there was that Vending Machine thread recently that got me thinking.
Just what is it that some people have against profit?
let's say a guy owns 20 Soda machines. let's say that each machine vends 30 sodas / day. each soda costs him aproximately 30 cents and he sells them for $1.00 a piece.
so thats 600 sodas / day @ 70 cents a piece.
How much of that do you consider to be profit?
let's take out what he pays the leasor of the location he has placed his machine at, now he's down to 60 cents a piece.
so let's use that number.
600 sodas / day @ 60 cents a piece = $360.00 per day. that's good money.
5 days a week, 4.3 weeks / month = $7740.00 / month. WOW, pretty good right? but how much of that is ACTUALLY profit? this guy has to deliver 6000 sodas to 20 locations each week. let's say he does it over the weekends, and it takes him 2 days. with driving time, filling up the machines, taking all the money out, it is unrealistic to say he can do it in one day.
so now he's spending 16 hrs per week. since that part is unskilled labor let's put a value of $10.00 / hour on that labor = $160 / week * 4.3 = $778.00 / month.
so he now is sitting at $7000.00 / month profit.
then he has mileage expenses, he had to either buy or lease the machines, so depreciation expenses.
when he's done, accounting wise, i'm not sure that he would show more than $1500 / month PROFIT for this litte enterprise.
would anyone consider that OBSCENE profit?
OTOH, I am on the road a LOT. So i buy a lot of soda's out of vending machines. DO i ever resent these vending companies their "profit" or do i see it as a valuable service they are providing me?
without question. i have NO problems paying the extra 70 cents a soda to get the soda COLD. My alternative would be to buy them cheap at Costco, buy myself a refrigeration unit that i can keep in my car and load it up every morning.
anyway. just another stupid rant i guess, but it pisses me off when people overlook costs and rag on so called "profits".
Just what is it that some people have against profit?
let's say a guy owns 20 Soda machines. let's say that each machine vends 30 sodas / day. each soda costs him aproximately 30 cents and he sells them for $1.00 a piece.
so thats 600 sodas / day @ 70 cents a piece.
How much of that do you consider to be profit?
let's take out what he pays the leasor of the location he has placed his machine at, now he's down to 60 cents a piece.
so let's use that number.
600 sodas / day @ 60 cents a piece = $360.00 per day. that's good money.
5 days a week, 4.3 weeks / month = $7740.00 / month. WOW, pretty good right? but how much of that is ACTUALLY profit? this guy has to deliver 6000 sodas to 20 locations each week. let's say he does it over the weekends, and it takes him 2 days. with driving time, filling up the machines, taking all the money out, it is unrealistic to say he can do it in one day.
so now he's spending 16 hrs per week. since that part is unskilled labor let's put a value of $10.00 / hour on that labor = $160 / week * 4.3 = $778.00 / month.
so he now is sitting at $7000.00 / month profit.
then he has mileage expenses, he had to either buy or lease the machines, so depreciation expenses.
when he's done, accounting wise, i'm not sure that he would show more than $1500 / month PROFIT for this litte enterprise.
would anyone consider that OBSCENE profit?
OTOH, I am on the road a LOT. So i buy a lot of soda's out of vending machines. DO i ever resent these vending companies their "profit" or do i see it as a valuable service they are providing me?
without question. i have NO problems paying the extra 70 cents a soda to get the soda COLD. My alternative would be to buy them cheap at Costco, buy myself a refrigeration unit that i can keep in my car and load it up every morning.
anyway. just another stupid rant i guess, but it pisses me off when people overlook costs and rag on so called "profits".
.
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