FlintVending wrote:Hi Nigel. Hope you're well. You know mate, i dont much care, i've been having my business attacked from all sides lately. Hey Nigel, if i pay the postage could you please send me one of your nice brochures again lost the one you gave me. Regards Al. Up the Spurs
Hi Al
pm me your address, no payment required, happy to oblige!
I understand that with these honesty boxes it is illegal to say that 65% of profit(most say net profit) goes to charity. This is because it is unquantifiable and in most cases after all costs, including wages etc. there is no profit. The sharity looses out as well.
How is net profit unquantifiable. When you do your quarterlies or yearlies, your profit is plain to see. Also you can ask the charity or the charities commission how much was handed over. There might not be much but there would have to be something.
Venderbase wrote:You'll also find that the suppliers agree to give the charity a yearly lump sum, so sales are irrelevant.
Yes, irrelevant to suppliers, so long as they have enough takers for the boxes and stock. The losers are always the operators. Many charity box sites understandably think the box is being operated directly by the charity and all profits go to them. In reality, it's about 10p per bag. In businesses like plumbers and builders merchants they are monitored, but in a pub, I think the op will loose more and more.
Just to clear the confusion, Nigel is correct. tubz vending do not and have no intention of working directly with any charity box companies with regards to our tubz vending branded products at present.
We believe this would only cause a conflict of interests with our tubz vending operators.
It's unquantifiable because whatever net profit is left after overheads could be put down as wages. When I calculate my net profit for tax, as a sole trader, I don't put in any wages, but if I had to pay a percentage to a charity I would include them, in whick case I would make a loss every year and the business would owe me money. These franchisees are self employed sole traders and therefore don't need audited accounts. Vending Revolution may be audited by the Charity Commission but their franchisees are not.
Net profit is after all costs including wages is taken out so yes it is quantifiable, it's a figure , a definitive number. Even if it is a loss. In which case the revenue would soon catch on that they were using all the profits as wages and would force them to remove al advertising saying about profits going to charity. Also there is legislation governing percentages going to charity from these HB models. And not all the profits are made by the franchisee. The Franchisor is also signed up to give a percentage of their profits to the charity.
Not All charity's work on percentages. Some of them (Great Ormond Street for example) require a fixed annual fee, to use their logo within your business, in whichever way you choose (after running it buy the charity of course). Great Ormond Street was 10k a year to use their brand a while back.
The younger 'not yet hooked on' charities work on percentages, until they realise the people leveraging on their honesty. Then most of them switch to fixed annual fees. Easier accounting and easier guaranteed income etc.
I have a customer who does well with honesty boxes (has over 5000). They do have a very short shelf life on each site, about 3 months. After that he switches the box to another colour/charity and sales pick up again. Same operator, same site new 3 month shelf life in the new box. Also mainly about new sites, he has a person full time just getting new sites, averaging 20-30 per day.
lost the one you gave me. Regards Al. Up the Spurs
