Start Up Costs

[PabloV8]

And of course, if you have £18000 sitting around, you could bypass the slow build up to 100 towers and save yourself the initial stock outlay as suppliers will do you a nice deal!

But not many have £18000 sitting around.

I built up with lower priced packages.

[PabloV8]

Cheers Matt,

Just trying to somehow answer the same question over and over again.

If operators can add more information as I am sure they will, all prospective operators will have all of the information within one post.

Cheers.

[Shropvend]

Very good analysis pablov8

You could also save a little money by driving an estate instead of a van as you are only selling small pots, pringles and toy capsules. (unless you get an old banger) These products can fit into a good size boot easily. Site management is also important, nothing worse than having a great site 30 miles away that needs servicing every 2 weeks. So knit some other sites around this call and turn the area into a good sales day.

Other than that spot on, good post.

Re Lee.

[Shropvend]

Very good analysis pablov8

You could also save a little money by driving an estate instead of a van as you are only selling small pots, pringles and toy capsules. (unless you get an old banger) These products can fit into a good size boot easily. Site management is also important, nothing worse than having a great site 30 miles away that needs servicing every 2 weeks. So knit some other sites around this call and turn the area into a good sales day.

Other than that spot on, good post.

Re Lee.

[dustyboy]

Dear Pablo

Am sure you mean we'll but your maths are very rusty. 100 towers would require 9 columns x 7 high on average at say 50p a pot cost including Vat and delivery. I make that £3,150. Plus say 50 per cent of that as a back up another £1575. Total of £4725 !!

Not quite as daunting as you say. Also I would advise any beginner to buy second hand at £60 a tower to try out say 20 sites.

Then if they are not happy the risk capital is very limited,.

Dusty

[PabloV8]

Hi Dustyboy,

Nothing wrong with my maths or my machines - they all hold 81 tubs and are 9 choices with 9 tubs per column.

Are you using Korean or Chinese machines

Cheers

[PabloV8]

Anyway, this post is in all purposes to help potential operators to get a feel to costs as the question is often asked.

I am all for everyone giving this type of business a shot/try, should be enough business for everyone.

[dustyboy]

Hi Pablo

I appreciate that you are trying to help beginners but you are just confusing people. If you want to do the job properly give a realistic estimate of the costs involved with the 100 towers. lets say they cover 20 towers a day. how often will they visit.
How much time and extra milage to allow for for jams and unbudgetted call outs. You need to present a full revenue/expense scenario for somebody to decide on the potential.

Now to your maths: Your post of March 3rd at 10.26 a.m. states "if you have a 100 towers that means approximately 100 x 81 x 50p +£8100 worth of stock".

I have asked a class of 8 year olds to perform this calculation and they came up with £4,050
So your maths are ****.

I only have £15,000 of stock at cost to run 500 towers including back up.

My towers all take 81 pots but there is no point filling every slot 9 high if your average sales per slot is say 3 (9x3 =27) per month. I start new sites 6 high and then gradually increase best sellers (I have one tower with 36 jellybeans and several with 27 Squashies, Treets or Fizzy Jelly mix.)

Each tower is an individual shop. You manipulate the stock to achieve the best results from that site. Only a wholesaler will tell you to fill them all 9 high.

What I am trying to get at is you appear to be trying to advise newcomers but do not have the knowlegde or experience to do so.

Might be a good idea for the FORUM to arrange a national or regional conferences and get a mix of experienced operators to
address groups of beginners/wannabees before they risk their capital.

Dusty

[Charlie--]

I agree with Dusty on this one.

[Style]

Haha, Im having a little giggle at this domestic. But Pablo, your maths is wrong.

Dusty, interesting you start with 6 then go up. I start with 9, make the most of the honeymoon period and then reduce as necessary.

Andy