Designing a new machine

[David@Perform]

Hi Lee - Great move on the Glow front there is a market for it. It is one of the machines we get asked for a lot. If the machine looks right etc. I recon we would buy them looking at on a ROI of 12 months. Below is a basic ROI plan presuming product cost and forecast sales.


£2.00 - Vend Price
£1.67 - ex Vat
£0.42 - 25% Commission to site
£0.48 - Product Cost
£0.77 - GP
38.5%

12 Month ROI
£50.00 Forcast Sales Per Week
£19.25 GP Per Week
£1,001.00 Max Machine Cost

Hope it helps

David

[David@Perform]

Someone let me know if the maths is correct!!

[dorsetvending]

Lee,

Also if you were an operater and looking to buy this machine, then there would need to be value for the operater, depending on how much the product costs, you need to add the commission, by the sounds of the price of machine it would take such a long time to get your money back, i know you are quoting butlins and other holiday parks but the average operater only has a few differant types of venue away from the normal pub and kids area. So where would they be able to pull in the sales to recoup the money that has been spent on the machine?

Chris

True but still useful to have the dialogue with Lee.......you have similar spread of sites as me by the sounds of it.

[Snackmore]

[quote="David@Perform"]Hi Lee - Great move on the Glow front there is a market for it. It is one of the machines we get asked for a lot. If the machine looks right etc. I recon we would buy them looking at on a ROI of 12 months. Below is a basic ROI plan presuming product cost and forecast sales.


£2.00 - Vend Price
£1.67 - ex Vat
£0.42 - 25% Commission to site£0.48 - Product Cost
£0.77 - GP
38.5%

I am confused I pay 20% on sale price? Does everyone else???

[Eatsweets]

Snackmore it depends what you are vending most toys on my rounds are on 25%.

[Snackmore]

The point I am making is 25% of £2 is 50p rather than excluding the VAT?

Not that I am vat registered anyway,

So that is what I mean do you all pay % of total selling price?

Thanks

Steve

[Eatsweets]

Oh I see my bad, not sure what vat they are paying as vat is 20% so it should be £1.60. I suppose it makes sense not to pay coms on the vat element. Unless you can claim back the vat paid on commission.

[Snackmore]

be interesting to see what everyone else does

[Vendingwarehouse]

Paul, sweets were only a part of the products Lee is planning to sell according to his post. Umbrellas, Poncho's, glow mouths, flashing novelties, various combinations of glow sticks are all mentioned. I very much doubt all of those would sell for £1 each. Sweets maybe will only sell for £1, but if you are waiting on the economy to grow by any considerable rate I'm afraid people will be waiting a long time. During which time costs will go up and profit will go down. At some point it will come to a point that vend prices will have to go up and I fear this will be long before growth returns to the economy.

[David@Perform]

Just in answer to some questions. We pay commission on the VAT exclusive part of the sales thus 25% of £1.67 which is £2.00 less VAT. You would be giving the VAT man an extra 7p if you calculated £2 less VAT was £1.60

Stay safe folks!

David