Eustace wrote:But is the extra profit you earn through the 40-50 additional machines worth the additional work they cause you?PGBrew wrote:Hi Eustace,
Dave's given you some good advice.....use it. I've read you initial post and if I applied them to my business I'd be down to 40-50 sited machines, which is no use to me as I run a full time business.
My feeling is that this business is about three elements:-
- maximising the profit at each site;
- using leverage to multiple profits across sites;
- minimising costs.
Those three elements needs to be balanced carefully. I suspect that a lot of people in this business would realise they are actually losing money if they sat down and crunched the numbers. Personally, I think 20% is a huge dent on your revenue when you take account of maintenance/servicing, visits, travel expenses/fuel, vehicle insurance, vehicle maintenance, business insurance, marketing, re-investment in machines and other equipment, sundries, not to mention your own salary/drawings.
I was running some numbers on a franchise the other day, and I figured out that with 100 tower machines, I'd probably be turning-over about £20k. by Year Two, at the most. Of that, 70% would come out of the business in overhead. What was left over - about £4-5k. - would be for salary/drawings and re-investment. Actually, that's pretty optimistic.
do you know what mate i didnt even read your post then apart from the first line....
i am not being rude here at all but as the saying goes''you have two ears and one mouth,use them in that order'' as i said not being rude but you really need to listen to what ppl are telling you here or you will be spending so much tme trying to get these no com sites that you will be missing out on some great ones selling shed loads.....
keep it simple,cultivate each site,pay them a com everytime you visit and everyones a winner..look too deep into it all and you will do your own head in please believe me..
Happy dave