning their market research. My question is - are these rule of thumb estimates that everybody seems to reference assuming that the location serves a complete full product line that is optimizing its revenues for its product mix (beverages/snacks/coffee etc), or is this estimate conservative enough if a vendor is simply looking to just put a soda machine on the site? Is $2/week/person - white collar appropriate for just a soda vending machine, or is the number lower? Is $4/week/person - blue collar appropriate for just a soda vending machine, or is the number lower? If the number is lower - then what is the "rule of thumb" one should use? Thank you so much for all your help everyone!! Rob My first experience with a 'big' account put the lie to this rule of thumb. I have a white collar office with 200 employees. I have 2 soda machines, 2 snacks, a cold food machine and an ice cream machine. Your rule of thumb says I should get $400 or more per week and that is what I expected. I average $250/week. Total disappointment. The soda machines consistently do $100 total, the snacks do just over $100 total and the CFM and ice cream do $50. This location seems to be an aberration since I have another white collar location with similar number of employees and it does $350/week on average. That 2nd location is much closer to the $400 that you would expect, but still on the short side of it. With the recession going on, I think lots of people are chintzing out on little things that they can cut out like sodas at work. Most locations that have history going back to 2007 are off 20% since then. Hope and vote for regime change in 2012 and maybe we can get the numbers back up where they belong. Link to comment Share on other sites More sharing options...
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